BusinessDay 01 Feb 2019

Politics grounds governance in Lagos …as NECA warns of economic implication of delayed budget JOSHUA BASSEY

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overnance in Lagos, Nigeria’s most viable state and commercial nerve-centre, is grinding to a halt as politics, politicking, self and group interests take the centre stage few weeks to the commencement of the 2019 general elections.

High-level mistrust and bickering among top political actors and powerbrokers in the state is worsening the situation, resulting in the non-presentation and passage of the state’s 2019 budget.

The tense political atmosphere has further intensified as the legislative and executive arms of government are currently

at each other’s throats bandying accusations and counter-accusations, to the detriment of estimated 21 million residents.

Also, ongoing infrastructure projects, including roads, new bus terminals, among others projected by the government to be completed by the first Continues on page 34

NEWS YOU CAN TRUST I**FRIDAY 01 FEBRUARY 2019 I VOL. 15, NO 237 I N300

L-R: Mohammed Sani Omolori, clerk to the National Assembly, represented by Umar Mohammed, PS, human resources, House of Reps; Yakubu Dogara, speaker, House of Reps, represented by Pally Iriase, deputy chief whip; Frank Aigbogun, CEO, BusinessDay Media Limited; Umaru Abdul Mutallab, former chairman, First Bank plc, and Umaru Kwairanga, Special Guest of Honour, at the BusinessDay Excellence in Public Service Awards 2018 held at Yar’Adua Centre in Abuja.

Pic by Tunde Adeniyi

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With Kotoka airport, Ghana again points the way to Nigeria W

NGUS JUN 26 2019 365.34

NGUS DEC 24 2019 366.24

Download e-copy of Women’s Hub from www.businessday.ng

CALEB OJEWALE

ith the opening of the newly-constructed Terminal 3 of the Kotoka International Airport in Accra, Ghana, Nigeria’s West African neighbour has once again given a badly-needed lesson to Africa’s largest economy on what can be achieved in infrastructure development with the right political will.

Ghana, usually seen as Nigeria’s smaller neighbour, currently leads the country in a number of other areas. In mobile money, Ghana is now a model

Continues on page 34

L-R: Clem Ugorji, director, public affairs and communications, CocaCola West Africa; Peter Njonjo, president, CocaCola West Africa, and Deepam Jan Roy, MD, Chi Nigeria Limited, at a press briefing to announce the acquisition of Chi Nigeria Limited by Coca-Cola in Lagos, yesterday.

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Inside Uduk, Bobboi, Kale, others bag BusinessDay public service P. 35 awards

2 BUSINESS DAY NEWS

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Friday 01 February 2019

It’s governance, stupid!

L-R: Fatai Folarin, West Africa chief executive officer, Deloitte; Udoma Udo Udoma, minister of budget and national planning; Jim Ovia, chairman, Zenith Bank plc, and Zainab Ahmed, minister of finance, at the Deloitte in dialogue Nigeria economic outlook 2019 in Lagos.

Pic by Pius Okeosisi

FG shaves 4% off capital expenditure target to curb high borrowing ... Recurrent expenditure to rise by 34% FRANK ELEANYA & LOLADE AKINMURELE

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igeria has announced plans to reduce its 2019 capital expenditure target from 30 percent to 26 percent, in a show of weak revenues and an effort to curb a rising debt stock that has doubled within three years.

Udoma Udo Udoma, minister of Budget and National Planning, made this known in Lagos at the Deloitte in Dialogue Nigeria Economic Outlook 2019 held Thursday in Lagos.

Udoma also said the recurrent expenditure target is expected to rise by 34 percent due to expenses that were left from 2003 and consideration for the new proposed minimum wage.

“We are currently spending more than 70 percent of our revenue on salaries which is not sustainable,” Udoma said during his presentation at the event organised by Deloitte Nigeria.

The budget minister’s statement is the first open indication that the government is worried at its current debt pro-

Continues on page 34

Investors’ 18% bid for NTB shows optimism for higher rates post election HOPE MOSES-ASHIKE

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mbitious investors are raising their bidding for the Nigerian Treasury Bills (NTB) at rates higher than those offered by the Central Bank in anticipation for a higher rate after the general elections.

Investors oversubscribed the short- and long-term instrument auctioned by the Federal Government through the CBN this week.

The CBN on Wednesday auctioned a total of N254.64 billion NTB at the primary market and investors bid more at higher rates than the offered rates.

Specifically, investors were bidding as high as 18 percent for long-term instruments while the CBN could offer 15 percent.

The summary of the auction result obtained by BusinessDay shows that N7.85 billion was offered for 91 days tenor with allotment/ issue date of January 31, 2019.

The offer was oversubscribed

by N41.04 billion as a range bid of between 10.8500 percent-12.0000 percent. However, N28.01 was allotted at a stop rate of 11 percent.

For the 182 days tenor, the CBN offered N 69.56 billion at a stop rate of 13.5 percent. It was oversubscribed by N68.42 billion at a range bid of between 12.8500-14.5000 percent and the allotment

was N58.68 billion.

Also, for 364 day tenor with allotment/issue date of January 31, 2019, the CBN offered N177.22 billion, which was also oversubscribed by N214.38 billion at a range bid of between 14.3000-18.0000 percent. However, the allotment was N167.93 billion, at a stop rate of 15 percent, which was below the offered amount.

Ayodeji Ebo, managing director, Afrinvest Securities Limited, said the reason for the under-allotment may be investors’ demand for higher rates.

Based on the data, he explained that the 364-day tenor was oversubscribed (bid-cover ratio of 1.2x). However, the CBN was not willing to go above the 15.0 percent stop rate. From the range of bid rates the apex bank offered, investors bid as high as 18 percent.

“Investors are still optimistic that the interest rate may still move up before the general elections especially the OMO stop rate,” Ebo said in an emailed response to BusinessDay. The CBN had earlier disclosed that it would in the first quarter of 2019 issue N823.43 billion worth of Treasury Bills, while N985.93 billion will mature in the same period.

A breakdown of the Nigerian Treasury Bills issue programme for the Q1 2019 released on Tuesday by the CBN shows that a total of

N59.02 billion Treasury Bills for 91 days tenor, N248.84 billion for 182 days, and N678.05 billion for 364 days tenor will hit the financial market in the first quarter.

The CBN will roll over a total of N51.45 billion for 91 days tenor, N164.91 billion for 182 days, and N607.05 billion for 364 days tenor in the same period.

The general elections are scheduled for February 16 and March 2, 2019 and may likely usher in stability and smooth transition or disruption, either of which will impact the economy and businesses.

Doyin Salami, a renowned economist and former member of Central Bank of Nigeria’s monetary policy committee, said businesses should keep a close eye to oil production and prices in 2019.

Salami gave a baseline projection for oil price in 2019 to stand at US$61.0 per barrel (NYMEX Futures 12 average), optimistic of increase in oil price to US$65.0 per barrel and pessimistic of a decline to US$56.0/ bbl. His baseline projection for oil production in 2019 is 2.0mbpd, optimistic 2.1ombpd and pessimistic 1.8mbpd.

The International Monetary Fund (IMF) projected the Nigerian economy in 2019 to grow by 2 percent; the World Bank projected 2.2 percent, while the CBN projected the economy to grow by 2.28 percent.

AYISHA OSORI & CHRIS NGWODO

Osori is a Nigerian lawyer, author, international development consultant, journalist and politician known for her work on good governance, gender equality, women’s economic and political participation and ending violence against women in Nigeria.

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f there is an axiom that should galvanize Nigerians to see the future clearly and demand more from those who govern, it is that ungoverned spaces become ungovernable places. The absence of governance in Nigeria manifests as deep mistrust, anarchy, insurgency and a pervasive breakdown of law and order in areas the size of small countries. Nigeria’s viability is in question as the quality of governance across all levels and arms of government continues to slide.

Due to neglect, Sambisa Forest went from being a game reserve to a hideout for criminals and, eventually, the base of a terrorist insurgency. Across the rural northwest, the presence of vast unpoliced forests is one of the main factors exacerbating the problem of armed banditry.

In the Niger Delta and across the southern coastline, longneglected creeks and waterways have become dens of militant gangs and pirates. In Maiduguri, the same neighbourhoods that spawned the ultraviolent

“Nigeria’s governance deficit has been obscured by the militarization of justice and security – a paradigm that disproportionately favours the armed forces as the sole response to all threats to public order.” terror cult, Maitatsine, in the early 1980s, also nurtured Boko Haram, and across the country kidnapping is a lucrative business enabled by a weak police force and even weaker citizen identification system. Whether the focus is on suburban slums, rural forests or coastal inlets, the common denominator is governmental abandonment and the lack of development.

Nigeria’s governance deficit has been obscured by the militarization of justice and security – a paradigm that disproportionately favours the armed forces as the sole response to all threats to public order as well as a bias towards regime security rather than human security. The fetishization of militarism has also made it almost impossible to relate security threats to often-understated issues such as access to opportunity, equity and justice, quality of life, education, jobs and healthcare. A broader, richer discourse on security would link climate change, ecological degradation, the destruction of rural agrarian economies, ruralurban migration and youth unemployment to rural and urban violence. It would aim security sector reform at reorienting enforcement institutions towards public safety rather than regime security. Modern counterinsurgency doctrine recognizes the need to address the non-military factors that drive conflict which calls for governance, not guns.

Two main factors account for our governance deficit. First, the current political structure provides no real incentive for political actors to deliver governance.

The distribution of oil revenues in the form of federal subventions to states has created an ethos of exploitation that means politicians are more interested in patronage than in delivering social services. Consequently, the troubles that preoccupy politicians are largely conflicts over

“The current political structure provides no real incentive for political actors to deliver governance.” fairness in allocating patronage, not efficiency in the distribution of social services. To compound matters, under existing arrangements, state governors have emasculated local government authorities using them as satellites rather than creating local socioeconomic growth hubs.

This erosion of third-tier governance means there is no delivery mechanism for public goods at the grassroots.

Secondly, the hijack of local governance means there is democracy deficit at the municipal level. Elections, when state governors permit them to hold, are hopelessly rigged and produce outcomes that lack legitimacy. This intensifies an already widespread loss of faith in formal political institutions and political actors. Correspondingly, non-state actors are filling the governance void. In some areas, Boko Haram dispenses justice, provides security, access to market and collects taxes.

Rural communities which constitute 52 percent of Nigeria are ill-served by security assets with many communities having no police presence. This deficiency enables the bandits terrorizing

“Non-state actors are filling the governance void. In some areas, Boko Haram dispenses justice, provides security, access to market and collects taxes.”

Zamfara and other parts of the rural northwest. In the face of mounting insecurity, many communities have taken to self-help, establishing vigilante groups that in the future will challenge state authority. Logically, as insecurity increases and communities fill the absence of governance with ethnic militias, there is a rise in medium-intensity ethnic conflicts, stretching Nigeria’s threadbare unity and further eroding confidence in the Nigerian state. The dearth of local governance also means the absence of mediating forces to prevent and contain conflict.

The thorniest challenges Nigeria faces today are rooted in governance and politics and the sustainable solutions lie in the same place. If governance will not improve, we must become adept at identifying the ungoverned spaces that will soon become ungovernable because the insecurity that seems isolated to a few distant places will converge until all are engulfed. The ungovernable spaces are derelict rural areas or densely-populated ghettoes with a disproportionately high population of unschooled, unskilled and unemployed males aged between 16 and 35, with little or no social services and low or no police presence. The governors spend more time in Abuja than in their states and population growth and income inequality balloon unchecked in the midst of rising poverty.

There are many such places in Nigeria and federal interventions by might, guns or funds will never be sufficient to undo the damage of negligent or absent governments.

The investments in the processes required to yield sustained governance that localizes the delivery of essential services and development to the grassroots must start immediately regardless of the results of the 2019 elections. Nigeria needs a slew of electoral, constitutional and security sector reforms designed to curb unresponsive government and balance the power between the state and the citizens.

However, this will not happen until Nigeria’s governance deficit and the crisis of governability become core issues in social and political discourse and a major, implacable demand of the majority of Nigerians. The economy, insecurity, and corruption: it is all about governance.

On Monday, Higo Aigboje gives his outlook for the stock market.

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Edo declares N2.91bn allocation for councils in December

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do State Joint Account and Allocation Committee (JAAC) has declared the sum of N2.91 billion as total allocation that accrued to the 18 Local Government Areas (LGAs) in the state for the month of December 2018.

Addressing journalists after the JAAC meeting chaired

by Governor Godwin Obaseki, chairman, Etsako Central Local Government Area, John Akhigbe, announced that the Internally Generated Revenue (IGR) from the 18 LGAs in 2018 stood at N2.21 billion.

He noted that out of the total allocation of N2,905,450,753.75, “teachers and non-teachers’ salary gulped N1.205,284,772. 17, while N276,144,513.64 was set aside for Local Government Contributory Pension.

According to Akhigbe, total deduction for the month stood at N1.812,970,536.91, while net allocation to the 18 LGAs was N1.092,480,216.54.

He said the LGAs recorded improved IGR earnings as a result of the reforms and deployment of technology in revenue collection.

Meanwhile, Governor Obaseki said his administration had embarked on the reconstruction of several roads in Uhunmwode LGA to open up the area for more socio-economic activities and

… awards contracts for reconstruction of roads change its development narrative for the better.

The governor said this during a parley with APC faithful at Ehor, the administrative headquarters of the LGA, on the sidelines of the party’s campaign rally.

According to Obaseki, his administration’s decision to invest in road infrastructure across the state was informed by the important role roads play in economic development.

“Obadan-Ugonoba Road has been awarded for reconstruction and by next week, the contractor will commence work. I have awarded contract for the reconstruction of Ehor-Ukpogo Road and have mobilised the contractor to immediately commence work and I have done same for Oke-Oruah Road.

“I have taken all these steps because I know the importance of roads. I will construct many more roads in this local council.

“Our youths in this local council need jobs and I will create more jobs for the youths of this council area. Water is another problem our people are facing here and I have already started working on water projects, and soon water will begin to flow in the area,” he said.

He assured that in the area of education, all the pri-

mary schools in the council would be captured in the state’s Basic Education Sector Transformation (EDOBEST) programme, that will train teachers on the use of information communication technology in teaching.

He urged the electorates: “If you vote for candidates of the APC in the forthcoming elections, you are sure of quality and effective representation as they will assist me to bring more development to the area.

“I am confident that we will win the elections, but I want us to win convincingly because I have promised president Buhari that at least one million people will vote for him in Edo State.”

Chairman of the Edo State chapter of APC, Barrister Anslem Ojezua, also called on the supporters of the party to mobilise the one million votes for all APC candidates in the general elections.

Washington Osifo, APC candidate vying for a seat in the House of Assembly explained that he is in the race to give his people quality representation while Hon. Patrick Obahiagbon, the party’s Edo South Senatorial candidate said he would carry his constituents along in the business of law making.

Elshcon Nigeria joins league of companies to successfully migrate from GAAP to IFRS EFEGADIRIM MADU, Port Harcourt

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lshcon Nigeria Limited (ENL), an integrated indigenous group of companies operating in the energy and maritime sectors with focus on value, client satisfaction and retention, has recently joined the league of very few Nigerian companies to successfully migrate from the Generally Accepted Accounting Practices (GAAP) to the more advanced International Financial Reporting Standards (IFRS).

With a vision to be a leading indigenous company providing high-value technical services in pipelines and facilities construction, marine support and marine logistics operations in Nigeria, the company by this new development has aligned itself to current realities and global practices among the comity of corporate entities in the world.

The growing acceptance of IFRS as a basis for financial reporting represents a fundamental change for the global accounting profession.

A major difference between GAAP and IFRS is that GAAP is rule-based, whereas IFRS is principle-based. Similarly, another difference between IFRS and GAAP is the methodology used to assess an accounting treatment.

Under GAAP, the research is more focused on the lit-

erature, whereas under IFRS, the review of the facts pattern is more thorough.

Trusted experts in the financial world have continued to throw weight behind the more advanced IFRS, saying that it is much more principles-based than GAAP. For IFRS, individual companies are left to their own methods to explain the differences in their financial results, and to provide supporting analysis to reconcile their results.

With a principle-based framework, and as a source of globally comparable information, IFRS is of vital importance to regulators around the world, as they contribute to economic efficiency by helping investors to identify opportunities and risks across the world, thus improving capital allocation.

Obviously excited Emi Membere-Otaji, managing director/chairman of Elshcon Nigerian Limited, and immediate past president of the Port Harcourt Chamber of Commerce, says, “We are excited and motivated as a team. As a company with the guiding principles of integrity, teamwork, exceptional quality delivery and value creation for our clients and stakeholders, it is paramount to put in place accepted global practices and standards, so as to remain at the top of our game.”

He says, the feat is a policy

thrust that has formed the basis for their excellent reputation as a locally based company with global perspective; adding that with IFRS Elshcon Nigeria’s financial account can be compared globally with other companies in similar industries, unlike GAAP that is locally based.

Membere-Otaji notes that Elshcon is a proudly Nigerian company founded in 1990. It is an integrated indigenous group of companies operating in the energy and maritime sectors with a focus on value, client satisfaction and retention, delivering solutions and services for the safe and efficient exploitation of energy and marine natural resources.

Only recently the company achieved another milestone as Elshcon’s quality management system was certified as top-notch following the upgrade of its ISO certification from ISO 9001:2008 to ISO-9001:2015.

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What is the actual competition of Nigerian wealthtechs?

Feranmi Ajetomobi

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ccording to an article by Quartz, in January 2018, almost $65 million, out of the $195 million invested in African start-ups, went to fintechs with a large chunk taken

by Nigerian firms. Hence, the potential of the space to become a major channel for foreign investments development in the coming years is quite strong; particularly wealthtechs who are attracting attention as they work towards bridging the wealth gap through automated savings and investments.

As with any business entity, wealthtechs are subject to scrutiny on how well they are doing with growth. Sadly, the metrics applied to traditional financial institutions are imperceptibly defining the standards for measuring the new kids on the block—whose core goal should be financial inclusion.

Going by the regular measure of financial inclusion, observers tend to depend almost solely on number of accounts opened with a financial service provider—bank, investment platform etc. The insufficiency of this measure has been pointed out by a number of policy economists and notable champions of financial inclusion like the Alliance for Financial Inclusion.

Hence, a more robust measure will not only help wealthtechs progress sustainably, but also entrench the financial inclusion drive. Focusing on accounts and ignoring activity spread can be dangerous. This is because overall activity could be driven by only a few large accounts making the business susceptible to liquidity troubles when such account holders withdraw their funds.

For a more robust measure, we can look to the indicators of financial inclusion, as outlined by the World Bank—access, usage and quality of impact indicators. Access indicators measure depth of outreach. It is one thing to launch a wealthtech in Lagos, and another to not just have Lagosians access it but also students in Maiduguri, mechanics in Paiko or storekeepers in Awani. So, we must continually test the accessibility of these platforms.

Usage indicators measure how clients actually engage with services provided. After people signup, are the platforms designed to allow for easy deposits? Are these deposits regular?

Usage is quite important because if a wealthtech fails at it there will be little or no impact on the living standard of its users.

Unsurprisingly, usage is closely related to the quality of services offered.

Quality questions border around how offerings match needs of its users. For instance, there might be no quality offering to a mechanic from a wealthtech that only offers automated savings, given that the income pattern of such people aren’t regular.

Hence, it is only wise that wealthtechs focus on not just improving the market size of its users through intelligent engagement strategies, but also on effective usage. This will help them actively tackle their actual and biggest

competition at the moment—nonconsumption. Nonconsumption, according to an article by EfosaOjomo, a Harvard scholar, is the inability of a person to purchase and use a product/service required to fulfil a task.

In the Nigerian wealthtech space, the competition of a service provider is not necessarily a similar provider but nonconsumption.

To simply explain the concept of nonconsumption, we can refer to the need of everyone to have a roof over their heads. Despite the crucial nature of this need, simply advertising a house that requires a one-time payment NGN5 million to the everyday Nigerian does not mean everyone will jump at the offer. The reason isn’t farfetched, not everyone can afford to drop that amount at once—a classic case of nonconsumption. An arrangement that allows for flexible payments spread over a very comfortable period of time will definitely lead to increased patronage.

Similarly, wealthtechs are faced with the challenges of nonconsumption which can sometimes be fuelled beyond reasons related to cost. Four major factors fuel the nonconsumption of wealthtech services in Nigeria: 1. Trust 2. Inability to earn 3. Poor money management, and 4. Poor product education.

Trust is the most important factor on the list, and one way wealthtechs can build trust is by establishing partnerships with notable firms. As new boys on the block, wealthtechs should not expect funds to be handed to them without questions, it will take strategic collaborations to earn that. A trust agreement, for invested funds, is a good example.

Partnerships don’t automatically elicit trust from prospects; the message

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Partnerships don’t automatically elicit trust from prospects; the message has to be established through product education

has to be established through product education. Product education is a continuous process that must be styled to fit the audience. A simple choice of hosting information sessions on platforms like WhatsApp can make this process easier. A more robust solution can be found in partnering community influencers to host info sessions.

Further, people might love the idea of saving and investing but sometimes they just don’t earn enough to survive talk less of saving, or they might just have bad financial habits preventing them. The easy way out, speaking in terms of profit for the firm, is to chase after a few big clients to pump in funds, but as I mentioned earlier there is a grave danger in towing this route.

A more effective route, which requires patience, is to have wealthtechs offer free advisory services which can be delivered offline andonline, from time to time, with clearly defined and workable strategies that can help users improve on financial responsibilityand earning capabilities.

Hence, wealthtech teams need to look beyond the tech while settingup and seek out sound financial minds that will commit to developing tailoredfinancial advice as a firm is only as healthy as its clients are.

Digital payment companies have done a great job with providing wealthtechs with the ability to operate easily. Right now, it is the turn of the wealthtechs to do the work themselves and face their biggest competition by growing the market. These beautiful words from the book How Google Works sum it all up: “Instead of fighting over market share, grow the market for everyone”.

Ajetomobi is an engagement strategist at CowryWise, a fintech company solving the problem of access to financial planning, automated savings and high-quality investment.

How CEOs can build a foundation for leadership excellence FRESH INSIGHT FOR CHALLENGING TIMES

‘Uju Onwuzulike’

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aving worked with diverse leaders across sectors and industries, I have come to see two types of leaders playing out in organizations. The first are leaders who understand that the essence of leadership is to crystallize results, while the second are leaders who see leadership more from the authority side of it.

The first foundation to build as a leader who truly wants to succeed in his or her organization is to see leadership as someone who has results to show for the exalted position. The kinds of quality results we deliver for the organization especially in difficult times and not the quantum of power or authority that we can exercise is what can make us a successful leader.

I agree that every organization has its own unique issues that will usually impede growth and performance, but my concern is how leaders are dealing with those issues. When there are issues to surmount, often times most leaders are tempted to focus on areas that are visible to the eyes, (drawing analogy from the Iceberg Change Theorem), and forgetting that the things below

the sea level are the things that will actually sink the ship of any organization.

One of the deepest things below the organizational sea level that can sink the ship of any organization is culture. Very truly, culture is so strong that when “Strategy and Culture” fight, culture wins all the time. This means culture is stronger than strategy. This explains why several strategic initiatives, change initiatives, restructuring and re-engineering do not deliver the desired results, and such organizations can never become world-class companies. By world class company, I mean one that constantly pursues business excellence, and sadly, no leader (regardless of his or her education, experience, exposure and skills) will ever achieve business excellence without a vibrant, aligned and supportive culture.

I have been asked severally, how do we begin the journey of building the right culture?

Although sometimes, I jokingly say that the CEO is the culture custodian, but that also is very true and this means leadership has a big role to play in the culture journey. A very practical thing I have advised CEOs overtime is to deliberately make their organizations’ core value (social glue) the driver and guide of every one’s behaviour in the organization.

To me one of the signs that a CEO is really desirous in building the right culture is to show example by institutionalizing this core values in his or her day to day’s activities and in that of their senior management, and eventually a new culture in line with your organization’s vision will emerge.

Every leader that would succeed will do that through their people. Without the people, there would be no foundation for leadership

success. This is why is it imperative that CEOs and senior management must win the trust, heart, mind and soul of their people who will actually run with the vision of the organization.

One way leaders flub in this area is by practicing what we call D.A.D syndrome. This means when leaders DECIDE solely on their own on what to do, ANNOUNCE it and Defending it.

Most times this approach will hit a brick wall.

Let your approach be a Parallel Involvement Process, where the key people are involved in decisions that affect them prior before a final decision is being taken. Remember people support what they help create. Importantly, great leaders lead with people and not over people. That means they engage their people to deliver desired results.

Given your position as the CEO, I believe it is always easier for you and other senior management to see the big picture meanwhile majority of other employees may not. To succeed as a leader, the CEO’s must literally get everyone in the organization on a “helicopter” ride 5000 feet above the sea level so that everyone will see the big picture. If they can see and understand the big picture, running with it is much easier.

To deepen your foundation for leadership success the more, always encourage your executives, senior management and managers to communicate in a way that will encourage ownership mentality across board. This will be achieved when they are open, honest, robust and importantly transparent. The lack of open, honest, robust, and transparent communication creates a void that fills up with the fear, rumor mongering, politics, and finger pointing that destroy morale and productivity- and I know that no CEO would want to see that happen in

his or her organization.

Always remember, as a leader, regardless of your expertise, experience and exposure you won’t function alone. You will need others. Your best approach in this area will be to create a culture of interdependence among your people, and let them know that no one can succeed in isolation. This is very critical and also a way to discourage silo mentality across board.

Based on my experience training leaders, I have realized that one of the major reason some leaders do not do well is because they are more passionate about leadership as opposed to leading. To succeed more in these difficult times, every leader need to be more passionate about leading and less passionate about leadership, because leadership is all about doing and not position, title or status. The result you will desire this year will only come by leading and not as a leader.

Finally, untrustworthy leaders find it extremely difficult to succeed. Be trustworthy as a leader. And that comes from delivering on your commitment and being straightforward, being honest, authentic and transparent. That’s how you build a reservoir of trust.

Was this piece beneficial?

I would be glad to welcome your comments, questions or requests.

Uju Onwuzulike is Nigeria’s leading authority on Systems Thinking and Strategic Management. He was a Steve Haines trained strategy and systems thinking expert and a former global partner of Haines Centre for Strategic Management, California, USA. He is the founder and Chief Results Officer of MCL – a strategy and outstanding performance specialist firm. He can be reached on 09091142093 or uju.onwuzulike@mclgroup.net.

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How to grow your start up EIZU UWAOMA

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s a management consultant, having been a part of over a 100 startups in the last 10 years, here are the non-technical concepts that can help a startup rise above the bandwagon of startups that might never make it out that phase. They are as follows: -Document your thoughts: First into vision, then plan, then goals and daily To-Dos. The trick is, keeping to your everyday tasks and To Dos will actually lead you to that gigantic vision.

-Define your central ideology: Your set of ideas and ideals. As you grow, it will mould your corporate culture -Be positive: Passion and excitement is an essential fuel for your startup journey.

-Define your balance score card: Do this in the parameters of finance, structure, experience and learning curve. I mean constantly measure how these variables are doing.

-Create prominence on social media. This is just beyond posts and likes, but engagement techniques too.

-Define your sets of brand promises clearly; -Be very data conscious: collect, analyze and apply data, using it to track customer behavior demography and psycho-graph.

-Go above your business’s MVP (minimum value proposition), for example, a dry cleaner’s MVP is to produce, clean crispy and neatly ironed garment. But going above that MVP would be giving free tips on garment care, helping replace cut buttons or stitching torn parts at no extra cost.

-Go into partnership with vendors you will have to re-use over and over again. Say for example, if you’re a startup dry cleaning outfit, perhaps have on vendors list, all alteration tailors close by. This is important, so that they can easily be contacted if a garment needs quick stitches, button change etc. When this is done at no cost, the client will notice.

-Have a marketing strategy and marketing operations plan that targets not just individuals but corporate and cluster groups: An example of this includes, say companies with over 50 staff. This way, we can pick up all of the clothes on a routine bases and at once, thus aiding economy of scale for efficient operations. Cluster groups may include residence associations, mini estates and service apartments, gyms, churches, small hotels etc.

-Have a unique extra value away

from the usual MVP (Minimum Value propositions), for example, imagine if we have a list of quotes cut out in a post card format and attached to our tags on the clothes like sticky note, with each slides in a package, or with a smiley, or even basic tips on clothes 101 as a your unique signature. The general ideology is to always blow the mind of your customer per delivery enough to make them refer you. For a startup with a lean budget, bootstrap marketing is key. This means that Word of Mouth marketing is still the most effective form of advertising, so mechanism has to be devised for this. An example is a simple referral form shared amongst your most loyal customers, and maybe a discount incentive for each referral.

Develop a compliance system: For most businesses, it’s not the lack of strategy that is the problem, but the inability to follow through. There just seems to be no structure for it.

The truth is, business plans and operational documents like job descriptions, intended corporate culture, brand promises and Standard Operating Procedures, even when defined, written down and assigned might still not be followed through except there is a strong compliance mechanism.

So you need a compliance system.

Everyone’s work they say is nobody’s work, so someone (or a department depending on how big your organization is) has to be held responsible.

One activity that greatly improves the credibility of the compliance system

‘

For most businesses, it’s not the lack of strategy that is the problem, but the inability to follow through

is effectiveness communications of the rules of the game, the policies, procedure and declaration of possible consequences in terms of reward and sanctions. Being assertive and true with promises and threat is important.

And then following through with an eagle’s eye view as well as detailed microscopic lens. This includes the use of unannounced compliance checks. You can also engage mystery shopping. You can also form an advisory board.

Further ahead; we will derive our competitive advantage from creating a brand off quality, customer experience, faster turnaround of cycle time, and attention to the slightest detail synonymous with a unique customer care service enveloped in excellence.

For a startup, remember you are inexperienced, young and growing, this is a disadvantage. But there is an advantage in every disadvantage.

For example, you can be faster and more personal, because you have a smaller client base, you can zoom in, have more time for them and even give personalized services that bigger competitors cannot give. So you can draw from the age-old tradition of going above and beyond what is expected every time and all the time from clients.

Have a great start up journey ahead.

Uwaoma is a start-up, corporate restructuring and strategy consultant. He writes via contacteizu@gmail.com

Human resources: A factor of production

Olamide Balogun

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appy New Year! I know this is the beginning of February, but that greeting is still appropriate. Many people make new year resolutions at this time of the year promising themselves they will be better in one or more areas. This also happens to companies who come together almost always in January or the first quarter of the year to decide what they want to do for the year or for the next so many years.

All this is good except for the fact that the extent to which one follows through almost solely depends on the personality profile of the individual or individuals involved in the planning process.

So let us take a few steps back. The factors of production are land, labour, capital and enterprise. When people want to set up a business they are usually very concerned with finding capital, to the extent that they let it determine whether or not they start a business. By the way, money is not the only thing that constitutes capital but it is what people focus on, I guess because it enables them to purchase other things that constitute capital.

They are concerned with the quality of the equipment and furniture they will be purchasing. The entrepreneurs are obviously very key to starting a business because… they come up with the ideas and organize the factors

of production. The honest truth is that the most important of the factors of production ‘Labour” is the least paid attention to at the beginning of the business. It is the most important is because your people determine how high your business will go. If you have the best of everything and the worst, ill-trained people, you will not succeed.

Many people, especially in Nigeria feel that here there is a large pool of labour because we are so many people. They say this because they see all people as labour but there is nothing further from the truth than this. Everybody may be labour but not suitable for you.

There are different types and profiles of people suitable for different types of jobs. You have no business starting a company without having an organization chart of proposed employees. We find that many people have started companies without it.

In layman terms this chart shows your people structure just like you have the structure of your machines or processes, knowing what feeds into what, how and why. This chart helps you know which position interfaces with which position. How many people you need in each position and whether or not you even need a position.

This chart is very strategic as it should be based on the proposed goals of the organization, This speaks also to your systems and processes and it will help you deliver on organizational goals. This chart should show the picture of how your organization should be structured even if for one reason or the other you don’t have all the people on the structure yet in the organization. You can grow into your structure.

The organisational chart should not be skewed towards any particular current person in the organization and could be colour coded to show the different levels that are on the same pay grade. It could also be coded to reflect the people in the same level of seniority

if for any reason this is different from the pay grade. (This happens sometimes if the role is an outsourced role or a short term contractual role).

This chart should help you come up with the job descriptions of each position. Your job description includes the duties of the employee, which should be related to the duties of the supervisors of the position and subordinates in the department. These duties will also be related to the goals of each department and the systems. The descriptions should also include the skills and expected experience.

The chart and job descriptions alone go a very long way in helping you get your recruitment right both for behavior and attitude and skills and help you in succession and career planning.

I digress; my point is that labour is the only factor of production that appreciates over time, depending on how they are treated. We are always complaining that there is no good staff but this is because we don’t prepare enough for them, we take the wrong people into the wrong jobs not necessarily skill wise but behavioural profile-wise. In recruitment, we have a saying, that you usually hire for skills but fire for behaviour and attitude.

We think we can make people do things by rules and regulations and coercion and in some cases physical abuse and general human rights contraventions. My only question is ‘how is that working for you’? You may think you are having some success but if you are going to be honest, you are not. I hear comments like, ‘oh if you don’t treat them like that they will not conform’.

It does not have to be like that.

