THISDAY 2004 Awards for Excellence
01.04.2005

"To showcase and honour CEOs, businesses, brands, products and services that excel and demonstrate uncommon initiative, drive and market leadership in the Nigerian economy"

Year 2004 was one full of ups and downs in the business world. The year witnessed many negotiations and agitations in the downstream oil sector while the GSM market became more competitive with crash of the price of acquiring a SIM pack. Globacom continued to change the GSM market calculations as it has been a driving force in the low cost of aqcuisition. The year was also good for MTN Nigeria, as it declared its biggest profit since its entry into Nigeria. The Nigerian market also helped the MTN Group become the number one network in Africa. For locally made products like Chivita, and Indomie, the sky remained the limit as they continue to gain market acceptability. Even Indomie with the crisis it experienced in 2004 was able to bounce back. But significantly, children clothes label, Ruff 'n' Tumble got stronger during the year. The label has remained a source of pride to Nigeria. The THISDAY awards, in our usual end of year tradition, is geared towards acknowledging the performance of companies, brands, individuals and corporate bodies whose contributions helped to give fillip to the business world in 2004. 

How the Winners will Emerge
In arriving at the choices for all categories of nominees, areas of Nigeria's business life that have impacted most on the nation and economy more in year 2004 were shortlisted. They are: Bank of the Year, Banker of the Year and the Most Improved Bank, Company of the Year, Product of the Year and Brand of the Year; Transaction of the Year; Offer of the Year and Stock of the Year. In making decision and choosing the winners from the shortlist, 50 per cent of the scores will be based on the judgement of THISDAY Board of Editors. The other 50 per cent is left for our readers to decide. See enclosed form for details. Samuel Famakinwa, Mike Oduniyi, Ayodele Aminu, Uche Obike, Ndubuisi Francis, Okechukwu Kanu and Tunmise Adekunle write on what made the nominees for the various awards tick.

   Bank of the Year  
  To honour and promote the Bank that has shown  initiative, integrity and consistency in an industry undergoing major restructuring

Guaranty Trust BankPLC 
Guaranty Trust Bank Plc has always made the nomination list of this award category and this year, it is also one of the foremost contenders for THISDAY Bank of the Year Award. STB is being nominated, because of its consistency all through the years in terms of professionalism. It began its current financial year in March 2004 with a new corporate structure. Significantly, it was a renewed focus on growing its business in line with its strategic goals and a refreshing new resolve towards meeting the goals of its stakeholders. In further confirmation of its status as a professionally run bank, it retained its top industry triple A (Aaa) rating according to the latest Agusto & Co 2004 Bank Rating Report. The bank's Public Offer was a resounding success and would be remembered as one of the most professional and successful public issues ever recorded in the Nigerian Stock Exchange. In the financial reports for the year ended February 29, 2004, the bank recorded a profit before tax of N5.172 billion compared to N3.767 billion it made in 2003. Profit after tax was N4.125 billion, out of which the bank paid N2.1 billion translating to additional 45 kobo dividend per share, in addition to the 25 kobo per share the bank paid in respect of the half year. In the same vein, the bank's gross earnings increased from N16.664 billion in 2003 to N18.917 billion in 2004, profit after tax rose from N3.144 billion to N4.125 billion, earnings per share advanced from 126 kobo to 138 kobo, while dividend increased from 50 kobo in 2003 to 70 kobo in 2004, including a bonus of one for three shares. 
The bank's total assets also jumped from N90.244 billion to N133.835 billion, while deposits and other accounts stood at N75.282 billion in 2004, compared to N51.521 billion in 2003. Total liabilities went up from N80.471 billion to N121.841 billion. GTB's strong liquidity position and sound risk management structures and policies have ensured that it is increasingly attractive to international development institutions who wish to extend financial support to Nigerian businesses. Just a few months ago, after it had fully repaid the $10 million facility it got from the Netherlands Development Finance Company (FMO), the bank secured another $25 million facility from the institution. 
This landmark deal came barely a week after GTB led a consortium of local and international banks to arrange a $200 million medium term loan to mobile network operator, MTN Nigeria Communications Ltd.  GTB was also the first to acquire another bank in the on-going restructuring of the banking industry which requires all banks in the country to beef up their capital base to N25 billion before December 31, 2005. The acquisition of Inland Bank, which pushed GTB's shareholders' funds to N40 billion is believed to be the most strategic, as it would enable the bank have a strong hold in the Northern parts of the country where Inland Bank is reputed to be a strong player.

Standard Trust Bank Plc
In less than 10 years of operations, STB has gained reputation for being one of the most technologically driven and customer-centered financial institutions in the country. With over 90 branches spread across the country, STB is widely acclaimed as the bank with the largest truly on-line retail branch network in Nigeria. Early 2004, STB became the toast of the Nigeria banking industry and the stock market with its Initial Public Offering (IPO), which ended with a 254 per cent subscription. About N8 billion was raised. The subscription level was then described as unprecedented in Africa until Zenith's offer was concluded later in the year. STB also signed a $30 million credit guaranty facility with the US Export-Import Bank. The facility, which is available to customers and non-customers of the bank was to enable STB provide medium-term lending to businesses wishing to import American goods. That was the first time the US EX-IM Bank will be extending such a facility to a West African institution and the second time in black Africa after Kenya. Recently, STB, along with some local banks and some foreign banks led by Credit Suisse First Boston (CSFB) in the United States of America, signed a co-financing agreement for $1.275 billion gas project for the Nigerian National Petroleum Corporation (NNPC) and ExxonMobil. The deal was a landmark transaction in off-shore oil and gas financing by local banks in Nigeria. In other alliances, STB is playing a pivotal role with three other financial institutions to set up a credit bureau to provide the required support in area of credit administration and database development. 
According to its financial report for the year ended July 31, 2004,  STB's pre-tax profit rose by 68 per cent from N3.076 billion to N4.52 billion, while post-tax profit swelled by 60.6 per cent, from N2.5 billion to N4.1 billion. Out of the 2004 profit, the bank paid a total of N1.11 billion as dividends to shareholders in line with its pre-IPO projections. Similarly, STB's total assets and contingents stood at N148 billion mark, indicating a 53.1 per cent increase over the N96.7 billion of the previous year, while shareholders' funds advanced from N9.2 billion to N20.008 billion.

