May 18, 2015 - Uncategorized    No Comments


From Archive…..

You must have seen it in the news earlier this week the announcement of the tremendous increase (almost doubled) in the Nigeria’s Gross Domestic Product (GDP) by the National Bureau of Statistics. Even though economist and analyst have disagreed in this new figure, it is long due on the basis of which NBS calculated it. The announcement will also have some practical implication on the Nigeria economy whether, the figure is window dressed as believed by some citizen or not. One of the implications includes the psychological impact on foreign investor. But this is not my focus in this post today; I will look at the implication in details in my next post or the one after my next.


Today’s post will be focused on the practical meaning of Gross Domestic product (GDP) as the most important macroeconomic indicator and why it is so important in a non-technical language. My   aim of doing this is for you to understand what this figure usually reported in percentage really mean before you make comments or form an opinion on the announcement by NBS.

GDP is what I can also describe as National Output referring to the total amount of goods and services a country produces in monetary terms (Naira value). This figure is like a snapshot of the economy at a certain point in time. It (GDP) is one of the primary macroeconomics indicators to measure the health and wealth of the country’s economy – you may also say is the size of the economy. GDP is usually expressed as a comparison to the previous period such as quarter or year. For example NBS announced a rise in GDP from $270bn to $510bn which represents 89% increase; this means the economy has grown by 89% over the years.

Measuring GDP is complicated (which is why we leave it to the economists), but from a lay man’s perspective, the calculation can be done in one of two ways: either by adding up what everyone earned in a year (income approach), or by adding up what everyone spent (expenditure method). Logically, both measures should arrive at roughly the same total. Since it is assumed that what you earn is what you spent apart from savings.

When referring to GDP, macroeconomists tend to use real GDP, which takes inflation into account, as opposed to nominal GDP, which reflects only changes in prices. The nominal GDP figure will be higher if inflation goes up, so it is not necessarily indicative of higher level of output only by higher prices of goods and services. So I am only referring to real GDP in this post.

The one demerit of the GDP is that because the information has to be collected after a specified time period has finished, a figure for the GDP today would have to be an estimate. Once a series of figures is collected over a period of time, they can be compared over periods. Of course; these figures can be compared across economies as well. Hence, we can determine which foreign countries are economically strong or weak.

Based on past figures, analysts and investors can then begin to forecast the future state of the economy which can also be use for the basis of business and investment decisions. It is important to remember that what determines human behaviour and ultimately the economy can never be forecasted accurately.

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May 8, 2015 - Uncategorized    No Comments


For most of us, one of the things that make us happy in life is having a child. Especially in this part of the world, where children are considered to be the fruits of marriage and source of joy for a couple, which even becomes a problem when a couple is married for sometime without an issue. It is indeed such a big blessing to be a parent. Ask those who are not blessed with children or who lost their child to an illness or accident, and you would realize that being blessed with a child is a blessing.

In the past 11 month I have experience what it feels like to be a father – a responsible one for that matter – and I am enjoying big time because I have learnt and still learning a lot and exposed to new perspective about life. Fatherhood has open up for me a new window of a purposeful life. I enjoyed going back home to see my son, and the joy I feel when I hold him in my arms cannot be infinitely quantified  to the joy I feel when I am expecting the bank credit alert for my 30-days labour.

The role of the father to me should be more than that of just finance (making the money available for the family) and administrative (pick and drop the child at school and such tasks). The father in spite of his busy schedule should be involved in activities such as care, discipline and communication with the child. It’s no gain saying that a father’s presence has a huge impact on the development and wellbeing of their child. All of the things that are presumed to be the mothers’ responsibilities can also be done by the father once in a while if time permit.

I have principles and plans on parenting our son which I will be working together with my wife on.  I did like to share some of the gems on the list that might benefit you:

  1. Teach him how important worshipping and prayer is.
  2. A one on one time with him often – this will ensure steady communication.
  3. Nurture a hobby with him especially the one he enjoys and picks early.
  4. Draw up a list of clear goals with him for all areas of his life.
  5. Schedule his week together with the family schedule.
  6. Read books with him including school work.
  7. Help him keep a journal of important activities daily.
  8. Always remind him of what makes him special.
  9. Have a daily commitment we do together.
  10. Let him know how importance and sharing and helping others are.