I got interested in human resources management very early, I think just after I got into secondary school and became aware of what my father did. He was in charge of Human Resources in an international organization so he had best practice. Even at that age, I realized

that Human Resources was the backbone of any venture. He was one of the people who fought to get IPM established in Nigeria and was president of the Institute for eight years.

I used to attend their conferences even way back then. Human resource management became very interesting Even though I am a trained lawyer I came into the management of human resources because it is my first love. When we go abroad we are impressed with how things work smoothly and seamlessly. We think how advanced they are. I put it to you that it is their knowledge of the importance of the human factor that makes them successful.

I reeled off some things that your organisational chart and job descriptions do for you.

So career ‘pathing’ is how you co-plan the careers of your employees such that they can see their future with you, thereby linking their vision with yours.

Succession planning is the plan of who will succeed who on which job. We have a problem sometimes when we promote someone out of a position. This is to find a suitable replacement because we have not groomed anybody for it.

What we then do is either not promote the person or promote an unsuitable person into the position. Neither situation is ideal of course.

In this column, we will be speaking about the things we need to put in place that will help us manage our human resources so that we can get the maximum utility out of them.By the way by now many people have forgotten about their resolutions because only certain types of people keep to their resolutions. Or is this a myth. Find out next week Balogun is the founder of Box & Cedar Ltd a boutique Recruitment and HR Consulting firm Www.boxandcedar.com

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Friday 01 February 2019

Fighting corruption by destroying institutions

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ne of the enduring tragedies of post-colonies, especially in Africa, is the tendency to destroy or sideline established institutions in the quest for accelerated development. Early independent leaders, who claimed to be so much in a hurry to develop their countries, were impatient with the workings of the institutions bequeathed by the colonialists and in most cases sidelined or altogether destroyed these institutions and personalised power. Over fifty years down the line, none of these countries has developed. Rather, they have been turned to virtual wastelands, ravaged, as it were, by tyranny, bad and disastrous governance, impunity, mindless orgies of crime and death, poverty, hunger and diseases.

Yes, these countries now have the worst socio-economic indices in the entire world!

One lesson these African countries and leaders ought to have learnt by now is that strong institutions are the best guarantees for sustainable growth and development and not strongmen. Strong institutions are enduring and

guarantee societal progress no matter the people inhabiting them. Personal rule, however, is subject to the whims and caprices of rulers and tends to fizzle out when the ruler departs.

The recent attempt to forcefully and illegally remove the Chief Justice of the federation based on allegations of corruption by clearly sidelining the National Judicial Commission (NJC), the body constitutionally vested with the duty of ensuring discipline on the bench even when it is clear the body has investigated every petition forwarded to it against any serving judge is very unfortunate.

The government and by extension the President has also consistently acted in contempt of the courts, ignoring valid court orders and judgements and carrying on as if only he is the most patriotic Nigerian and only he can salvage the country.

The president is effectively setting himself as Nigeria’s messiah, under whom all should bow including other coordinate branches or arms of government whose constitutional duty is to perform oversight functions on the executive and prevent it from abusing its awesome powers.

President Buhari does not appear to have learnt any lessons from sub-Saharan Africa’s misadventure with strongmen.

He was once a strongman himself. In 1984/85, as military dictator, he attempted to eliminate corruption from Nigeria with military zeal and ruthlessness.

But after he was shoved aside by his army chief, he watched helplessly from behind bars as all his efforts or plans were rolled back and the new government continued with ‘business as usual’, as the Nigerian cliché goes.

Now, under the pretext of salvaging the country from ruins and propelled by a messianic complex, Buhari has set about his task in an autocratic manner by disregarding and sidelining key institutions. Apparently, he is now effectively the accuser, prosecutor, and judge in cases involving corrupt officials. He may have, through his actions, given the impression that he totally disdains the judiciary and may not respect or obey court orders that go contrary to the ways he thought best of handling corrupt officials.

Institutions, simply defined, are established laws or practices and are a sine qua non for societal progress and sustain-

able development. In fact, for Francis Fukuyama, the development of a capable state that is accountable and ruled by law is one of the crowning achievements of human civilisation.

It is the absence or weakness of institutions or, more appropriately, a capable state that is at the root of corruption. In Nigeria and other developing countries, corruption serves largely to grease the wheels of inefficient bureaucratic government machines leading to efficient outcomes. Common sense therefore dictates that an effective war against corruption must involve the strengthening of state institutions.

This, however, is not the case with Nigeria. Nigeria’s war against corruption necessarily involves the weakening or destruction of state institutions.

From Obasanjo to Yar’Adua, to Jonathan and now Buhari, the stories have been the same. But at no time has any government shown absolute contempt for the rule of law and order and state institutions like Buhari is doing now. Like it happened in 1985, he may wake up to realise that all he succeeded in doing was to create the environment for corruption and impunity to thrive in the country.

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Friday 01 February 2019

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CITYFile Obaseki kicks off renovation of 230 schools in Edo

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Vehicles wadding through flooded Opeloyeru Street, off Babs Animashaun, Surulere, after a downpour in Lagos.

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ew weeks after Governor Godwin Obaseki awarded contracts for the renovation of primary schools, work has commenced in a number of the primary schools across Edo State.

The renovation work is part of the overall vision of Obaseki to reposition basic education for improved outcome, with the State Universal Basic Education Board (SUBEB) leading the charge.

At a number of schools visited by journalists, labourers were seen carrying out major renovation work on some of the dilapidated structures.

Special adviser to the governor on media communication strategy, Crusoe Osagie, said that the remodelling of the 230 schools is part of the state government’s commitment to provide conducive learning environment for pupils in the state, a major pillar of the Edo Basic Education Sector Transformation (EDOBEST) programme.

At Ivbiotor Primary School in Benin, workers interviewed, assured that they would deliver quality job as their supervisors are determined to exceed the state governor’s expectations with regard to quality and deadline for delivering the project.

Renovation work is also ongoing at Ezoti Primary School, St Paul Primary School, Obaseki Primary School now hosting Ekpenede Primary School, Okai Primary School and Obakhavbaye Primary School, which were relocated.

How we defraud our passengers inside Ekiti to resuscitate abandoned skill centres ‘Keke’, says suspected fraudster AKINREMI FEYISIPO

ANIEFIOK UDONQUAK, Uyo

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suspected fraudster, Gregory Sam has narrated how he and other members of his gang defrauded and robbed unsuspecting members of the public who board tricycles in Uyo, Akwa Ibom State.

Sam, who was among the 213 suspected criminals arrested by the police in the state revealed in an interview with journalists that they usually lured their passengers using fake bundle of currency notes to secluded places before robbing them of their belongings including cash.

“I was a vulcaniser before venturing into this business. It is like approaching a lady for a love affair, we don’t use force on anybody. When we rob our passengers, we sometimes feel their anguish and pains.

Though it is like robbery, we don’t use guns or any other form of ammunition. I am doing this because of lack of job.”

Sam, a father of three children said he had been using his tricycle to defraud and rob passengers for about three years.

According to Musa Kimo, Commis-

sioner of Police (CP), Akwa Ibom State command, Sam and his gang were arrested in an attempt to defraud their third victim, one Ndiana-Abasi Akpan who was diverted from her route and taken to an uncompleted building, opposite Akpan Andem market in Uyo metropolis.

“My plan was that when I hit big money, I would retire but unfortunately I was arrested by the police. Sometimes I make up to N10,000 in one operation. We are a five-member gang and if we make up to N50,000, we share N10,000 each.

“We don’t force our victims, we only talk with them. It is only people who are not contented with the money they have that often fall prey to our antics.

Sam, who said they also lured their victims by presenting a piece of paper with a fake address of a church, explained that he would pretend not to know the address and the location.

“There is always a passenger in the Keke while I am the driver. The passenger would bring out a piece of paper with a fake address. He would ask for the location of a particular church from the address. Also, he would bring out fake

bundles of currency notes saying he was going to the church to pay tithes for the blessings he has received.

“While still inside the Keke, one of the gang members would threaten to report the person with the fake currency to the police.

“If our would-be victim inside the Keke says that the matter should be reported to the police, it would be clear to us that the would-be victim is not interested but if the person says that the issue should not be reported to the police, then we would know that the person has fallen prey to us.

“By this time, we would have told the person that part of the money would be given to him and we would then take the victim to an unknown location to be disposed of his/her belongings.”

Sounding a note of warning to criminals in the state, Kimo said the command would make it difficult for people of dubious character including kidnappers and armed robbers to operate.

“As a command, we are committed to free, fair and credible elections. We will continue to respect human rights and perform our duties in a professional manner and with the fear of God,” he said.

162 stranded Nigerians return from Libya IFEOMA OKEKE

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he National Emergency Management Agency (NEMA) has received another batch of 162 stranded Nigerian returnees from Libya.

Idris Muhammed, the coordinator, Lagos territorial of NEMA, received the returnees on arrival at the Cargo wing of Murtala Muhammed International Airport, Ikeja on Wednesday via Libyan Airlines.

The returnees consisted of 100 females including four pregnant women, 62 males

and five infants.

The coordinator while welcoming the returnees advised them to be agents of positive change and take up the challenge against irregular migrations by telling whoever wants to embark on such dangerous journeys to desist from it.

“Migration is protected by International and national statutes for movement of people through proper regularisation of papers that would protect and save you against risks of irregular migrations.”

Muhammed stated that NEMA hosted a team from European Union on monitoring and evaluation of the special EU

intervention on assisted voluntary return of migrants.

NEMA interfaced with them on the ways of improving the present European Assisted Voluntary Returnees projects.

He said gaps were identified especially on logistics which are causing nightmares to stakeholders and the returnees but on the whole the rescheduling of aircraft chater flights would be improved upon.

The exercise which began in April, 2017 is expected to end by April, 2020 and about 8,808 returnees have so far been repatriated back home to Nigeria from North Africa.

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hree abandoned women skill acquisition centres built by the Federal Government and handed over to the Ekiti State Government in 2018 are be resuscitated and make functional by the government of Ekiti State.

The permanent secretary, ministry of women and social development, Foluke Adeyemo stated this when she visited the centres.

The centres include Women Development Skills Acquisition Centre, in Ado-Ekiti; Women Development Skills Acquisition Centre, at Ipoti-Ekiti and Cassava Cottage Industry, located at Osin-Ekiti, all of which have been seriously vandalised.

She noted that the planned resuscitation and utilisation of the facilities would put a stop to the vandalism and put the centres in a position to generate funds for the government.

Speaking earlier, the zonal officer for Ijero, Modupe Olujobi, lamented the poor condition of the building they use as office. Olujobi, however, requested for a better office accommodation and staffing of the Institution.

Cult clashes claim 2 in Eket

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ult clashes between suspected members of the Black Axe and the Deybam Confraternities have claimed the lives of two persons in Eket local government area of Akwa Ibom.

The incident was said to have occurred last Sunday.

According to a source, the Black Axe confraternity had a birthday party in honour of a member at a night club in Eket. He said some members of the Deybam confraternity attended the birthday party uninvited and a misunderstanding occurred between the two groups which led to the death one of the uninvited cult group.

He said that the Deybam confraternity member was stabbed with bottles and later stoned to death between 11p.m on Sunday and 12 a.m. the following morning.

“There was noise and a lot of argument which led to the death of a member of the Deybam confraternity,” he said.

According to him, the victim died at about five hours later and the Deybam confraternity retaliated and killed one member of the Black Axe around Idua Street in Eket.

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Friday 01 February 2019

MoneyInsight Passage of CAMA bill positions Nigeria as attractive place for business – NASSBER CALEB OJEWALE

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he passage of the Companies and Allied Matters repeal and reenactment bill has been described by the National Assembly Business Environment Roundtable (NASSBER), as a critical component in achieving more successes in Nigeria’s ease of doing business.

NASSBER was created as a platform for the legislature and the private sector to engage, deliberate and take action on a framework that will improve Nigeria’s business environment through a review of relevant legislations and provisions of the Constitution.

The new CAMA bill was passed by the Senate last year, and now, the House of Representatives has followed suit. Barring any unforeseen circumstances, all that remains is for the legislation to be signed into law by the president.

“The CAMA, if given presidential assent, will leapfrog our companies’ law over three decades of stagnation,” NASSBER said.

According to NASSBER, when signed into law, the legislation will implement a fair, and modern framework for company law which is essential to Nigeria’s economic performance. Over time, the CAMA had become outdated and stood the risk of presenting obstacles to the way companies do business.

Thus, it was necessary to explore a reform that will bring the law more in line with today’s business needs and realities, promote enterprise, enhance competition, stimulate investment in Nigeria, and remove

unnecessary burdens particularly for smaller businesses, which are so critical to economic health.

The Companies and Allied Matters Bill is one of the priority pieces of legislation that was identified in NASSBER’s comprehensive review of the institutional, regulatory, legislative and associated instruments impeding the ease of doing business in Nigeria. Nigeria is currently ranked 146th out of 190 Countries in the Ease of Doing Business Index for 2019, which was published by the World Bank. This ranking, according to NASSBER, is a result of inefficiencies in Nigeria’s system of company law and corporate governance.

The Companies and Allied Matters Act sets out the legal basis on which companies are formed, operated, and managed. It provides the corporate vehicle that enables individuals to collaborate in business and the legal structure through which companies are financed.

It sets the rules for the boards of companies’ and shareholders and the exercise of decisions on business growth and investment.

The CAMA also states the means through which individuals are held to account for the exercise of corporate power. For these reasons, an effective framework of company law and corporate governance is a crucial building block of a modern, business-friendly, private sector led economy.

A genuinely modern and effective framework can promote enterprise, enhance competitiveness, and stimulate investment. Conversely, an ineffective or outdated framework can inhibit productivity and

growth and undermine investor confidence.

The benefits of the new CAMA include: • A cheaper and easier process to set up, run and wind up a company by removing several procedural requirements that can complicate both the setting up of a company and its initial operation; • Better regulation of Micro, Small and Medium Scale Enterprises (MSMEs) by removing unnecessary burden on small companies and ensure that they can readily access guidance on corporate governance; • The removal of unnecessary regulatory requirements for small companies, such as the requirement

for annual general meetings and company secretaries; • Electronic transfers of shares are now expressly permitted in the Bill. The language of the CAMA required a physical document to be provided, but this has now been addressed by the Bill; • One individual can now open and run a company, which is good for start-ups and young entrepreneurs, and small companies can have a single shareholder and director as well; • Creation of a new form of legal identity for businesses called the Limited Liability Partnership (LLP), which is targeted at increasing foreign Investment in Nigeria; • Reduction of the minimum

share capital for companies and start-up in Nigeria, to encourage more investment and create new jobs; • Fosters the competitiveness of the Nigerian business environment against its counterparts in the West African region and the world; and • Positions Nigeria as an attractive place to set up and run a business.

NASSBER in a statement, implored the government to act speedily by ensuring that the legislation is signed into law, expressing belief that measures set out in the CAMA will make Nigerian company law more appropriate for today’s realities.

Social entrepreneurs learn to court investors at LEAP Africa’s SIP STEPHEN ONYEKWELU

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new brand of entrepreneurship is gathering steam on the back LEAP Africa’s Social Innovators Programme and this novel breed of entrepreneurs is learning to attract and manage investments into their enterprises.

At the weeklong sixth edition of Leadership, Effectiveness, Accountability, Professionalism (LEAP) Africa’s programme (SIP) designed to introduce practising entrepreneurs to the world of social enterprises, participants learnt how to craft strategy, manage people and raise funds among other things.

“You have to be intentional about why, when and from whom you raise funds” Katja Schiller Nwator, a development consultant and philanthropy adviser told the 19 participants on the fifth day of the weeklong SIP 2019.

Nwator presented three principles and shared data on which social platform has been used to raise the most money according to a 2018 report by www.techreport.ngo.

One of the three principles of fundraising is forecasting. This entails a clear understanding of industry trends, a benchmark with which to measure how much funds other social enterprises are raising and an objective analysis of

L-R: Beauty Kumesine, SIP Fellow and Managing Director, Blazing Heart Autism Centre; Femi Taiwo, Executive Director LEAP Africa; Ogochukwu Ekezie-Ekaidem, Head, Corporate Communications and Marketing, Union Bank of Nigeria, and Dabesaki Mac-Ikemenjima, Programme Officer, Ford Foundation.

what has been the social entrepreneurs fundraising track record are critical. The other principles are donor acquisition and use of technology.

The participants are involved in solving social and economic problems as diverse as waste recycling; bringing children with cerebral palsy back to mainstream educational institutions, empowering widows and creating online visibility for student entrepreneurs.

“Last year we sent some of our wid-

ows to go and learn how to make school bags, about 50 percent of the bags we shared in December were made by us.

We made our own souvenir bags too” said Mayowa Adegbile, CEO of Abujabased Ashake Foundation and SIP 2019 Fellow.

The foundation in 2018 made 200 school bags and plans to make 2000 school bags this year, which will help it, serve 1000 children. With 50 widows, each making 100 bags “we can make

5000; however we are making allowance for the time it will take to learn to make the bags. We have widows now who can make school bags for anybody to any standard” Adegbile said.

In Port-Harcourt, Beauty Kumesine, a 2019 SIP Fellow and the executive director of Blazing Heart Autism Centre is blazing trails in the autism space by drawing attention to children living with autism, who she described as a silent population.

“Autism is a neurological developmental disability that affects and impairs a child’s ability to communicate, socialise and behave like his or her peers” Kumesine said.

The Social Innovators Programme in five days according to Kumesine had helped her see the many loopholes in her organisational structure and operations. “The first five to six years were rocky and bumpy because we did not understand the non-governmental organisation space, we were flying blind” she said. “I am convinced that this is a new beginning.”

Autism in babies is not noticeable until the child starts to display the characteristics as from the age of two years or earlier sometimes. Early detection and intervention are critical. Teachers in Nigeria do not understand how to handle children with autism.

“We talk to schools on a daily basis.

We have reached out to over 70 children

and have integrated over 50 percent of these children into mainstream education” Kumesine said.

Two other SIP fellows who spoke to BusinessDay were Tobiloba Ajayi, chief responsibility officer of The Let Cerebral Palsy Kids Learn Foundation.

Ajayi started this social enterprise in 2017 and has since affected the lives 365 children living with cerebral palsy and trained 300 teachers, across 15 training programmes. “Inclusion is the best way to educate a child. I have cerebral palsy and I hold a master’s degree in international law” Ajayi said.

In Nigeria cerebral palsy is very common; one in ninety children born in hospitals has this disability. This is a minimum of 40, 000 children diagnosed every year.

“I have been on a number of international fellowships but SIP is different because it offers localised content, tailored to the Nigerian environment. It offers relevant content” Ajayi cheerily said.

One more SIP Fellow that interacted with BusinessDay was Ugonna Ginigeme, co-founder, CEO of www.vasiti.com an online platform designed to help student entrepreneurs gain online visibility. It is a one-stop platform that helps students save time, money and eliminate stress by giving them easy and convenient access to anything the need around their campuses. It also supports student entrepreneurs.

Friday 01 February 2019

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Dollar risks to Emerging Markets diminish as Nigeria may miss out on funds

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Shoprite sees biggest loss in almost 20 years on profit warning OLUFIKAYO OWOEYE & OLUWASEGUN OLAKOYENIKAN

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f r i c a ’s b i g gest retail outlet, Shopr i t e’s s ha re s slumped by 17%, the most since July 1999 after its first-half earnings dropped as mu c h a s 2 6 % , e xt e n d ing the January decline to 17%, and the stock is down 34% over the past 12 months, compared with a 10% retreat on the FTSE/ JSE Africa Food & Drug Retailers Index.

Shoprite in a trading statement released after the market close on Tuesday said it expects headline earnings per share (HEPS) including an adjustment for hyperinflation to fall by as much as 26 percent to 388.6-441.1 cents for the 26 weeks which ended on Dec. 30.

“The low turnover g row t h re s u l t i n g f ro m low food inflation, temporary stock availability

challenges and currency devaluations combined with lower non-RSA (non-South Africa) gross margins and inflexible expense growth has adversely affected profitability,” Shoprite said in its trading statement.

Shoprite’s African operations have hit a speed bump as a recession in Angola and sharp devaluations in some of the continent ’s cur rencies dragged down its crossborder revenue.

The 17.24% fall in nonSA revenue for the quarter end-December is a s etback for the group, which has long seen its expansion into the rest of Africa as a major driver for its growth.

Under former CEO Whitey Basson, Shoprite has built a retail empire that sees it operate 308 s t o re s i n 1 4 c ou nt r i e s across the continent.

Fo r a l o n g t i m e i t s cross-border operations have been the group’s big-

gest growth driver, but recently it has seen its rest of Africa operation come under intense pressure.

News that revenue was down double digits in its latest quarterly results

followed the group reporting a 12% sales drop to R21.4bn for its African operations in the year to end-July.

In t h e A n g o l a n o p eration, where it operates

30 stores, sales declined 49.55% during the quart e r. T h i s p e r f o r ma n c e was in contrast to when it grew sales 47.4% for the financial year to endAugust 2017.

Besides the problems in Angola, currency movements also hurt Shoprite, with the Zambian kwacha falling 20% and the Nigerian naira dropping 17% against the US dollar.

CONSUMER GOODS

Guinness shares decline as tough competition shrinks revenue OLUFIKAYO OWOEYE

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n Q2 Guinness reported weaker revenue of N39.7 billion down by 2.3% Yearon-Year, also net sales declined 4% in the half year ended 31st December 2018.

This was primarily driven by the strife competition in the lager segment as a result of the continued challenging operating environment and higher excise duty rates.

The opening of International Breweries (IB) Sagamu plant which added an estimated 2.5 million hectoliters to its existing capacity, enabled IB to increase its presence in the country and market share, with the impact being felt on other sector players including Guinness.

Further reflecting on the ‘Beer war’, Guinness was unable to pass on the higher excise duty rates which grew by 36% Year-on-Year to customers following IB’s decision to leave prices unchanged, thus imposing further pressure on revenue.

The Lager segment has seen an intense battle between the three manufacturers in the country. Guinness has Harp in the lager segment, while Nigeria Brewer-

ies has Heineken and Star and International Breweries also have Trophy and the newly introduced Budweiser Brand in the market.

However, Guinness continues to show its dominance in the Spirit segment where it has a plethora of spirits Brands. It recorded doubledigit growth in spirits and continued growth in Guinness mitigated some of the declines in the period.

The fragile economic

growth has seen consumers go for cheaper beer brands, coupled with a change in the taste of consumers which has seen a shift to handy and cheaper sachet spirit brands.

Gross profit declined 15% from N23.99 billion in halfyear 2017 to N20.49 billion in the corresponding period in 2018 this was as a result of net sales decline, as well as continued inflationary pressure on the company’s raw material costs and lower

fixed cost absorption. Marketing spend decreased 10% from 12.88 billion in halfyear 2017 to N11.55 billion in the same period 2018.

Operating profit declined by 30% from N6.64 billion in 2017 to N4.63 billion in 2018 as the productivity initiatives around marketing spend, distribution expenses and administrative expenses mitigated some of the inflationary cost of sales pressure.

Mr. Baker Magunda, Man-

aging Director/CEO, Guinness Nigeria plc noted that the half-year result reflected the continued challenges in the operating environment.

It would be recalled that an analyst at Renaissance Capital, Adedayo Ayeni, had predicted that the H1 results will continue to show weakness in operating profit like in the first quarter. Noting that Tariff increase on beer and spirits introduced by the government is affecting the

Edited by LOLADE AKINMURELE (loladeakinmurele@gmail.com) Graphics: CHINEDUM ONYEMA

company’s earnings margin more than competitors.

“Guinness Nigeria does not have the type of brand that can carry it through the cycle” of intense competition in the beer market,” he added.

Guinness Nigeria Plc was incorporated in Nigeria in 1950, its shares as at 30th January traded at N65.00 with a one-year return down by 41.25%.

Guinness Nigeria Plc, a subsidiary of Diageo Plc, has announced its unaudited results for its first half year 2019 for the period ended 31st December 2018.

The results, released to the Nigerian Stock Exchange (NSE), showed a slump in earnings a reflection of weak topline performance emanating from lower revenue and subsisting cost pressure over the period.

During the period under review, it grew Profit After Tax by 23% Year-on-Year to N2.58 billion following a sharp drop in finance cost down by 67.9% Year-on-Year to N1.54 billion after paying down its foreign currency denominated loans with the proceeds of its N40 billion rights issue raised in its 2018 fiscal year.

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COMPANIES & MARKETS BANKING

Zenith Bank targets market share in retail banking over oil risks OLUWASEGUN OLAKOYENIKAN

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enith Bank Plc, Nigeria’s biggest lender by assets, is paying more attention to retail banking as c r u d e o i l p r i ces continue to plummet in the international market, t h r e a t e n i n g N i g e r i a’s oil-dependent economy a s w e l l a s t h e l e n d e r ’s business customers.

The tier-one bank is likely to increase the percentage of its retail loans to total credit, which stood at less than 1 percent in 2018, to about 4 percent in 2019, according to Bloomberg.

Retail banking, otherwise known as consumer banking, is the provision o f c o n s u m e r- o r i e n t e d s e r v i c e s by a f i na n c i a l i n st i tu t i o n t o i t s re t a i l segment rather than to companies, corporations or other banks, often termed as wholesale banking.

“There is a lot of market in that segment,” said Gbolahan Ologunro, equity research analyst at Lagos-based CSL Stockb r o k e r s. “ I n t h e r e t a i l s e g m e nt, you ca n l o o k at the unbanked and under-banked.”

The lender’s strategy to expand its lending to the customers is coming after a proposed merger and acquisition deal be-

t w e e n Ac c e ss a n d D iamond Bank, making five largest banks to take 60 percent market share by assets and putting midtier banks on toes for a market niche to remain competitive in Nigeria’s banking industry. “ Th e i n d u s t r y i s b ec o m i ng m o re c o mp e t i tive and everyone has to understand what they are doing and find a bett e r w a y ,” s a i d Ay o d e l e Akinwunmi, head of research, FSDH Merchant Bank. “The big ones are encroaching into the smaller ones.”

Z e n i t h B a n k ’s C E O , P e t e r A m a n g b o, i n a n inter view at the bank ’s headquarters in Lagos said the strategy will be achieved through increased lending into personal loans, mor tgages and car financing.

“Everybody is realigning their strategies and operations to ensure that they change with the time,” said Akinwunmi. “ There is a lot we’re d o i n g o n r e v e n u e ,” Amangbo said. “We expect our retail franchise t o g ro w . O u r e l e c t ro n ic business, our digital banking is growing.”

The shift became imperative for Zenith Bank as Brent Crude against which Nigeria’s oil is priced has dropped a b o u t 3 0 p e rc e n t f ro m a p e a k o f ov e r $ 8 6 p e r

L-R: Abasi-Ekong Udobang, senior manager, programme and implementation, MTN Foundation; Lanre Kuforiji, commercial legal manager, MTN Nigeria; Nonny Ugboma, executive secretary, MTN Foundation; Princess Banke, programme director, MUSON Scholars Programme; Joseph Shaibu, beneficiary of MTNF-MUSON Scholarship Programme, and Iyore Asuen, commercial legal advisor, MTN Nigeria, at the MTNF-MUSON Music Scholars Workshop Series: 1 in Lagos.

barrel in early October to about $60 per barrel in late January, affecting demand for credit from Zenith.

Crude oil is Nigeria’s major source of revenue and accounts for more than 95 percent o f t h e nat i o n ’s f o re ig n exchange earnings.

With an estimate of over 50 million Nigerians – about 25 percent of the

n a t i o n ’s p o p u l a t i o n – shut out of the banking industry, Nigerian banks are aiming to reach out to more unbanked people by penetrating into the digital technology space, which is becoming more competitive especially w ith the in troduction Payment Service Banks (PSBs) by the Central Bank of Nigeria (CBN) to deepen finan-

cial inclusion.

This, however, poses a threat to the banks as telecoms firms – which have thre e-times more customers – can now facilitate transactions in remittance ser vices, micro savings, and withdrawal services in rural areas upon presentation of initial capital of N5 billion to get PSBs licenses.

Meanwhile, Zenith B a n k ’s s h a r e s g a i n e d 22 percent to N23 after the close of trade on the floor of the Nigerian Stock Exchange (NSE) We d n e s d ay , i m p rov i n g its year-to-date loss to 0.2 percent. It emerged the most traded stock as over 56 million units of shares valued at N1.3 billion exchanged hands in 270 deals.

OIL & GAS

S&P Upgrades Seplat rating ahead full year results SEGUN ADAMS

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lobal Rating Agency, S&P has improved the rating of Nigerian Oil and Gas Company, Seplat to B on the back of expectations of impressive 2018 full year result. ‘’We expect indigenous Nigerian oil producer Seplat Petroleum Development Company will report strong results in 2018 supported by healthy oil prices and relatively low capital expenditure (CapEx) and dividends, In our view, this resulted in a reported net cash position as of end-2018’’ S&P ‘’We are therefore raising our issuer and issue credit ratings on Seplat and its $350 mil-

lion notes due 2023 to ‘B’ from ‘B-,’’ The rating agency stated.

The upgrade reflects the improvements Seplat made in 2018, both operationally and financially, which S&P viewed as ongoing, as the Oil and Gas Company continues to de-risk and improve its business, with the Amukpe-Escravos Pipeline Project expected to be commissioned, and a final investment decision (FID) made on the Assa North and Ohaji South (ANOH) Gas Processing Plant.

According to S&P, “This somewhat reduces Seplat’s inherent weakness as a small oil and gas producer in the troubled Niger Delta region’’ The upcoming elec-

tions in Nigeria were identified as a likely factor that could delay potential transactions to toward the end of 2019 if anything happens at all this year.

S&P noted that it could lower the rating if militant actions and/or operational issues arose such that production was disrupted over the longer term although it does not consider the risk imminent. ‘’We think such a scenario will become less likely over time given the Escravos-Amukpe pipeline, increases in Seplat’s gas production, and potentially increased diversification following future acquisitions’’ S&PGR noted, adding that rating pressure could arise if the com-

pany undertook a large debt-financed acquisition resulting in a much less favourable capital structure.

On Tuesday, 28 January, Seplat slid to its lowest in more than a year at N520 per share, a performance CSL analyst, Gbolahun Ologurno attributed to ‘’general weak sentiment in the market’’ ‘’There is no bad news that will likely affect its operations hence its financial performance such as militant activities on Trans Forcados pipeline’’ Ologunro explained.

Businessday analysis of the unaudited Seplat financials for nine months to September 2018 show impressive performance of the Oil

and Gas Company.

Revenue surged 103.91 percent to hit N173.71 billion compared to N85.19 billion recorded in the corresponding period of 2017.

Seplat in 2018 nine months, overturned a loss before tax of N760 million incurred in ninemonth 2017 to record a remarkable profit before tax of N65.05 billion.

Despite paying more than four thousand folds in tax, as the figure rose from N860 million to N37.09 billion in the nine months under review, Seplat recorded a Profit After Tax up to 1,626.42 percent reversing losses of N1.6 billion in 2017 to close the books for the period with N279.68 billion as gains.

Consequently, in 2018

nine months, earnings per share (basic) skyrocketed to N47.98, a major improvement over the negative earnings per share of N2.88 in the corresponding period of 2017.

In the run-up to the announcement of their Full Year Audited Financial Statement, Seplat Petroleum on the 14th of January notified the Exchange on the postponement of their closed period. ‘’Following the scheduling of a meeting of the Board of Directors of the company for 28th February 2019, the closed period is consequently extended to twenty-four hours (24 hrs.) after the audited financial statement has been released to the public.’’

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SECURITIES

Dollar risks to Emerging Markets diminish as Nigeria may miss out on funds ISRAEL ODUBOLA

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mundi Asset Management, Europe’s biggest fund manager, says that the rising dollar trend that caused so much damage on risk appetite last year has subsidized, which is good news for emerging markets, but Nigeria would miss out on funds over election risk.

“The two macro threats – basically the dollar and higher interest rates coming from the United States are basically diminished”, Pascal Blanque, Chief Investment Officer of Amundi said in an interview in Singapore, noting that there is a possibility for most currencies in emerging markets to appreciate, thus favouring emerging markets.

According to Blanque, the group has joined other top investment banks like Morgan Stanley and Goldman Sachs Group that expect moderation in trade tensions and less tightening policy stance of Federal Reserve, which would

lead to a rebound in developing economies after a tough 2018.

However, the threat has shifted to global growth from stronger dollar and rising Fed rate, thus making India, Russia and Chile leading destinations for investment among emerging markets as they are poised to perform better than peers with weaker fundamentals, according to Blanque.

Amundi has a preference for stocks and bonds in China, Indonesia, Czech Republic, Brazil, and Peru because they offer high-yielding currencies with sustainable levels of debt and earnings growth.

Europe’s top fund manager, which controls $45 billion assets in emerging markets, favours countries where central banks have scope to cut policy rates to offset signs of a slowdown.

Amundi Boss expects earnings growth in emerging markets to average between 5 and 7 percent in 2019.

“When it comes to market to avoid, Amundi is looking at the balance of payment as a key metric, shunning Turkey. It is also

guarded on South-Africa and Argentina because of their deficits and they also face risk from their forthcoming elections”, Blanque said, adding that, The group is cautious on Mexico over border wall issue which could yield negative results including worsening of international relations with the United States.

Amundi says it has not worried over India’s election coming up between April and May 2019 as fiscal reforms are on the ground.

Commenting on Amundi’s decision to avoid Nigeria, Olayinka Olohunlana, a Lagos-based economic and financial analyst, said that it is unsurprising as the country’s investment climate is marred by heightened politically motivated tensions which have scared many foreign investors.