Zenith Bank
For the sixth consecutive year, Zenith Bank got 'Tripple A' rating again. Since 1999, the bank has consistently maintained a Triple A (Aaa) rating by Agusto & Co., Nigeria's foremost rating agency. The agency categorised the bank as "a financial institution of impeccable financial condition and overwhelming capacity to meet obligations as and when they fall due." 
The bank has also maintained very good asset quality and achieved the lowest non-performing loans to total loans ratio of 1.05 per cent as at 2004 year end. This is a record when compared to the industry average of about 18 per cent. Zenith Bank Plc is currently one of the most capitalised and third most profitable bank in Nigeria with total assets plus contingents standing at N215 billion as at June 30, 2004. Its shareholders' funds now stands at N36 billion while its gross earnings also increased from N7.07 billion to N23.93 billion, representing about 238 per cent growth. 
Also, pre-tax profit increased by 243.3 per cent from N1.86 billion to N6.40 billion. One thing that stands Zenith Bank out in the history of Initial Public Offerings (IPO's) in the Nigerian capital market was the 554 per cent subscription level of its IPO. The gross proceeds of the bank's IPO was N48.388 billion from which it was allowed by regulatory requirements to retain N20.39 billion and refund N28 billion to subscribers that could not be accommodated. Consequently, the bank's post IPO capital base/shareholders' funds stood at N36 billion, making it one of the largest in the Nigerian banking industry with 288,780 new shareholders. Zenith Bank has consistently emerged as the biggest player in the Dutch Auction System (DAS) for foreign exchange allocation reintroduced by the Central Bank of Nigeria (CBN), about two years ago. The bank also emerged tops in the latest website rating by Web-Jurist, a brainchild of Phillips Consulting. Its website was adjudged the most effective in Nigeria. This is an improvement over a similar survey held in April, which saw Zenith Bank clinching the second position. In another rating conducted by an international web jurist in Geneva, Switzerland, Zenith Bank also emerged the bank with the best web site in Nigeria, thus clinching the platinum award, a feat that further corroborates the Phillips Consulting rating.

  Banker of the Year
To honour and promote the banker that has demonstrated leadership, commitment,  
integrity and courage in 2004

Professor Charles Soludo
His appointment as Governor of the Central Bank of Nigeria (CBN) was a break with tradition where retired or retiring Managing Directors of commercial banks were usually elevated to the position. But as unusual as it was, nobody within the banking industry expected any significant change. Well, at least not the kind of change that would shake the existing order. They were dead wrong. Professor Charles Soludo, 44, had his own ideas of how a CBN should be run to properly play its intermediation roles that would ginger growth, maintain integrity and value of the naira and provide financial stability. 
Soludo took the banking sector by storm by announcing a few days after he assumed office that only banks with N25 billion capital base would be allowed to remain in business by December 31, 2005. Whether one agreed with the policy thrust or not, this was rather revolutionary. Yet, after the initial opposition to it, mergers, financing through the stock market and acquisitions took the centre stage. Whatever therefore happens in the coming weeks, months or years, with the 2004 'conSoludotion', as it is now being dubbed, the banking sector can never be the same again. His prescriptions for strengthening the regulatory system addressed a whole range of issues. The hike of capital base of banks from N2 billion to N25 billion is also what qualifies Soludo as one of the men who shaped the outgoing year 2004. The new capital base policy was simply part of a 14 point reform agenda geared towards strengthening the system. Notwithstanding the misgivings and the feeble resistance by some bank chiefs, Soludo is winning, in that majority of the banks are going ahead to at least talk on the possibility of mergers and acquisitions so as to meet the new capital base. A few have gone to the capital market to raise money. At the end of the day, it is believed that the banks that would ultimately emerge would be solid enough to play their proper role in the economy. That, at least, is Soludo's dream. Not everybody within the industry shares it though. 
Soludo, former Economic Adviser to the president, brings astonishing credentials to his new job. He holds a BSc, MSc and PhD, obtaining exceptional merit awards as best graduating student in all cases, both in Department and Faculty, as well as Vice-Chancellor's prize for best graduating PhD student from the University of Nigeria, Nsukka (UNN). He was a Rhodes research scholar at Oxford; Smuts research scholar at Cambridge; visiting fellow at Warwick - all in the UK. He was also a two-year Research Fellow at Brookings Institute, Washington DC; visiting research scholar, IMF, et cetera. Whether one however agrees with his reform or not, one fact remains constant: He has brought such change within so short a time that things can never remain the same again within the banking sector.

Dr. Erastus Akingbola
When Akingbola and his three friends conceived the idea of starting their own bank, they had no briefcase filled with money, so they had to make very inconveniencing personal sacrifices. Today, the bank is in an enviable position in the industry. Akingbola was the pioneer Managing Director of Intercontinental Bank, a position he still retains. Starting from inheriting an old, unused building at Beckley Street, Lagos, Intercontinental now operates from posh headquarters in Victoria Island, Lagos. Akingbola, perhaps, is the longest serving MD in the Nigerian banking industry. And his long years at Intercontinental have shot up the fortunes. Whatever Intercontinental is today, he was part of the team that made it to be so, having started from the scratch. 
The bank started with a N7 million capital, and today, this has been shored up to about N8.6 billion while its deposit base is about N70 billion. Under his leadership, the bank got the Securities & Exchange Commission ranking as the Top Issuing House in the first post-deregulation anniversary of the capital market in 1994. This was in recognition of the bank's frontline status in capital market operations. Akingbola has successfully steered the bank from its transition to a commercial bank in 1999, to its successful Initial Public Offer (IPO) in August 2002, thereby concluding its transformation into a Public Limited Company (PLC). Recently, it also carried out a Public Offer and by feelers from the market, the shares were over-subscribed. He also built Intercontinental into one of the largest and most diversified financial services institutions in Nigeria today, with thriving interests in banking, insurance, finance, discount house operations and real estate. His academic and professional background is equally as impressive as his career accomplishments. He joined the banking industry as a secondary school leaver. Later, his insatiable quest for knowledge drove him to qualify as a Chartered Banker in 1975, and to subsequently bag an MBA in Management from the University of Lagos. He became Fellow of the Chartered Institute of Bankers (UK) in 1988 and was also awarded Fellowship of the Nigerian Institute of Management (1996) and the Institute of Chartered Secretaries & Administrators of Nigeria (ICSAN) in 1998. A board member of several companies, Akingbola is an alumnus of both Harvard Business School and the Lagos Business School and holds an array of professional qualification from internationally acclaimed institutions across the globe. Intercontinental has been running a thriving group structure and is expected to scale the hurdle of the N25 billion capital base with its group structure.