This is the top ten on the list, but I am sure updating it from frequently as situations permits. I hope I am not overhyping fatherhood, please don’t blame me if I do. It’s because I didn’t enjoy an iota of fatherly love so I promise to give my children all I can.  Please feel free to share yours in the comment below, if you have for others to learn. And if you don’t you really need to start consciously considering it.

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May 5, 2015 - Uncategorized    No Comments


I was watching the Nat Geo Wild Channel on Dstv and I saw the lifestyle in the Lion kingdom. It gave me a thought of leaderships lessons which we can learn from a lion been the king not just in the lion kingdom or the big cat family but the entire animal kingdom. These lessons are worth sharing.

  1. The Lion only hunt when there is a need for it (When it is hungry).

There must always be a “why” for almost everything decision you take and every action you do. It is this “why” that will keep you going even if things are working against all odds. Your reason is a motivating and it keeps motivating you to the end. Another lesson here is that being brave or being a leader does not mean you have to be looking for trouble or doing anything you want at the detriment of others.

  1. The Lion is Brave.

The quality that actually qualifies him as a leader in the animal kingdom is more than strength, size, fighting or hunting skills. The bravity of the lion is what earned it the king the animal kingdom. There are other animal with more strength, larger size, awesome fighting and hunting skills even faster but they aren’t as brave as the lion. This a great quality a leader should possess, you should brave to take decision without looking back as a leader.

  1. The gentility in its footsteps.

Have you ever wondered why the gentility in its footstep especially when it’s about to go after a prey. You don’t have to be a noise maker or rough before you achievement your goals as a leader.

  1. The succession plan in the kingdom

This is one of the great qualities I learnt when seeing that documentary. The cubs are taught all the qualities of a lion since childhood. Starting from how to relate with females and other males in the kingdom. And the most thrilling part is how it is left alone to live when approaching adulthood under the guidance of an adult but without it been aware. You need to have a succession plan for leadership post by training younger ones and subordinates and putting them to real life test under your supervision.

  1. The Lioness is responsible for hunting while the Lion protect the home.

A good leader must understand the importance of delegation of responsibility. You make use of the strength of every member of your team and delegate duties accordingly. Also, you must know your team member very well in order to achieve this.

  1. Confidence

A good leader must be confidence in himself and other team members. This is part of what is taught to the cub. And this is why it discovers its identity and potential at the very early stage. A leader must be able to discover his strength with a high level of confidence.

  1. Discipline

This is important in not just in every social group or institution but in the inner self of a person. It is amazing how the lion as a leader disciplines the cubs when they mess up and mess around in the kingdom. This can only be achieved because it is discipline himself. No wonder he does not just go for anything that comes it way.

  1. He can spent 20 hours of sleep a day

Isn’t that surprising to know? Even with all the responsibility that the lion shoulders, it still find time to sleep this long sometimes. You don’t have to be a workaholic to be a good leader. I am sure you have heard about the slogan that says, “worker smarter not harder”, that says it all.

  1. Lion rarely eats entire prey

I have always believe one of the formula for having more is giving (sharing), I never knew it’s a good leadership quality. Now I learnt this from the lion as it rarely eats its entire prey, there are always leftovers for the hyenas and the vultures. Even occasion where there is no leftover (which is rare), it is shares within the big cat kingdom.

  1. Relationship management

Lions are very social because they form groups within the kingdom known as pride. The lion also manages other animals in the animal kingdom, have ever wondered how other are kept quiet and put to orderliness with roar sound. This is to me the most important lesson quality I figured out here.

I hope you have learnt at least one or two lessons from this post. Let me know which one it is using the comment box.  Also, you may add more lessons you have using the comment box below.

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May 2, 2015 - Uncategorized    No Comments

The Concept of IFRS Fair Value Accounting and the Global Financial Crisis.

The primary cause of the last Global Financial Crisis includes Subprime mortgages, credit default swaps, and excessive debt though. In the view of some experts, mark-to-market accounting was “the principal reason” that the Global financial system melted down in 2008. Questions have being asked if such accounting rules really contributed to the crisis. For non- financial experts, marking to market is the practice of revaluing an asset quarterly according to the price it would fetch if sold on the open market, regardless of what was actually paid for it. Because this practice allows for no out-dated or wishful-thinking valuations, it is a key component of what is known as fair value accounting. This has been at the centre of the hottest accounting debate for a long time now.