“It is safe to say that Nigeria’s unconducive investment climate that is being tainted by political instability, ethnic crisis, slow growth and low level of diversification among others might have reduced Amundi’s confidence in Nigeria”, she said.

L-R: Ademola Aofolaju, managing director, Investment One Capital Management; Kemi Abili, group chief operating officer; Nicholas Nyamali, group managing director, Investment One Financial Services Limited; Tope Omojokun, managing director, Investment One Funds Management, and Ezekiel Oluyori, managing director, Investment One Stockbroker’s International at the unveiling of Ziing App by Investment One in Lagos.

Pic by Pius Okeosisi

CONSUMER GOODS

Hollandia Evap unveils “Pere” Pack

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ollandia Evap Milk is now available in a 120g pack for only N100, lovingly referred to as “Pere”. The term “Pere”, which translates as “no more, no less”, is intended to symbolize the product’s high quality, satisfactory quantity, and affordability, thereby resonating with consumers across the country.

With an offer of the same premium quality, which is tasty, creamy and nourishing, and at an affordable price, the new Hollandia Evap Milk 120g pack comes in convenient portion size and a brand new pack format in the evaporated milk category that will make it irresistible to consumers.

Value adding and rich in vitamins and minerals, Hollandia

Evap Milk can be consumed with or without complements, offers convenient packaging ideal for individual consumption and is a great addition to a breakfast cup of tea, coffee or a bowl of cereal, pap or custard.

The new Hollandia Evap Milk 120g pack is a statement of industry-leading packaging innovation, product quality, quantity, convenience, affordability, and satisfaction. “Pere” is an interesting way to also simultaneously represent the product’s value and disruptive approach in the evaporated milk category.

According to Chi Limited’s Marketing Director, Probal Bhattacharya, the decision to provide consumers with the creamy, great

tasting, highly nutritious Hollandia Evaporated Milk in a 120g pack was driven by the brand’s desire to consistently deliver a novel solution to consumer needs.

“The new Hollandia Evap “Pere” pack is unique and symbolizes our understanding of what consumers’ value. Retailing at N100, we are confident that the new pack would delight consumers with its affordability, quality and convenient portion size,” he stated.

The Hollandia Evaporated Milk 120g pack size joins the 190g and 60g pack sizes on the shelf and is available in departmental stores, markets and neighborhood kiosk across Nigeria.

L-R: Emmanuel Oriakhi, marketing director, NB Plc.; Sade Morgan, corporate affairs director, NB Plc.; Damini Ogulo (Burna Boy), brand ambassador, Star lager Beer, and Jordi Borrut Bel, MD/CEO, NB Plc., at the official announcement of Burna Boy as the first brand ambassador for Star Lager Beer.

INVESTMENT

Investment One says new ‘Ziing’ offers 13% interest to customers MICHEAL ANI

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he new ‘Ziing’ app, which is an investment solution for investors, will offer as high as 13 percent return on investment, Nicholas Nyamali, Group Managing Director of Investment One says.

The app was launched as a revolutionary financial app of the firm’s ‘Investment One’ platform and will go beyond the traditional stockbroking services to give customers the opportunity to take control of their money and investments.

“With the Ziing investment platform, a customer can get an interest of 10-13 percent on their investment while enjoying a variety of services like payment of bills, fees as well as top up on the mobile phone,” Nyamali said in Lagos when the financial services firm was launching the app in “The app goes beyond the traditional banking payments, to

give customers access to mutual funds, treasury bills, international money transfer, investment education, savings, investment information, and alternative investments” he added.

While most of the developments in the fintech space have been geared towards developing payments, the ‘ziing’ investment platform will provide opportunities for customers to invest, save, and importantly, enable them to be in charge of what they do with their money.

Speaking on the rationale behind the introduction of the app by his company, Nyamali said it was the need to provide access and control to players in the financial space both locally and internationally.

According to him, one of the reasons why people have a low appetite for investment and savings is lack of investment information and education which is one of the services the app will be provided to customers.

Investment One, a wholly owned subsidiary of Guaranty

Trust Bank was founded in 2018 from a fall out from the Central Bank mandate that commercial banks must divest their nonbanking subsidiaries.

Nyamali explained that the reason why the firm came up with the launch of the app was to complement investors’ perception as many feel the Investment One app of the firm was created only for stockbroking activities.

“We wanted something that people can connect with. Most investors say when they go to Investment One, the first thing that comes to their mind is that it is a stockbroking app then.

We are changing this narrative by introducing the ‘zing’ investment platform to provide the following services including investment information; financial education; access to investment opportunities; to help customers to track their expenses and bring a return on their idle funds while charging fewer charges compared to other services

L-R: Akshay Jain, MD, Sumeru Nigeria Limited; Pat Utomi, special guest of honour; Dev Varyani, chairman, Vista International Limited, and Aramide Tola Noibi, media and public relations expert, at the commissioning of Vista International corporate headquarters in Lagos.

Toni Ogunbor, chairman, Nosak Group; Effiong Essien, SSA to the president on ERGP (Agric./Transport Stream); Osaheni Ogunbor, group executive director, operations and projects, Nosak Group, and Robert Ogirri, MD, Nosak Farm Produce, during the 2019 annual group management retreat recently in Lagos.

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Friday 01 February 2019

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ManagementDigest

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Cracking frontier markets ment and prosperity can be pulled in by market-creating innovations.

When innovations take root, infrastructure improves, institutions strengthen and corruption is tempered.

Clayton M. Christensen, Efosa Ojomo and Karen Dillon

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hen a movie is released straight to video, it’s usually a bad sign.

But in 1992, when the electronics salesman Kenneth Nnebue shot the straight-to-video Nigerian movie “Living in Bondage,” it was anything but a disaster.

Nnebue had received a shipment of blank VHS cassettes to sell but quickly realized that most Nigerians had no use for them.

He then had the idea of putting homemade content on the tapes.

He wrote a script, found a producer and a director, and hired actors. The resulting thriller about a businessman who uses witchcraft to revive his fortunes was released on those tapes. Nigeria had no operational cinemas at the time; the film, made on a $12,000 budget, went on to sell hundreds of thousands of copies across Africa, in the process catapulting “Nollywood” — the then-nascent Nigerian movie industry — to eminence.

Nollywood today produces about 1,500 movies a year, employs more than a million Nigerians and is thought to be worth $3.3 billion. In terms of volume, it rivals both Hollywood and Bollywood.

Nollywood is among scores of entities that have realized enormous growth by creating entirely new markets where they might least be expected. But how can one find serious growth opportunities in economies characterized by extreme poverty and a lack of infrastructure and institutions?

Key, in our view, is the power of innovation, and specifically what we call market-creating innovation. It not only generates new growth for companies but catalyzes industries that buoy frontier economies and foster inclusive, sustainable development.

Contrary to the conventional wisdom that a society must “fix” itself — its infrastructure, courts, legislatures, financial markets and so on — before innovation and growth can take root, we believe that innovation is the process by which a society develops. Innova-

tion funds our infrastructure, cultivates our institutions and mitigates corruption.

Market-creating innovations, in particular, provide a strong economic foundation. First, they offer many people access to a product or service that was previously unaffordable or otherwise unattainable — if it existed at all. That can have a profound impact on economic development for the region in question.

Second, market-creating innovations leverage business models and value chains that focus on profitability before growth. They often do this by borrowing existing technology and inserting it into a different business model.

When Nnebue inadvertently launched Nollywood, he inserted existing technology (VHS tapes and recorders) into a business model (straight to video) that many would have scoffed at.

Third, market-creating innovations are generated by and for a local market. This means that innovators must do the arduous work of understanding the ins and outs of that market. They might make use of low wages in the region, but market-creating innovations are not about taking advantage of low wages. In fact, over time — as an innovation spreads throughout a market — wages increase.

Fourth, market-creating innovations generate local jobs, which fuel the local economy. These jobs arise specifically to serve the local market; they cannot easily be outsourced to other countries. They

might include, for example, positions in design, marketing and distribution. They often pay better than global jobs, such as low-wage manufacturing work and work sourcing raw materials, which are more readily moved from one region to another.

Finally, market-creating innovations can be scaled up. In fact, because they make a product simple and affordable, bringing it within many people’s reach, scaling up is a fundamental part of the process. As Nollywood spread across the continent and to Africans in the diaspora, it created more jobs, supported infrastructure development and helped Nigeria develop its fledgling institutions.

How should companies think about creating new markets in frontier economies? We have identified five guiding principles: 1. EVERY NATION HAS WITHIN IT THE POTENTIAL FOR EXTRAORDINARY GROWTH: Innovators must first understand that significant opportunities exist in frontier markets. These do not resemble opportunities in developed markets, which differ in their fundamental makeup.

2. MOST EXISTING PRODUCTS HAVE THE POTENTIAL TO CREATE NEW GROWTH MARKETS IF WE MAKE THEM MORE AFFORDABLE: Narayana Health is a chain of multispecialty hospitals in India, with seven worldclass heart centers and 19 pri-

mary care facilities. Devi Prasad Shetty founded NH in 2000, when India was one of the very poorest countries in the world. He focused on improving the process by which care is delivered and as a result democratized access to highly complicated and expensive procedures. While in the United States open-heart surgery can run as much as $150,000, NH performs open-heart surgeries for $1,000 to $2,000.

3. A MARKET-CREATING INNOVATION IS MORE THAN JUST A PRODUCT OR A SERVICE: It is a system that often generates new infrastructure, regulations and jobs for people who make, distribute, market, sell and service the offering. One of the clearest illustrations of this point is Mo Ibrahim’s Celtel, which democratized telecommunications in Africa and paved the way for an entirely new digital economy that now supports some 4 million jobs.

Celtel did not simply create an inexpensive mobile phone; it built a whole system that includes cell towers, installed and maintained by engineers; scratch cards containing prepaid calling minutes, sold in informal shops; advertising, created by artists and graphic designers; contracts, drawn up by lawyers; new projects, financed by bankers; and customer support staff.

4. OBSTACLES CAN BE MITIGATED THROUGH INNOVATION: The essentials of develop-

2017 Harvard Business School Publishing Corp. Distributed by The New York Times Syndicate

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5. WHEN INNOVATIONS TARGET NONCONSUMPTION, SCALING THEM UP BECOMES INEXPENSIVE: Once an opportunity is identified and a business model is conceived, achieving scale is relatively cheap. Think about how easily Safaricom, the company behind the innovative mobile-money product M-PESA, grew its operations after creating a market for consumers who were unbanked. In less than a decade more than 20 million Kenyans adopted M-PESA. Contrast that with how much it might have cost Safaricom to exploit the conventional banking system — buildings, branches, accounts, staff, regulations and so on — to achieve the same scale.

The key to cracking frontier economies lies in creating new markets that serve the billions of nonconsumers unable to find a product or service to help them solve an important problem. It is precisely through innovations that generate or connect to new markets that societies can create jobs, pay taxes and build their infrastructure and institutions. The quality that sets market-creating innovators apart — the ability to identify possibilities where there seem to be no customers — is the reason their work represents such enormous opportunity.

Clayton M. Christensen is the Kim B. Clark professor of business administration at Harvard Business School and a co-author of “The Prosperity Paradox: How Innovation Can Lift Nations Out of Poverty.” Efosa Ojomo leads the global prosperity research at the Clayton Christensen Institute for Disruptive Innovation and is a co-author of “The Prosperity Paradox: How Innovation Can Lift Nations Out of Poverty.” Karen Dillon is a former editor of Harvard Business Review and a co-author of “The Prosperity Paradox: How Innovation Can Lift Nations Out of Poverty.”

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Nigeria’s declining health workforce: Its implication ahead achieving health-related SDGs ANTHONIA OBOKOH

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he ability of Nigeria to meet its health goals is dependant largely on the knowledge, skills, motivation and deployment of the health workforce responsible for organising and delivering health services.

While several studies show a direct correlation between the numbers of health workforce and population health outcomes, Nigeria is faced with the dearth of human resources needed to deliver essential health interventions for several reasons, including migration of health workers to other developed climes such as the United States of America, United Kingdom, Canada, Saudi Arabia and many other nations across the globe including poor mix of skills and demographic imbalances.

In recent times, Nigerians is expressing serious concerns over looming human resource dearth in Nigeria’s healthcare system. This directly impacts the access and service delivery to citizens and by extension Nigeria’s economic growth. Below is a breakdown of the health workforce in Nigeria.

According to data sourced from global decision-making data in the world Knoema, it was revealed that in 2010, the density of nursing and midwifery personnel for Nigeria was 1.6 numbers per thousand populations with the number likely to have dwindled due to rising population and birth rate in the country.

Efforts to get the oofficial statistics of the number of doctors practising in Nigeria and those who have left from the Medical Dental Council of Nigeria, (MDCN), the agency which regulates the profession in Nigeria, were not successful at the time of filing the report.

The World Health Organisation (WHO) recommended core indicator on the nnumber of health workers per 10000 populations which stipulates the size of the current workforce that

is meant to meet a given threshold that should allow the most basic levels of health-care coverage to be achieved across the country leaves much to be desired in Nigeria as evident in the data above.

While the number of health workers available should be relative to the total population since it represents a critical starting point for understanding the health system resources situation in the country, the comparable data currently available on the health workforce pertaining to physicians, nurses and midwives including other categories of service providers (dentists, pharmacists, community health workers); management and support workers (health service managers, health economists, health information technicians and others) is one that falls below global standards. This is a critical indicator given the country’s quest to meet its health-related Sustainable Development Goals by 2020.

“A total of $1 billion is lost annually to medical tourism in Nigeria. If you want to solve this problem you have to tackle the root cause of brain drain,” Clare Omatseye, the president, Healthcare Federation of Nigeria, (HFN).

Omatseye said, there is need for new strategies in reversing the brain drain as well as patient drain, an enabling framework and policies by the government that would encourage private sector participation in healthcare sector.

Similarly, Analysts say a good economic condition will make most professionals to return or stay back in the country.

“The increasing frequency of doctors leaving in droves is no longer news in the health sector, it been bedevilled over the years in the country.

Preference should be placed on our health sector so that necessary provisions will be made to enhance our health systems,”

“If federal governments, institutions corporate and create a platform for success in the sector and opportunity, then the country will increasingly get more talent wanting to stay back to serve the people well,” say Analysts.

A cursory look at the distribution of health workers in Nigeria– by occupation/specialization, region, place of work and sex shows an imbalance (or misdistribution) in the supply, deployment and composition of human resources for health, leading to inequities in the effective provision of health services.

X-raying the health workforce imbalance across the four tiers - imbalances in occupation/specialty, geographical representation, institutions and services, and demographics-BusinessDay can reveal that as the impact of these different types of imbalances on the health system varies, the need to monitor and assess each of these dimensions of workforce distribution in the country is exigent given the correlation between the size of the workforce and its implication for health-care coverage across the country.

Another important indicator the agency is the Annual number of graduates of health professions educational institutions per 100 000 population – by level and field of education. Data check to obtain the number of health professions from Nigerian University Commission was unsuccessful too.

The number and type of newly trained health workers is relevant given the need to increase production among all cadres, including the need for more workers in rural and underserved areas.

Strengthening the performance of health systems depends on more than just increasing the numbers of health workers; actions for assessing and strengthening their recruitment,

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distribution, retention and productivity are also important.

These aactions may include: adopting new approaches to pre-service and in-service training; strengthening workforce management; establishing or improving incentives for addressing distribution and retention challenges; or task-shifting (delegating tasks, where appropriate, to less specialized health workers).

Such strategic plans would normally include targets for monitoring health workforce metrics in both the short and the long-term and adaptation to any major health sector reforms.

Given the diversity of potential information sources, monitoring and evaluation of human resources for health would require robust collaboration between the ministry of health and other sectors that can be reliable sources of information, including the National Bureau of Statistics, Mministry of Eeducation, ministry of finance, ministry of labour, health professional regulatory and licensing bodies, associations of private providers, and individual health-care facilities and health training institutions Nigeria can apply these strategic plans of monitoring health workers metrics in both the short- and the long-term and adaptation to any major health sector reforms. Not only is the need for increasing the number of health workers, but a need for action in assessing and strengthening recruitment, distribution, retention and productivity is also pivotal to changing the current worrisome narrative of Nigeria’s health workforce.

New aapproach to pre-service and in-service training; strengthening workforce management; establishing or improving incentives for addressing distribution and retention challenges, or task-shifting are needed in Nigeria’s health care system.

Rotary club donates N12m clinical equipment to OGSG OMOLOLA AWOLANA & AYOOLA OBADIMU, Abeokuta

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s part of efforts aimed at reducing the rate of infant mortality and ensuring that the people have continued access to quality health care services, the Rotary Club International has donated medical equipment worth over N12 million to Ogun State government.

Babatunde Ipaye , State Commissioner for Health, , who spoke after receiving the equipment which included; a Preterm Ambulance and three specially built Neonatal Incubators from the Rotary Club of Maryland and Rotary Club One District 5450, USA, assured that the State government would continue to give due attention to the health of the people.

The Commissioner, therefore appreciated the social group for its contributions to people’s wellbeing, assuring that the State government would complement the efforts by ensuring that the equipment was put to effective use.

According to him, government is procuring more ambulances and providing decentralised form of service that will serve the whole of Ogun State almost simultaneously, so that if two or three persons are in need of this intervention, they will easily access it’’.

President of the Club, Rotarian Adekunle Adeniyi, noted that the gesture was to aid the State government in its effort at reducing infant mortality rate in the State, adding that the equipment donated would provide easy access to instant healthcare, thereby increasing the chances of survival of preterm babies in the State.

A decade of Boko Haram, but no trauma care for victims CALEB OJEWALE

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bba Gambo, a professor at the University of Maiduguri, and a member of the El Kanemi Royal Family, has lost 32 siblings to the Boko Haram insurgency, which according to reports got violent in 2009. His elder brother, Abba Ibrahim, who was a traditional ruler as district head of Gudumbali was killed right in his presence, in front of their family house.

In terms of getting care for his traumatising experience, Gambo was an exception to the rule. He was on admission at the Ahmadu Bello University (ABU) teaching hospital for almost one month where his doctor friends were counselling him. “And then the trauma was being taken away from me,” he said.

Gambo is one of over 23 million people in the Northeast who have at one time or the other, lived through the terror of Boko Haram insurgents. There is hardly anyone from the region, who has not lost someone and/or properties to the insurgency. At present, as much as 2 million persons are internally displaced from three out of six states

Displaced farmers sit under a tent at the Farm Centre IDP Camp, Jere LGA, Borno

Picture by Caleb Ojewale

in the region.

Gambo, being a professor, member of the royal family, and an adviser to a number of state governors on agriculture, was able to get trauma care. “But then what of other people who had similar experiences, but do not have access to any doctors or trauma centres?” said Gambo in an interview conducted during a visit to Maiduguri.

Recalling his experience, he said “I knew the kind of shirt my brother wore at the time he was killed, and for the first one month after his death, whenever I see that

same colour I got agitated.” He also explained that once in a while when driving around Abuja, and he sees someone that looks like his late brother, he would get agitated.

According to him, he would usually have a feeling like, “since they did not kill you that day, he’s coming after you to kill you now.”

However, most northeast residents who have been victims of terrorist attacks are only thankful to flee the attacks, while hoping the gory memories fade off like a bad dream. The worst hit among northeast residents remains rural

dwellers who farm for a living.

“But now you can’t see anybody, only dead bodies on the farms,” said Abdulkadir Jidda, chairman, All Farmers Association of Nigeria (AFAN), Borno State chapter. For Jidda, he had to flee Marte, but beyond the memories of loved ones who had been “slaughtered

by Boko Haram”, survival was more important. Being a leader of the farmers, and having a large family, his grief (and trauma) is perhaps, even more.

“I am now sitting at home doing nothing for five, six years. You can’t imagine the pain I am in, you just can’t imagine it,” Jidda said. He has never received trauma care, like millions of other victims of terrorism in the region.

Fannami Girema, a farmer in Buni Yadi, Gujba LGA, Yobe state, recalled when he fled his home when Boko Haram attacked. Sad and frightened, he said all that mattered was their lives, not farms, crops or food. According to him, some were killed as they fled and therefore it was a victory for those who were able to escape.

“This is a pain that we still feel, but we are just coping with it. It is

only time that will reduce the way we continue to feel about the whole experience,” he said.

Gambo, though fortunate to have received trauma care, also recalled when he witnessed a suicide bomb attack at the palace of Abubakar Umar Ibn Garbai Elkanemi, the Shehu of Borno.

Driving out of the palace after the attack, “there were pieces of human flesh on my car. I remember driving upon stumps of human body,” he recalled sadly.

He could not tell whether he was driving across a leg, hand, or other parts of the human body. “But then, these are things that will continue to haunt me for the rest of my life,” he said, with pain in his voice.

Women whose husbands were killed in their presence, men whose wives and daughters were raped in their presence, abound in the terror-stricken Northeast, and as Gambo emphasised, there is no one to console them, no one to talk to, no trauma centre.

“There is no one to talk to, console, or provide guidance. It is a very serious situation,” he said with regret.

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21

Executive Travel Health

Travel to China Ade Alakija

Alakija, medical director Q-Life Family Clinic, Victoria Island, Lagos.

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hina is usually viewed as an exotic d e s t i nat i o n . L o cation: East Asia, Capital: Beijing Population: 1.379 billion (July 2017 est.), Climate: Extremely diverse; tropical in south to subarctic in north; southern China wet season summer months, central China rainfall all year, Seasonal Risks : Tick-borne encephalitis, spring to early autumn. Influenza (Nov-Apr) Peaks/elevation: Mount Everest 8848m (29 029ft) Nepal/Tibet Autonomous Region border.

The Olympic Games have recently thrown China and Beijing, more open to the world after the spectacular displays and coverage of China. Many people will want to travel to see things for themselves which will add more to the already teaming number of business and tourist travellers.

In terms of frequency of syndromes, travellers generally present more with respiratory problems, then injury, followed by dermatological (including dog bites) conditions, systemic febrile illness, diarrhoea and so on in Chinese clinics, and those seen on returning from travel to China present with dermatologic conditions followed by acute diarrhoea then respiratory conditions amongst many other

ailments.

Travellers with pre- existing conditions such as Asthma should get pre-travel advice.

Three Chinas will be covered in this write up. They are Mainland China, Macao and Hong Kong.

The fourth China (Taiwan) will be treated at a later date. All primary courses of childhood vaccines must have been received with all recommended booster doses.

For healthcare workers, hepatitis B vaccine should be administered. Influenza and pneumococcal vaccines should be administered to the elderly. You must receive and take along yellow fever vaccination certificate especially if coming from areas with risk of yellow fever transmission like Nigeria. Depending on your life style and itinerary, Diptheria – spread through close respiratory contact, Hepatitis A – very common in crowded conditions with poor hygiene and spread by the faeco/oral route through contaminated water and food and Tetanus – contracted through dirty cuts and scratches, vaccines and boosters may be advised.

Depending on the areas of the vast lands of China you will visit, Japanese B encephalitis vaccine may be a life saver if you are going to rural areas especially Henan province in the low lying basin surrounding the Yangtse and Yellow rivers around paddy fields or swamps especially from the months of May to October. Rabies (animal bites are common in China- China has

the second highest number of reported rabies cases in the world, with over 2,000 deaths on average reported each year for the past 10 years. Government awareness and commitment to controlling rabies are high.

According to Ministry of Health statistics in 2009, China administers 12-15 million rabies vaccine doses annually.

This makes China the worlds largest administer of rabies vaccine. The Chinese authorities are forecasting national rabies elimination by 2025 - (WHO).

Tick-borne encephalitis vaccines should also be considered.

Travelers venturing off the usual tourist routes to visit smaller cities, villages and rural areas should consider Typhoid vaccines and BCG vaccines for Tuberculosis if tuberculin negative and under the age of 16. Malaria exists in China, but urban and densely populated areas are normally malaria free inclusive of Beijing and all major cities. Most tourist areas are generally free of malaria, but consult your travel consultant before you travel.

You may be put on prophylaxis anti- malarial tabs. Consider standby treatment if going to remote areas. Other infections to be aware of are Travelers Diarrhoea- watch the type of food and water you take and practice good hygiene, Dengue fever and Filariasis - Avoid mosquito bites as much as possible, both day and night. HIV infection is spread through sexual intercourse or infected blood

and its products. Schistosomiasis (Biharzia) is spread through fresh water snail. S. Japonicum is the species that is predominant and causes infection of the bowel often with bleeding. Paddling or swimming in suspect fresh water lakes or slow moving rivers should be avoided.

Hand, foot and Mouth disease occur sporadically in China.

In Beijing – “More than 6,700 people have been infected with hand, foot and mouth disease (HFMD) in Beijing during the first half of 2018, Beijing Daily reported Wednesday. ...” HFMD is a common infectious disease that usually affects infants and children younger than five years old. Peak seasons for HFMD are July, August and November in Beijing. Avoid crowded areas, and limit person to person contact were practical if an ongoing epidemic is on.

The disease is common in children and young adults.

The beginning of symptom for HFMD include fever, sore throat and sores in the mouth, blisters and itchy rashes on the palms, feet, and buttocks and are classic symptoms of the disease. Seek medical attention if any of these symptoms arise. Earth quakes and Avian influenza (be careful of poultry farms and markets) should be borne in mind. -- For Hong Kong, most of the above precautions may not be necessary except for Influenza vaccine, vaccination certificates like Yellow fever are not normally required, but since you may be visiting Mainland China from

there, it may be advisable to do so.

The same also applies to Macao with the exception of the Hand, foot and mouth disease outbreak in May 2008 which is on the decline but still occurs and also rabies awareness and vaccine. -- Be aware of traffic situations and accidents. Major tourist sites, street markets and Beijing airport attract thieves and pick pockets, also popular expatriate bar areas at night.

Practice usual safety precautions as in any large city and obtain comprehensive travel and medical insurance before travelling, even though China is generally rated safe. Serious crime against foreigners is rare.

Most visits to China are trouble free. Medical Assistance:Travellers should be aware of what to do if they become ill whilst abroad including how to access emergency medical treatment. Certain travellers, such as those with existing illness, travelling with children, going into remote areas, or the pregnant traveller may wish to try and identify health care facilities prior to departure. Addresses for local services are usually available at larger hotels and from tour company representatives.

As usual do not forget to carry along your full loaded and roaming mobile phone. Worldwide emergency number is 112 on your mobile phone. (It works).

Enjoy your trip. Websites that may interest you are www.iamat. org, www.cdc.gov/travel, www. fitfortravel.nhs.uk.

HLA spurring innovation to improve leadership, accountability in Nigeria’s healthcare …Trains senior health managers on skill acquisition ANTHONIA OBOKOH

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he Healthcare Leadership Academy (HLA) has recently offered an innovative capacity building programme aimed equipping healthcare leaders with the skills and abilities they need to successfully reform the primary healthcare systems of their states and realize ambitious health targets.

The programme HLA’s Leadership Enhancement and Accountability for the Public Sector (LEAPS) was recently held in Abuja, (January 22nd-25th 2019 a 4-day event being delivered to thirty participants from three Nigerians states.

Over the four-day event, participants received training in strategic thinking, problem-solving, and effective delegation amongst other topics. “In a bid to improve leadership skills, we need to equip healthcare professionals with the tools they need to transform healthcare

HBL Team

delivery in their respective state facilities,” Alero Ajayi, programme director HLA said.

Ajayi said, “LEAPS was designed to equip senior managers and administrators in the civil service who work for health ministries or parastatals and, interestingly, the Ministry of Budget and Economic Planning, with the skills and abilities they need to successfully reform the

primary healthcare systems of their states and realize ambitious health targets.

“The programme is a rigorous nine-month programme during which participants build their soft skills, grow in leadership presence, and work together in unique cross-ministry teams to execute and effectively manage a health system project. Participants typically represent a

cross-section of senior officers from multiple states within the country and multiple agencies within the states.”

She said the 30 participants were selected from three states in Nigeria, adding that so far, through the LEAPS programme, the HLA has engaged with and supported state governments from five of the country’s six geopolitical zones to build the governance capacity of senior health managers working in the civil service.

As part of the convergence, the programme director said participants gave updates on the progress of their state health projects, and several teams were able to highlight significant progress and real impact to the end user as a result of their approaches.

“It was particularly interesting to observe the range of projects being worked on and understand how participants are working as teams’ in-state to accelerate the achievement of the targets they

had set for the projects.

“An example of one of the projects being carried by one Northern State team is a drive to increase the number of women who complete all required antenatal health visits, thus reducing their risk of pregnancy-related complications to themselves and to the unborn child,” she added.

However, It was clear from the ease of interactions between participants and faculty that a safe space for knowledge sharing and leadership development had been achieved, and participants through the course of the fourday event gave various testimonials to attest to this, as well as their growth and development as leaders inside and outside of the civil service.

‘This programme has helped me develop self confidence and know my worth as a leader, I have learnt to present myself and be precise in my presentation,” Becky Agu from Nasarawa State, said.

ANTHONIA OBOKOH and ANI MICHAEL / Reporters. Email: obokoh.anthonia@businessdayonline.com I David Ogar, Graphics

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Increasing relevance of social return on investment and impact investing Isaac Esowe

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gaps and opportunities for social investment that can catalyze social change, and benchmark data can be useful in assessing the “biggest social bang for the buck.”

More so, SROI can be used by corporations to influence their community investment decisions.

SROI can be used to identify and assess, among a range of potential social investment opportunities, which candidates hold potential to generate the greatest social impact relative to financial investments.

For CSR investments, the inclusion of social variables provide a more accurate assessment of risk and return, and can facilitate improved due diligence. Capturing metrics before investments have been made can also provide a useful baseline to compare to when assessing social impact.

In tracking performance, SROI has been used by managers of nonprofits or social enterprises to inform their projections, strategic planning and performance assessment. As a management tool analysing social value creation, SROI can track social performance against the social objectives, to inform decision making processes, and to recognize the social value created for targeted groups. There are applications to other groups, for example, some socially responsible investment (SRI) funds refer to the SROI for their social

investments and express it in terms of outputs – such as the number of units of social housing built per dollar invested.

Knowledge of social return on investment will broaden your prospect or rather give you a better un-

Impact ‘ measurement

is an important way of evaluating and putting our progress on check, it could also serve as a yardstick in identifying opportunities for improvement and understanding the social and environmental returns on investments

‘

ike Warren Buffett, an American business magnate will say “If you are in the luckiest 1 per cent of humanity, you owe it to the rest of humanity to think about the other 99 per cent.” Overtime, there has been an increasing interest of philanthropic organisations and the government aid to address social and environmental challenges through different initiatives.

But then, it is important for these organisations to evaluate if their engagements in terms of social impact investment is worthy of continuous funding and support, hence, the adoption of a system of measurement to determine whether impact investing is out weighing social return on investment will be of a great importance.

Often times, our deeds and conducts either make or destroy value, perhaps, bring great emancipation to the world around. However, this value we create goes beyond what we can measure in financial term.

Social return on investment (SROI) is a framework for measuring and accounting for this much broader concept of value; it seeks to reduce inequality and environmental dreadful conditions and improve wellbeing by integrating social, environmental and economic costs and benefits.

SROI measures change in ways that are pertinent to the people or organisations that experience or contribute to it. It tells the story of how change is being created by measuring social, environmental and economic outcomes as well as uses monetary values to represent them.

The value of SROI As a method of social accounting, SROI has mostly been used to assess the performance of social enterprises. However, various trends have encouraged broader applications of SROI related to CSR. These include an increased demand for proving and communicating the business benefits of corporate social responsibility (CSR) efforts, and standardization trends in CSR reporting. SROI can be used as a tool to address some of these issues, and applied to a broader range of initiatives related to CSR. SROI can also be used as a tool to evaluate social impact after investments have been made in social ventures. Corporations that invest in social issues through their own programs, or through non-profits, can assess the difference that corporate contributions have made – not only of financial resources, but also of human and in-kind resources. The availability of such data can illustrate

derstanding on how SRIO is measure relatively to impact investment and help you strike a balance between return and impact. Furthermore, to help in understanding the concept of SROI it is important to look at impact measurement and value from different stand point in other to clarify your view as regard the subject matter Impact measurement Impact measurement is an important way of evaluating and putting our progress on check, it could also serve as a yardstick in identifying opportunities for improvement and understanding the social and environmental returns on investments, however, the better we could measure our impact, the better we can maximise it.

Consequently, the social and environmental performance needs to be measured with the same level of toughness as financial performance – which is very common in all different kinds of businesses. Measuring financial performance can offer important insight. Impact investing goes beyond the need of potential investor but rather ensures value creation for investors, investees and beneficiaries, impact measurement foster transparency and accountability for delivery on the intended area of impact.

The growth of impact investing has led to an exceptional focus on impact measurement, with the aim

of understanding both financial and social return on these investments.

However, impact measurement is multifaceted in practice, and varies in approach and rigidity, with a number of techniques and practices rising from diverse organisations.

This carries a risk for the emerging field of impact investing; if a certain level of obstinacy in impact measurement is not established across the industry, the label “impact investing” runs the risk of becoming diluted and used merely as a marketing tool for commercial investors.

Objectives behind impact investing measurement The idea behind impact investing measurement is to estimate the impact of every investment. Impact investing organisations are so much interested on the value their investments create as this helps them to prioritise where to invest their resources in order to create the desired impact. Also, the reason behind impact measurement is to monitor the progress which may supplement financial data whether the investee’s performance is on track, which can be used to compare target and actual on specified impact metrics. In preparing this write up, inspirations were drawn from NEF’s economics as if the people matter; Sinzer’s The Beginners Guide To Social Return on Investment, and A Guide to Social Return on Investment.