Mr. Jacobs Moyo Ajekigbe
As the Managing Director/Chief Executive Officer, First Bank of Nigeria Plc, Mr. Jacobs Ajekigbe came on board at the most turbulent time in the history of the bank. First Bank had just ran into a storm created by its unguaranteed loan to Investors International (London) Limited (IILL), a vehicle created by some Nigerian businessmen for the purpose of acquring 51 per cent stake in NITEL. But under his leadership, the bank was able to weather the storm, stabilised its operations and return it to a profitable state. And ever since, the bank's profitability has been on the increase. He also spearheaded the repositioning of First Bank as a brand, a move geared at making a statement that the bank is now forward looking and progressive. 
Before the rebranding, none of the first generation banks in Nigeria contemplated such move, but now, feelers are that First Bank's counterparts are thinking along the same line. But apart from rebranding corporate outlook, the First Bank has now metamorphosed into an online bank with over 100 of its branches interconnected. Today, First Bank is reinvigorated and is competing with new generation banks in all aspects, especially in technology. All these feats were achieved under Ajekigbe's watch. Ajekigbe had earlier on spearheaded the opening of its London branch -FBN Bank (UK) Limited.

Mr. Tayo Aderinokun
Since he took over the affairs of Guaranty Trust Bank, the bank has witnessed incredible growth. His period has been a season of achievements for GTB. The bank's top quality asset and liabilities was affirmed when Agusto & Co, the leading rating agency in Nigeria, again awarded the Bank a triple a (Aaa) risk asset rating in 2004. Under Aderinokun, GTB was appointed a Settlement Bank in Nigeria, indicating a clear acknowledgement of its key role in the Nigerian economy and affirms that the bank has become truly relevant in the financial services landscape. GTB now plays where only the historically big banks used to play. Aderinokun started what the bank called Project Innovate, which is its latest internal exercise, aimed at recreating the bank with a view to establishing a leading role in the industry over the next five years. A man who is known for taking initiatives, it was as if he had a prior knowledge that banks are going to be mandated to increase their capital base in July 2004, because, weeks before the announcement, he had taken his bank to the capital market to raise more funds. Aderinokun does not look too serious but he is sound, intelligent and reads a lot. He likes things the big way. He likes to push things and it was he who drove the move by the bank to aggressively expand its branch network, one of the conditions which later paid off when CBN was going to appoint Settlement Banks. 
In a bid to further enhance its deposit base, he drives GTB's quest to have presence in the West African sub-region. At present, GTB is one of the very few banks in the country that has established subsidiaries outside Nigeria. These are Guaranty Trust Bank Gambia and Guaranty Trust Bank Sierra Leone, which are already recording profits. Today's consumers still bank in person, but they also bank by telephone and automatic banking machines, as well as the Internet. They're using the wide range of channels available to get information, compare interest rates, and so on. And GTB has always been there. 
Today, the history of on-line real time banking in Nigeria would never start without the mentioning of Guaranty Trust. For GTB, one man who has been there all these years and has played a key role is Aderinokun. Aderinokun's professional working experience has seen him working with several financial institutions.  He began with Central Bank of Nigeria in Calabar where he did his National Youth Service (1977-1978). He worked with Chase Merchant Bank Nigerian Limited (later renamed Continental Merchant Bank) between 1981-1988.  He was at Prime Merchant Bank Limited for a short stint between 1988-1989 where he was Assistant General Manager and Head of the financial services division of the bank.  In 1989, he set up a non-bank financial institution, First Marina Trust Limited, which he ran for a year before co-founding Guaranty Trust Bank in 1990.

 Most Improved Bank
This award honours the bank that has re-invented itself and refocused its vision on the path of growth in year 2004.

Access Bank
For the second time, Access Bank made our list of nominees for this coveted award because of its impressive performance. During the year, Access Bank Plc took a major step in re-engineering its operational process in its bid to improve its services by upgrading to the latest version of its Flexcube banking software - Flexcube 6.2, a development that made it become the first bank in Africa and the second in the world to deliver its services through this internationally acclaimed banking technology. 
A couple of months ago, the bank, which clinched the AFREXIM Bank 'SILVER' award for exceptional contribution to Africa's growth and development also scored 'A' credit rating from Global Credit Rating Company based in South Africa. 
Also, Access Bank which was also awarded the third best website in the banking industry by Web Jurist, managed by Phillips Consulting, emerged the bank with the highest cumulative net credit clearing position of all clearing banks for the first half of this year. Access Bank through its relationship with the EXIM Bank and other international financial institutions has continued to provide access to short and medium term financing to Nigerian businesses. It signed a $10 million agreement with the Netherlands Development Finance Company (FMO) for the provision of medium to long term financing for indigenous oil service contractors. Consequently, Access Bank became one of the only three banks in Nigeria with an on-lending relationship with FMO - one of Europe's leading development institutions. As Financial Adviser/Lead Arranger to Odu'a Telecoms Limited, Access Bank Plc during the year, sought a $10.4 million facility under the US EXIM Export Credit Guarantee Programme in favour of Odu'a Telecoms Limited for the rollout and expansion of their Fixed Wireless Network in the Western Nigeria. In line with its mandate and in accordance with US EXIM Bank procedures, Access Bank partnered with Toronto Dominion Bank, one of Canada's leading banks to provide financial cover for the EXIM Bank facility.

IBTC
The year 2004 was a very good one for Investment Banking & Trust Company Limited. The bank's expertise in the Nigerian capital market was brought to bear. The bank advised most of the banks and companies that went to raise funds from the capital market. No doubt, it is a leading investment bank and securities firm which was established in 1989 and provides a full range of advisory, investment and financing services to a target clientele, which include a select group of companies and institutions on whose behalf it commits time and energy with a view to establishing and sustaining long term relationships.
Despite having a universal banking licence, IBTC's strategic direction remains focused on investment banking and wholesale banking, with the resources of the bank fully employed to support activities in these areas. By collaborating with overseas investment banks and multinational agencies which has placed the bank in good stead to further leverage upon ample resources, IBTC keenly deploys much of its resources on its core competencies. IBTC's Corporate Finance department has over the years developed a core competence in structuring large and complex corporate finance transactions in a timely and efficient manner. Its expertise is recognised both locally and internationally and has built and maintained a strong track record in the Nigerian capital market. Over the years, various clients, including various multinationals quoted on The Nigerian Stock Exchange and foreign clients, have benefitted from IBTC's knowledge and experience of corporate finance. 
IBTC has been the leading Issuing House by transaction value in Nigeria since 1993. During this period, it has acted not just as Issuing House, but also as Financial Adviser to the country's top companies including Patterson Zochonis Industries Plc, Cadbury, Julius Berger, Nigerian Bottling Company and UAC. IBTC Asset Management Limited is the wholly owned stockbroking and asset management subsidiary of IBTC. The Company manages The IBTC Nigerian Equity Fund, Nigeria's largest open-ended equity fund quoted on The Exchange. The IBTC Group had several billions of naira under management/investment advice. IBTC Asset Management is one of Nigeria's leading stockbroking houses (by transaction value) and executes sizeable trades on behalf of local and international institutional investors, as well as high networth individuals.