Economist Brian Wesbury represented this view when he declared, “Mark-to-market accounting rules have turned a large problem into a humongous one. A vast majority of mortgages, corporate bonds, and structured debts are still performing. But because the market is frozen, the prices of these assets have fallen below their true value.” Wesbury argue that marking to market pushed many banks toward insolvency and forced them to unload assets at fire-sale prices, which then caused values to fall even further. Persuaded by such arguments, some Finance and Accounting professionals all around the world have called for the suspension of fair value accounting in favour of historical cost accounting, in which assets are generally valued at original cost or purchase price.

Fair value accounting continues to have its proponents, who are equally adamant. Fair value accounting is not the cause of the current crisis. Rather, it communicated the effects of such bad decisions as granting subprime loans and writing credit default swaps. The alternative, keeping those loans on the books at their original amounts, is akin to ignoring reality.

The investment advisory group of the Financial Accounting Standards Board (FASB) stressed that ‘it is especially critical that fair value information be available to capital providers and other users of financial statements in periods of market turmoil accompanied by liquidity crunches.’ The FASB has recommended that to meet the legitimate needs of both bankers and investors, regulatory officials should adopt new multidimensional approaches to financial reporting. Before we can begin to implement sensible reforms, we must first clear up some misperceptions about accounting methods. Critics have often lambasted the requirement to write down impaired assets to their fair value, but in reality impairment is a more important concept for historical cost accounting than for fair value accounting. Many users of accounting information have incorrectly assumed that most assets of banks are reported at fair market value, rather than at historical cost. Similarly, many shareholders and investors have assumed that most illiquid assets must be valued at market prices, despite several FASB rulings to the contrary.

Historical Cost Accounting has no connection to current market value. Fair value proponents argue that historical costs of assets on a company’s balance sheet often bear little relation to their current value. Under historical cost accounting rules, most assets are carried at their purchase price or original value, with minor adjustments for depreciation over their life (as in the case of buildings). A building owned by a company for decades, therefore, is likely to appear in the books at a much lower value than it would actually command in today’s market. However, even under historical accounting, current market values are factored into financial statements.  Regulators require all publicly traded companies to scrutinize their assets carefully each quarter and ascertain whether they have been permanently impaired—that is, whether their market value is likely to remain materially below their historical cost for an extended period. If the impairment is not just temporary, the company must write the asset down to its current market value on its balance sheet—and record the resulting loss on its income statement.

In conclusion, the reason mark-to-market is argued to be the reason of the Global Financial Crisis is because the Assets and Liabilities in the books presented in Historical Accounting do not show the true and fair view in reality. Whereas, the Fair value Accounting not only shows the true view but considers the current economic situation.

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Apr 29, 2015 - Uncategorized    No Comments

Little BIG Things

Thank you for the comments, replies and subscriptions on my posts here, I hope you had a good time reading, and if you are here for the first time, thank you for your time too. This is where today’s post is going to start from.

There are little things that really do make a BIG DIFFERENCE when we do them. Things like saying “Thank you, I am sorry, e.t.c” or just giving attention to nitty-gritty of a big picture.

Little BIG Things

These little big things sometimes are the things that keep our relevancy in our various fields, make us achievement great milestones and stay on top. Some we do unconsciously without realising the effect but they matter a lot. If only we realise this, then we did be giving much conscious attention.

These little big things can be used in all spheres of life, be it in your relationship, in the office, at a job interview, relating with siblings, dealing with customers in carrying out business, even meeting with a stranger, e.t.c.

Imagine just sending your spouse “I love you” in the middle of a task in the office, I am sure what some of our spouse we say when they see this is “Kilode tun de o meaning Wetin happen o” or just sending a wedding anniversary card to a customer. Why do you think we get birthday text message from some of our banks? It’s because they understand this principle so well. In a job interview, one little thing might give you a head over all other candidates.

I won’t suggest a list here, but I want to believe you understand the little big things you need to do in your own case. You can decide to choose anyone today and start implementing. I can assure you did be glad you read this here.

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