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Odunayo Oyasiji

Cjn Onnoghen: more constitutional crisis looming if not averted • Suggestion for NJC. • Suggestion for NBA. • What the Federal Government Should do.

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ccording to section 231(5) of the 1999 Constitution of Nigeria, the President can only appoint an acting CJN to occupy the position for three months. The only situation where an extension can occur is if the NJC recommends it. The section states “(5) Except on the recommendation of the National Judicial Council, an appointment pursuant to the provisions of subsection (4) of this section shall cease to have effect after the expiration of three months from the date of such appointment, and the President shall not re-appointment a person whose appointment has lapsed.” Within the three months, the president based on the recommendation of the NJC can present the name of the acting CJN for the approval of the senate in order to make him the substantive CJN. The law is clear and there is no lacuna (gap) in this regard. An acting CJN is expected to be in office not more than three months. No provision for extension beyond the three months at the discretion of the President. Will the president be humble enough to approach NJC for the approval of an extension or for Tanko to be recommended

by NJC as the substantive CJN? The essence of the above is to lay a foundation for what might happen in the next few months with regards to the present controversy on the Illegality of the suspension of the CJN. Therefore, something needs to be done by all parties concerned (NJC, Federal government and the courts) to avert the looming constitutional crises. With the way the present upper chamber of the legislative arm of government is constituted, it is not likely that the house will approve the appointment of the Honourable Justice Tanko as the substantive CJN. This is because there are uncertainties as to the party that is the majority in the house. However, the popular believe is that the opposition party (PDP) is the majority. What then happens at this point?-the acting CJN should constitutionally not act beyond three months and the present senate will likely not approve the current acting CJN as the substantive. Please note that the leadership of the senate is in the hands of the opposition that has condemned the action of the President.It must be noted that the position of the CJN differs totally from appointments into positions like the Chairman of EFCC. The CJN is not an appoin-

tee of the President and cannot stay in such position as acting CJN for as long as the president wishes. He is not Magu who keeps acting as EFCC chairman in the face of the failure or refusal of the National Assembly to confirm his appointment.

Looking at the present issue from a moral angle, the acting CJN has no moral reason whatsoever to make himself available as an instrument in the hands of the President to ridicule the judiciary. He definitely knows what is right but fails to abide by it. The reason for the foregoing assertion is the fact that he was part of the 85th meeting of the NJC that was held on March 14, 2018 when decision was taken against Justice Orji of the Abia State Judiciary for allowing himself to be sworn in as the Acting Chief Judge of Abia State without the recommendation of the NJC. This was after the Abia State House of Assembly illegally removed the incumbent Chief Judge- Justice Theresa Uzokwe.

While earlier placing Justice Orji on suspension in January 2018, the NJC stated that “the suspension of the Chief Judge of Abia State (Justice Theresa Uzokwe) by the State House of Assembly without a prior recommendation by the National Judicial Council violates the provisions of the Constitution of the Federal Republic of Nigeria.

Consequently, the subsequent act of appointing and swearingin of Hon. Mr. Justice Obisike Orji as the Acting Chief Judge is invalid for being unconstitutional. Furthermore, the conduct of Hon. Mr. Justice Obisike Orji in presenting himself to be sworn in raises potential questions of

misconduct that Council is now looking into.Council therefore resolved to query and suspend the Hon. Mr. Justice Obisike Orji pending the outcome of its investigation.”

Also, after investigation was concluded by NJC, the body stated that “Hon. Mr. Justice Obisike Oji was earlier queried by the council for allowing himself to be sworn in as acting Chief Judge, and thereby colluding in, and aiding an unconstitutional process”. Justice Orji was asked to proceed on compulsory retirement while the third most senior judge was asked to take over as the Chief Judge of the state. The Acting CJN is caught in the same web now. I believe the Abia case is a good precedent for NJC to follow in this instant case.

Apart from the position above, I am sure he is aware of the various constitutional provisions that deal with the position of the CJN. I am also certain that as someone who has been in the business of interpreting the law of the land for a long time he understands the position of the constitution on the right way/procedure to remove and also ascend to the position of the CJN. The law is settled on the procedure for removal of judges and that of the CJN and Chief Judges of the various states of the federation. In the Court of Appeal decision in Hon. Justice Hyeladzira Ajita Nganjiwan V Federal Republic of Nigeria (2017) LPELR-43391(CA), the court held that the NJC is the first place to report a judge to.

The judge is to be investigated

by NJC and necessary recommendation is to be made by NJC.

Also, the Supreme Court decided in the case brought by the sacked Chief Judge of Kwara State, Justice Raliat Elelu-Habeeb that the then Governor of Kwara State (Bukola Saraki) does not have the right or power to singlehandedly remove the CJN of Kwara State without the recommendation of NJC. The court ordered the reinstatement of the CJ. This matter needs to be handled with utmost care. Failure to do so can lead the entire nation into a state of lawlessness as the constitution might end up being rendered a worthless piece of paper by the gladiators.

Another issue that definitely needs to be looked into is the basis for the issuance of an order suspending the CJN when the jurisdiction of the CCT to entertain the matter is being challenged. It is trite law that when the jurisdiction of a court is being challenged, the court ought to determine the issue of jurisdiction first before delving into other things.

The foregoing position was affirmed by the Supreme Court in the case of the Supreme Court of Nigeria affirmed this in the case of NDIC V CBN (2002) 7 NWLR (PT.766) 272 AT 292,300 where the court stated that “but first it has to be plain to everyone , not least the court, that the court has jurisdiction to entertain the suit.

The court must not give an order in the suit affecting the defendants until the issue of jurisdiction is settled when it has been raised”. The court further stated in the same case that “the matter of jurisdiction is very crucial in any matter before the court that it must be addressed first by the court before proceeding further in the matter”.

There is serious need for the proper legal body to mete out the right punishment as we won’t be in the present mess we are as a nation if the CCT had done the right thing. It must be noted that Olisah Agbakoba SAN had called on NBA to disbar the Chairman of CCT. This in my view is a more worthy route to take in correcting the anomaly on ground than asking the lawyers to boycott courts for two days. It will even send a very strong message to all members of the noble profession.

The CJN is not untouchable as he doesn’t enjoy immunity.

However, his position is well protected by the constitution for the purpose of independence of the judiciary and separation of power. He doesn’t occupy the position at the discretion of Mr President. Therefore, the right procedure must be followed even when he is considered to have erred or violated the law in any way.

Finally, the CCT order granting the suspension of the CJN has been challenged at the Court of Appeal while the NJC has given the acting CJN and the suspended CJN 7 working days to react to the petitions against them. It is very important for the Court of Appeal to rescue the judiciary and decide the matter in a way that supports the constitution and the law. It is imperative that NJC too should take a bold decision and put the judiciary on the right path again. Ultimately, it is highly important that the executive arm of government should abide by the dictates of the courts and decisions of NJC so as to avert the looming crises.

Note that all the parties concerned must act very fast!

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COMPLETE COVERAGE OF SOUTH-SOUTH / SOUTH-EAST

PHCCIMA supports NACCIMA young entrepreneurs in Rivers …says they’re strategic to chamber’s expansion

EFEGADIRIM MADU, Port Harcourt

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hePortHarcourtChamber of Commerce (PHCCIMA)saysyouth entrepreneurs in Rivers State under the aegis of NACCIMA Youth Entrepreneurs (NYE) were a strategic group to expanding the business climate of the oil-rich state, with a $23 billion grossdomesticproducteconomy.

Nabil Saleh, PHCCIMA president said this in Port Harcourt when he received a delegation of the Rivers State chapter of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) Youth Entrepreneurs (NYE); adding that PHCCIMA was quite primed to work with the budding young entrepreneurs.

The NACCIMA Youth Entrepreneurs Rivers state chapter were at the PHCCIMA secretariat to see the chamber president, as part of effort to consolidate on their successes witnessed last year. They were received by Saleh and members of the PHCCIMA executive committee.

Victor Adedamola, coordinator of NACCIMA Youth EntrepreneursRiverschapter,commended the new PHCCIMA president and his executive committee members for their emergence at the last annual general meeting of the chambers.

He said the youth group was poised to work in synergy with the new chamber administration to achieve a robust and unique blueprint. He said the youths were aware of the need for NYE mem-

Nabil Saleh PHCCIMA president (3rd right), receiving greeting card from Victor Adedamola (4th right), coordinator,NACCIMA Youths Entrepreneurship, supported by members of his group bers to fully and officially register as PHCCIMA membership, so as to leverage and benefit from the chamber’s boundless activities.

He assured the president that they would ensure that more youths register and get the full complements of member benefits.

He thanked the PHCCIMA president of the continued support; and assured him that the

youths were committed to the new synergies of his administration geared towards taking the chamber to another level.

The PHCCIMA president welcomed the NACCIMA Youth Entrepreneurs Rivers chapter commitment to working with the chamber; assuring them that his administration will give wider support to youths. According to

Onne Ports empowers 20 indigenes in artisanship EFEGADIRIM MADU, Port Harcourt

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nne Ports, a major component of the Eastern Ports, has embarked on corporate social initiatives on its host communities, to stave off occasional community restive attacks on the port area. To this end, some 20 indigenes drawn from Ogu and Onne would go for training and empowerment in artisanship.

The programme was packaged by a Joint Free Zone Community Relations Initiative (JFZCRI) established by the Nigerian Ports Authority and Onne Port complex.

The JFZCRI is non-governmental body formed in 2004 by the NPA, with the Oil and Gas Free Zones Authority (OGFZA) as member. The OGFZA is the regulatory body for all oil and gas free zones in Nigeria.

JFZCRI pulls resources together and meets once in a month to discuss issues that concern the communities with the view to dealing with their demands, to ensure a peaceful co-existence and smooth operations in the Port.

Companies belonging to the JFZCRI, Onne Port complex, and who contribute funds to the activities are: NPA Onne Port, Total E&P

Nigeria Ltd, West Atlantic Shipyard (WAS) and Brawal Oil Services Ltd. Others are: Alcon Nigerian Ltd and West African Ventures (WAV).

The chairman of the initiative is Onne Port manager, Alhassan Ismaila Abubaka, while the vice chairman is the OGFZA. Details of the beneficiaries show that Onne youths set for the training are 10, while from Ogu are 10 participants.

Of the number, two males from Onne would be trained in catering/decoration unit of the program.

Receiving the trainees at the Onne Port conference room, the acting port manager, Nchey-Achukwu, representing the port manager, Ismaila Abubakar, commended them for their show of interest to acquire a skill, describing the training they would undergo as worthy.

“Empowerment is about life surviving skills, to earn a living.

You are going to be empowered by learning a skill that would help you earn a living,” she stated.

She said there could be challenges in the course of their training, but encouraged them to be committed, focused and resilient till they achieve something from the training.

She noted that the NPA

management at the headquarters and that at Onne Port JFZCRI are committed to corporate social responsibility to the Port host communities, as informed by the investment through the JFZCRI to train youths and women at Onne/ Ogu communities.

Gaius Oguegbunum, secretary of JFZCRI, said training of indigenes of the host communities was another strategy to create wealth and empower the communities to participate in creating wealth for the nation.

He said the training will be executed by a catering/ fashion designing outfit in Port Harcourt, and will last three to six months. He urged them to take the training seriously and improve on their economic wellbeing.

A participant in the training Okajor Nkemjika Nnenaya from Ogu community, who spoke on behalf of others, thanked the NPA and JFZCRI for the opportunity given them. She assured that they will do their best, not to disappoint them.

Meanwhile, JFZCRI had executed some other projects for host communities in Onne and Ogu such six classroom blocks and toilets at Ogu Community Secondary School; a 500KVA/ 33/ 0.415 KV transformer in Onne.

him, members of his team have made it a priority to carry the youths along in the scheme of things, especially in recognition of the fact that youths were quite strategictonationaldevelopment.

He said PHCCIMA youths will be given the support they need to position them favourably in the global comity of youths; and urged the NYE to register

fully with the chamber, as demanded by the constitution, to afford them the opportunity to leverage on PHCCIMA’s partnership with strategic institutions, organizations government agencies and international business groups. This would help take their businesses to another level.

“I implore you to make effort to ensure your members

register as PHCCIMA members.

I know this will not come as easy, as some of you are still going through the transitional stages of your business. Hence, I will direct the director-general to accept some sort of staggered payments from the youths; perhaps in two instalments in the year, to make it easier for you to cope with the registration in the course of the year.

The PHCCIMA second deputy president, Chinyere Nwoga, while enquiring about the NYE members’ line of business, implored them to join the chamber, expressing confidence that the chamber will give them more window to explore, widen their business scope and open more frontiers of business opportunities for them.

NACCIMA Youth Entrepreneurs Rivers chapter, otherwise known as PHCCIMA Youths, is a group of young entrepreneurs affiliated with the chambers of commerce to inspire entrepreneurship, represent and advocate for the interest of youths in business, encourage youth patronage and investment, participation in decision making, among other objectives. The group also facilitates youth empowerment, skills acquisition for employability and self-actualization. It is best described as “a congregation of youths with knowledge and skills of business and entrepreneurship being mentored to equip them for effective participation in sustainable national development.”

NPA undertakes water channel oil-spill clean-up at Onne Ports EFEGADIRIM MADU, Port Harcourt

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igerian Ports Authority (NPA) has commenced water channel oil-spill clean-up at the Federal Oceans Terminal (FOT) Onne Ports, after many years of neglect of the area. Onne’s Federal Ocean and Lighter terminals are part of the seven ports that constitute the Eastern Ports.

Barbara Ejemeh NcheyAchukwu, acting port manager at Onne, standing in for Alhassan Ismaila Abubakar, port manager, noted that the project is the first of such projects being executed by the Personnel of Environment Department (PED) of the NPA. Speaking on the side-lines of kick-off of the clean-up operations at the Engineering Department premises at Federal Lighter Terminal (FLT), Onne, Nchey-Achukwu commended Hadiza Bala Usman, the managing director of NPA for approving the water channel oil-spill clean-up at Onne Ports.

She said that the Port Manager is aware of various protest letters of complaint from Terminal Operators relating to oil pollution within the waters and was therefore excited with the new development in commencement of the water channel clean up.

She said by this effort that NPA is showing a duty of care.

She said that vessel owners had been complaining over oil spill stains on their vessels hauls calling at Onne Port, noting that after the exercise such complaints will be a thing of the past.

She thanked I.S Abdulabaki, general manager Health, Safety and Environment (HSE); Khadijat Seidu-Shabi, assistant general manager Environment and Uchenna Chukwuemeka, principal manager, Oil Monitoring from the NPA headquarters; as well as the coordinatoron-scene and commander of the Onne Port Channel cleanup, for coming to kick off the project.

“I know after this exercise, terminal operators will no longer complain to Onne Port management of stains on their anchored vessels,” NcheyAchukwu stated.

In a brief toolbox meeting at the engineering department of FLT Onne, I.S Abdulbaki, general manager HSE, said he and his team would clean up the water channels. He said they could not ascertain the actual cause of the oil spills at the Port, but suspected the activities of oil bunkerers, and wastes from communities that empty effluents into the water channels.

He said part of their ac-

tivities to remove debris from the water channel is to use chemicals to clean the water to achieve improved water. After, they would raise awareness of the people on the need for clean waters, to sustain aquatic life and navigation.

Khadijat Sheidu-Shabi, assistant general manager, Environment, said NPA has decided to carry out the oil-spill clean up to improve the quality of the Port channels. “As an Authority, we are proud to show commitment to improving the navigational water channels within Onne Port,” she said.

Chukwuemeka, principal manager and coordinator-onscene, and the commander of Onne Port channel clean-up operations, said materials to be deployed for the exercise include bio-degradable materials, remediation products (PRP) and pressure washers for removal of oil stains on the quay walls and the fenders.

He said that the team will also be using scooping nets within the Onne water channels to remove floating debris, cans and seloteen bags within the water channels.

On his part, the manager in charge of pollution, Onne Port, James Edet described the team as passionate and professional to deliver clean and safe water within the Port channel.

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Company Review

Technology Review

PSBs: Are banks really scared?

FRANK ELEANYA

I

n its recent MacroEconomic and Banking Sector Themes for 2019, Guarantee Trust Bank (GTBank) described the decision in 2018 by Central Bank of Nigeria (CBN) to open up a segment of banking services to telecommunication operators as “a more compelling threat.” It was a big admission coming from one of the top five commercial banks in Nigeria although the reality may say otherwise.

The CBN first proposed the establishment of Payment Service Banks (PSBs) in a letter addressed to banks, telecommunication companies, mobile money operators, banking agents and Nigerian Communication Commission (NCC). The title of the letter was ‘Exposure Draft on the Guidelines for Licensing and Regulation of Payment Service Banks.

In the letter, the CBN said it was establishing PSBs “in furtherance of its mandate to promoting a sound financial system in Nigeria as well as being innovative in deepening the financial services sector.” MTN and Airtel have already made their intentions to kick off their mobile money operations by 2019 known to

everyone.

The PSBs license empowers them to facilitate transactions in remittance services, micro-savings, and withdrawal services in rural areas. The primary idea is to drive financial inclusion by leveraging the capacity of other entities, like the telecoms companies with existing infrastructure in the areas not easily reached by bank networks.

It should be noted that PSBs is not a Nigerian innovation.

Payment Service Banks have

always existed in countries like India where they were first introduced in 2013. The Reserve Bank of India (RBI) issued 11 licences to Payment Banks – as they are called in the country in 2014 despite receiving a total of 41 applications. Currently, only 6 PSBs have commenced operations with four becoming prominent in India.

Although banking agents, mobile money operators, retail chains fall among the PSB category, as it stands, only telecoms companies have the

capacity to earn that name given that the N5 billion capital requirements make it almost impossible for the others to participate. Aside from having the capital requirements, telecoms companies like MTN, Glo and Airtel also possess the infrastructure to go into rural areas, places where banks’ networks are unable to reach.

But the PSB license does not necessarily give them so much leverage to challenge banks. First, they are prohibited from lending services

and participating in the forex market, which are the most lucrative aspects of the banking industry. It should also be noted that high transfer fees have been one of the challenges hindering financial inclusion. Thus, unless the telecoms companies crash prices significantly they are likely to face difficult times convincing millions of Nigerians to embrace their innovations.

Collins Onuegbu, executive vice chairman of Signal Alliance and director at Lagos Angels Network (LAN) told BusinessDay that it is still early days to fret over telecoms coming into mobile money. He recalls that fintechs were once viewed as threat to banks but over time this is proving not the case as many of the banks have assumed fintech roles in their strategic investment in digital banking.

“In reality fintech companies have not disrupted banking as we know it,” he says.

Second, the PSBs will most likely be funding government instead of using their deposit to make money off the money market. Ninety-seven per cent of the deposit put together would be tied up in 22 per cent Cash Reserve Ratio (CRR) and 75 per cent to be used to buy treasury bills (lending money to government) at the lowest

rate of money market investment.

Third, most of the benefits of urban rollout would also elude many of the PSBs as they commit 50 per cent of their offices and agents to the rural areas. MTN may be the exception as it already has significant infrastructure in the hinterlands.

It should also be said that running a bank is different from running mobile money or even running a telecommunication company. The transactions and data may be many, but the complexity is nothing compared with banking. The PSBs will be dealing with antimoney laundering, compliance, capital adequacy, things that look simple on paper but extremely difficult in practice.

They will also be employing bankers who will bring the notso-likeable banker mentality.

Finally, the CBN is one of the toughest regulators in West Africa who treat dissent or mediocrity lightly. MTN may have dealt with mobile money regulators in Ghana, Uganda and had much success, but the bruises left from the recent fine imposed on it by the CBN is likely to take a while to forget.

It is possible that just like in India; some PSBs will return their licenses after facing the CBN scrutiny.

Flutterwave’s Rave Platform to make payments easy worldwide ….Users can also profit from referral payments Lucky Nwanekwu

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lutterwave’s new payment platform RAVE is designed to help African businesses accept payments from anywhere in the world and make transfers across Africa.

The RAVE payment platform also shows in-depth

business analytics such as where a cluster of customers pay from, top and least customers, busiest times customers will pay for products and service.

The platform was unveiled at an event held at the Flutterwave’s Lagos office last Friday.

The theme of the event: ‘The Business of Growing

Customers’ was chosen as an effort by Flutterwave, a payment platform for Africa, to connect with its local digital businesses and empower them with growth tools.

An Instagram business such as Fruits2Go has physical locations on Admiralty but can tap into benefits of being digital (e.g. collecting data) when they use Flutter-

wave’s payment links in their Instagram bios. This enables their customers to pay easily from the comfort of their office for a Parfait or spicy chicken wrap.

The businesses that participated in the launch got the chance to learn how to grow communities to increase sales, viral content, opportunities in digital payments,

storytelling for their brands and more. The event, which the company promises is the first of many more was free to attend.

The Flutterwave team also announced its ‘Referral Program’. This means freelancers, developers, or even businesses who refer other businesses to use the RAVE payment platform will 0.1% of

EVERY transaction the business referred makes.

Flutterwave, a company which says its mission is to inspire a new wave of prosperity across Africa by building payments infrastructure to connect Africa to the global economy, believes this event is an important statement to SMEs in their drive to bring prosperity to Africa via them.’’

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Friday 01 February 2019

Femi Odugbemi, the astute filmmaker and his craft OBINNA EMELIKE

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he year 2018 was good for Fe m i O d u g bemi, a prolific Nigerian filmmaker. From being inducted in June as a Voting Member of the Academy of Motion Picture Arts and Sciences (Organisers of the annual OSCAR awards) in the United States, being appointed as the MultiChoice Talent Factory Academy Director for West Africa to being honoured with the Movie Rock of Fame Award at the Zuma Film Festival in Abuja by the Nigerian Film Corporation (NFC).

At the film festival, Chidia Maduekwe, the ma na g i n g d i re c t o r o f NFC, in his nomination letter to Odugbemi, explained that the Lifetime Achievement award was “to recognize and reward excellence and immeasurable contributions towards the growth of the film industry.”

Between 2002 and 2006, Odugbemi was president of the Independent Television Producers Association of Nigeria (ITPAN) where he championed professional training and workshops for the then nascent Nollywood

industry. He also led the organisation of the Lagos Forum on Cinema and Video, which focused on the business of content marketing and film distribution.

Odugbemi’s career in the film industry boasts of many milestones. He was the pioneer and threetime Head Judge of the Africa Magic Viewers Choice Awards (AMVCA). He has also served as a head of jury of the Uganda Film Festival in Kampala for three consecutive years.

He is a co-founder and

executive director of the popular iREP International Documentary Film Festival, which has gathered filmmakers from across the globe to Lagos in the last eight years. iREP has provided training and workshop o p p o r t u n i t i e s f re e o f charge to many emerging filmmakers especially those focused on the less glamorous documentary film genre. Odugbemi through iREP has convened academics, intellectuals, historians and filmmakers under one

u mb re l l a t o i nt e g rat e their artistic vision, with thematic explorations of archiving, post-colonial narratives, cultural renaissance, impact of new media and technology on storytelling and many other salient inter-disciplinary approaches to film engagement. Odugbemi established his pedigree as a documentarist of international repute with documentary titles like the AMAA-Best Documentary film ‘Bariga Boy’ and many others.

The general focus of

his documentar y work has been to preserve our culture, as well as, use film as an advocacy tool to bring to fore burning issues in the society, as a way of keeping the leaders in check. His most celebrated documentary is the award-winning ‘Makoko’ a story on poor primary school education in Makoko, a slum nestled in the Yaba area of Lagos.

Makoko brought to light the impoverished state of the community, which attracted well meaning Nigerians to come to the

aid of the residents.

Perhaps, where Odugbemi really displayed his ingenuity has been in the television space where he was a founding producer of Tinsel, one of the longest running TV series in Africa. His current production ‘Battleground’ is one of the most watched TV series on Africa Magic channel, attracting millions of viewers to its compelling narrative of love, betrayal and revenge.

W h a t re a l l y s t a n d s O dugbemi out among his peers is his quest for excellence. Expressing gratitude for the award, Odugbemi urged young filmmakers to pursue artistic excellence in their work.

“It is good to show all the glitz and glamour but if the essence of your story is lost, then you have not done a job. We need to find that untold story that reflects our history and the magic of the African culture more, not cloning stories informed only by pecuniary gains. Our stories should not only entertain but also inform and inspire. Filmmaking is a powerful tool, which most of us are yet to fully grasp. Nollywood can and should be the most powerful voice of the black race.”

Bird Box, Elite drive Netflix subscriber growth to over 139 million Jonathan Aderoju

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ovies including Bird Box have helped Netflix to end 2018 with more than 139 million subscribers, adding 8.8 million members in the last three months of the year.

The streaming giant said the growth reflected the success of its original programmes. Netflix-original material now represents the vast majority of its most popular shows, the streaming giant said.

Television viewers also spend an estimated 10 percent of their time on Netflix, it claimed. The

figures accompanied the release of the firm’s quarterly earnings report.

They offered investors a rare glimpse of audience viewing patterns, as the firm seeks to explain how its massive spending on content - much of it funded with debt - is paying off.

Bird Box was watched by 80 million households in its first four weeks after release while Elite, a Spanish drama, was watched by 20 million households in its first four weeks after release.

Netflix estimates that the show ‘ You and Sex Education’ will both be watched by 40 million

households within their first four weeks of release.

S o m e a na l y s t s have estimate that Netflix spent

more than $13 billion on movies and shows last year.

Netflix said its spend-

A scene from Lion Heart by Genevieve Nnaji on Netflix

ing is likely to increase this year.

“Our multi-year plan is to keep significantly growing our content while increasing our revenue faster to expand our operating margins,” Netflix said in a shareholder letter tied to the earnings report.

“Our growth is based on how good our experience is,” Netflix further said.

Shares, which had risen sharply in recent weeks, dipped more than 3 percent in after-hours trade, after revenue for the fourth quarter fell shy of analyst expectations.

The firm reported quarterly revenue of $4.2bn

(£3.2bn), up 27 percent from the same period in 2017.

However, a price increase in the US and some countries in Latin America and the Caribbean announced recently has the potential to add s ome $1bn in revenue.

The firm said it will also look to adjust prices elsewhere as currencies fluctuate, but warned the increases could lag behind the exchange rate shifts, causing revenue hiccoughs.

The 8.8 million increase in paid subscribers, most of them from overseas, marked six percent growth from the previous quarter.

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25

Business Etiquette

Movie Review – UPNORTH

with Janet Adetu

Linda Ochugbua

U

pNorth was a beautiful movie that told a fantastic story about the Northern and the western parts of Nigeria. It was really cool to see the lovely areas of the N0rth showcased in a very positive way different from all we were used to seeing in the News. I loved the way the movie started and how it transcended into the main action scenes and aspects. It was a typically Nigerian movie explaining to us how the NYSC youth corp program works, and what to expect. The good side was the twist and blend of culture they brought to it, along with humour and comedy yet not forgetting to relay the main lessons of the movie. I kind of enjoyed it and like the new direction they took, although I kept wondering to myself if these stories were really realistic and possible in this present era. Anyway we always hear ‘Never say never” and “If you believe then it will happen to you” as well as “Love conquers all things” and I guess it conquered all in this movie and made “Banky-W” leave all the pleasure and fun of the west to move to the North.

The actors played a very good role and I loved how they brought their roles to life, Banky- W playing the Lagos influential boy and Adesuwa Etomi- Wellington playing the shy timid Hausa girl and Ibrahim known as Suleiman who played the typical well educated Hausa boy.

The trailer of the movie kind of gave us what to expect from the movie, so it was easy to connect and flow all through. The story was centred around “Banky-W” the popular musician who is also a good actor. It is always a pleasure to see both himself and his wife, Adesua in the same movie, especially after creating the Wedding Party magic. Well back to Up North, Banky was a “Daddy’s boy” who never wanted to take anything serious. He wanted the money but not the work that came with earning it, so to punish him, his dad allowed him to be transferred to the North where he could suffer a bit and learn what life was all about ofcourse without his friends and flamboyant

Think Out of the Box Have you began to think out of the box? ow times c h a n g e, t h e new just keeps getting newer, we keep striving towards learning and understanding the latest technology. It is not surprising why they say the only thing that is constant in life is “Change”.

As these times are constantly changing, the environment is also becoming ever more challenging, now a case of survival of the fittest, all in a bid to overcome barriers, run the race of life and grow perpetually doing so. What is really going on around us today? The last few months has shown that our once upon a time comfort zone regarding the economy is now a victim of its own circumstance. Technology has taken over and is waiting for no one. it has stopped many in their tracks as activities have been stifled by the present condition. Personally, I feel that one positive side to these drastic changes is that many have had to think right out of the box, better still think right within the box for clever path1ways to success.

It would not surprise you t know that while some people are basking in negativity about this condition others are actually making the most of every situation. They are overlooking the limitations and opening up to bigger, bolder and better ways of doing things.

This act of stretching the territory is for me is the epitome of breaking bounds.

Being comfortable doing your everyday regular activities can be restrictive, monotonous and to a large extent unproductive. The state of your environment is not the only reason for going that extra mile and breaking boundaries. At times there is a ripple effect of success and playing leader in the industry. You may currently be enjoying the large market share in your economic sector this requires you constantly having to be innovative and create new possibilities all in the name of moving far and above your competition.

Breaking bounds and boundaries therefore is that act of stretching your capacity to lengths even you did not know you could reach.

What is your value proposition in life? Are you prepared to go the whole nine yards?

Can you go above and beyond your own imagination?

Quite a while back I was listening to a radio program which was an interview about experiencing and overcoming

H

life styles. If only his father knew what he was doing, he probably won’t have sent him there. Banky got there, had so much fun, enjoyed himself, made a statement and didn’t want to return back to the city again.

It was at this point his father knew he had made a mistake, all his efforts to bring his back to the city fell on deaf ears and Banky moved on with his life and his new found family, yeah you heard me, he found a home in the north and pitched his tent there when he met a fine homely charming damsel. He built a large followership on social media through his daily posts, transformed the life of the girls in the school he was to lecture at and became the best thing that ever happened to the school and the north. I totally enjoyed the twist to the story and I am sure most people will.

Cast: Banky Wellington, Adesuwa Etomi Wellington, Akin Lewis, Rahama Sadau, Kanayo o. Kanayo, Michelle Dede, Hilda Dokubo, Tokunbo Idowu , Ibrahim Onimisi and many more Director: Tope Oshin Ogun Written by: Chinaza Onuzo, Bunmi Ajakaiye, Editi Effiong Casting: 1hr 40mins Genre: Drama

Ratings: 12 To my verdict I would score Upnorth an 8/10. The photography, cinematography and picture quality was really top-notch, I loved the combination of both worlds and how the story connected. The cultural displays were good and the “do’s and don’t do” were also clear. I learnt a lot about the various cultures and the movie brought back good memories in my head of when we travelled to the North years ago, hopefully I would return soon to see what the place holds now.

There were very little faults, but I won’t allow them cloud my judgement and score them down, but one thing I know for sure is that these cultures don’t always mix that easily, especially when it comes to the aspect of marriage, but I guess the world is becoming a global village and change remains the only constant thing in life. If you love comedy and romance movie, then you definitely need to catch up with this movie before it is taken down.

Feel free to review any movie of your choice in not more than 200 words, please send us a mail to linda@businessdayonline. com and stand a chance to win a free movie ticket.

Linda Ochugbua @lindaochugbua

the economic challenges. I was totally engaged and very inspired when a listener called in to say how the adversity of the challenging times turned out to be a blessing for him and his family. He narrated how in the cause of a brief discussion with his wife over breakfast they decided to start a juice business selling to work collegues. The extra income he said has been amazing which might not have happened if they did not think out of the box. They both have daytime jobs while passive income is coming from that added initiative. It is time to really smash that box today to survive and thrive.

It is interesting how we are seeing the new millennial becoming so enterprising and serious risk takers. Those who studied law are finding their passion in hobbies and gifted talent. They are embarking on Gourmet Cuisine, Fashion Couture, Photograhy, Makeup Artistry, Event Management, Digital and Technological Marketing, you name it, all in a bid to succeed at business.

Extreme circumstances can help you think, act and do things differently. Though

specific, review every two months and revise where need be. Challenge yourself to execute these goals; look for assistance, advice and guidance along the way. Use this as an opportunity to tap into others experience. I strongly believe in the impact of having a mentor and or a coach who can be your accountability partner and offer you guidance where you may need it most.

when you really think about it this should be a regular routine for us all. Explore new territories that can expand your horizon, increase you personally and grow you professionally.

yourself no one else iii. Create positivity in your mindset and negate all distractions iv. Task yourself even when it looks impossible v. Mentally and spiritually prepare yourself vi. Take that giant leap vii. Reward yourself for starting viii. Make yourself happy along the way ix. Celebrate each milestone that is your steps forward x. Keep dreaming BIG What are you still doing day dreaming, its time to think out of the box and break new bounds, challenge the status quo and leave a great legacy! This is for us all!