Intercontinental Bank
The bank was founded March 1989 as Nigerian Intercontinental Merchant Bank Plc, a wholesale bank established in response to the growing needs of an increasingly sophisticated banking public. With a corporate philosophy emphasising innovation, service, excellence and customer-focus, Intercontinental soon made its mark as a bank of choice for customers in need of prompt and reliable services backed by state-of-the-art technology.
Within five years of existence, in 1993, the bank was adjudged the top Issuing House in the first deregulation rating of the market, while its pre-tax profit of N592.6 million for the same year was the highest in the merchant banking sub-sector. The bank has maintained this trend of profitability and its group profit results surpassed the one billion naira mark in 1998. Intercontinental has also grown to become one of the largest and most diversified financial services groups in Nigeria, with a controlling stake in Equity Bank, a thriving commercial bank; substantial interests in a discount house, Intercontinental Capital Markets Ltd. and an associate company, Intercontinental Securities Ltd, that in turn has majority equity stake in an insurance firm, WAPIC. The bank has sustained its strong innovative roots, as evident in market-leading treasury products such as the Intercontinental Diamond Fund and the Intercontinental Valuable Yield Account. 
In July 1999, Intercontinental converted to a commercial bank, to better position it for excellent service delivery to both local and international clientele in the next millennium. The total asset base of Intercontinental hit a record high of N110.6 billion according to its audited financial results for the first eight months of 2004, approved by the Central Bank of Nigeria (CBN) weekend. The growth is about 70.6 per cent rise over the N64.8 billion recorded in the corresponding period of 2003. The audited results also saw other performance indicators recording impressive growth. This represents a monthly growth of N13.8 billion, or 70.4 per cent, which is a quantum leap from the monthly growth of N8.1 billion or 52.8 per cent recorded in the corresponding period in 2003. The shareholders' fund of the bank also rose by 52.2 per cent to N13.1 billion as against N7.2 billion in previous year and with this growth record, capitalisation of the consolidated Intercontinental Banking Group may hit N30 billion by end of current financial year. That is about N4 billion above earlier estimates and N5 billion above CBN's new directive of N25 billion minimum capital base. The bank's total assets is expected to hit over N193 billion by mid 2005 and this could see the projected total assets for the consolidated Intercontinental Bank Group overshooting the earlier projected target to over N300 billion by end of its current financial year. A breakdown of the balance sheet showed that deposit base rose by 71.4 per cent to N75.4 billion in contrast to N66.4 billion achieved in 2003. This performance showed that the bank was able to grow its deposit base by N9.4 billion, or 77.8 per cent per month compared to a monthly deposit growth rate of N5.5 billion or 41per cent achieved in 2003.
Similarly, the bank recorded an impressive 13.9 per cent growth in its gross earnings, which, stood at N16.4 billion at the end of August, compared to N14.4 billion in the same period last year. A further breakdown of this results showed that the bank raked in monthly gross income of about N2.1 billion as against the monthly income of N1.8 it earned in 2003.  Details of the results showed that the bank grew its profit by 19.5 per cent to N3.5 billion in contrast to N2.9 billion in 2003, while shareholders fund rose by 52.2 per cent to N13.1 billion as against N7.2 billion in previous year. With this sound financial health in terms of earnings, earning mix, asset and asset quality, as well as capital adequacy and liquidity position, Intercontinental is not only one of the strongest in the industry, but a bank that rebounded and is now positioned to deliver consistent returns in the years ahead.

 Company of the Year
To honour and showcase the most dominant company in the Nigerian economy in the year 2004

Globacom
At inception, Dr. Mike Adenuga, Globacom chairman had said that by investing in telecommunications, he was hoping to empower Nigerians through affordable acquisition and access to phones. Before Globacom, a prepaid line was going for as high as N16,000. In 2004, Globacom matched words with action. The company crashed the acquisition cost of a line to N1,999 (consisting of N1 for the SIM and N1,998 for airtime). Because of the pacesetting initiative by Globacom, other networks were immediately forced to follow suit with similar price reductions. In August 2003, by launching its services with the per second billing option, Globacom had demystified the other networks' position that per second billing was only possible by 2007. In the same way, in 2004, Globacom also removed the mystery about building an extensive microwave backbone and the 'technology wonder' tag attached to such a project. Without any pomp and pagentry, Globacom built a microwave backbone in 2004 that has seen it fast track its coverage around the country. Along the expressways Glo now covers, Aba - PortHarcourt, Abeokuta - Offa, Abuja - Kaduna, Abuja - Minna, Epe - Ijebu, Ibadan - Ile-Ife, Ile-Ife - Ilesha, Ile-Ife - Ilesha, Ilorin - Offa, Ilorin - Ogbomosho, Lagos - Abeokuta, Lagos - Badagry, Lagos - Benin, Lagos - Epe, Lagos - Ibadan, Otta - Idiroko, Sagamu - Abeokuta, and Sagamu - Benin. 
Also in 2004, Glo Mobile through its Profit Max scheme effectively crashed the cost of calls by commercial phone operators. It had been N30 per minute for a long time, but with a flat airtime rate of N21 and 15 percent bonus airtime to subscribers who use N20,000 airtime and above within a calendar month, Glo was able to crash calls to between N15 and N20 per minute. In 2004 Glo's nine Mobile Switching Centers were upgraded to 5 million installed capacity. Advanced work on three additional switches in Benin, Bauchi and Lagos will ensure that by January 2005, Globacom's total installed subscriber capacity will come to 8 million lines. Glo Fixed took giant strides in 2004 towards the launch of the first phase of its fixed line services to be available in 15 major cities in Nigeria. Deployment has begun of the 10,000 km long private optical fibre backbone network with a capacity of 550,000 lines. A distance of over 3000 km of microwave ring now in service will increase to over 6,000 by the second quarter of 2005. Globacom's fibre optic link will take two routes from Lagos. One link going through Epe - Ijebu Ode - Ore - Benin is under construction and will be in service as from January 15, 2005. The other link from Lagos through Sagamu-Abeokuta -Owode - Ibadan also under construction will be in service as from January 15, 2005. Fiber link from Ibadan- Ilorin -Minna- Abuja- Makurdi - Port Harcourt - Owerri - Enugu -Onitsha -Benin which will complete the ring will be in place in the third quarter of 2005. A fiber link from Abuja - Kaduna - Zaria - Kano has been completed and is now ready for lease. A metro fiber ring being planned for Lagos and Ibadan expected to be completed in the first quarter of 2005. 
With the completion of fiber optics link, other licensed telecoms operators will be offered transmission backbone link on any required route. Globacom started commissioning its international switches in five of the six continents of the world in 2004. It has launched its switch in the United Kingdom. Others to follow include the switches in Paris, France; Frankfurt, Germany and the United States of America. Switches will also be launched in Singapore and Hong Kong in Asia, the United Arab Emirate in the Middle East and the Australian continent. Globacom has rapidly spread its sales and customer care arm, Gloworld, across the country. Since the commissioning of the first outlet in Abuja on September 24, 2003, Gloworld now operates in thirteen branches, including, Apapa, Victoria Island, Surulere and Ikeja in Lagos; Abuja, Asaba, Benin, Ibadan, Enugu, Kaduna, Kano, Port Harcourt and Warri.


MTN
MTN shocked the entire telecommunication industry recently when it announced its half year financial results for March - September 2004 period, showing a profit after tax of N32.765 billion. Never in history has any private company made such a huge profit in Nigeria. Although, it had deferred taxes, the amount it made was still awesome. The mobile telecom firm is said to now have some three million subscribers while the MTN group continues to make more money in Nigeria than in its far more established South African flagship operation. The Nigerian result rose by about 28 percent compared to the same six months in the previous year. 
MTN Nigeria operations remained more lucrative despite a lower profit margin at the company as Nigerians were said to still spend on average $48 per month on MTN, compared to $29 the company makes per month per individual in South Africa and $23 in Cameroon.  However, MTN's profit margin in Nigeria as measured on earnings before interest, tax, depreciation and amortisation (EBITDA) stayed at 51 percent. The fast-growing MTN network in Nigeria also saw it overtake its South African operations in another important respect. 
MTN now values its assets in Nigeria at just over N242 billion, representing nearly a third of its total assets. Its South African assets were valued at R10.127 billion. Much of the new Nigerian assets are base stations, of which the company rolled out 344 in six months between March and October. The new base stations it said, now covers 30 percent of Nigeria geographically and 56 percent of the population. Far more base stations are to be rolled out before the company ends its financial year in March 2005. MTN announced in 2004 that it now had the ability to build around 100 new base stations per month and the company has N143.6 billion earmarked to be spent in Nigeria before March 2005. 
It also announced it is still considering listing up to 25 percent of its Nigerian operation on the Nigerian Stock Exchange but is not close to finalising the deal. The group had shocked the market early 2004 by announcing a possible initial public offering in Nigeria but has provided no detail since. A listing of 25 percent of MTN Nigeria would make it one of the biggest shares traded on the Lagos exchange. The close to three million Nigerian subscribers the company boasts of makes up 24 percent of the MTN group customers across its operations including those in Cameroon, Uganda, Rwanda and Swaziland. MTN said it was on track to have 3.5 million customers in Nigeria by March 2005 thanks to massive response after it reduced its connection fees. MTN Nigeria continued with its accelerated network rollout, commissioning 344 base stations and eight switches during the last six months of 2004. MTN Nigeria secured an additional $200 million finance facility from local and international financial institutions to accelerate network roll out. In line with the innovative edge of the brand, MTN has over the years launched a variety of products and services. Products launched by MTN include bizTIME Classic, MTN Flexi, Pay As You Go, bizTIME Zero Access Range, Booster card tariff option, proTIME and a range of value added services such as international roaming. MTN is the only network today that has presence in all the 36 states of Nigeria including the nation's capital. Its presence is overwhelming across the country, spanning tens of cities and thousands of communities across Nigeria, the company's coverage of Nigeria is unparalleled in the industry. As a result of the performance of MTN Nigeria and future potentials, the MTN Group in 2004 upgraded the Nigerian operations and is devoting more management time which is expected to aid its planned rapid expansion. This led to a change in the leadership of the company which brought in Sifiso Dabengwa. Dabengwa is said to be an operations person with engineering background and his coming to Nigeria is important because there is an urgent need to begin to stabilise the Nigerian operations and get the network ready for the likely entry of serious competition. Dabegwa doubles as the COO of the MTN Group.

SHELL 
The Shell Petroleum Development Company (SPDC), is Nigeria's biggest oil producing company, contributing over one million barrels per day  (bpd) of the nation's crude oil production of about two million bpd, and significant foreign exchange earnings for the country with high dependence on petroleum revenue. 
Shell operates a joint venture partnership in crude oil and gas exploration and production with the Nigerian National Petroleum Corporation (NNPC), TotalFina and the Nigerian Agip Oil Company as the other shareholders. With its strength as the leading crude oil producer in the country, Shell also holds sway in the gas sector, where it is presently the biggest private investor and gas supplier, with over 50 percent input of feed gas in the multi billion Dollars Nigerian Liquefied Natural Gas (NLNG) project.
Its might in the oil industry and the Nigerian economy is further fortified by its other two additional firms: the Shell Nigeria Exploration and Production Company (SNEPCO), its deep water specialist oil firm, with huge oil discoveries offshore, and the Shell Nigerian Gas (SNG) Company, saddled with the initiative of pioneering downstream gas development in the country.
Shell has moved positively to improve its community and environmental developmental contributions in the country in the past decade, having presently the largest social investment on community development of up to $60 million per annum.
Shell recently appointed Basil Omiyi as the first Nigerian CEO.

 Product of the Year
To promote and showcase the most innovative proudly-Nigerian product in the year 2004

Chivita
Chivita is produced by Chi Group, a division of Tropical General Investment (TGI), an international Investment and holding company for a group of companies with diverse interests. TGI has investments in Nigeria, Ghana, USA and the Republic of Benin. Chivita became a household name as a result of the impact of the hundred percent destination inspection which barred close competitors from the market and exposed the quality of Chivita to the average Nigerian. And ever since, it has continued to grow from strength to strength while its penetration capacity to the Nigerian homes remains unprecedented. 
Chi's installed capacity for fruit drink before 2004 was well over 10,000 pouches per hour, which is equivalent to 250 cartons per hour. But it has increased all these in 2004 as a result of its acceptability by Nigerians and neighbouring countries. It got what could be termed to be the highest recognition in 2001 when President Olusegun Obasanjo publicly declared his preference for Chivita fruit drinks and barred foreign ones in Aso Rock. Ever since then, it has been widely accepted by Nigerians while its quality continues to get better. 
In 2004, it added other flavours to its wide range of products and they were instant success. Chivita is now being exported abroad. Its range of products are packaged without preservatives unlike some imported ones. For this innovation, Chivita may continue to make our nomination list.