Thinking Out of The BOx In your pursuit of success things must change if you are intent on seeing a difference in your life. It will take determination and the WILL from you to forge ahead and take that giant though necessary step. Let us take a look at the steps to help you on the road to breaking bounds: Renew your Goals: Renew your personal goals regularly, sometimes we say but we do not do. With dreams they may or may not manifest into a vision or ultimately a goal, but following through is the step towards breaking bounds. The goals should be time bound and

Create Compact Ideas Many ideas that have resulted in breaking bounds happened accidentally or by that one chance or opportunity that arose. I have heard of a couple who began earning extra income from selling fruit juice, an idea that they joked about while drinking juice in their kitchen. Creativity is the spice of life, class is the mark of distinction, by pulling all these ideas together into a package over and above your activities is your direct step to thinking out of the box.

Remember: i. Stretch yourself beyond our normal limits ii. Speak affirmatively to

Please share your experience: janet.adetu@jsketiquetteconsortium.com Also follow and like us on social media @janetadetu /@ JSK Etiquette

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Friday 01 February 2019

Hotels It’s time to ignite love at Southern Sun Ikoyi OBINNA EMELIKE

A

s the valentine season approaches, partners looking forward to fete their significant other need look no further as Southern Sun Ikoyi rolls out its romantic valentine day offerings to ensure splendid experience for guests and visitors at the hotel.

From February 14-17, 2019 the hotel is offering

guests the opportunity to enjoy discounted rates on its rooms inclusive of a refreshing breakfast for two and ensuring they have a memorable weekend experience at the Southern Sun Ikoyi this Valentine.

Renowned forits culinary expertise and complete after meal experience, Southern Sun Ikoyi’s head chef and his team aim to further raise the bar as plans are in place to titillate the taste buds of guests and satisfy their cravings with an exotic valentine

seafood buffet dinner and an A la carte menu on request accompanied by the finest of wines for lovers and couples to relish magical love moment at the hotel.

Speaking about the special offer for this year’s romantic celebrations, Ubong Nseobot, sales and marketing manager of the hotel, stated that “the valentine season is a special occasion dedicated to celebrate love and share the special moments with our families, friends and significant

other. This year’s offering is designed to ensure that guests and couples spend valuable time with their partners and loved ones by reigniting their romance while enjoying an ultimate hospitality experience at the hotel.”

This year’s Valentine’s celebration at the hotel presents a unique getaway experience for couples and lovers to enjoy serene environment while witnessing the synergy of top quality offerings ranging from artistic designs, quality service, finest lodging and dining experience in the heart of Ikoyi.

The hotel also offers a well-equipped gym with up to date facilities to meet the needs of lovers and couples who are fitness enthusiasts and is run by a team of dedicated, friendly and extremely warm staffs working together in making guests’ stay at the hotel a truly memorable one.

With the special offerings and consistency in premium service, Nseobot assured that couples and lovers are guaranteed magical experience at Southern Sun Ikoyi this Valentine.

Sun International strengthens Nigeria partnership with trade awards

S

un International, one of Africa’s largest hospitality groups, has strengthened its partnership with the Nigerian travel trade through award recognition of outstanding performance.

In a lifestyle cruise event held along the Lagos waterways, Sun International awarded top and loyal travel agents who have been selling the brand for the past year, 2018.

According to Didier Bayeye, Sun International market manager, West Africa & Indian

Ocean, the second edition of the annual Sun International awards is to continuously appreciate the outstanding effort and doggedness of some stakeholders of the Nigerian travel trade who have prioritise the selling of Sun International properties to the Nigerian travellers.

Diamonds and Pearls Travels and Tours, Afro Tourism and Njetours scooped the Top Achiever award while 1860travels and Apeiron Global won the Loyalty Award.

“Our Nigerian travel trade

partners are outstanding supporters of brand Sun International who despite the many competition in the South African hospitality industry show wholesome commitment to our brand,” stated Bayeye.

He continued, “From the Maslow in Johannesburg, Table Bay in Cape Town, Time Square in Pretoria to Sun City and indeed all other Sun International properties across South Africa received a quality number of Nigerian visitors in 2018 orchestrated by our Nigeria trade partners.”

One of the highlights of

L-R: Thekiso Rakolojane, regional manager, West Africa, South African Tourism; Wonuola Lamidi, co-founder, Diamond and Pearls Travels and Didier Bayeye, marketing manager, West Africa & Indian Ocean, Sun International, during the awards in Lagos.

the cruise was the out pour of encomiums on Sun International by Juliet Ibrahim, a celebrity movie star and brand influencer. She told the story of her beautiful vacation with her son in South Africa where she experienced the Sun International Time Square, The Maslow and Sun City exquisite properties.

The actress used the opportunity to announce her special birthday getaway travel package billed for South Africa from February 28 to March 6, 2019, which is supported by Sun International, South African Airways and South African Tourism Wonuola Lamidi, cofounder, Diamond and Pearls Travels, appreciated the recognition as a Top Achiever

by Sun International and promised to continue selling the brand as their customers were excited and happy at all the Sun International properties visited in the past.

Among the several personalities at the event included; Ohis Ehimiaghe, regional manager, South African Airways, North, West and Central Africa and Thekiso Rakolojane, the new regional manager, South African Tourism, West Africa, based in Lagos.

Top BusinessDay Partner Hotels Novotel Port Harcourt Address: 3 Stadium Road Rumuomasi, Port Harcourt Rivers State, Tel: 0809 713 5734

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Protea Hotel (V/Island) Off Ajose Adeogun Street, V/ Island

Gombe Jewel Hotel, 22, Njamena Street, off Aminu Kano crescent Wuse 2, Abuja.

Radisson Blu Anchorage Hotel 1A,Ozumba Mbadiwe,Victoria Island.

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29

Imomoemi Ibisiki, the outstanding corporate executive with profound expertise without in-depth knowledge of international best practice, my contribution to the overall impact of the Bank will be limited. An inner yearn for more knowledge of international best practice in credit risk management is the primary reason I chose to carry out a research program in credit risk and financial management. With my background in Law and finance, added to the depth of knowledge I have gained from the research program, I am better positioned to create exceptional value in the credit risk management process both from a lending institution perspective and a regulatory perspective.

Kemi Ajumobi

I

Biography momoemi Ibisiki is currently the Divisional head of the Human Capital Management Division of Heritage Bank Plc. She has served in the capacity of Divisional head of the Legal Services Division and as the Legal Adviser/Company Secretary in Heritage Bank, at various times.

Before joining Heritage Bank, she worked in the law firm of Solola & Akpana, where she started her legal career in the year 2004 and rose from the position of legal officer to become the team lead of the corporate commercial practice group.

She is a member of the Nigerian Bar Association (Lagos Branch), a Fellow of the International Bar Association, A Member of the Chartered Institute of Arbitrators, United Kingdom (Scotland branch), an Associate of the Chartered Institute of Bankers, Nigeria, a Member of the Chartered Institute of Bankers Scotland, United Kingdom, and a Fellow of the Institute of Credit Administrators, Nigeria.

She is admitted to practice law as a Barrister and Solicitor of the Supreme Court in Nigeria, upon obtaining her first degree in Law and graduating from the Nigerian Law School. She has a Masters degree in Information Technology and Telecommunications Law and a Masters in Business Administration (Finance). This year, as she turned 40 years old, she added another feat to her academic records with a PhD. in Credit Risk Management, where she undertook an in-depth research into the structures and implementation of Credit Guarantee Schemes for Small and Medium Scale Enterprises across Africa.

Imomoemi Ibisiki, is married to Igbiks Ibisiki, founder and MD/CEO of Solidago Construction Limited, a premium real estate development company and is blessed with a specially talented set of twins, Oribi and Orafiri, who have distinguished themselves as kid entrepreneurs.

Growing Up I was born into a family of 13 and I enjoy the privileges of being a last child. I lost my dad at the age of 3, so my culture and character was largely shaped by my widowed mother and the legacies of my late father, who was a renowned legal practitioner in the old Rivers State.

My family is ultimate. Growing up, I was constantly reminded that family is everything and from a very young age, I wanted to be just like my father. The legacies he left behind made me so proud that I looked forward to being just like him. 37 years after his death, he remains one of my strongest motivation to be a successful professional and to leave a legacy that will make my children proud of me.

Do you miss practice? Any plans to return?

I never really left legal practice. Practicing Law is providing legal solutions from various perspectives and I simply changed the perspective from which I provided legal solutions. I used to provide independent legal advisory as an external solicitor to a wide range of clients, until about 6 years ago when I began to provide legal solutions from the perspective of an in-house counsel.

Are there enough women on boards?

What do you think is responsible for this?

Taking the banking sector as a case study, women are expected to occupy at least 40 percent of top management positions, and 30 percent of the board positions across banks but as at date, the percentage ratio of women in board positions is

The story of your children My twin children were born 4 years after marriage and several miscarriages. I was told my pregnancy was high risk and at 34 weeks, only one of the twins was developing. I was rushed in for emergency surgery to save the second twin who medical reports stated had stopped developing from the 28th week. Post delivery only one twin (my daughter, Orafiri) came out healthy, my son (Oribi) came out nearly lifeless. He was resuscitated with oxygen support and taken on an emergency air ambulance to a specialist children hospital, where all medical reports indicated major surgeries to keep him alive and healthy. After several medical test and planning for constructive surgeries, Oribi didn’t have to undergo any of the planned surgeries and has grown to be a strong and exceptional child to the glory of God. Advice for women trusting God for children God never fails. Keep trusting God and He will surely show up for you. If he did it for me after medical doctors told me my chances were less than 5%, then He will do it for you.

Day never to be forgotten The day I took the oath before God and man, to be joined to Igbiks Ibisiki as husband and wife.

It’s been a transformational experience for me.

I believe marriage to my husband (popularly known as “Honey”) is God’s priceless gift to me for the early loss of my parents. He is my strongest support system, my cheerleader and only confidant. He has defied all African myths about marriage and several times proven that marriage is a beautiful thing. He makes parenting exciting and by his super gentle nature wins the favourite parent award at all times.

about 22 percent compared to men in board positions in the banking industry, out of which only 3 banks have women as Chairpersons of the board and 2 women as managing directors.

Despite various findings by top business schools across the globe that, women mostly make better attendance records, women still appear not to be satisfactorily represented in boards. This I believe is as a result of the deep rooted cultural myth about African women. Thankfully, there have been several gender inclusive policies across various sectors and the numerous gender equality sensitization workshops/forum organised by female leaders in business, is yielding very commendable results. I hope that the issue of gender inequality in board and senior management positions across industries will be a history, shortly.

Challenges being in your position and how you surmount them One of the major challenges I have faced in top management and leadership position is the internal conflict that sometimes come from the general perception of a confident, tenacious and firm

woman as being bossy (abrasive), whereas, same qualities in a man is labelled otherwise. Managing being confident and speaking objectively without passing off as domineering is indeed a challenge.

Over the years, I have learnt to speak less judgmentally and express my opinion from a well informed and objective standpoint, using neutral words. I also consciously take deep breaths, short pauses and engage in relaxing activities like walking, to manage my perfectionist tendencies. All of these have significantly helped to retain my self confidence and focus on my vision, in the midst of a male denominated leadership industry.

Why Ph.D in Credit Risk Management and not Law? How has it helped in your line of work?

First of all, the decision to carry out a research study in credit risk management was to deepen my knowledge in global credit risk management strategies and related financial principles. Working in a commercial bank at a senior management level, I am required to provide effective guidance to decisions relating to credit risk and

Women’s involvement in politics in Nigeria There has been several debates and publicity around the issue of women in politics, I guess, because it is believed that we can achieve a stronger democracy if women are involved in the political life of Nigeria, but in promoting women in politics, it is important to also present women for elected offices based on their competences and capabilities and not on the basis of female gender equality.

Girl Child education Education is important irrespective of gender but historical Africa placed less priority in educating the girl child and the consequences are evident.

Africa witnessed the negative medical and personality implication of acts like female genital mutilation, child marriage and early pregnancies, broken home, single parenthood and so on. Educating a girl child will improve their knowledge, self confidence, skills and ultimately give them a healthier and happier life. An educated girl child would make a better parent, worker, citizen and would positively influence the social direction of her children, as the primary care giver.

30

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Pinnick confident of a successful 2019 AFCON Stories by Anthony Nlebem

A

maju Melvin Pinnick, Nigeria Football Federation President, 1st Vice President of the Confederation of African Football (CAF), who is also the President of AFCON Organizing Committee, has assured that the continental football –ruling body is doing everything within its power to ensure that the 32nd Africa Cup of Nations finals holding in Egypt this summer will be a huge success.

Pinnick assured that CAF is aware of the apprehension of the African football stakeholders, and is putting measures in place to tackle those fears and guarantee a seamless continental house party that everyone would be proud of.

“CAF is not unmindful of the reservations being harboured in some quarters, and feelings of anxiety being expressed in several fora by some individuals and groups. What is important is that we are taking note of all these and putting measures in place to tackle these genuine fears.

“At the end of the day, football would be the winner. We are very positive that those measures we have put in place and those we have lined up will culminate in an occasion that every African

would be proud of, and which will leave the average football follower elsewhere enthralled.”

There has been widespread anxiety within the African football community over the hosting of the first –ever 24 –nation AFCON, following CAF’s decision to strip Cameroon of the hosting right at the end of November last year, with new host Egypt announced only early this month.

Recently, CAF’s Emergency Committee announced that the draw ceremony for the championship, scheduled for 21st June – 19th July in eight Egyptian venues, would hold in Cairo on 12th April. That is exactly 10 weeks to the opening match of the cham-

NFF hails AITEO’s Benedict Peters on his African Icon Award

T

he Nigeria Football Federation (NFF) has congratulated the founder of AITEO Group, Benedict Peters on his award as African Icon of the Year at the recent Foreign Investment Network (FIN) and Federal Ministry of Petroleum Resources Honorary Patrons Dinner and Awards Night.

AITEO Group, Nigeria’s leading energy solution company and the Official Optimum Sponsor of the Nigeria Football Federation. The company also sponsors the annual Federation Cup competition, and picks the bills for the NFF-AITEO Football Awards, another annual event.

The energy company also bankrolls the CAF African Football Awards, yet another annual event for which it recently penned a four –year agreement with the Confederation of African Football, CAF. President of the Nigeria Football Federation, Amaju Melvin Pinnick, said : “On behalf of the NFF and the entire Nigerian football fraternity, I would like to congratulate Mr. Benedict Peters on yet another award. This is another gorgeous feather to his shining cap. It is also the latest in a long and growing list of accolades for an outstanding gentleman, an international business mogul with

a difference and a proud son of Nigeria and Africa.

“This award is not a surprise to me as a person, and certainly not a surprise to any member of the NFF Board. It simply underscores the quality and character of the leading figure of a major partner of the NFF. “Mr. Peters has always been committed to making everyone and everything around him better and we are proud to have him as a partner in progress with Nigerian and African Football,” said Pinnick, who is also 1st Vice President of the Confederation of African Football.

Benedict Peters

pionship.

In previous years and decades, host nations of Africa’s flagship tournament had been privileged to have more time to prepare for the various obligations involved in staging the competition, with the exception of Equatorial Guinea and Gabon (the last two host nations) who had few months to step in after originally –designated hosts balked late in the day.

“We are assured that Egypt would be ready and would put up a good show. CAF is also monitoring preparations on all fronts to ensure that nothing goes wrong.”

Nigeria’s Super Eagles, three –time champions, have already booked their place at the 24 –nation fiesta.

AFCON HISTORY 1957: Three participating countries, hosted by Sudan, won by Egypt 1959: Three participating countries, hosted by Egypt, won by Egypt 1962: Four participating countries, hosted by Ethiopia, won by Ethiopia 1963: Six participating countries, hosted by Ghana, won by Ghana 1965: Six participating countries, hosted by Tunisia, won by Ghana 1968: Eight participating countries, hosted by Ethiopia, won by Congo Kinshasa (now DR Congo) 1970: Eight participating countries, hosted by Sudan, won by Sudan 1972: Eight participating countries, hosted by Cameroon, won by Congo 1974: Eight participating countries, hosted by Egypt, won by Zaire (now DR Congo) 1976: Eight participating countries, hosted by Ethiopia, won by Morocco 1978: Eight participating countries, hosted by Ghana, won by Ghana 1980: Eight participating countries, hosted by Nigeria, won by Nigeria 1982: Eight participating countries, hosted by Libya, won by Ghana 1984: Eight participating countries, hosted by Cote d’Ivoire, won by Cameroon 1986: Eight participating countries, hosted by Egypt, won by Egypt 1988: Eight participating countries, hosted by Morocco, won by Cameroon 1990: Eight participating countries, hosted by Algeria, won by Algeria 1992: Twelve participating countries, hosted by Senegal, won by Cote d’Ivoire 1994: Twelve participating countries, hosted by Tunisia, won by Nigeria 1996: Sixteen participating countries, hosted by South Africa, won by South Africa 1998: Sixteen participating countries, hosted by Burkina Faso, won by Egypt 2000: Sixteen participating countries, co-hosted by Ghana and Nigeria, won by Cameroon 2002: Sixteen participating countries, hosted by Mali, won by Cameroon 2004: Sixteen participating countries, hosted by Tunisia, won by Tunisia 2006: Sixteen participating countries, hosted by Egypt, won by Egypt 2008: Sixteen participating countries, hosted by Ghana, won by Egypt 2010: Sixteen participating countries, hosted by Angola, won by Egypt 2012: Sixteen participating countries, co-hosted by Equatorial Guinea and Gabon, won by Zambia 2013: Sixteen participating countries, hosted by South Africa, won by Nigeria 2015: Sixteen participating countries, hosted by Equatorial Guinea, won

by Cote d’Ivoire 2017: Sixteen participating countries, hosted by Gabon, won by Cameroon 2019: Twenty-Four participating countries, hosted by Egypt, won by?

Integral begins sale of hospitality packages for FIFA Women’s World Cup

I

ntegral, Nigeria’s leading sports event and hospitality company has begun the sale of hospitality packages for the FIFA Women’s World Cup France 2019™. After running a very successful hospitality package sale for the 2018 FIFA World Cup Russia™, MATCH Hospitality has once again appointed Integral as its exclusive sales agent for Nigeria.

MATCH Hospitality is the industry leader in the management and sale of commercial hospitality programme for major sports events and is the exclusive rights holder of the FIFA Women’s World Cup France 2019™ Official Hospitality Programme. It is the only company worldwide authorized by FIFA to offer and guarantee exclusive ticketinclusive hospitality packages for all matches directly or through its appointed sales agents.

MATCH Hospitality has years of experience in delivering world class hospitality for FIFA and at other international sports events. The Company has successfully operated the FIFA Commercial Hospitality Programmes for the 2010 FIFA World Cup South Africa™, the 2014 FIFA World Cup Brazil™, and more recently the 2018 FIFA World Cup Russia™. MATCH Hospitality has also delivered the FIFA Hospitality Programme for the last two FIFA Women’s World Cup events

which were hosted in Germany and Canada.

Given the tremendous growth in interest and development of women’s football worldwide, MATCH Hospitality is gearing up to deliver an unforgettable FIFA Women’s World Cup France 2019™ experience to its ever-growing clientele via its global network of sales agents.

Pascal Portes, Chief Operating Officer of MATCH Hospitality, said: “We feel a tremendous sense of pride in the product range offered

by MATCH Hospitality as FIFA’s official hospitality rights holder for the FIFA Women’s World Cup France 2019™.

“Nigeria is an established and very passionate market, and we

are extremely optimistic about the sales potential for our hospitality programme in 2019. We know that Integral are our best partners to open the door to a thriving Nigerian market ready for the extraordinary experiences promised by this exceptional FIFA Women’s World Cup™ environment.”

Abimbola Ilo, Managing Director of Integral added: “We are delighted to act as the Exclusive Sales Agent of MATCH Hospitality in Nigeria for the sale of the FIFA Women’s World Cup France 2019™ Official Hospitality Programme.

Having successfully operated the recently concluded 2018 FIFA World Cup Russia™ Official Hospitality Programme as the exclusive sales agent in Nigeria catering to satisfied clients, this deal clearly confirms Integral’s pedigree to have been selected yet again, and on an exclusive basis in Nigeria. This basically means that we have the entire inventory to deliver unforgettable experience to all our clients during the FIFA Women’s World Cup in France, right from the moment they think about attending the event to support their team.“ The FIFA Women’s World Cup France 2019™ will take place from June 7 to July 7 in nine French cities. The Super Falcons of Nigeria will play in Group A alongside hosts France, Norway and South Korea.

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31

Live @ The Exchanges Top Gainers/Losers as at Thursday 31 January 2019 GAINERS Company VITAFOAM

Market Statistics as at Thursday 31 January 2019

LOSERS Opening

Closing

Change

Company

Opening

Closing

Change

DANGCEM

N4.5

N4.8

0.3

N194

N190

-4

CAP

N31.5

N31.75

0.25

NB

N78

N74

-4

LEARNAFRCA

N1.26

N1.37

0.11

JBERGER

N28

N26

-2

N6.2

N6.25

0.05

STANBIC

N47

N45.2

-1.8

N2.35

N2.39

0.04

UNILEVER

N36.55

N35

-1.55

UBN STERLNBANK

ASI (Points)

30,557.20

DEALS (Numbers)

4,228.00

VOLUME (Numbers)

349,307,090.00

VALUE (N billion)

3.491

MARKET CAP (N Trn

11.394

Flour Mills records subdued nine months revenue Notore grows Q1 operating …as Apapa traffic challenge causes logistic upheavals Stories by Iheanyi Nwachukwu

N

igeria’s leading food and agroallied group, Flour Mills of Nigeria Plc has announced its unaudited financial statements for the nine months period ended December 31, 2018.

The Company, Flour Mills of Nigeria Plc recorded a revenue of N297 billion for nine months ended 31st December 2018, representing a marginal decline of 2percent, when compared to N304 billion recorded in the same period last year.

The 2percent drop in revenue is disappointedly related to the logistic upheavals posed by the traffic challenges in Apapa.

Gross profit declined by 18percent to N34 billion compared to N41 billion in Q3’2017. Profit Before Tax declined by 25percent to N13.56 billion compared to N18.20 billion in Q3 2017.

The Group volume growth accelerated in third-quarter (Q3) driving the overall revenue growth for the quarter. Group revenue was N401 billion, for the nine months ended 31st December 2018, a decline of 6percent when compared to N428 billion, of the same period last year, driven by the first 6 months, with Q3 returning to top line growth.

Continued strong sales and brand building fo-

cus has ensured a further growth in market share and strengthened the Group’s market leader position within the flour market.

The result reflects a notable reduction in finance cost of N16.5 billion, a significant drop of 34percent, when compared to N25.2 billion of the same period last year. The reduction is due to settlement of overdraft facilities and replacement of high interest yielding loans with more

NSE to host launch of ‘Riding The Eagle’

by Emerging Africa Capital Group

I

n pursuit of its leadership role and its mission to catalyse the emergence of Nigeria and other African markets as leading investment destinations, the Emerging Africa Capital Group has enlisted the support of the Nigerian Stock Exchange (NSE) to host the launch of an authoritative work on investing in Nigeria written by its Group Chief Executive Officer, Toyin F. Sanni titled “Riding the Eagle – A Guide To Investing In Nigeria”.

‘Riding the Eagle’ aims to provide an insider perspective on the opportunities and risks of investing in Nigeria. The book is a guide for both local and international investors seeking to exploit the unique opportunities in the Nigerian economy, learn from the success stories of leading investors in Nigeria, as well as how

to navigate the potential pitfalls and risks.

The launch will hold by 10.30 am on Monday, February 4, 2019, on the 20th floor of the Nigerian Stock Exchange, 4 Customs Street, Lagos.

The book launch is expected to host several distinguished speakers, including but not limited to the CEO, Nigerian Stock Exchange, Oscar Onyema, the Director General, Securities and Exchange Commission, Mary Uduk, Special Adviser to the President on Economic Matters, Adeyemi Dipeolu and the Group Chairman, Emerging Africa Capital,

Onikepo Akande.

Emerging Africa will also present its Economic Report at the event. The Report provides a review of 2018 and outlook for 2019. It x-rays the Nigerian Investment environment and sheds light on expectations for critical sectors of the economy, with particular emphasis on the Renewable Energy Sector as an area of special focus.

“We are delighted at the support we have received from the Securities and Exchange Commission “SEC” and the Nigerian Stock Exchange, “NSE” on this project, demonstrating the commitment of these two institutions to the imperative of providing objective information, incisive analysis and clear guidelines to domestic and international investors interested in the Nigerian market” stated Toyin F. Sanni, Group Chief Executive Officer.

favorable loans.

The Group has announced its intent to carve out its fertilizer business from Flour Mills of Nigeria Plc and registered same as an independent company to hold its Agro-allied businesses. This is expected to position this business segment for further growth and ensure optimal financial structures for the related businesses. The holding company will be fully owned by Flour Mills of Nigeria Plc. The arrangement is however subject to the approval of the Securities and Exchange Commission.

Commenting on the result, Paul Gbededo, the Group Managing Director said: “The results are largely a reflection of our focus on driving volume growth while improving operational efficiency and ramping up strategic marketing and promotional activities to win over new market segments in our food business.

profit by 412.4% to N2.99bn

N

otore Chemical Industries Plc has released its unaudited financial statements for the first-quarter (Q1) period ended December 31, 2018. The group financial highlights show Notore recorded revenues of N4.32billion for the three month period under review –that is Q1 2019 financial year compared to N5.99billion for the corresponding period in Q1 2018 financial year.

The decline in revenue was largely due to plant down time caused by a maintenance program on its plant during the period under review. Meanwhile, Notore recorded an Operating Profit of N2.99billion in Q1 2019 FY, resulting in an increase of 412.4percent over its Q1 2018 FY Operating Profit of N0.58billion.

Despite the positive Operating Profit, Notore recorded a loss of N93.35million dur-

ing the period because of its net finance cost of N3.09billion.

The fertilizer market in Nigeria during the period under review was robust as Notore sold all the urea that it produced during the period into the domestic fertilizer market. Notore believes that the domestic fertilizer market is yet to reach its full potential.

Furthermore, the demand for urea and compound fertilizers, such as NPK, from the West African markets and neighbouring countries bordering the northern part of the country is also quite significant.

Constant natural gas (main feedstock for producing urea fertilizer) supply has been one of Notore’s key strengths.

However, Notore missed its Q1 2019 FY production target because of the maintenance program carried out during the same period.

Asharami Synergy Bags ISO Certification for quality management systems

A

sharami Synergy Plc (a Sahara Group Company), has been awarded the ISO 9001:2015 Certification, an internationally recognized standard for organisations whose services and products meet the needs of customers through an effective quality management system.

The organisation was audited and found to meet the requirements of the aforementioned management systems based on industry best practice. The internationally recognised standard is a validation of a culture of professionalism and efficient service delivery.

The vertically integrated downstream company which has been at the forefront of Oil and Gas enterprise in the West African region for over twenty years emerged from a consolidation of

nine (9) Sahara Group Companies with interest in procurement, storage, and distribution of white products across Nigeria.

Asharami is known for excellence and amongst many feats provides 24 percent of Nigeria’s aviation fuel demands as well as a significant share of Nigeria’s Premium Motor Spirit (PMS).

Asharami achieved this feat which certifies the company as having the right competencies, processes and equipment required to meet customer and applicable statutory and regulatory requirements.

According to Moroti Adedoyin-Adeyinka, CEO Asharami Synergy Plc, the successful certification is a testament to the positive engagement of colleagues at all levels and demonstrates a clear desire to embrace the ISO standard as a fundamental element

of Asharami’s growth and customer focus strategies.

She also said, “Asharami Synergy Plc underwent an evaluation process that included a gap analysis, quality management system development, management system documentation review, internal pre-audits and external audits, and clearance of non-conformances, all of which work to identify corrective actions that eliminate non-conformity to the quality management system. We are proud to have been awarded this certification.”

Moroti reiterated that the certification endorses Asharami’s commitment to quality management systems, efficiency and customer satisfaction.

She also said Asharami synergy will continue to play a leading role in the efficiency drive as it continues to provide fuel solutions across Africa.

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NCAA to challenge TopBrass’ operator Why Kenya selects Nigeria’s reconciliation solution We will reactivate all seaports in Delta - Atiku anaging direc- process, timely reporting to FRANCIS SADHERE, Warri good governance, continue in court, denies tampering with aircraft to vote for PDP; we are all tor/CEO of Pre- management and automatIFEOMA OKEKE

N

igerian Civil Aviation Authority (NCAA) says it will take cautious steps to respond to allegation of aircraft tampering levelled against it by Roland Iyayi, owner of TopBrass.

Rather, the regulatory agency says it intended to meet the airline operator in court to challenge the several allegations against it.

Muhtar Usman, directorgeneral of NCAA, stated this yesterday in his office at the Murtala Muhammed Airport (MMA), Lagos, during an interview with aviation journalists.

Usman, who expressed surprise at the tampering allegation against it by Iyayi, said since the case was in the court of law, he would rather keep silent and wait till the case go through the processes.

He, however, stated that Nigeria as a signatory to the Cape Town Convention should adhere strictly to the rules and regulations it signed.

He said: “First of all, I am not in the know of any tampering of any aircraft because the company did not put its aircraft under the watch of NCAA, and I believe that as a responsible organisation, we should not be discussing a case that is before the court.

“I am surprised that TopBrass is being mentioned everywhere. We will respect the court. We will wait until the outcome of the judgment before we make any pronouncement. However, Nigeria is a signatory to the Cape Town Convention, which helps especially African countries to get access to lease of aircraft.

“In the process, there are procedures, whoever that is leasing, signs an adherence, which allows the Civil Aviation Authority (CAA) to deregister aircraft when there are defaults.

“I will be very surprise that today NCAA has been dragged to court severally by this person who signed voluntarily and it is the same person that is making the allegation. So, we will meet in court.”

M

cise Financial Systems (PFS), a fintech firm, Yele Okeremi, has explained why Kenya through its Kenya Women Microfinance Bank (KWMB) has selected its automated accounts reconciliation solution, CLIREC, to address identified needs for more efficient accounts reconciliation practices across the institution.

Okeremi said reason for the project was to deploy a reconciliation solution that would facilitate a reduction of the turnaround time of the reconciliation process in KWMB. “The reconciliation will enable Kenya Women Financial Trust (KWFT) to increase its operational efficiency by providing a faster resolution to unprocessed items, customer queries and improve responsiveness among other benefits,” he said.

The bank had identified its peculiar needs to include faster resolution of unprocessed items, faster resolution of customer queries and improves responsiveness; achieve a near real-time scenario of the reconciliation

ed escalation of long outstanding items, he said.

Kibet Kipkemoi, CIO of KWMB, attested to Okeremi’s statement, saying the bank selected PFS’ Clirec because of its records of accomplishment in solving complex reconciliation challenges with its simple processes.

“Clirec was picked as the preferred applications after rigorous selection process by our team and consultants who evaluated all available solutions. We are confident that Clirec will meet all our reconciliation needs,” Kipkemoi.

Furthermore, Okeremi added that the scope of work for the KWMB’s automated accounts reconciliation solution project include the automatic upload of reconciliation files into the reconciliation module, pick core banking files from a defined secure location and upload into the reconciliation module in real time, automatic match transactions with similar transaction references, manual reconciliation of un-matched items and multiple to one matching of items.

P

residential candidate of the People’s Democratic Party (PDP), Atiku Abubakar, on Thursday promised to revive all the seaports in Delta State and complete the second Niger Bridge when he emerges as President.

Atiku made this promise during the Presidential Campaign rally of the party in Asaba.

Atiku, who was excited with the huge turnout of people at the Stephen Keshi Stadium, venue of the rally, commended Governor Okowa for improving on the fortunes of the PDP He said, “I will reactivate all the seaports in Delta State, and you know that my wife is from Onitsha, so, we won’t have any option than to complete the second Niger Bridge.

“I promise you that our elections, all the infrastructure projects that have been abandoned by the Federal Government will be completed; the All Progressive Congress (APC) has failed to deliver; for you to continue reaping the benefits of

members of the PDP family, no space for APC. “Your Governor, Senator Okowa is one of the best Governors this country has produced, we are grateful to Deltans for being loyal to the PDP since 1999; the roads that you have in the state came through the PDP, most of the development in the state were done by the PDP, so, why will Deltans not vote for PDP?” Atiku said.

Governor Okowa, who spoke at the rally, said that Deltans are peace-loving adding that his administration has built bridges of unity among the people, which Atiku will replicate once he emerges as President by uniting all Nigerians and making them to live in peace.

The governor listed the achievements of his administration in the health sector, job creation, health, road construction and summed it up by calling on all Nigerians to vote for the PDP candidates in the forthcoming elections as such would attract development to the country.

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33 NEWS

BUSINESS DAY

House of Reps to summon contractors Ogun PDP, Kashamu’s name appears on Glocalisation, Branding summit debuts in Abuja and Branding Summit would INEC list without minimum prerequisite IFEOMA OKEKE of CBN project after elections enable companies showcase HOPE MOSES-ASHIKE

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he House of Representatives Committee on Banking and Currency on Thursday said it would summon the two construction companies – Quintec Construction Limited and Beton Bau Nigeria Limited - over the Central Bank of Nigeria’s (CBN) project at the University of Lagos.

The project called ‘Centre of Excellence Project’ is a faculty and hostel building with a contract sum of N14.8 billion located at University of Lagos, Akoka, Lagos.

It is one of many of CBN’s projects it embarks on as a way of giving back to the society through Corporate Social Responsibility (CSR).

The faculty building is a eight-storey building with a sub-basement, the proposed facilities in the building include offices, e-library, communication technology (ICT) facilities, lecture rooms, meeting rooms, and 150 seating capacity international conference centre.