Indomie Noodles
It is no longer news that Indomie Instant Noodles is a product of DeUnited Food Industries Limited with factories located in Ota, Ogun State and Port Harcourt, Rivers State. The company has an installed capacity of 500,000 packs and 468,000 packs per day respectively, which has made it enjoy unparalelled monopoly in the country. Few days after Indomie got the INS ISO 9001: 2000 mark of quality, the product got into a serious crisis emanating from alleged poisoning of some batch of its products. One of the supposed victim was one Mr. Oluyemi Moritiwon who was alleged to have started stooling and vomiting after a meal of Indomie Instant Noodle Chicken flavour. The deceased's family members confirmed the incident but informed the NAFDAC team that the deceased was reported to have died from enlarged heart conditions one week later. That was the height of the crisis. Even when Indomie Instant Noodles which  was first registered in 1997 and so far has seven flavours duly registered by NAFDAC was cleared by the much respected regulatory body, National Agency for Food Drug Administration and  Control (NAFDAC), many people were still afraid to touch the usually popular meal. NAFDAC gave the directive that its factories be shut down. Despite appeals to the public and the search by NAFDAC state offices, no other death linked to Indomie Noodles consumption was established. While all these went on, Nigerians especially children who are Indomie addicts were waiting for the NAFDAC's pronouncement. Immediately the pronouncement came, the patronage of Indomie started to soar again. Backed by a very aggressive campaign that involved road shows, the Noodles in less than three months of crisis won back the heart of Nigerians. It takes beyond the ordinary for any product to find itself in such crisis and bounce back soon. Indomie has invested in the Nigerian educational sector by supporting schools through its Indomie Schools programme and impacting on the lives of the Nigerian child. Indomie by this feat, proved that it is a product that is synonymous with Nigerians and therefore cannot be discarded in a hurry.

Ruff 'n' Tumble
Ruff 'n Tumble fills a niche market for American-style kids' clothes for middle-class Nigerians. The clothes are made in Nigeria, owned by a Nigerian and is everything Nigeria but for the styles. However, the products would compete with any design made by Gap, Mothercare, Calvin Klein, etc. Ruff 'n' Tumble is a Nigerian brand. It shows something good can come out of Nigeria anyway. It is about kids. In fact, the idea of the name came from the playful spirit that children have, says Adenike Ogunlesi, owner of the company. Of course, children by nature are very playful. No matter what you dress them with, they will still play, jump about and tumble in it. That is just the way children are. So, Ruff 'n' Tumble is born out of the very nature of the children. Incidentally, no consulting firm helped with the name. It was just Ogunlesi and her neighbour who came up with it. Two housewives with babies she says, formed the name outside the kitchen door. There was no business plan and no feasibility study. The proudly Nigerian brand was just the brainchild of a woman with a very strong desire to pursue a dream. That dream was to make the best clothes in Nigeria. That dream has today become a corporate image. It was only after the business was born that she started learning about branding, strategy, and all that were needed to promote the business. Entering any of the company's stores, one will not find anything for adults. Its just kids under the Ruff 'n' Tumble label. Garment industry globally is a highly competitive one. A designer must be unique. Ruff 'n' Tumble is unique. It is a proud Nigerian label. The company deserves commendation for faring where 'angels' feared to tread.

  Brand of the Year
To promote and showcase the most innovative and dominant Nigerian brand in the year 2004

Globacom
Aside the introduction of per second billing platform into the Nigerian market at a time other operators felt it was almost impossible in 2003, Globacom made  historic leaps in 2004. In the first phase of the introduced Talk Now Promotion, the company put the immediate financial outlay for the acquisition of a line at N3,000. The balance of N4000 was to be spread over three months, making the subscriber to pay about N1,333 monthly. In the second phase, the balance was to be spread over six months. This brought monthly payment to N800 only. The offices were blocked as subscribers trouped in their thousands to Glo offices around Nigeria. Thus setting the tone for competition. Now the latest from Globacom was the N1 SIM pack campaign which forced competition to also drop prices. As at now, no SIM pack of any label is sold for more than N1000. That Globacom as at now has close to 2 million subscribers equaling or taking the second position from Vmobile says a lot about a fruitful and impactful 2004 for the company. Globacom launched its 2004 campaign with the Magic Ball which had the potential to reach all the nooks and crannies of this country. The Magic Ball rolled around, covering almost the entire West, crisscrossing the South-South, penetrating the crannies of the South East, cruising to the soft lands of the Savanna, going to the tips of the Sahara in the North and soon will land at the Sultanate in the North West, having earlier reached Kano. Advertising professionals adjudged the commercial a master piece. But it was only a harbinger that announces the real things to come. Soon, lamp posts of Daddy Showkey's per second offering took over the entire streets of Lagos, Abuja, Port Harcourt and other major cities. 
Bill boards of different shapes and sizes enlivened the Glo campaign and inhabitants of different towns in Nigeria woke up to a touch of wall drapes. which have never been this beautiful. Globacom, did not stop at this in painting the country green. High masts that for a long time had been left fallow or even abandoned were revived.  From the blues, Globacom also popularised air frames and everybody appeared to have joined in the frenzy. In 2004, Globacom made many claism in the area of superior technology. Glo Mobile, it said,  is the only 2.5G network in the country at present. Globacom also intensified its sponsorship drive especially with the Globacom league.  Super Eagles had the support of the brand at the 2004 Nations Cup. Enyimba Football club can bear witness. Ikoyi Club golfers can testify, while Kaduna Polo turnament participants are the most recent witnesses. At the rate Globacom is going, the whole nation will soon start Glowing with pride.

Guinness Stout
The first hot air balloon free flight ever to have taken to the Nigerian skies was witnessed as the opening act for the launch of the new Guinness bottle in Nigeria. The launch was 3-phased: the balloon PR icon, followed by the launch event featuring Wyclef Jean, and the roll-out 8-city concert tour. The balloon's first flight (license 001) was in Aba, then into Benin where it flew over the city. Residents of Benin were treated to a spectacular and memorable first experience. The Guinness Breweries in Ogba, Lagos was the next destination, followed by a night light-up at the Guinness Launch Concert. Governors like Orji Uzor Kalu of Abia State,  Lucky Igbinedion of Edo State and Lagos State's Asiwaju Bola Tinubu, represented by deputy governor Femi Pedro eulogised the new bottle in their different capacities. 
Wyclef Jean, the Haitian hip hop/R&B superstar, kicked off with a series of concerts in Lagos, Port Harcourt and Abuja. The momentum was carried through to Nigerians with the Black Gold Concert Tour, showcasing the Guinness brand and the best of Nigerian music. Added to the mix were spectacular dance parties with laser shows and the greatest lighting display yet seen in the country. The campaign also  offered among other prizes,  a lifetime for 50 lucky Nigerians who aside from winning entry tickets to  the Guinness Black Gold concert through an SMS competition,  also had the opportunity to meet Wyclef Jean at an exclusive SMS winners' breakfast party with their photograph taken with him. 
The Short Message System(SMS)  competition was available to all mobile phone users using the 1759 short code, coined after the date Guinness was launched in Dublin, Ireland. Wyclef is a superstar with endorsements from big designers like NIKE and FUBU. Wyclef comes out and thrives in style, owns 47 customised cars and drives a state-of-the-art power bike. His arrival and interaction with all Nigerians irrespective of their status showed what a humble and friendly person that he is. That Guinness used such a person as endorsement according to industry analysts, says how stylish and all-strata- friendly the drink is. The entire campaign was delivered in a way that reflects the changing lifestyles and aspirations of contemporary Nigerians.  The concerts were not just jamborees, but a statement about brand essence which has made the brand remain far above its competitors. This campaign which was put in place for changing the bottle of Guinness Extra Stout, for the first time in 150 years started with the leveraging on the signature of Arthur Guinness as a signature of quality, heavily on radio, television, posters and billboards. 
The new bottle campaign by Guinness Extra Stout, aside stifling competition, also led to unprecedented counter ads which industry players received with mixed feelings. The new bottle change campaign will remain one of the most impactful brand campaign in Nigeria. The campaign has not only retained brand loyalists, but has also won myriads of converts.

MTN
Brand MTN in 2004 became one of the biggest owners of sponsorship property in Nigeria and Africa with recent acquisition of the title sponsorship of the CAF champions' league now called MTN CAF Champions league. MTN also sponsore Polo and Golf. In addition, functions such as Trade fairs, the WinBiz seminar and NESG remain key to MTN's marketing and communication strategy. In November 2004, MTN launched a new communication campaign tagged "Life is Beautiful".  The launch of the campaign was preceded by a teaser campaign tagged "What's beautiful?" This campaign saw the birth of new TV ads such as "Dance with me" and "Na Boy". "Dance with me" is currently receiving good international acclaim. The teaser campaign by industry assessment remains one of the most attention soaked and suspense driven teasers after the Mirinda Orange Men campaign over a decade ago.  On the revelation of the campaign, all existing MTN billboards were replaced with new materials. In addition, lampposts were deployed to ensure penetration into the market. High brand visibility was achieved by deploying mechanising materials such as A-signage's at various dealer outlets. This A-signage's that were pioneered by MTN has now become the standard for merchandising and a core advertising medium for some brands in Nigeria. In 2004, MTN's activities in Nigeria gave the MTN brand the number one position in Africa, taking over from Vodacom that used to be a distant winner. MTN helped in changing the erroneous belief that doing business in Nigeria is not profitable. In 2004, MTN4U promotion, held to mark its three years anniversary in Nigeria got overwhelming entries than perhaps any of its campaigns in the past. As a socially responsible brand, MTN apart from its sponsorship and communication innovation is perhaps one of the most socially responsible companies in Nigeria. In the current financial year, MTN has set aside one per cent of its profit to charity. In 2004, MTN remained in forefront at promoting the transfer of information technology and is currently working with various schools via the MTN School Connect project. 
MTN in 2004 also intensified the use of customised brand look and feel in marketing communication. Of course, four of the seven awards won by TBWA/Concept at the 2004 edition of the Brand Marketing Awards in their categories were on the MTN brand. MTN is adjudged to be one of the fastest growing brands in Africa and the number one brand in Nigeria. Over the last three years, MTN as a brand has broken several frontiers and has changed the communication outlook of not just the telecommunication industry but also the marketing communication industry as a whole.

  Offer of the Year
To promote and showcase the public offer that promotes and unlocks most shareholder 
value in the year 2004

GTB Public Offer
The recent announcement that Guaranty Trust Bank (GTB) Plc now has a capital base of N34 billion after its successful Initial Public Offer was equally a demonstration of the high confidence that the investors have reposed in the bank. GTB recently went to the capital market with an offer for subscription of one billion ordinary shares of 50 kobo each at N10.60 per share which was also over-subscribed. Thanks to the bank's innovative and widespread marketing approach which saw it engaging the public in various ways. The Nigerian stock market has indeed been enriched.  By acquiring Inland Bank Plc recently, Guaranty Trust Bank became the first bank to successfully effect acquisition after the Central Bank's call for mergers and acquisitions in the banking industry. The bank currently has 94 branches following the acquisition of Inland Bank.
As at December 21, 2004, the bank's market capitalisation on the Exchange stood at N70.140 billion with shares outstanding at six billion traded at N11.69 per share. The bank's performance for 2003/2004 was impressive as it recorded profit before taxation of N5 billion, representing a 24 per cent increase over the figures reported for the previous period. The bank's annual report and accounts for the period reveals that despite further downward review of lending rates in the course of the year, the bank succeeded in efficiently managing cost of funds which resulted in a 17 per cent growth in Net Interest Margin from N5.4 billion to N6.5 billion in the year under review. 
Its gross earnings grew by 11 per cent over the figure reported for the previous year to N18 billion, while ordinary business activities yielded a profit of N4.8 billion. GTB declared N750 million as interim dividend at the rate of 25 kobo per share. This was 17 per cent more than the interim increase over the dividend declared at the end of the previous half-year. This was in addition to N1.35 billion as final dividend at the rate of 45 kobo that brought the total dividend to N2.1 billion gross, or 70 kobo per share. This, besides, was against a total dividend of N1.5 billion paid out the previous year. The bank also gave out a scrip issue of one for every five units to shareholders.

Oando's Public Offer
Oando Plc recently recorded 167.8 per cent subscription for its rights issue, while it achieved 459 per cent subscription in its offer for subscription. This performance also demonstrated the high confidence of investors in the activities of the company. The company had made a successful completion of its combined Offer for Subscription of 31,419,785 ordinary shares of 50 kobo each and supplementary offer of 112,797,015 ordinary shares of 50 kobo kobo each at N97.50 per share, in addition to the Offer by Way of Rights of 20,384,957 ordinary shares of 50 kobo each at N95.00 per share. 
Oando recently projected over N216 billion revenue to be achieved by 2008. The petroleum marketing company is aiming to be number one in shareholder value, number one in quality of products, staff salaries, remuneration with a promise to go extra miles to deliver. Oando is already building a mega tank in Lagos, while it has secured a deep draft location which will help in bringing products at a cheaper cost because the ship will be bigger. It will commence construction this year. The company is also expected to commence haulage of petroleum products by rail, even as it has the Nigerian Railways Corporation's deposit of N50 million to the contract service. It is refurbishing a five locomotive tank which is almost completed and 100 tanks wagon.