The hostel building is 150 rooms, seven-storey structure with facilities such as gymnasium, laundry, kitchen, restaurant, rooftop relaxation facility,

and ancillary support infrastructures, among others.

Jones Onyereri, chairman of the House committee, who led his team to the site of the building construction as part of their oversight functions, expressed dissatisfaction over the slow level of work at the site.

He said the committee would summon the parties involved, including the CBN in the project, to come with their documents for a review.

Onyereri also gave them till 2019 or at most 2020 to complete the project, saying, “I am not comfortable with the deadline extension for the very reason that we want the project completed like yesterday. For us this project would have been completed yesterday but haven seen the various challenges they are facing the members of the committee will insist that this project be completed by latest 2019 and 2020 at most.

“With the explanation given to us, what is left for us to do is to look at the documentation so that we ensure that we are sure that three parties involve in this project as it is today that all is well and to make sure we give them the necessary backing to make sure the project is completed on time.”

RAZAQ AYINLA, Abeokuta

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ontroversy has begun to trail the final list of governorship candidates in Ogun State released on Thursday evening by the Independent National Electoral Commission (INEC), showing names of the 38 political parties, governorship and deputy governorship candidates that will be contesting March 2, elections in the state.

The final list of governorship candidates signed

by Rose Oriaran-Anthony, INEC secretary, showed major political parties in the state, including All Progressives Congress (APC), People’s Democratic Party (PDP), African Democratic Party (ADC), Allied People’s Movement (APM), Social Democratic Party (SDP), Action Democratic Party (ADP), Zenith Labour Party (ZLP), Labour Party (LP), YES Party, among other political parties.

BusinessDay reports that INEC clears the candidates of Allied People’s Movement (APM) - Adekunle Akinlade, 49, WAEC, Bsc and Adepeju Adebajo, 52, HSC, Degree; Adedapo Abiodun, 58, WAEC and Noimot SalakoOyedele, 52, GCE, Bsc, MSc

of All Progressives Congress (APC); Nasir Gboyega Isiaka, 56, WAEC, Bsc and Olabisi Olukemi Okeowo-Bolade, 58, SSCE, Bsc of African Democratic Party (ADC).

Others are former speaker, Federal House of Representatives, Oladimeji Bankole, 49, WAEC and Olufunmilayo Oduwole, 47, Bsc of Action Democratic Party (ADP); ex Nigerian International, Segun Odegbami, 56, WAEC, NCE and Awofala Awoniyi, 52, WAEC, NCE of Zenith Labour Party (ZLP); Olatunde Rotimi Paseda, 52, Certificate of Ladlak Institute Baptist Academy; former Commissioner for Information in the State, Adesina Kawonise, 56, Bsc and Ganiyat Agboola, 47, Bsc of YES Party, among others.

But, the controversy dotted the list of the governorship candidates released by the INEC when PDP governorship candidate name - Buruji Kashamu appeared on the list without any qualification, though the name of deputy governorship candidate, Reuben Abati, Spokesperson of former President Goodluck Jonathan, appeared with academic qualifications such as BA, MA, LLB, PhD.

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o fewer than 1000 firms and industry stakeholders, including Small and Medium scale Enterprises (SMEs) will gather at the first edition of Glocalisation and Branding Summit, in Abuja.

Speaking about the event, titled Accessing Global Markets Using Local Creativity and Personal Branding, Kemi Areola, CEO, Vivacity PR, noted that the free-to-attend event, which is a Corporate Social Responsibility of the organisation, would bring together global and local brands to explore areas of synergy, discuss financial options, impacts of technology and social media on branding and techniques that would make brands stand out.

Areola said Glocalisation

their products and services and foster synergy that would address challenges confronting brands across the world.

She noted that branding remained critical barrier to the growth of most organisations, adding that the platform would enable businesses to network and develop strategies that would enhance the visibility of their products and services.

According to Areola, discounted media publicity would be provided to interested firms to enable them showcase their services and products, while they are able to take advantage of the a goodie bad initiative of the firm, where products and services would be advertised at the event holding in Abuja in March this year.

34 BUSINESS DAY NEWS With Kotoka airport, Ghana again points...

Continued from page 1 of success, boasting 23.9 million registered accounts out of an

estimated 28 million population at the end of 2017, while Nigeria continues to struggle as it tries to figure out how to apply what is otherwise a ‘simple process’.

The same can be said of health insurance where, even though its administration has depreciated over time, Ghana still has wider coverage, with over 40 percent of the population covered as against Nigeria’s less than 5 percent.

A recent report by the United Nations Conference on Trade and Development (UNCTAD) showed that Ghana overtook Nigeria as the largest recipient of Foreign Direct Investment (FDI) in 2018. While Ghana attracted $3.3 billion, Nigeria’s FDI inflow declined by 36 percent to $2.2 billion.

With the opening, in September 2018, of Terminal 3 of Ghana’s Kotoka airport, which observers say

is a masterpiece that shows what can be achieved when governments, even in Africa, decide to measure up to international standards, Ghana has again shown the way to Nigeria.

Operated by Ghana Airports Company Limited (GACL), construction on the flagship Terminal 3 Kotoka airport project began in March 2016 and was completed in June 2018.

Three months later, the terminal was opened to traffic, taking off pressure on the existing two terminals.

To a first-time traveller, the airport, even though it appears small, could be mistaken for one of the aesthetically appealing airports found in Europe. But once a traveller enters the arrival hall and sees the airport staff, it becomes certain the flight was not diverted to a wrong destination.

The new terminal is said to have the capacity to process 1,250 passengers at peak times and is expected to handle up to 5 million passengers a year with an expansion potential of up to 6.5 million passengers. It is fully equipped with a large retail and com-

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mercial area, three business lounges, six fixed links and seven air bridges expandable to eight. The departures level of the terminal features 56 checkin desks, 30 passport control counters, which include four e-gate positions, and eight security lanes. The arrivals level houses 24 immigration counters, four e-gate positions expandable to eight, and four baggage claim areas.

A fully-automated baggage handling system, designed in accordance with the latest European Civil Aviation Conference Hold Baggage Screening (ECAC HBS) requirements, is also provided to handle 3,500 bags an hour.

Koffi Ada, Ghana’s minister of aviation, was reported to have lamented recently that the airport ‘looked too foreign’ and did not bear insignias to easily identify it as Ghanaian. According to media reports, the minister said in order to appreciate the Ghanaian culture, it was important to add some Ghanaian art and culture, such as Adinkra symbols and the national colours to both the airside and landside areas of the new terminal.

“When you fly into Accra and look at it from the airside, you don’t

L-R: Kennedy Uzoka, GMD/CEO, United Bank for Africa (UBA) plc; Hiroyuki Ishige, chairman/CEO, Japan External Trade Organisation (JETRO); Tony Elumelu, chairman, UBA plc, and Makoto Matsumura, senior director for global strategy, JETRO, during the talk between JETRO and UBA to promote medium and small scale enterprises across Africa, in Lagos.

Politics grounds governance in...

Continued from page 1

quarter of 2019, are already suffering a setback as contractors have left sites.

There have been allegations that the powerbrokers in Nigeria’s most economically viable state had “directed” Governor Ambode since losing the party’s governorship ticket in October to stop work on ongoing projects.

A reliable source informed BusinessDay that the outgoing governor was specifically told to stay action on some projects, including the Lagos Airport Road expansion, and allow his successor to complete them, a directive Ambode is said to be uncomfortable with given his strong desire to deliver the signature project before leaving office in May. Aside from the stop-work directive, the source said the governor was also being restrained from putting to work a Paris Club refund from the Federal Government, all of which was to ensure that the money was spent by Ambode’s successor.

With one month into the fiscal year gone, the state budget hasn’t been presented or passed, leaving contractors, small business owners, civil servants and other stakeholders whose activities are somewhat driven by and weaved around government’s spending guessing the direction of governance in Lagos.

For the first time in many years, Ministries, Departments and Agencies (MDAs) of the state saddled with

the responsibilities of executing policies and programmes of government are operating at their lowest ebbs ever.

Checks by BusinessDay across the various MDAs, whether within the government secretariat Alausa or elsewhere in the state, show that civil servants, irrespective of cadre, only resume work in the morning to eagerly wait for their 4:00pm closing hour as there is very little to engage them.

One of the civil servants in the state confided in our reporter that rather than stay at work, he is now involved in political campaigns and travels frequently to other states with a chieftain of one of the political parties.

Timothy Olawale, director-general, Nigeria Employers’ Consultative Association (NECA), in an interview with BusinessDay described the development in Nigeria’s commercial capital as worrisome.

Olawale said the delay in budget presentation and implementation could affect small businesses, contractorshandlingvariousgovernmentprojects, and the wellbeing of the citizens.

“It is unfortunate that politics has been allowed to override governance. Whatever differences between the executive and legislative arms of the state government ought to have been put aside in order not to allow governance to suffer. We can only call on them to consider the interest of the people whom they swore an oath to serve and resolve

their differences,” said Olawale.

Meanwhile, rift between the State House of Assembly and the executive is continuing as the lawmakers have not backed down on the impeachment threat they issued to Governor AkinwunmiAmbode,whomtheyaccusedof committing “some atrocities”,including spending funds not appropriated and failure so far to appear before the House tolaythe2019budgetasrequiredbylaw.

The House had on Monday summoned the governor and relevant commissioners to appear before it in seven days to explain themselves.

The lawmakers said if the governor and the officials failed to show up, gathering of signatures for the governor’s impeachment would begin.

During the House plenary on Monday, the lawmakers took turns to condemn the governor, with some asking him to resign.

Following the threat, however, about five different groups staged peaceful protests to the House on Wednesday demanding that the House should desist from any attempt to impeach Ambode.

In another development, a group, the Legislative Probity and Accountability (LPA), asked the Assembly to account for the N28.8 billion allegedly collected as running cost.

Reacting on behalf of the House at a news conference after Wednesday’s emergency meeting, the majority leader, Sanai Agunbiade, said that the House was not witch-hunting Ambode, but wanted due process on the appropriation bill.

see anything Ghanaian about it,” he reportedly said.

When BusinessDay correspondent landed at the airport in December 2018, there was no army of desperate personnel from different government agencies to harass travellers. It was as smooth as disembarking at the Schipol airport in Amsterdam, or Heathrow in London, retrieving your luggage from the conveyor belt, and strutting out of the airport without needless harassment from customs and other agencies.

The International Civil Aviation Organisation (ICAO), in a report on ‘The economic and social benefits of air transport’,said aviation provides the only worldwide transportation network,whichmakesitessentialforglobal business and tourism. It plays a vital role in facilitating economic growth, particularly in developing countries.

But this reality seems to constantly elude Nigeria’s policymakers as, in contrast to the new face of Kotoka airport, Nigerian airports, including the Murtala Mohammed International Airport (MMIA) in Lagos, the country’s gateway to the world, are an eyesore.

Describing the appalling state of Nigerian airports in an article on www. modernghana.com, Tony Ogunlowo, an analyst, said a great many of Nigeria’s 26 airports, under the auspices of the Federal Airports Authority of Nigeria (FAAN), have been allowed to fall into a state of disrepair over the years. He decried the terrible conditions that include “uncompleted structures, gaping holes in their runways, non-existent sanitary and passenger facilities, constant power failure and security issues”, saying some of the airports, “like the one in Port Harcourt, are just glorified ramshackle motor parks complete with agberos and other unsavoury characters”.

“Pilots are forever complaining about having to negotiate pot-holes on runways and in December 2013, a Saudi Arabian cargo plane damaged its undercarriage landing on a runway in Abuja,” Ogunlowo said.

The construction of four new airport terminals in Nigeria as part of a deal inked with the Chinese could have seen Africa’s largest economy showcasing some of the best airports on the continent, but this has not fully materialised. A $500 million loan from Chinese Exim Bank in 2013 with

Friday 01 February 2019

counterpart funding of $100 million from the Federal Government was to see the Lagos, Abuja, Port Harcourt and Kano Airports getting new terminals. At present, only Abuja and Port Harcourt have got new terminals.

The new terminal at Port Harcourt airport, which foundation was laid on March 1, 2014, was commissioned by President Muhammadu Buhari on October 25, 2018 and only became fully operational on January 25, 2019. Similarly, the newly rebuilt Nnamdi Azikiwe International Airport terminal in Abuja was commissioned on December 20, 2018 and received its inaugural flight 17 days later. On January 24, 2019, Ethiopia Airlines began daily flight operations from the terminal.

The long delay between commissioning of the terminals and opening them to traffic fuelled speculations that they were not actually ready for public use but were only commissioned for political expediency.

But even with the opening of swanky new airport terminals in Nigeria, observers fear that the needless harassment and extortion of travellers by desperate officials of government agencies, including Nigerian Customs Services, NDLEA, and NAQS, may not go away soon.

In November 2018, Kemi Atiba, a popular Nigerian filmmaker and television director, shared her experience on social media after returning from a trip to France. She narrated how Customs officers tried using intimidation to execute a shakedown of sort by demanding payments for used personal effects, not new items. This is the same experience foreigners and citizens alike are subjected to when they dare to enter Nigeria through any of the notorious international airports.

“We all know this happens, yet nothing is done about it. I was speaking to an expatriate just hours before in Paris and he was complaining about his treatment at Nigerian airports. At every single stop, they try to get money off him by cuddle or by force. Corruption has eaten so deep into our core and it is an absolute shame,” Adetiba tweeted.

“We shouldn’t allow people use their offices or uniforms to ‘rob’ or frustrate Nigerians or any other people. Our airport needs an entire overhaul. From the workers to the actual infrastructure,” she wrote.

FG shaves 4% off capital expenditure...

Continued from page 2

file which as at September 2018 stood at N24 trillion (including states’ debt).

He noted that at current levels of population growth, Nigeria is likely to struggle should economic growth not align with the realities.

Udoma is the latest on a long list of local and international observers to cast a worrying look on the government’s debt profile.

The country’s debt service to revenue ratio peaked at 67 percent in 2017 before falling to 62 percent in 2018. This implies that for every naira earned, Nigeria spends 62 kobo servicing debt.

The country’s rising debt profile has not impacted economic growth, which after contracting by 1.5 percent in 2016 slightly expanded 0.8 percent in 2018 and 1.7 percent as at the third quarter of 2018, according to state data agency, the National Bureau of Statistics (NBS).

Growth every year since 2015 has been below the birth rate, meaning average incomes have fallen for the past four years and the International Monetary Fund (IMF) expects it to fall another four years.

Next month’s elections have done the country little favours as investor sentiments sour, dealing another blow to a struggling economy.

Doyin Salami, a professor at Lagos Business School (LBS), said he sees the economy growing after the election so long as the conduct of the election and the aftermath of response from winners are peaceful.

He predicted that a stable foreign exchange regime and interest rate would prevail in the first six months of 2019. However, the government has to take urgent steps to address the non-oil sector of the economy.

“If we are going to create jobs in the way we need, Nigeria’s industrial capacity cannot remain where they are. The industry sector must contribute at least a quarter or a third of the GDP,” said Salami.

The election pits incumbent President Muhammadu Buhari against Atiku Abubakar, a former vice president.

Zainab Ahmed, minister of Finance, however, pointed out that Nigeria’s borrowing is still within very good fiscal limits compared with countries like South Africa and Ghana.

“The problem we have is that of revenue,” said Ahmed. “The prioritisation of revenue is a must for all of us as an administration.”

A shift from mentality of expenditure to that of revenue generation, for her, is critical to drive the ministries and departments and attain the target for 2019 budget.

Tuesday 29 January 2019

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35 NEWS

BUSINESS DAY

FG’s 10-year bonds Renmoney makes 2019 record 299% subscription LSE Group’s ‘Companies to Inspire Africa’ list ONYINYE NWACHUKWU, Abuja

I A cross-section of Master of Oil and Gas Laws (LL.M) students from the Strathmore University Law School, Nairobi, Kenya, with Adewale Tinubu (centre), group chief executive, Oando plc, during a two-day intense knowledge sharing/academia visit to the company’s headquarter in Lagos.

Uduk, Bobboi, Kale, others bag BusinessDay public service awards JAMES KWEN, HARRISON EDEH & OWEDE AGBAJILEKE, Abuja

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he Shehu Musa Yar’Adua Centre Abuja, was yesterday abuzz as Mary Uduk, acting director-general, Securities and Exchange Commission (SEC), Ahmed Bobboi, executive secretary, Petroleum Equalisation Fund (PEF), and Yemi Kale, Statisticians of the Federation, bagged BusinessDay ‘ Excellence in Public Service Award 2018.

Also, Usman Gur, managing director/CEO, Transmission Company of Nigeria (TCN), Ahmed Kuru, managing director/CEO, Asset Management Corporation of Nigeria (AMCOM), Mohammed Haruna, executive vice chairman/CEO, National Agency for Science and Engineering Infrastructure (NASENI), Yusuf Kazaure, managing director/CEO, Galaxy Backbone, Mohammed Kari, commissioner/CEO, National Insurance Commission (NAICOM), Adebayo Somefun, managing director/ CEO, National Social Insurance Trust Fund (NSITF), Abdullahi Mukhtar, chairman/

CEO, Nigeria Hajj Commission (NAHCON), and Umaru Ibrahim, managing director/ CEO, National Deposit Insurance Corporation (NDIC) bagged the award.

Other awardees include: Ahmed Dangiwa, managing director/CEO, Federal Mortgage Bank of Nigeria, Chidi Izuwah, director-general/ CEO, Infrastructure Concession Regulatory Commission (ICRC), Isa Ibrahim-Pantami, director-general, National Information Technology Development Agency (NITDA), Jalal Arabic, permanent secretary, State House, Mohammed Sani, Clerk of the National Assembly, and William Fowler, executive chairman, Federal Inland Revenue Service (FIRS).

Umaru Kwairanga, Sarkin Fulanin Gombe and chairman of the occasion in his opening remarks said the public sector that the awardees are actively working to mould is the public sector that Nigerians have yearned for decades.

Kwairanga noted that the awardees were running a public sector that is professional, result oriented, merit driven and corruption free,

a public sector that understands the development challenges the country face as a nation and is proactive and forward looking in offering solutions to those challenges.

He stated that awards such as these are recognition of outstanding service and also serve as motivation to the winners, the nominees and those yet to be nominated to strive harder in the future, saying the awards would ginger public servants and promote Public service excellence as well as lead to better outcomes for all citizens impact by the work of the public sector.

“There are few sectors that compare to the public sector in terms of visible impact on the lives of a great number of citizens. That is why I find it puzzling that there is a paucity of opportunities to celebrate the public servants who make such a difference in our lives.

“It is also why I am delighted to be asked to chair the second Business Day Excellence in Public Service Awards. The public servants that we have gathered to honour here today have been im-

proving our world and facilitating our daily lives through the policies they formulate and implement and the services that their organisations provide and it is important that we periodically recognise the outstanding work that they do”, he said.

Frank Aigbogun, publisher/CEO, BusinessDay Media, said BusinessDay conceived the Public Service Award to celebrate performance and commitment of those in public service, and commended the dedication of the awardees to get a world-class service delivery for the people of Nigeria.

“We were very meticulous in analysing the dignitaries for these awards and our team of analysts and researchers, who were joined by a review committee, vigorously examined the various nominations that we have before arriving at a list of award winners this evening.

“I can assure you that coming up with the list of the award winners is not an easy task, given Nigeria’s large public sector and competing positions of leaders of these department and agencies of government,” he said.

Nigeria to float National MFB … a product of tripod partnership between Bankers’ Committee, NIRSAL, NIPOST ONYINYE NWACHUKWU, Abuja

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igeria is set to launch a new microfinance bank (MFB) with an extensive network of branches with planned presence in all 774 local councils of the Federation and the FCT, this February.

The new institution, NIRSAL Microfinance Bank (NMFB), will particularly expand available options and empower Small Medium and Small Enterprises (SMEs) across Nigeria with structured microcredit to help them establish and expand their businesses.

BuisnessDay understands that the bank, which promises to revolutionise the country’s development finance sector, is being set up by the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), Nigeria Postal Service and the Bankers’ Committee.

The specific objectives, according to authorities, include: to drive and deepen financial inclusion; to provide easy access to credit and other financial services to SMEs; to reduce unemployment rate in the rural areas; and to reduce ruralurban migration.

The NMFB, the first in the country, is projected to reach

an estimated 400,000 SMEs within the first two years of operation, Steve Olusegun Ogidan, national coordinating consultant of the project, said on Thursday.

“The MFB is in strategic partnership with NIPOST with a view to leverage on NIPOST’s widespread offices, while NIRSAL would bring to bear its expertise and experience in financing low income entrepreneurs and de-risking of credits originated by the MFB by providing guarantees in line with its mandate.

“The Bankers’ Committee provided the set-up equity capital and owns 50 percent of the bank, while NIRSAL and NIPOST own

40 percent and 10 percent, respectively,” Ogidan said.

Raising strong optimism on the success of NMFB, he explained that the bank would make use of extant structures to reach the most financially excluded Nigerians in rural communities.

As part of this strategy, NIPOST’s post offices located across the nation would provide easily accessible offices to urban and rural Nigerians.

“NIRSAL Microfinance Bank will be a game-changer, which will complement and support existing structures and players in the sector to better serve the millions of small entrepreneurs in the country,” he added.

nvestors jostled for the Federal Government’s 10-year bonds on Wednesday in a debt auction that recorded 31 percent oversubscription.

The Debt Management Office (DMO) confirmed that investors showed preference mainly for the 10year bonds, which had a subscription level of 299 percent. The DMO had issued three instruments worth N150 billion.

But total subscriptions from investors for the bonds were over N197 billion, indicating a subscription level of 131 percent, the debt office confirmed in a mailed statement.

Successful bids were allotted at the rate of 15.20 percent for the 5-year, 15.25 percent for the 7-year and 15.35 percent for the 10-year bonds. The rates for the allotments were consistent with the yields in the secondary market.

In accordance with its policy of keeping the government’s borrowing costs at prudent levels, the DMO allotted a total of N116.98 billion to successful bidders.

The DMO had severally described the continued oversubscription of government’s debt instruments as a show of investor confidence in the Nigerian economy.

MODESTUS ANAESORONYE

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enmoney, a leading fintech lending company in Lagos, was featured on the London Stock Exchange Group (LSEG) list of ‘Companies to Inspire Africa’ for 2019. Renmoney was listed alongside three other Nigerian companies.

In her remarks, Tobi Boshoro, CEO, Renmoney highlighted that the company “has spent the last few years building convenient lending solutions for Nigerians.” She also added: “We are laser-focused on listening to our customers and using their feedback to iterate on our solutions and processes.” This approach led Renmoney to 112% year on year growth in customers served in 2018 and the company has even more ambitious plans to make financial inclusion count in 2019.

According to David Schwimmer, CEO, LSEG: “London Stock Exchange Group’s report ‘Companies to Inspire Africa’ identifies Africa’s most inspirational and dynamic private, high-growth companies to a global market”.

He also highlighted that the ‘Companies to Inspire Africa’ report was born out of a belief that the featured firms are crucial to the future of the African economy and the growth of the economy of their home countries.

Extortion: EFCC alerts public on ex-officers parading as commission’s staff INNOCENT ODOH, Abuja

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conomic and Financial Crimes Commission (EFCC) has alerted the public about the activities of some of its former officials, who are using the commission to extort money from unsuspecting members of the public.

The commission in a statement issued on Thursday by its acting spokesman, Tony Orilade, said, “The attention of the EFCC has been drawn to the activities of some former staff of the EFCC still parading themselves as being in the employ of the Commission, and using this means to defraud unsuspecting members of the public.

CHANGE OF NAME

I, formerly known and addressed as Miss Omobolanle Omotayo Abodunrin now wish to be known and addressed as Omobolanle Omotayo Akingbala. All former documents remain valid.

General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as Balogun Adelowo Fasasi now wish to be known and addressed as Balogun Adelowo Babatunde.

All former documents remain valid.

General Public please take note.

“Preliminary investigation shows that some of the fraudsters brandish seemingly authentic Identity Cards as staff of the Commission to prey on their prospective victims. They make monetary demands and in return give promises to help stall ongoing corruption investigation, or promise to help secure employment for some people or their loved ones in the Commission.”

The commission also noted that investigation also revealed that some Identity Cards being paraded by the hoodlums were those of members of staff who had earlier reported them as lost or stolen at gunpoint and got Police Reports to be able to get replacements from the Human Resources Unit of the Commission.

CHANGE OF NAME

I, formerly known and addressed as Adejumo Felix Olamide now wish to be known and addressed as Adejumo Felix Oluwatobi. All former documents remain valid.

General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as Miss Goodness Chidinma Nwachukwu now wish to be known and addressed as Mrs Goodness Chidinma Onoja. All former documents remain valid.

General Public please take note.

36

BUSINESS DAY

Friday 01 February 2019

Friday 01 February 2019

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Saudi’s deeper production cut, Venezuela’s supply disruption further lift oil prices … as PetroChina exits partnership with PDVSA on refinery project STEPHEN ONYEKWELU, with agency report

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audi’s commitment to deeper oil production cuts and supply disruptions in Venezuela due to US’ sanctions on the South American country’s state-owned oil company have combined to further lift oil prices, which had rallied by 1 percent on Wednesday.

On Thursday, US West Texas Intermediate (WTI) crude futures were at $55.21 per barrel at 1616 GMT, up 0.98 cents or 1.81 percent from their last settlement. International Brent crude oil futures were up 62 cents or 1.01 percent at $62.16 per barrel.

Saudi Arabia will pump oil for six months at levels “well below” the voluntary production limit it accepted under OPEC’s oil-cuts accord, Khalid Al-Falih the Middle Eastern Kingdom’s energy minister said.

The world’s biggest exporter targeted January production of 10.2 million barrels a day and is aiming to pump 10.1 million in February, AlFalih said in a Bloomberg

Television interview. Saudi Arabia’s voluntary limit under the December cuts deal with Russia and other allied producers were 10.33 million barrels a day.

“Demand will start picking up at the end of the first quarter and into the second quarter,” Al-Falih said. The impact of the reduction “will trickle down into the global markets over the next few weeks.”

US sanctions imposed on state-oil firm Petroleos de Venezuela SA (PDVSA) this week is also causing some supply disruptions.

Venezuela’s oil inventories have started to build up at the country’s ports and terminals as PDVSA is finding it cannot export crude at its usual rate due to US sanctions imposed earlier this week.

As of Wednesday, Venezuela had 25 tankers with nearly 18 million barrels of crude – representing about two weeks of the country’s production – either waiting to load or expecting authorisation to set sail, shipping data showed.

Matt Stanley, a broker with Starfuels in Dubai, said

the combination of US sanctions against oil producers Venezuela and Iran, the OPEC-led supply cuts as well as hopes that the trade dispute between the United States and China could soon be resolved meant oil prices would likely rise further.

To compound Venezuela’s woes, PetroChina Co plans to drop Petroleos de Venezuela SA (PDVSA) as a partner in a planned $10 billion oil refinery and petrochemical project in southern China, three sources familiar with the matter said this week.

The company’s decision adds to state-owned PDVSA’s struggles after the US imposed sanctions on the company on Jan. 28 to undermine the rule of Venezuelan President Nicolas Maduro.

However, dropping the company was not a reaction to the U.S. sanctions but follows the deteriorating financial status of PDVSA over the past few years, said two of the sources, both executives with China National Petroleum Corp, the parent of PetroChina.

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37 NEWS

BUSINESS DAY

Glo rewards professional dancer, other winners of GloIN60seconds

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igital transformation leader, Globacom, on Wednesday rewarded new winners of GLOIN60SECONDS, its social media talent hunt, in different locations across the country.

Winners who received their prizes of N50,000 each were drawn from the Week 4 and 5 of the online competition, a novel customerrewarding scheme in the nation’s telecoms industry.

The winners who spoke after collecting their prizes thanked the telecommunications giant for introducing the contest, which they note had helped them to showcase their talent to thousands of their online followers, adding that the huge platform provided

by Globacom had not only made them hugely popular on social media, but had also motivated them to pursue their dreams.

Among the winners, whose entries were adjudged the best out of thousands of video uploaded in the fourth and fifth weeks of the competition, included Ifeoluwa Ajibola, Oreoluwa Oladapo, Pakama Anthony, Agun Toluwalagbara and

Stephen Ezute from Lagos.

From Abuja, the winners were Kelvin Obimba and Nafisat Abdulganiyu, while Enugu had Eze Chibueze and Odinaka Nnamani.

Peace Osagie won in Benin and also received her N50,000 cheque, just as Nathan Tonye got her cheque at Gloworld, Port Harcourt.

Ifeoluwa Ajibola (Mr. Iffective on Instagram), final year medical student of the University of Lagos, says even though his studies are quite tedious, “You will always find time for your passion”. I now have more followers, more exposure, and I get motivated to do more freestyle; thanks to Glo.” Oreoluwa Oladapo, 23, a professional dance artiste, says “#GLOIN60SECONDS has increased my Instagram account. My level of creativity has also gone up because you have to be creative to realise your dream.

This is the best platform for youths at the moment”.

Pakama Mukta Anthony, a graduate of Botany from Ahmadu Bello University, Zaria, and a dancer declared: “Winning in the Gloin60seconds challenge is a big boost to me and I am particularly happy to

be a winner. Glo gives back to its subscribers and I will continue to preach the Glo gospel to my friends and relations”.

Similarly, Agun Toluwalagbara, a 500-Level mechanical engineering student of University of Lagos says: “I was hoping to win when I uploaded my video but I was not sure it was good enough to win.

I was, therefore, excited when I was called that I won. I have encouraged my friends to try and participate and some of them are already hoping to win in the next draw”.

GLOIN60SECONDS competition offers participants the opportunity to upload a one-minute video of themselves showcasing their talents on their social media accounts such as Facebook, Instagram or Twitter with the hashtag #GLOIN60SECONDS. The video could be on music, dance, comedy, poetry or any other creative ability.

In addition, participants are expected to follow Glo on any of the company’s social media pages @Globacomlimited on Instagram, @Gloworld on Twitter and Gloworld on Facebook.

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BUSINESS DAY

NATIONAL DISCOURSE

DAVID IBIDAPO

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here isn’t any doubt that Nigeria is a potential destination for foreign direct investments (FDI’s) given its market size and market readiness, compared to peers on the African continent. However, the outcomes of the 2019 presidential race may either pose as a “strongman” shielding inflows or ready market attracting FDI’s.

Foreign Direct Investors must be in a position to exploit a market and expand both in the

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Presidential election determines future of Nigeria’s FDI domestic, as well as the foreign markets. This will reduce their cost of production and will give them ample scope for diversification.

In the last 13 years of foreign inflows, Nigeria has recorded the biggest decline in foreign direct investment within the four-year reign of the APC led administration.

Foreign direct investment declined further by 34 percent in 2015, by 20 percent in 2017 and by 37 percent in 2018; the biggest decline ever recorded in the last 13 years. The year 2018 also recorded the lowest level of FDI in 13 years at $2.2 billion.

Trends noticed in FDI into Nigeria reiterate a major fact; investors will always look for a government which is investment supportive and not take steps that are anti-investment.

However, this is not to say that during the PDP led administration FDI didn’t nose dive. We saw FDI decline by 30%, 20%, 21% and 16% in the years 2010, 2012, 2013 and 2014 respectively.

Amongst different factors that affect FDI, pro-active measures of the government to promote investment, exchange rate stability and government fiscal and monetary policies are key drivers of FDI. In Nigeria, these major indicators are below optimal. The Nigerian government seems passive to measures that promote infrastructural development. This has shown in our slow action to economic diversification, recurrent expenditure over capital expenditure etc.

Despite the move of the monetary authorities to defend

the Nigerian currency to avoid devaluation, downward pressure still mounts on its value which begs the question how long will the CBN continue to defend the naira. Analysts however forecast devaluation by about 8.3 percent to N390/$1 in 2019.

A close look at the FDI trend in Nigeria also buttresses the point of foreign investor’s perception about government administrations. In 2015, foreign inflow nosedived by 34% to $3.1 billion, the biggest decline since 2005. We witnessed an uptick in 2016 by 42% in 2016 as foreign investors enjoyed higher bond yields in a recessed economy.

A look into pre-election years showed foreign investor’s optimism in the 2007-2010 led administration. FDI increased by 34 percent in 2008 to $8.2

billion and 6 percent to $8.7 billion in 2009. We saw the same movement in 2011 when FDI increased by 46 percent to $8.9 billion, the biggest growth recorded in 13 years.

The low levels of foreign inflow experienced in 2018 gives an indication of negative sentiments of foreign investors in the current government and outcomes of the general elections. Therefore boosting foreign investor confidence will mean electing a candidate with good economic prospect.

A critical evaluation of the implication of our actions at the polls should be the major guide to electing the right candidate for the presidential race.

A wrong candidate may mean further withdrawal of FDI’s from the Nigerian economy with everyone bearing the cost.

NEWS

With eye on expansion, Coca-Cola acquires 100% of Chi Limited ODINAKA ANUDU & DANIEL OBI

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oca-Cola has officially announced its acquisition of Chi Limited in a deal that consolidates it as a leader in the drinks’ market.

Financial details of the deal were not disclosed at a news conference in Lagos on Thursday, but Coca-Cola’s 40 percent acquisition in 2016 was said to be around $230 million to $250 million. Analysts think the deal could be around $500 million to $600 million.

The acquisition is targeted at building billion-dollar beverage brands in Nigeria that will expand to many parts of Africa, said Peter Njojo, president of Coca-Cola Company in West Africa.

The acquisition involves Chi’s segments such as juice, dairy, snacks, retail and ice tea, and does not cover other subsidiaries such as the farms and the pharmaceuticals. Coca-Cola has already launched Hollandia in South Africa and is launching in Kinshasa and Ghana.

“You may wonder why we have an interest in Chi Limited. The brand Chi Limited has built in the Nigerian market over the years resonate with consumers and makes a lot of sense,” Njonjo said.

“Our objective is to offer a wider range of products. We want to grow

Chi and Coca-Cola into a billiondollar business.

“We strongly believe that the brands from Nigeria can grow into billion-dollar brands. It is also a testament to our commitment to Nigeria.”

Acquisition of Chi Limited is also celebration of entrepreneurship of the founder of the beverage maker, he said.

Coca-Cola acquired 40 percent of Chi Limited in 2016 and pledged to extend it to full ownership in three years. With this acquisition, Coca-Cola leads the soft drinks and carbonates market and will consolidate its share of the yoghurt and sour milk markets.

Chi Limited led yoghurt and sour milk products in 2018, operating an effective distribution network nationwide, through which it led many food and drink products such as fruit juice, and so had ensured strong popularity for its Hollandia brand, said Euromonitor International in its September 2018 report.

“For us, coming here at this point when everybody is nervous is a testament of our commitment.”

Njonjo said Coca-Cola would invest more in the staff and plant in Chi Limited and would retain the staff of the latter, saying Coca-Cola would leave the Chi brands as they were and would not make immediate changes on the products.

National Infrastructure Maintenance Framework to drive small-scale business - Fashola HARRISON EDEH, Abuja

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abatunde Fashola, minister of Power, Works and Housing, on Thursday said the Infrastructure Maintenance Framework approved by President Muhammadu Buhari is geared towards driving small businesses in the country.

The minister noted that the the framework would drive the small business sector, skill utilisation and move the economy from growth without jobs to growth driven by jobs.

Addressing newsmen at a conference attended also by heads of Ministries, Departments and Agencies as well as parastatals and members of the National Assembly, among other stakeholders, Fashola said the framework, which applies to public buildings for now, would ultimately extend to other public assets like roads, bridges, rail, power installations and other infrastructure of a public nature.

The minister, who said the framework was approved on January 9, 2018, explained that the Federal Executive Council’s approval meant that “after decades of agonizing about lack of maintenance, the Buhari government has chosen to act”, describing it as “policy decision of enormous profundity”,as, according to him, “the

records do not indicate that any such policy decision has previously been taken at the federal level”.

He said the decision to approve the framework was provoked by a memorandum from the Ministry of Power, Works and Housing that challenged the conventional thinking that “Nigeria does not have a maintenance culture”, adding, “The memorandum argued and FEC agreed, that maintenance of infrastructure, whether public or private, is not a cultural issue but an economic one.”

According to him, the memorandum showed that in the built industry, only about 23 percent of the workforce was employed by design (6 percent), construction (15 percent) and governance (2 percent), while the remaining 77 percent were employed by maintenance and operation.

“The Council was persuaded to accept that while skill training and vocational centres exist almost nationwide for training artisans like plumbers, painters, bricklayers, welders, tilers, electricians etc., there is a lack of National policy that makes the practice of these vocations economically worthwhile on a sustainable basis,” he said.

The minister said available data showed that many people trained in vocations such as plumbing, carpen-

try, tiling, masonry, painting, bricklaying, welding, electrical installations, etc, often resort to other vocations in which they do not have training such as riding motorcycles and tricycles in order to make a living.

Giving details on what the framework entails, Fashola said the first step would be to conduct site assessment of the affected buildings involving measurements, valuation and data collation, all of which, he noted, require the employment of people to carry out the process thereby creating jobs even from the very first step, adding that it would also provide for credible data such as lettable space, value of the property and so on “which could form the basis of the economic decisions or even actions in emergency periods”.

The next step, the minister said, would be condition assessment which would also, according to him, require people to be trained and employed to assess the conditions of affected buildings from foundation to roof and for mechanical and electrical sustainability for purpose adding that the maintenance programme would then be developed from the assessments as to what jobs would need to be done to restore the building to fitness while award of maintenance contract, also based on the assessments, would then be following the existing procurement law.

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39

Onnoghen’s suspension is a big slap on us - C/River monarchs paramount ruler of Yakurr LGA, Obol Ufem Eteng said they were sad over the removal of their son from office.

They said that they want the president to make them happy as father of the nation by recalling him because his current plight has devastated them.

They spoke in Biase LGA when the minister of state for housing, power and works, Hon Mustapha Baba Shehuri formally flagged off the rehabilitation of the 75 kilometre Akpet-Odukpani section of the Ogoja-Ikom-Calabar federal highway.

“We are very happy with President Buhari for helping us to rehabilitate this federal road

MIKE ABANG, Calabar

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ome traditional rulers in Cross River State have described the removal of their son, former Chief Justice of Nigeria, Justice Walter Onnoghen, from office as a big slap on them.

They have called on President Muhammadu Buhari to immediately recall the former CJN to appease and calm the frayed nerves of their people.

The paramount ruler and the Onun 1 of Biase LGA, HRM Nicholas Odum, JP, who is the direct traditional father of Onnoghen and the Obol Lopon of Ugep who doubles as the

Onnoghen

‘Buhari lied in Form CF001 submitted to INEC’ Felix Omohomhion, Abuja

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Federal High Court, Abuja on Thursday, adjourned till February 7, 2019, to hear the suit seeking the disqualification of President Mohummadu Buhari in the February 16 presidential election.

Justice Ahmed Mohammed fixed the date following a request by the plaintiffs’ counsel for time to respond to the second defendant’s counter affidavit served on him Wednesday evening.

Kalu Agu, Labaran Ismail and Hassy El-Kuris, the plaintiffs in the suit, are alleging that the President Buhari lied in his Form CF 001 submitted to the Independent National Electoral Commission (INEC), regarding his educational qualification and certificates.

They therefore, want the court to make “A declaration that the President Buhari submitted false information regarding his educational qualification to INEC for the purpose of contesting elections into the office of President of Nigeria in the 2019 general elections.

“A declare that the President, having submitted false information regarding his educational qualification/certificate is disqualified from contesting elections into the office of president in the 2019 elections.”

They also prayed the court for an order directing INEC to reject or remove Buhari’s name as the presidential candidate of the APC submitted to INEC for the 2019 general election, and to prevail on APC not to present him for the election.

Issues the plaintiffs raised for determination in the suit marked: FHC/CS/ABJ/1310/2018, include, “whether having regards to the

information in the affidavit contained in the first defendant’s INEC form, CF 001 regarding his educational qualification/certificate, the first defendant has submitted false information to the third defendant.

“Whether from the facts and exhibits contained in the affidavit in support of the Originating Summons mad having regards to Section 31(5)(6) of the Electoral Act 2010 as amended the first defendant is disqualified from running for the office of president in the 2019 general elections.

“Whether the first defendant, having submitted false information to the third defendant, the second defendant can validly present the first defendant as its candidate for the office of president for the 2019 general elections”.

The suit was filed November 5, 2018.

They are therefore, seeking an order of the court to disqualify Buhari from presenting himself and or contesting for President in the 2019 general election.

The suit has President Buhari, All Progressives Congress (APC) and INEC as first, second and third defendants, respectively.

When the matter was called yesterday, plaintiffs’ counsel, Godwin Haruna, who held brief for Ukpai Ukiro, informed the court that the matter was adjourned at the last sitting to January 21 for hearing of all pending applications but was further adjourned to today January 31, since the court did not sit.

He however, said he would be asking the court for a short adjournment to enable him respond to the second defendant’s notice of preliminary objections which he said was filed on January 31 and served on him around 4.30pm on Wednesday.

which had been responsible for many accidents and deaths of our people.

“We shall however, be happier for the president to kindly recall our son, the Chief Justice of Nigeria Walter Onnoghen back to office. When the president has done that he can be assured of our 200percent supports.

“His suspension has thoroughly embarrassed the people of Biase, Cross River and South-South. It would have been better if he was retired. It is a big slap on our faces that he is so humiliated. We therefore, strongly appeal to the president to please reconsider his stand”, Odu appealed.

2019: APC accuses INEC of working for PDP ...blasts Atiku for promising amnesty to looters James Kwen, Abuja

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ifteen days to the general elections, the ruling All Progressives Congress (APC) has accused the Independent National Electoral Commission (INEC) of working for the victory of the main opposition People’s Democratic Party (PDP).

This is as APC lamented that INEC rejected its candidates in Zamfara and Rivers State even when it conducted valid primaries but accepted PDP candidates from Kano where no primaries were held.

INEC Wednesday night rejected APC candidates from Zamfara State following conflicting judgments delivered by Federal High Courts Gusau and FCT affirming and denouncing the conduct of primary elections in the state by APC. Lanre Issa-Onilu, APC national publicity secretary, while briefing journalists in Abuja on Thursday dismissed that contrary to recent outbursts by PDP and other opposition elements that INEC is going to rig elections for APC, the rejection of the party’s candidates shows what it is going through in the hands of the Commission.

“Let me add that in Kano State, PDP did not do any primaries and yet today, INEC is not saying anything regarding PDP and all the candidates submitted for PDP in Kano were accepted. This is a fact that nobody can deny but we will not go to town to start pillorying INEC, this is a very critical institution to the success of any election.

“We heard that INEC is relying on the fact that courts of equal

jurisdiction have given conflicting judgments. We can understand that. What it thus means is that it is not over and then we will continue to take steps.

“We are very certain, we did the right thing. The primaries held, INEC was not satisfied with that but it is our right to field candidates and we would follow up all the legal means to ensure that our candidates stand for elections in this 2019 general election in Zamfara.

Same situation for Rivers.

“It also shows for people who are discerning to ask that question, this supposed to be the APC that INEC is or ought to be working for? And this is what we are going through in the hands of INEC that PDP has repeatedly claimed is put in place to rig elections for APC.” “May I remind all of us, that we had primaries in Zamfara which was affected by conflicts but the process allows for three different options. You could go for indirect which is an electoral college, you could go with direct that allows every card-carrying member of the party to vote for their chosen candidates and then thirdly, you go by consensus. We have the right under the constitution to exhaust these options. We did so”, he further said.

The APC Spokesman also blasted Atiku Abubakar, PDP Presidential Candidate over the comments that he would grant amnesty to repentant looters when he becomes President.

“Going by Atiku and Obi’s shocking confession that their administration will grant amnesty to looters, we are equally shocked and hereby align with the wide

section of Nigerians who are now abundantly clear of their intentions if elected and now see the collective need to stop them.

“The insistence of Alhaji Atiku and PDP to take us through this dangerous route where the nation’s economic policies and programmes are driven mainly by the interests of leaders, their local friends, and foreign partners constitute a present danger every well-meaning Nigerian must rise against. The choices before Nigerians cannot be clearer.

“Those who have looted our resources, stolen the monies meant to build roads, rails, and ports, provide regular and stable electricity for our homes and businesses, provide quality healthcare, create environment conducive for ordinary Nigerians to unleash their creativity and industry, and for all Nigerians to live a rewarding and prosperous lives are working hard to take charge again. It is disturbing that Atiku and his returning mate, Peter Obi, could boldly face the national, and indeed, global audience boasting that the future of our country belongs to the looters.”

The party’s spokesperson further said: “As a matter of fact, Alhaji Atiku repeatedly told a bewildered nation that those who caused poverty, unemployment, poor infrastructure and misery for many Nigerians under his watch as the Vice President would be left to enjoy our commonwealth as long as they turned in part of what they have stolen. This no doubt must have gladdened the hearts of all the enemies of our country.

40

BUSINESS DAY

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Friday 01 February 2019

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FINANCIAL TIMES

41

World Business Newspaper

Foxconn in political storm over revised plans for Wisconsin plant Anger as Taiwanese group scales back manufacturing investment hailed by Donald Trump Kathrin Hille

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he unravelling of a promised huge factory investment in Wisconsin touted

by US president Donald Trump as proof that he could revive America’s Rust Belt has set off a political storm and landed the world’s largest contract electronics manufacturer in hot water.

On Wednesday a senior Foxconn executive said in an interview that the company would not create a plant manufacturing liquid-crystal display (LCD) panels in Wisconsin, sparking a public backlash in the US. On Thursday the Taiwan-headquartered group confirmed that the “global market environment” had forced it to scale back its plans for the state.

In July 2017, Foxconn promised to invest $10bn and hire 13,000 people in a Wisconsin plant. When Foxconn founder and chief executive Terry Gou announced the project at the White House with Mr Trump, the US president boasted: “If I didn’t get elected, he definitely would not be spending $10bn.”

But the project has been languishing since Democrat Tony Evers won the Wisconsin governor election in November last year, defeating Republican Scott Walker, who had hammered out the deal for the investment with Foxconn, including generous incentives for local labour. Foxconn has since fallen behind its originally planned hiring road map, and as a result

failed to receive some of the state’s subsidies.

The company revealed its rethink in an interview with Louis Woo, special assistant to Mr Gou, published by Reuters on Wednesday.

Mr Woo was quoted as saying that the company would not be hiring blue-collar workers in Wisconsin but engineers.

“In Wisconsin we’re not building a factory,” Mr Woo said. “You can’t use a factory to view our Wisconsin investment.”

The statement triggered a wave of angry comments in the US. “President Trump, Scott Walker and Foxconn made promises to Wisconsin workers and taxpayers,” Tammy Baldwin, the Democratic senator for Wisconsin, wrote on Twitter. “Foxconn cannot be allowed to fall short of keeping their promises or break them.”

The Wisconsin governor’s office said it was “surprised to learn about this development” and would “continue to monitor the project to ensure the company delivers on its promises to the people of Wisconsin”.

The company’s retreat mirrors earlier ventures in other countries, including Brazil and several provinces in China, where Mr Gou leveraged his company’s huge workforce to extract maximum incentives from governments in exchange for promises of large-scale local employment, but failed to deliver when the conditions were not prof-

Goldman Sachs sued over work on $2.9bn grocery deal Bank accused of manipulating credit default swaps market and taking excessive fees Laura Noonan

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oldman Sachs was accused on Wednesday of taking $50m in unauthorised fees and structuring a complex financing deal to its own advantage and that of its hedge fund clients, in a dispute over its work on a $2.9bn takeover deal. Goldman vigorously denies all the allegations.

United Natural Foods Inc, a major supplier to grocery chain Whole Foods, filed a lawsuit in New York’s Supreme Court accusing Goldman of putting its interests ahead of those of the company when it advised UNFI on its takeover of grocery chain Supervalu last year.

The suit does not specify damages, but a person familiar with the situation said UNFI would seek more than $500m in the case, which also names Goldman’s co-adviser on the deal, Merrill Lynch, as a defendant.

Goldman was hired both to advise UNFI and to arrange financing for the deal through a $2.15bn syndicated loan. The deal ran into trouble when both UNFI and Supervalu reported weak earnings soon after the takeover was finalised.

UNFI said it suffered $140m of losses because Goldman railroaded it into increasing the interest rate on the loan, warning that “things would get ugly” if the wholesaler did not agree to pay a higher rate.

In addition, the lawsuit claims that Goldman manipulated the credit default swap market to the benefit of hedge fund clients, as a

quid pro quo for their buying some of the loan.

The unusual financing structure restored the value of about $470m of CDS, which insured against default on Supervalu debt and which were held by hedge funds. The debt would have been cancelled under the original terms of the takeover, making the CDS worthless, but the terms were changed to make Supervalu a co-borrower.

UNFI is also suing Goldman for breach of contract, alleging the bank “egregiously misappropriated” $40.5m in marketing fees for the loan that it was not owed, plus another $11.5m in advisory fees that it had “no contractual authority” to receive.

A spokesman for Goldman described UNFI’s claims as entirely without merit. “We intend to vigorously defend ourselves against these accusations,” she said. Bank of America, parent company of Merrill Lynch, declined to comment.

“While positioning itself as UNFI’s trusted advisor on the one hand and its counter-party lender on the other, Goldman Sachs consolidated its command over all aspects of the transaction in order to extract millions in unjustifiable interest, fees, and other damages suffered by the company and its shareholders,” Steve Spinner, UNFI’s chief executive, said in a statement.

Jill Sutton, UNFI’s general counsel, said that “when the defendants had to choose between UNFI’s best interests and their own profits, they opted to put their financial motives first”.

From left, then Wisconsin governor Scott Walker, President Donald Trump and Foxconn chief Terry Gou take part in a groundbreaking ceremony at the Foxconn site in Wisconsin in June last year.

itable for the company.

Mr Gou transformed a humble connector workshop set up in 1974 into a manufacturing powerhouse serving Apple and most other global technology brands. Foxconn racked up $172bn in revenues last year.

“Foxconn has broken its promises in Pennsylvania, Brazil, China, and now Wisconsin,” Jimmy Anderson, a Democratic state representative in Wisconsin, said in a tweet.

“Everywhere they’ve gone, they

have exploited taxpayers to line their pockets. Wisconsin Republicans should have known better.”

On Thursday, Foxconn said it remained committed to creating 13,000 jobs in Wisconsin.

“Foxconn will be moving forward with plans to build an advanced manufacturing facility in Wisconsin,” the company said, adding that it would construct an LCD module back-end packaging plant, a high-precision moulding factory and a system integration assembly

facility over the next 18 months.”

LCD module back-end packaging, precision moulding and assembly are relatively labour-intensive operations but require much less investment than the fabrication of LCD panels themselves, which requires clean rooms and precision equipment with a price tag of several billion dollars for one fab.

LCD panel manufacturing is a highly cyclical industry, with the bulk of global capacity in China, South Korea, Taiwan and Japan.

Eurozone slowdown fears mount as growth fails to recover in 2018 Currency bloc’s economy expands just 0.2% between third and fourth quarters Claire Jones

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ears of a eurozone slowdown have mounted after the economy stagnated at the end of 2018, growing just 0.2 per cent between the third and fourth quarters last year.

The flash estimate of growth from Eurostat, the European Commission’s statistics bureau, is in line with the disappointing figure for the previous quarter, which put growth at its lowest level in more than four years, and tallies with economists’ forecasts. Italy, the third-largest economy in the eurozone, fell into a technical recession after its second consecutive quarter of contraction.

The evidence of eurozone weakness comes as policy officials around the world are becoming increasingly concerned about the outlook. The US Federal Reserve last night dramatically re-

versed course and said it would put further rate rises on hold over signs that global growth was weakening.

The European Central Bank last week downgraded its assessment for risks to growth just six weeks after dropping the most important part of its crisis-era stimulus — the expansion of its €2.6tn quantitative easing programme.

“The underlying pace of growth is likely to slow further,” said Christoph Weil, economist at Commerzbank. “A prerequisite for the stabilisation of the economy that we expect to see in the spring is a recovery in demand from China, an easing of the trade conflict between the US and China, and no hard Brexit.”

Initial indications are that momentum has waned further since the start of the year. The €-coin indicator, a bellwether for the direction of GDP, on Thursday fell to a two-and-a-half year low of 0.31 in January, down from 0.42 in Decem-

ber. Purchasing managers’ indices have also dipped to multiyear lows.

Both polls signal that political uncertainty is denting business confidence and that the eurozone’s manufacturers are particularly exposed to weak external demand.

Mario Draghi, European Central Bank president, has signalled that the bank will act if evidence of a prolonged slowdown in momentum continued to mount.

But Mr Draghi has also indicated the barrier to an about-turn on QE is high, saying earlier this week that it was unlikely there would be further QE measures in 2019.

Any additional action by the ECB is likely to involve tweaks to its message, such as implying further delays in raising rates and in halting the pace of reinvestments of QE bonds as they mature, say economists. Those reinvestments are set to keep the size of the programme at its current level of €2.6tn for years to come.

EU accuses eight banks of collusion in sovereign bond market Brussels charges traders with coordinating strategies on euro-denominated paper Rochelle Toplensky

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russels has accused eight unnamed banks of colluding in the buying and trading of eurozone government bonds at different times between 2007 to 2017.

European antitrust authorities sent a formal charge sheet

outlining their concerns that certain traders at eight different banks exchanged information and co-ordinated trading strategies for euro-denominated bonds issued by eurozone member states, mainly through online chat rooms.

There are no time limits on the investigation, but if the charges are confirmed, the bloc could fine

each bank up to 10 per cent of its annual worldwide turnover.

In a separate investigation, EU competition officials in December accused Credit Suisse, Deutsche Bank, Crédit Agricole and one other unnamed bank of price rigging in the market for some types of US dollar-denominated government bonds.

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Trump says new summit with Xi is vital to securing China trade deal

GE agrees to settle DoJ subprime mortgage case for $1.5bn

High-level negotiations in Washington fail to achieve major breakthroughs

Industrial conglomerate’s shares rise 15% as investors welcome end of government case

James Politi

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Ed Crooks

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eneral Electric disclosed that it agreed a $1.5bn settlement with the US government over the sale of subprime mortgages in the lead up to the financial crisis, drawing a line under an issue hanging over the industrial conglomerate as a result of its ill-fated ventures into financial services.

The company said on Thursday it had “reached agreement in principle” with the US Department of Justice to pay the civil penalty related to the operations of its now-defunct subprime mortgage business in 2006-07. The settlement with the DoJ is in line with the $1.5bn provision that GE made last year.

Shares advanced more than 15 per cent to $10.50 after trading began in New York as investors welcomed the end of the US government case and fourth-quarter earnings that included revenues of at $33.3bn, ahead of analyst expectations and up 5 per cent from the equivalent period of 2017.

But GE’s earnings were hit by mounting losses in its division making equipment for the power industry, which has dogged the company through three separate chief executives over the past two years.

Adjusted earnings per share, excluding items the company sees as one-offs, were 17 cents for the quarter, down 60 per cent from the equivalent period of 2017. The average of analysts’ forecasts compiled by Bloomberg was 22 cents.

The weakest segment was the division making equipment for the power industry, which has been hit by a downturn in the market for gas-fired power plants as well as what the company described as “continued execution and operational issues on equipment projects and transactional services”.

The division fell into an $872m loss for the quarter, compared to a $51m profit for the equivalent period of 2017.

That was offset by strong performances from the aviation division, where profits rose 24 per cent to $1.72bn, and from Baker Hughes, the oilfield services group 50.4 per cent owned by GE, where profits were up 60 per cent at $396m.

At the healthcare division, which GE plans to spin off, profits were up 2 per cent at $1.18bn.

Larry Culp, the new chief executive who took over last October, said in a statement: “Our strategy is clear: de-leverage our balance sheet and strengthen our businesses, starting with power. To do this, we are improving execution, customer focus, and how we set priorities across GE. I’m confident in our team, technology, and the global reach of GE’s brand and relationships. We have more work to do, but I’m encouraged by the changes we’re making to strengthen GE and create value for our shareholders, customers, and employees.”

Friday 01 February 2019

This week’s meeting has hardly been the first time that jittery financial markets have convinced the Fed to adjust its policy plans © EPA

Federal Reserve’s ‘momentous’ U-turn prompts puzzlement US central bank faces criticism for bending to market pressure over rates guidance Sam Fleming

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fter putting traders on notice six weeks ago to expect further increases in US interest rates in 2019, the Federal Reserve on Wednesday executed one of its sharpest U-turns in recent memory.

Leaving rates unchanged at 2.25-2.5 per cent, Jay Powell, Fed chairman, unveiled new language that opened up the possibility that the next move could equally be down, instead of up. Forecasts from the Fed’s December meeting that another two rate rises are likely this year now appear to be history.

Changes to its guidance were needed, Mr Powell argued, because of “cross-currents” that had recently emerged. Among them were slower growth in China and Europe, trade tensions, the risk of a hard Brexit and the federal government shutdown.

Financial conditions had also tightened, he added.

Yet the about-face left some Fed-watchers wrongfooted and bemused. Many of those hazards were already perfectly apparent in the central bank’s December meeting, when it lifted rates by a quarter point and kept in place language pointing to further “gradual” increases.

Meanwhile, the federal shutdown is over — at least for now — and the US economy is in a hearty state. The US labour market is continuing to power ahead, wage

growth has picked up and financial markets are on a more even footing.

“It was a big change, and a surprising one,” said Roberto Perli of Cornerstone Macro, of the Fed’s new rates outlook. “The fact that a convincing justification was lacking is perplexing.”

Michael Feroli, US economist at JPMorgan Chase, said he could not remember such a big change of direction by the Fed absent a major shift in the economic backdrop, calling the adjustment between December and January “momentous”.

One explanation could be that more dovish officials such as Richard Clarida, the Fed’s vice-chairman, were gaining sway over the decision-making process, he said.

Another is that the Fed is being swayed by market pressure.

Michael Gapen of Barclays said it was difficult to read the outcome of the meeting as “anything other than the Fed capitulating to recent market volatility”.

Some of the guidance the Fed gave on its balance sheet policy added to that impression. The central bank has recently been deluged by complaints that its balance sheet reduction programme is destabilising markets — a notion that officials find dubious. Nevertheless, the Fed accompanied a new statement describing its preferred rate-setting framework with reassurances that it would adjust “any” of the de-

tails of the asset reduction plan if economic or financial conditions warrant it.

For his part, Mr Powell roundly rejected suggestions by reporters that there was now some sort of “Powell put” in which the Fed comes to the rescue when Wall Street is in a swoon. His only motivation, he added, was “to do the right thing for the economy and for the American people. That’s it.”

The Fed chairman also dismissed any notion that the central bank had altered the course of monetary policy in the face of presidential lobbying. President Donald Trump has made repeated public demands that the Fed stop lifting rates, but Mr Powell repeated past assurances that the Fed ignores such political considerations.

“We’re human, we make mistakes, but we’re not going to make mistakes of character or integrity,” he said.

To be fair, Wednesday’s meeting was hardly the first time that jittery markets have convinced the US central bank to adjust its policy plans. In early 2016, for example, an outbreak of market volatility prompted the Fed, then led by Janet Yellen, to sharply trim back the number of rate increases it was considering. The so-called taper tantrum in 2013 under Ben Bernanke spurred the central bank to delay plans to slow its asset purchases.

China’s ‘pragmatist’ Liu He is hemmed in on both sides Economic tsar has met an opponent in Robert Lighthizer and cannot ignore Xi Jinping’s wishes Tom Mitchell and James Politi

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s US president Donald Trump escalated his trade war against China last summer, applications for two massive foreign investments were stuck in the Chinese government’s labyrinthine approvals system.

BASF, the German chemicals conglomerate, and ExxonMobil of the US each wanted to invest billions of dollars in the southern province of Guangdong. Both multinationals were proposing to build industrial complexes that would challenge the entrenched position of Sinopec and other Chinese state-owned energy giants.

According to Chinese officials and foreign diplomats familiar with the two projects, Vice Premier Liu He helped break the logjams.

BASF’s $10bn investment was announced on July 9, just days after the US first imposed punitive tariffs on Chinese imports.

ExxonMobil’s announcement followed in early September, two weeks before Mr Trump announced a second and more expansive round of tariffs on about half of all imports from China.

Both investments sent strong signals that, trade war or no, global multinationals still covet the country’s vast domestic market and are prepared to risk billions on decades-long investments.

This week Mr Liu, China’s de facto economic tsar and longtime confidant to President Xi Jinping, is in Washington trying to break a much bigger logjam.

If he and US Trade Representative Robert Lighthizer cannot negotiate an end to their two countries’ continuing

trade war by March 1, Mr Trump will more than double the punitive tariff rates currently assessed on Chinese imports. The two-day negotiating round is scheduled to end later today, after which Mr Liu will meet Mr Trump.

The suddenness and severity of Mr Trump’s trade war has come as a shock for Mr Liu, who studied in the US, has a genuine affection for the country and maintains longstanding friendships with a host of prominent American academics, business executives and former government officials.

“Liu He is a serious, capable person,” said Graham Allison, a Harvard history professor who taught Mr Liu when he was a young up-andcoming, English-speaking official from China’s planning ministry. “He has the unusual combination of being knowledgeable about economics and rooted in history.”

onald Trump, the US president, has said it would take a new summit with Xi Jinping, his Chinese counterpart, to reach a deal to end the trade war between the countries, as a high-level negotiating session in Washington looked set to end without any big breakthroughs.

“No final deal will be made until my friend President Xi, and I, meet in the near future to discuss and agree on some of the longstanding and more difficult points,” Mr Trump said in a tweet on Thursday. “China’s representatives and I are trying to do a complete deal, leaving NOTHING unresolved on the table.”

Mr Trump’s tweet came on the second and final day of a crucial round of talks led by Liu He, China’s vice-premier, and Robert Lighthizer, the US trade representative, at the White House.

The two sides are facing a tight self-imposed deadline of March 2 to reach an agreement, or US tariffs on $200bn of Chinese imports will rise from 10 per cent to 25 per cent. That could potentially destabilise financial markets on both sides of the Pacific and deal a blow to the global economy.

The US has been putting pressure on Beijing to make big concessions on its economic model and to rein in industrial subsidies, the role of state-owned enterprises and the forced transfer of technology from US companies operating in China. But it has struggled to extract any shift from Mr Xi’s top officials.

Although China has offered to boost its purchases of US goods to reduce the bilateral trade deficit — and suggested it was willing to discuss regulatory changes to improve market access for international investors — it has been reluctant to undermine its statedriven economic model.

However, US officials are counting that fears of a tariff escalation in Beijing will be more intense than they are in Washington over the next month. “China does not want an increase in Tariffs and feels they will do much better if they make a deal,” Mr Trump said.

The White House is facing pressure of its own, given the hit to the economy delivered this month by the partial government shutdown and Mr Trump’s sensitivity to movements in equity markets. Politically, Mr Trump will be weighing the need for a political victory that would be sealed with the fulfilment of his frequent pledges to reset trade relations with Beijing against the likelihood that Democrats will attack any agreement seen as too weak or inconclusive.

The chances of a big breakthrough this week in the trade talks were relatively low, given the lack of a new Chinese proposal on structural issues, and the criminal indictment on Monday of Huawei, the Chinese technology company, on charges that it stole US technology and violated US sanctions.

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Fed shift helps global stocks close in on best month since 2016 China equities lead rebound and renminbi reaches 6-month high while dollar weakens Michael Hunter and Emma Dunkley

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n abrupt U-turn by the Federal Reserve on the prospect of further interest rate rises has helped put global stocks on track for their best month in almost three years.

Asian equities enjoyed the sharpest gains on Thursday, echoing a more than 1.5 per cent jump on Wall Street on Wednesday, after policymakers said they would be patient in assessing the outlook for monetary policy and that they were open to changing the speed at which the central bank’s multi-trillion dollar holdings of US government bonds was unwound.

The S&P 500 rose 0.5 per cent in midmorning US trade.

The shift in rhetoric was enough to convince investors that the Fed, which in December was projecting two further rate rises this year and has worked carefully to unwind the quantitative easing policies that injected trillions of dollars into the US economy after the financial crisis, is prepared to extend a decade-long stance of easy money.

“We’re actually quite encouraged by this new tone in Fed language, as we had been arguing for the advisability of a pause to rate hikes even before 2018’s dreadful fourth quarter for markets,” said Rick Rieder, head of fixed income at BlackRock.

The change from the Fed helped cement a strong rally for global equities in January, in a sharp reversal of December’s near meltdown in equities. The FTSE All World, a broad benchmark for world stocks, has climbed 7.2 per cent in January, and is closing in on its best month since March 2016. After tumbling almost 10 per cent in December, the S&P 500 has surged 7 per cent in its best month since October 2015.

The Fed cited slower growth in major markets, including China, and heightened geopolitical uncertainty, including trade tensions and Brexit, for its dramatic shift, which came as a relief to those — including President

Donald Trump — who had been griping that Mr Powell had been too bullish about the outlook.

Michael Feroli, US economist at JPMorgan Chase, said he could not remember such a big change of direction by the Fed without a major shift in the economic backdrop. Harm Bandholz, chief US economist for UniCredit, said changes to the Fed’s statement on monetary policy gave traders and investors everything they could have hoped for.

Jumps on stock markets in Asia stood out on Thursday, with Japan’s Topix and Hong Kong’s Hang Seng index both rising about 1 per cent.

Mainland China’s CSI 300 also shot up by over 1 per cent. The momentum ebbed in Europe, with Frankfurt’s Xetra Dax 30 falling 0.6 per cent in afternoon trade, having been up by the same margin in the morning. The region-wide Stoxx 600 slipped 0.25 per cent.

The prospect of an earlier end to the Fed’s monetary tightening sparked a more sustained rally in sovereign bonds, with the yield on two-year Treasuries falling under 2.5 per cent for the first time in three weeks. The yield on the 10-year Treasury fell 5 basis points to 2.65 per cent.

Meanwhile, the dollar weakened across the board, with the renminbi touching a six-month high. The onshore renminbi rose 0.2 per cent, enough for it to notch up its strongest calendar month in a year, up 2.5 per cent against the US dollar over January.

Tai Hui, chief market strategist for Asia Pacific at JPMorgan Asset Management, said the statement by the Fed to keep rates on hold “cleared one of two hurdles for Asian and emerging market risk assets to move higher”.

The remaining hurdle is the trade tension between China and the US, which he described as “much more challenging”. The Fed’s announcement should also ease concerns about rising funding costs for emerging market companies that have borrowed in US dollars, he added.