Zenith's IPO
Zenith Bank recently emerged the first company in the history of the Nigerian capital market to successfully raise over N48 billion through an Initial Public Offering (IPO). Investment analysts confirmed that it was the first time a company, or government will register such a huge success with an IPO. Even the recent Federal Government Bond could not record half of this success. The bank mid 2004 went to the Nigerian capital market with Offer for Subscription of 800 million ordinary shares of 50 kobo each at N10.90 per share and the target was to raise gross proceeds of well over N15 billion. 
The bank recorded N48.5 billion subscription, representing 556 per cent subscription, considered the largest in the history of the Nigerian capital market. Investment analysts said the significant jump from the bank's IPO initial target of N15 billion to N48.5 billion was an indication of the very high level of confidence the investors who are spread across the 36 states, the Federal Capital Territory (FCT) and Nigerians in diaspora have in the management of the bank. With outstanding six billion shares at N15.69 per unit valued at N94.140 billion as at December 21, 2004, Zenith Bank was placed second among the top most capitalised stock on the Exchange, next to Union Bank of Nigeria Plc which has N95.036 billion with an outstanding shares of 4.474 billion at N21.24 per share. The bank has consistently maintained very good asset quality achieving the lowest nonperforming loans to total loans ratio of 1.05 per cent as at 2003 year end, compared with the industry average of about 18 per cent. 
The bank has an outstanding e-business department that handles issues relating to all electronic products which include telephone banking, mobile banking, internet banking, Zenith view facility, flow line facility, on-line bills payment and electronic bills collections to mention a few. The bank recently informed the Nigerian Stock Exchange that it has embarked on a process of acquiring a bank. 
Incorporated as a private limited liability company on May 30, 1990, it was granted a banking licence in June 1990 and commenced operations July 16, 1990. The bank acquired majority shareholding in three companies incorporated in Nigeria, Qubit Spectrum Limited, Venus Telecom Limited and Cyberspace Networks Limited under the Small and Medium Industries Equity Investment Scheme [SMIEIS).

Transaction of the Year 
To promote and showcase the transaction in 2004 that can best impact on the people and 
economy of Nigeria

ARM/LASG 4th Mainland Bridge project
Lagos State Government announced in 2004 that work on the 26.1km Fourth Mainland Bridge had reached advanced stage with the completion of the design and the assembly of the consortium that will handle the construction of the project billed to take off first quarter of 2005. Asset and Resource Management, a subsidiary of Guaranty Trust Bank is the Financial Adviser to the project. Lagos State is also building other roads in what it termed a $350 million Lagos Infrastructure Project (LIP) which would be a public-private participation scheme. The scheme's total package is to build Allen-Opebi-Third Mainland Link Bridge and upgrade the Lekki- Epe Expressway. Governor Bola Tinubu had also announced last year that work on the 3.7km Opebi-Mende Link Bridge will begin in the first quarter of next year, and is billed for completion in the last quarter of 2006. The lengths of the other roads are Osborne-Lekki (11.2km), Coastal (150km) and Fourth Mainland (26.1km). To facilitate the project, Lagos State government enacted a law that will ease participation of the private sector in road development and ensure public interest in the state. It has promised tax-waivers and other business friendly measures to attract private investors and ensure reasonable rewards for investment. Mr. Deji Alli of ARM was quoted to have said that about $36 million had been spent already on the various activities without a kobo of public funds. He noted that having "bought into" the administration's vision of finding a permanent solution to traffic congestion and developing good quality towns, it looked for companies with competence/relevance and practical experience as partner on the project. He disclosed that following the concessions, the company has undertaken feasibility studies, and preliminary design works. Also, Books Global Ltd and Africon Limited, the South African company involved in the engineering design said the total length of roads envisioned is about 136 kilometres. Under the various scheme, Mr. Peter Krugger, the company's representative disclosed that an initial sum of $45 million will be spent on the Opebi-Mende Link while Lekki corridor road network will cost N140 million. He further disclosed that toll plazas will be introduced with a cashless system of e-toll or a pay-as-you-go voucher system, adding that the advantages of the roads lies in about 30 minutes travel time saved along with saved operational costs. Speaking on the financial challenges of the project, Managing Director of Stanbic Africa, Mr. Sim Shabalala, said there is a planned desire to source part of the initial $300 million required locally within the capital market and the Nigerian financial system.

Ajaokuta/Ispat Finance 
No other project perhaps sign-posts the culture of waste that has characterised leadership in Nigeria than the Ajaokuta Steel Project. Conceived in the early 1970s, the execution of the steel project actually began when the Federal Government set up the Ajaokuta Steel Company Limited (ASCL) through the promulgation of the Nigerian Steel Council Decree No. 60. The plant was designed to produce 1.3 million tonnes of liquid steel per annum in phase one, with built-in facility to expand to 2.6 million tonnes in the second and 5.2 million tonnes in the third phase. However, 24 years later, and after gulping more than $5 billion (N665 billion), the first phase of the project, seen as the bedrock of industrialisation in the country, is even yet to take off. President Olusegun Obasanjo indeed raised the hopes of Nigerians when he promised shortly after assuming office in May 1999 that the Ajaokuta Steel Plant would be brought back to production. In keeping with that promise, the Federal Government signed a technical and management agreement in August 2004, with an Indian steel outfit, Global Infrastructure Holdings Limited (GIHL), a member of the ISPAT Group. The agreement would see GIHL take full control of Ajaokuta Steel Company, at no cost, for 10 years, which is renewable for another 10 years. It is for the rehabilitation, completion and operation of the Ajaokuta Steel Project, leading to the production of 1.3m tonnes per year capacity of liquid steel. The icing on the cake for this deal is that the group also holds the first right of acquiring the company should the Federal Government decides to disinvest from the troubled steel company. The Federal Government/ISPAT management pact followed the earlier botched agreement with US energy group, SOLGAS. After failing to get a commitment from the Russian contractors that handled construction of the plant, the Federal Government in June 2003 signed a contract with Solgas Energy Limited, where the latter pledged to inject $3.6 billion into the resuscitation of the plant as well as its power generation unit. 
The SOLGAS deal was initially to last 24 months. But some 12 months later and with no concrete sign that the plant would ever roll out any steel, the Federal Government terminated the agreement with SOLGAS, describing its new 10-year concession