Fed chairman Jay Powell put the prospect of further rate increases on ice at the central bank’s meeting on Wednesday © Bloomberg

US stocks gain as traders parse earnings, Fed pause Matthew Rocco

U

S stocks climbed at the start of trading on Thursday, a day after the Federal Reserve signalled that it will pause its interest rate increases.

Following its two-day policy meeting, the Fed dropped its guidance that previously called for some additional rate rises, instead saying that it will be “patient” in the wake of market volatility and tepid inflation growth. The news, coupled with reassuring comments from Fed chair Jay Powell, sent the market sharply higher on Wednesday, pushing Treasury yields lower and putting stocks on track to register their strongest month since October 2015 after a dismal December.

The S&P 500 added to those gains on Thursday morning, climbing 0.6 per cent to 2,697.73.

Communication services and energy led the rally, with the former jumping 4 per cent. Materials, down 1.4 per cent, and financials,

Reader appetite is healthy but converting audiences into income remains a challenge

US new home sales hit 8-month I high in November

S

ales of newly built homes in the US hit their highest level in eight months in November, in contrast with other reports that have signalled the housing market is cooling.

New home sales surged 16.9 per cent in November from the previous month to an annualised pace of 657,000 units, the US Census Bureau said on Thursday. That eclipsed expectations for a 2.9 per cent increase to 560,000 and followed an 8.3 per cent drop in October.

The level of new home sales was the highest since March, however the increase marked the biggest jump since 1992. It is worth noting that these data are noisy and often subject to later revision.

The report was among those delayed by the partial government shutdown that ended on Friday and was the longest in history, lasting 35 days.

Homebuilder ETFs climbed following the release of the data, with the iShares US home construction ETF up

2.4 per cent and the SPDR S&P homebuilders ETF up 1.5 per cent.

The upbeat November figures nonetheless offered some positive light on the housing market that is considered to have lost steam by the end of the year amid rising mortgage rates and home prices that left many would-be buyers on the sidelines.

Pending home sales fell for the third straight month in December, data on Wednesday showed, hitting their lowest level since April 2014.

Sales of previously owned homes, which account for the lion’s share of the market, fell to their lowest level since November 2015 at the end of last year.

However homebuilders are hopeful that a more patient approach by the Federal Reserve, which this week put further interest rate rises on hold, would help support sales this year.

Despite the month-on-month increase, Thursday’s report showed new home sales were down 7.7 per cent from a year ago, even as median home prices fell nearly 12 per cent from a year ago to $302,400.

fell in reaction to earnings.

Investors are also watching trade developments this week as US and Chinese hold talks in Washington. President Donald Trump tweeted that meetings were “going well” and he would meet China’s representatives in the White House on Thursday.

Mr Trump added that a final deal will not occur until he meets with Chinese president Xi Jinping “in the near future.”

The dollar index, which measures the greenback against global currencies, was flat at 95.34.

The yield on the 10-year Treasury note fell 4.4 basis points to 2.6506 per cent. The more policysensitive two-year yield dropped 4 basis points to 2.4879 per cent.

Yields move inversely to prices.

Oil posted gains amid data showing smaller US stockpiles than expected and sanctions on Venezuela. West Texas Intermediate added 2 per cent, hitting $55.32 a barrel. Brent crude rose 1.1 per cent to $62.30 a barrel.

News groups search for a business model beyond advertising Matthew Garrahan

Mamta Badkar

down 0.6 per cent, were the worst performers.

The Dow Jones Industrial Average fell 0.2 per cent to 24,968.11.

The tech-heavy Nasdaq, boosted

by Facebook, gained 1.3 per cent to 7,274.15.

Facebook was in the spotlight amid another round of corporate earnings. Shares in the social media giant soared 13 per cent after it reported a record profit, easing investors’ concerns over the impact of data privacy scandals.

Other tech companies also saw gains. Twitter rose more than 2 per cent, while Amazon was up 2.2 per cent ahead of the ecommerce group’s earnings report.

General Electric joined the top gainers in the S&P, rallying 14 per cent on quarterly revenue that exceeded forecasts.

The blue-chip Dow was largely weighed down by a 7.3 per cent decline for DowDuPont, which reported flat sales in the latest quarter. Microsoft and Visa also pressured the index as their stocks

s it possible to make journalism pay? The question has loomed over a miserable few days for news organisations, with hundreds of journalists losing their jobs at BuzzFeed, Huffington Post and Gannett — the newspaper group that owns USA Today. The prosperous online future that was supposed to save a once-profitable industry has not materialised and highly valued digital upstarts have proven to be worth substantially less than first thought.

There are bright spots amid the gloom. Appetite for news remains healthy: just ask anyone who has devoured coverage about the latest Brexit negotiations or the latest travails of Donald Trump. The quality of investigative reporting on these ongoing sagas bears comparison with the best journalism of recent decades.

And yet despite the considerable journalistic achievements of BuzzFeed and Huffington Post, which is owned by Verizon, the US telecoms group, their recent struggles show that companies dependent on digital advertising are on shaky ground. Both Huffington Post and BuzzFeed attract large volumes of traffic, but con-

verting that audience into income remains a challenge in a world where digital advertising is dominated by Google and Facebook.

For publications such as the New York Times, Wall Street Journal and Financial Times, digital subscription has become a solid source of revenue, replacing many of the dollars that evaporated with the decline of print advertising.

For others, namely the Washington Post and Los Angeles Times, deep-pocketed benefactors — Jeff Bezos at the Post and Patrick SoonShiong at the LA Times — provide a safety net while those titles build subscription businesses and other revenue streams.

There are other models out there, beyond hoping for a white knight in the form of a generous billionaire. ProPublica, an online investigative news group, operates on a non-profit basis, its journalism financed by donations. The Correspondent, a new venture that started in the Netherlands, also relies on reader donations: it has signed up 61,000 members who pay €70 a year, and recently raised $2.6m in a crowdfunding drive with contributions from individuals in 130 countries to support a planned edition in English, which will

launch later this year. Meanwhile, in the UK, Tortoise, a new “slow news” venture from James Harding, the former head of news at the BBC (and a former FT journalist), is also pursuing a membership strategy, offering its journalism and access to editorial meetings and events for an annual fee.

Both Tortoise and The Correspondent are new ventures and do not have anything like mass-market scale. The Guardian does, however, and is on course to return to the black for the first time in 20 years in April thanks to what it calls a “reader relationship” strategy and rounds of cost cutting. The title is among the world’s most visited news web sites but racked up hundreds of millions of pounds of losses in the last decade as it expanded internationally and made its journalism available for free online. In 2016 it began soliciting donations from readers with the goal of breaking even within three years: since then more than 1m readers have supported The Guardian, either by subscribing to the print newspaper or its app, or by making a donation. It now has 350,000 people who make a regular financial contribution each month.

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ANALYSIS

Facebook seeks to knit Instagram and Social network to phase out Facebook metrics as it focuses on ‘family’ of apps Hannah Murphy

F

Robotaxis: can automakers catch up with Google in driverless cars?

A new network of small tech companies could allow the car industry to compete with Waymo

Patrick McGee

G

eneral Motors celebrated being the world’s largest carmaker for the 76th straight year in 2007. It was sitting on $25bn in cash. Eighteen months later, it was bankrupt.

The automotive industry is among the most capital-intensive in the world: If the economy sours, assets turn into liabilities overnight as factories churning out thousands of cars begin to haemorrhage cash.

So when toxic mortgage securities blew up in 2008, causing a recession, banks performed terribly — but carmakers fared even worse.

That is what makes auto consultants at Bain so worried. They fear that carmakers are about to be hit with a one-two punch: first, they project a US recession in the next 12 to 18 months. Then, increasing numbers of baby boomers will retire, causing a structural decline so big that, they warn, US car sales could shrink from more than 17m last year to just 11.5m by 2025 — the same level seen in 2008-09, which caused GM and Chrysler to go bankrupt and Ford to suffer a $14.6bn loss.

“The collapse in auto sales in the coming years could be as severe as it was during the great recession,” says Bain partner Mark Gottfredson.

“Only this time, the sharply lower demand will be permanent.” column chart comparing the value of selected car manufacturers with the new players in the autonomous car market But there is hope. If carmakers play their cards right, they could be saved by what GM has called “the biggest business opportunity since the internet”. The potential saviour is the rise of shared, driverless “robotaxis”, which Bain expects to become mainstream in some large cities in six to eight years.

This new market, virtually nonexistent today, promises to be huge.

Analysts at UBS estimate that its revenue in 2030 will be between $1.3tn and $2.8tn, a forecast based on robotaxis accounting for 12 per cent of new car sales. By 2050, when they are likely to be far more common, chipmaker Intel projects a “passenger economy” worth $7tn.

Global vehicle sales stand at $2tn today.

Car brands typically earn $2,000 from a vehicle sale. That is just $0.01 per kilometre over the lifetime of a vehicle, whereas for robotaxis “the potential is 20 to 25 cents per kilometre”, says Andreas Tschiesner, automotive lead for Europe at McKinsey. “So there is huge potential to capture more.”

To realise this potential the industry will need to update its entire business model. The challenge for carmakers is to gain the expertise in self-driving algorithms, in-car entertainment, streaming services and fleet management for ride-hailing that will be central to this new era.

Luckily, there has been an explosion of small companies devel-

oping the skills and technologies that carmakers can make use of.

According to McKinsey, $211bn has been invested into mobility start-ups since 2010. Only 7 per cent came from the carmakers. But the majority was financed by venture capital and private equity funds, creating a swarm of small players that have an incentive to sell their breakthrough technology up the traditional value chain.

The risk is that the carmakers fail to integrate this new technology. Citi analyst Itay Michaeli warns of “an industry race the likes of which we haven’t seen before”. If the carmakers fail, they could find themselves relegated to the status of a supplier.

Or worse. “Many may not survive,” says Mr Gottfredson.

Waymo, the Alphabet self-driving unit that began as a Google project, is widely seen as the leader in this new landscape.

On two key indicators — miles driven autonomously and “disengagements”, or the average number of miles driven without human intervention — it has built a commanding lead since its founding in 2009. And with at least 600 of its vehicles driving more than 25,000 miles a day, it is perfecting its algorithms in a way that could blindside the competition.

Last year UBS projected that Waymo “will dominate” the operating systems for autonomous vehicles, taking “60 per cent of the total projected revenue pool in 2030”.

Banks are already giving it skyhigh valuations. In 2017, before Waymo had even earned a dollar of revenue, Morgan Stanley valued it at $70bn — roughly the same as Volkswagen, the world’s largest carmaker by sales. Last year the bank realised it had not taken into account the potential for Waymo to license its technology and enter logistics, where it could help Walmart deliver goods to better compete with Amazon, for example. It revised its valuation to $175bn.

Last month, Jefferies went further.

On the assumption that Waymo can take a 2 per cent share of all miles driven worldwide in about 10 years, it valued the group at $250bn. That is more than Ford, GM, Fiat-Chrysler, Honda and electric carmaker Tesla combined.

“I firmly believe that within five years the majority of carmakers will come to Google and say, ‘we need your help’,” says Brent Thill at Jefferies.

The threat of Waymo is not that it will build better cars. It has no need to. Instead it is ordering vehicles from Chrysler and Jaguar — effectively turning them into suppliers — and then fitting them out with self-driving software and hardware built in-house.

But its potential goes beyond superior self-driving capabilities.

Once robotaxis are mainstream, Alphabet can collect data from Google Maps and Search, entertain with YouTube and the Play Store, offer advice through Google Home

smart speakers and use its software knowhow to manage fleets. Aside from the vehicle itself, Waymo is a vertically-integrated “closed system”, says UBS. “This will influence advertising, the media and the entertainment business,” Mr Thill says. “It’s not just the autonomous technology, it’s all the components that Google brings to the car. This is why it is putting so much investment into the living room, because it wants the car to feel like your living room.”

Carmakers are scrambling to respond. They have partnered up like never before and made big investments to acquire new expertise. Volkswagen has linked up with Ford, while arch-rivals BMW and Mercedes have pooled their mobility efforts. In 2016 GM paid $500m for a stake in Lyft, the ride-hailing group, and it spent more than $1bn to buy Cruise, a self-driving company.

Bain’s Mr Gottfredson says the Cruise acquisition had looked expensive for a start-up with fewer than 50 employees. But with Japan’s SoftBank and Honda since buying stakes, its valuation has ballooned to $14.6bn. “Today the value of Cruise is underpinning the entire value of General Motors,” he says.

These deals, however, are merely the tip of the iceberg. Beneath the car brands, an entire ecosystem of niche companies has spurred into existence. Known as the “data value chain”, these groups specialise in the software, sensors, data processing and navigation needed to make autonomous cars a reality. None has the willpower, resources or vision to take on Waymo. Instead, they are forming clusters, exercising “swarm intelligence” to independently work towards the same collective goal of creating a safe, driverless experience.

New players include Israeli companies such as Iguazio, which specialises in real time data processing for ride-hailing apps, and Foresight Automotive, whose four-camera system, it claims, can detect obstacles in all weather conditions, regardless of whether the object has been seen before. “If an alien walks out of a UFO, we’ll detect it,” says Foresight vice-president Doron Cohadier.

The implications of this ecosystem are profound. It suggests the carmakers can catch the likes of Waymo up without being the bestin-class in the new technologies.

They merely need to be competent enough to know who is best — and then partner with them.

“This is why they have a very good chance to win this fight,” says Adi Pinhas, chief executive of Brodmann17, an Israeli start-up that uses machine learning to cut down the computing power needed to digest data. “We just do data processing, others just do mapping, others do sensing. When you have these large, specialised teams working on these building blocks, and the carmakers are at the top orchestrating, they get faster progress.”

acebook executives were upbeat on Wednesday, after the world’s largest social network faced down recent uproar over user privacy to post record profits and beat analyst expectations across the board.

But another theme also emerged from the group’s fourth-quarter earnings call: the blurring of the lines between Facebook and Instagram and WhatsApp, the apps it bought in 2012 and 2014, respectively.

While the photo-sharing and messaging apps were initially promised relative independence from the parent company, Facebook is now seeking to knit the trio closer together, sharing more technology and resources in a move that throws up clear opportunities — but also fresh concerns.

“Tighter integration is helpful,” said Brian Wieser, an analyst at Pivotal Research. “The more they share data internally, that makes for a more powerful product.”

founder and chief executive, said on Wednesday that his latest integration plans were in response to user demand. He outlined his intention to unify the messaging services of WhatsApp, Instagram and Facebook Messenger into one encrypted system by 2020, while keeping them as separate apps. Currently, only WhatsApp has end-to-end encryption as default, meaning only people sending and receiving messages are able to view them.

Encryption is “the direction that we should be going in”, he said, adding that there were also “a number of cases” where people wanted to message across different apps.

Many analysts are bullish on the prospect, arguing that it may keep users from needing to turn to other outside services.

“To me this seems like a very logical step,” said Richard Greenfield, an analyst at BTIG. “In a war for time and attention, you want to keep the consumer for as long as possible. In Facebook’s case, they monetise this through advertising, maybe eventu-

Mark Zuckerberg’s plans to merge messaging in WhatsApp, Facebook Messenger and Instagram have angered users of the apps and alarmed regulators © FT montage; Getty Images

But the move to create “Whatsabook”, as it has been dubbed in Silicon Valley, has also angered many critics, who argue it could undermine privacy by allowing Facebook to crossreference user information obtained by the different apps.

Facebook’s shares rose almost 12 per cent in after-hours trading on Wednesday, after the group reported earnings of $2.38 a share in the fourth quarter of 2018, up 65 per cent year on year. Revenues jumped 30 per cent to $16.9bn.

The number of users rose even in Europe and North America, assuaging fears that these developed markets — typically the most profitable — had peaked.

Facebook’s chief financial officer David Wehner told analysts on Wednesday that 2.7bn people worldwide used at least one of its “family” of apps in December — and that this sort of metric would become more prevalent in future. “We will eventually phase out Facebook-only community metrics,” he said.

The shift has been interpreted by some as a way for the company to mask a slower user growth of its core Facebook product.

By contrast, photo-sharing app Instagram and messaging platform WhatsApp, which account for a far smaller share of sales, have been growing fast. Instagram’s Stories feature, where users showcase photos, messages and videos that last only 24 hours, just passed 500m daily active users, up from 400m last summer.

But Mark Zuckerberg, Facebook’s

ally commerce.”

The move could also allow Facebook to create more opportunities for advertisers to target new users by pooling data from the various apps.

“Facebook’s recent announcements about harmonising the back end of its messaging apps suggests we’ll soon see new advertising and data products from the company,” said Jim Cridlin, global head of innovation at WPP’s Mindshare.

Meanwhile, some see the developments as part of necessary innovation to allow digital advertisers to be across many online platforms at once.

“We believe ultimately ad buys will be done across multiple properties using unified ad formats at scale,” said Youssef Squali, analyst at SunTrust Robinson Humphrey.

But the shake-up also could create new problems — especially with regulators.

Law enforcement has strongly criticised end-to-end encryption, fearing it enables criminals to communicate without detection, and also allows for the rapid spread of misinformation.

Meanwhile, some fear the move to integrate the three messaging services will dilute the privacy afforded to users of WhatsApp, by allowing them to be targeted by advertisers based on their Facebook data. In Europe, Ireland’s Data Protection Commission has asked Facebook Ireland for an urgent briefing on the proposed integration.

Others point to competition concerns as calls grow for big technology companies to be broken up.

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USDA partially admits wrong data on Nigeria’s rice imports CALEB OJEWALE Twiiter: @calebtinolu

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he United States Department of Agriculture (USDA) has partially adjusted its data on Nigeria’s rice imports, which was found to be flawed in a fact check published by BusinessDay in November 2018.

The USDA in its December 2018 report titled “Grains: World Markets and Trade”, had to make elaborate explanations on Nigeria’s rice production and importation, even though it failed to directly respond to media enquires questioning its methodology and data sources.

USDA has now reviewed Nigeria’s 2019 rice import d ow n w a rd s by 6 0 0 , 0 0 0 metric tonnes, from 3 million metric tonnes to 2.4 million metric tonnes. The reason for the change is described as “higher estimated domestic production”. For 2018, Nigeria’s rice import was equally

reviewed downwards by 500,000 metric tonnes, from 2.6 million metric tonnes, to 2.1 million metric tonnes. This according to USDA was because of “larger domestic production”.

The changes are however still flawed and do not factually represent Nigeria’s rice imports. As stated in previous BusinessDay reports, Nigeria’s local rice production is yet to become sufficient for all citizens to purchase (and consume), and much of demand is filled through smuggling from neighbouring countries particularly Benin Republic.

However, the USDA has offered no data sources where the volume of rice smuggled into Nigeria was captured. Worse still, its grossly understated data for Benin Republic in previous reports was retained in the December report, along with that of other countries.

The adjustment in Nigeria’s figures could be attributed to the attention generated by the ensuing discourse.

As retained in the USDA report, Benin Republic is stated to have imported 450,000 metric tonnes of rice in 2015/16, 525,000 metric tonnes in 2016/17, and 550,000 metric tonnes in 2017/18 with a projection of 650,000 metric tonnes for 2018/19.

However, using data from the Thailand Rice Exporters Association and All India Rice Exporters Association, a simple addition of exports from both countries shows 2.05 million metric tonnes of rice was exported to Benin in 2016, against 450,000 metric tonnes the USDA claims. The USDA figure only represents 21 percent of what Benin imported from just Thailand and India; its total imports understated by at least 79 percent. Also, whereas exports to Benin in 2017 was at least 2.51 million metric tonnes from India and Thailand alone, the USDA stated the country had a total import of 525,000 metric tonnes.

The USDA stated that

Cameroon, another country sharing borders with Nigeria, imported 500,000 metric tonnes of rice in 2015/16, increasing to 600,000 metric tonnes in 2016/17, and 650,000 metric tonnes in 2017/18. The country is projected to import 700,000 metric tonnes of rice in 2018/19.

However, from just two countries; India and Thailand alone, 797,268.75 metric tonnes of rice was exported to Cameroon in 2017, which is almost 200,000 tonnes more than the figure indicated for the country by USDA. Similar discrepancy exists in the 2016 estimate, and even though the figure may look marginal, the fact that exports from only two countries far exceed USDA’s total import data leaves much to be desired.

While Cameroon’s estimates may appear passable, that of Benin Republic, and especially Nigeria suggested a highly distorted data released to the international community by the USDA.

As BusinessDay previously repor te d, the potential damage of such misleading data for Nigeria is enormous considering that in the last three years, there have been multimillion dollar investments as the country aims for self-sufficiency in rice production. Even though the local production of rice is yet to attain a level where it is abundantly available, i na c cu rate i n f o r mat i o n suggesting the country will throw its ports open to a volume of ‘legal’ imports which has not been seen in over five years, is capable of discouraging potential investors.

The USDA in the December report, which could be described as an effort to ‘correct its error’, described Nigeria as a “significant rice importer over the past several years”.

It however acknowledged the Nigerian government has been promoting the concept of greater self-sufficiency in rice by supporting local production and aiming to curtail foreign

trade. It stated Nigeria is the top rice producer in Africa.

According to the USDA, the government has imposed various measures, from increased tariffs to restrictions on the use of foreign exchange to limitations on transport across land borders, in an attempt to reduce the quantity of rice imported.

“These have been effective to some extent, with the direct importation of rice into Nigerian ports down sharply,” stated USDA. Meanwhile, less direct and more circuitous routes have augmented and sustained Nigeria’s imports.

The skyrocketing imports of parboiled rice into ports of nearby countries – where parboiled rice is not traditionally consumed – has pointed to the increasing role of transhipments in Nigerian rice importation, noted USDA. The volumes of these shipments have however not been determined empirically.

Fixing tomato value chain could reverse N72bn losses (1)

T

omato farmers in Nigeria often complain of huge losses and at a point last year, claimed to have lost about N10 billion worth of produce. This occurred because of the commodity perishing in large volumes, without them being able to sell off or get preservation.

“The Open market cannot mop all the harvest,” said Abdulahi Ringim, national president, Tomato Growers A s s o c i a t i o n o f Ni g e r i a ( TO G A N ) , a t t h e t i m e.

Annually, value of the crop’s 40 percent average loss, is estimated at N72 billion, between farm and market.

According to the Nigeria Agribusiness Group, (NABG), Nigeria is currently the second largest producer of fresh tomatoes in Africa, producing 10.8 percent of fresh tomatoes in the region. Globally, the country is the 14th largest tomato producer with 2.3 million tonnes in 2016. This accounts for a marginal

Source: Power point presentation by Adewale Raji, group-managing director/CEO, Odu’a Investment Company

contribution of 1.2 percent of the world’s output in 2016.

Over the last decade, the production of fresh tomatoes in Nigeria has grown by 25 percent from 1.8 million

tonnes to an estimated 2.3 million tonnes. However, this growth has been primarily facilitated by continuous increase in the harvested area for tomatoes from 265,000

hectares to 668,292 hectares in the same period.

However, between 2006 and 2016, tomato yields have remained very low at an average of 5.47 tonnes per

hectare, relative to the world average yield of 38.1 tonnes per hectare. The use of old seedling varieties, pest and weed invasion and low soil fertility has contributed to the low tomato yield.

Nigerians consume an estimated 2.3 million tonnes of tomatoes annually, with tomato consumption per capita at 12kg in 2016.

However, domestic production minus the tomato wasted along the value chain is 1.3 million tonnes, which is not sufficient to meet the demand. Hence, the country continues to rely on tomato paste importation to meet the existing gap.

Adewale Raji, groupmanaging director/CEO, Odu’a Investment Company, whose company has undertaken commercial farming of tomatoes with a 3,500 hectare farmland in Imeko, Ogun State, used the crop as an example of how fixing value chains can yield immense value for Nigeria.

He explained that fixing the tomato value chain for instance, starts from production, and not just post harvest losses that is widely known. According to him, Nigeria currently suffers from low yields in tomato cultivation, using an average yield of seven metric tonnes (MT) per hectare, whereas China records 48MT, U.S 81MT & Turkey 33MT. The already bad situation of low productivity in Nigeria is then compounded by post harvest losses. With yields already low, about 30-50 percent is then still lost in Post Harvest waste.

However, if strategic measures are put in place, yields can be increased in manifolds, and post harvest losses reduced significantly.

Raji, from his experience, stated Tomato can deliver yield of up to 40MT/ha in Nigeria with the right investments, technology & good agronomic practices.

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Opinion

France, Italy and Africa THE NEW WEALTH OF NATIONS

OBADIAH MAILAFIA

L

ast week France summoned Italian ambassador in Paris Teresa Castaldo for comments made by Italy’s Deputy Prime Minister Luigi Di Maio in which he accused France of manipulating African countries and thereby exacerbating the European migration crisis.

Speaking at a meeting in Italy’s Abruzzo region, Di Maio asserted that he believed France would drop in the rankings of the world’s largest economies had it not been for “what it is doing in Africa.” According to him, “If we have people who are leaving Africa now it’s because some European countries, and France in particular, have never stopped colonising Africa….If France didn’t have its African colonies, because that’s what they should be called, it would be the 15th largest world economy. Instead it’s among the first, exactly because of what it is doing in Africa.”

In an earlier spat, President Emmanuel Macron of France had likened

the rise of populism in Italy and other parts of Europe as a form of “leprosy”.

Despite France’s reaction, Di Maio has insisted on standing by his comments. He went further to say that he believed France had prevented the economic development of Africa, specifically referring to the .CFA Franc Zone in which 14 African countries are tied to the financial and monetary apron-strings of France. In his words: “I think that France is one of those countries that by printing money for 14 African states prevents their economic development and contributes to the fact that the refugees leave and then die in the sea or arrive on our coasts”. Going further, he notes that, “with these advantages, also their economy has had benefits. Then the problem is that migrants arrive on our coasts. So, until this problem is solved, we will ask Europe to face the issue of decolonisation of Africa that has never ended”.

The French said not a word. Instead, there was a lot of fuming and flustering. I have been a keen student of both Italy and France. I have studied Italian civilisation from Roman times to the Renaissance period and beyond. I have been fascinated by artists such as Leonardo, Rafael, Michelangelo and statesmen such as Garibaldi, Mazzini and his movement Giovanni Italia. I have friends in San Marino and Milan and have spent summer holidays in Lake Cuomo and

Mont Blanc. I am always enchanted with Florence and Venice. Italian food remains the healthiest in the world, in my opinion. The Italian genius in science, mathematics and philosophy is second to none: Giandominico Vico, Fibonnaci, Galileo, and Enrico Fermi.

I also studied economics, public administration and law in Paris, arguably the most beautiful city on earth.

There is no one to equal the French in sheer style and intellectual rigour.

Today, the world’s greatest mathematicians and philosophers are French.

My deepest philosophical influences have been French rather than Anglo-Saxon: Mounier, Sartre, Camus, Derrida, Foucault, Gaston Bachelard, Albert Schweitzer, Simone Weil, Alexis de Tocqueville, Voltaire, Pierre Teilhard de Chardin, and Emmanuel Levinas.

The French are wonderful people.

Among the Europeans, they are the best at forging individual friendships with peoples of other cultures. I love France, from the warm beaches of Normandy to the gold-coloured corn fields of the Auvergne and the olivegreen coasts of Nice and Saint-Tropez.

I have stood transfixed by the timeless serenity of the cathedrals of Chartres and Notre-Dame.

But let the truth be told. The Italians are right. Right from the Congress of Vienna which sealed the fate of Napoleon Bonaparte, France could no longer lay claim to being a European

‘

In March 2008, former French President Jacques Chirac was quoted as saying, “Without Africa, France will slide down into the rank of a third world power”

let alone a world, player. The loss of Alsace-Lorraine to Germany in 1870 nailed the coffin of France’s world power status. That was the moment they turned their attention to Africa.

They were among the leaders in the enslavement, colonisation and raping of our continent. They stole our gold, diamonds and other natural resources to build all those fancy buildings you see in Paris today.

Although President Charles de Gaulle reluctantly granted “independence within the French community” to its African colonial dependencies in 1958, all agreed to take the offer except Sekou Toure of Guinea. In revenge, the French tore down all the infrastructures in the country. What they could not take, they dumped into the Atlantic Ocean. They left Guinea in ruins. Similarly, those countries who decided they could not subscribe to all aspects of French imperialism – such as Silvanus Olympio of Togo and Modibbo Keita of Mali were overthrown.

More recently, Laurent Gbagbo of Côte d’Ivoire who attempted to chart in independent course was overthrown in a violent war orchestrated

by France.

Dr. Mailafia is a former Deputy Governor of the Central Bank of Nigeria, a development economist and public finance expert with a DPhil from Oxford obmailafia@gmail.com; 08036590990 (text messages only)

Red wine, dinner and a tale of three doctors HUMANANGLE

FEMI OLUGBILE

T

he other day Basirat was on the phone, inviting you to dinner.

Basirat is an ophthalmologist, and the President of the Rotary Club, Gbagada. Back when you were CMD of the local teaching hospital, you groaned mentally whenever her name showed up on your phone pad, because invariably it meant she wanted a favour for someone who was ill, usually someone she did not know from Adam. You had been classmates from medical school in Ibadan, and so great was her passion for taking care of everyone that your other classmates called her ‘mama class’.

This time Basirat’s phone call was because she wanted you to join in a celebration she was organizing for two members of her Rotary Club who had recently been elevated in public service.

Professor Tokunbo Fabamwo’s appointment as Chief Medical Director of Lagos State University Teaching Hospital had just been announced, and Dr Tayo Lawal, another member of the chapter, had just been appointed Permanent Secretary in the Primary Healthcare Board.

The notice was short, so the negotiation was vigorous.

‘I’ll just be there to drink the wine and eat your rice’ you declared. ‘No high table. No speeches.’

She agreed to your terms, though she had rather hoped that, as you had more than a passing familiarity with both men and the positions they were going

into, you would be keen to say ‘a few words’.

You assured her you had no intention to sing for your supper.

The deal was sealed.

Entering the venue, the Alvan Ikoku Hall at the Radisson Blu hotel, Ikeja GRA, you were immediately swept up in the convivial atmosphere. The two honorees were there with their families, as were the Rotary crowd, many of whom you knew. There was a pleasant surprise sitting at the Lawals’ table, in the form of the pert, dainty figure of Dr Titi Goncalves, the newly appointed Permanent Secretary in the Lagos State Ministry of Health, who was there as a guest of her fellow Permanent Secretary.

‘How’s the Ministry?’ you quipped.

‘As you left it’ she replied, without hesitation.

She was an orthodontist, and the exchanges you had had with her while in office pertained to efforts to build momentum foran Oral Health Policy for Lagos State, which she once champi-

‘

Perhaps it was the wine, or perhaps it was the general conviviality, but you eventually got up to speak.

Basirat was clearly delighted

oned.

In your mind’s eye you could see her sitting in your old corner office high up in the Ministry. You had liked to swivel round in your chair to survey the frenetic activity on the ground in Alausa all the way to the Ikeja Mall through the venetian blinds. Sometimes as day turned to dusk and there were still a pile of files on the table, as well as all manner of people waiting to see you in the ante-room, you felt the weight of the whole world resting on your shoulders, because you were not going to leave until all the work was done. Even getting your friend Bimbo of LEATHERWORLD to liven up the interior of the office virtually pro bono did little to lighten the weight at these times.

But of course, that was only part of the story. The real story was the pleasant, even exhilarating feeling you got from day to day that you were affecting the lives of many people positively, most of whom you would never get to meet in real life.

The wine was good, the food excellent.

As the evening wore on, the President stepped up to give her address. She was at her gracious, affable best.

The citations of the honorees were read.

Lawal’s was a grass to grace story. He was an orthopedic surgeon from a humble background who had gone to great pains to develop himself beyond the strict requirements for clinical practice.

He had attended several management training courses locally and internationally, often at his own expense. He had been Medical Director of the General Hospital, Gbagada before his new appointment. It was no wonder that his fellow Medical Directors in the other General Hospitals across the State recognized him as a primus inter pares and made him Chairman of their Association. He had a mild manner that belied a steely inner resolve.

Fabamwo’s citation was read by Dr

Ayodele, a young, baby-faced neurosurgeon who had come into LASUTH as a trainee and grown into the system. He was himself a member of the Gbagada Rotary chapter and was clearly very popular. He was hailed left and right as he moved forward to perform his task.

The Professor was a widely accomplished man. He was Chairman of the Yoruba Tennis Club. He had won several awards. His team had invented a surgical technique for dealing with uterine fibroids that was internationally recognized. Becoming Chief Medical Director of LASUTH was, for him, a case of the chickens coming home to roost. He had been there at the inception of the Teaching Hospital in 2001, and all through the rocky beginning as you managed a nascent hospital of limited means that was trying to punch above its weight. It had a focus on Emergency Services and later Heart Surgery, and quickly established a reputation on the national scene.

Perhaps it was the wine, or perhaps it was the general conviviality, but you eventually got up to speak. Basirat was clearly delighted.

You would talk not just about two doctors who had achieved great heights in their careers and were being honored here, but about three doctors who had reached the commanding heights of healthcare in the state of Lagos, the pacesetter for the nation, and who were going to play major roles in taking the health of Lagosians to the next level.

You went on to tell the swank Gbagada Rotarians and their guests a story many of them already knew – that you and the new CMD had been secondary school classmates, that he had been your deputy when you were CMD, that he had participated in setting up much of the structure and organization that persisted till today, that there was unfinished business to be done in the project to give the people of Lagos a teaching hospital of their own, befitting of their status and ambitions.

Olugbile is a Physician, psycho-profiler and essayist

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