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news you can trust I ** TUESDAY 03 DECEMBER 2019 I vol. 19, no 448

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FG cuts savings bond rates to record low on strong retail appetite OLUWASEGUN OLAKOYENIKAN

Without reforms Nigeria will harbour 25% of

world’s extreme poor by 2030 - World Bank U nless the government quickly embarks on needed reforms, the number of Nigerians living in extreme poverty could increase by more than 30 million by 2030, pushing the country to account for 25 percent of world’s extremely poor population, the World Bank warned on Monday. The World Bank gave the warn-

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L-R: Ebenezer Onyeagwu, group managing director/ CEO, Zenith Bank; Babajide Sanwo-Olu, governor, Lagos State; Jim Ovia, chairman, Zenith Bank; Okezie Ikpeazu, governor, Abia State, and Adaora Umeoji, deputy managing director, Zenith Bank plc, at the grand finale of the ‘Style By Zenith 2.0’ Lifestyle Fair in Lagos.

ONYINYE NWACHUKWU & CYNTHIA EGBOBOH, Abuja

fgn bonds

Treasury bills

ing in its Nigeria Economic Update launched in Abuja. An estimated 100 million Nigerians currently live on less than US$1.90 per day. Close to 80 percent of poor households are in northern Nigeria, while employment creation and income gains have been concentrated in central and southern Nigeria. “Economic and demographic projections highlight the urgent need for reform,” the bank noted. Population growth is estimated at 2.6 percent, outpacing econom-

ic growth in a context of weak job creation, while per capita incomes are falling. “The ‘cost of inaction’ is significant. Under a business-as-usual scenario, where Nigeria maintains the current pace of growth and employment levels, by 2030 the number of Nigerians living in extreme poverty could increase by more than 30 million, and Nigeria could account for 25 percent of world’s extremely poor population,” the bank stated. In the report, the bank noted

that building reform momentum is essential to mitigate risks and promote faster, more inclusive, and sustainable growth that improves living standards and reduces poverty. Robust growth and job creation will require strengthening macroeconomic management while increasing fiscal revenues to attenuate the impact of oil-sector fluctuations and advance muchneeded investments in human

Continues on page 39

he Federal Government of Nigeria has cut the interest rates on its savings bonds to the lowest levels on record to take advantage of strong investor appetite amid negative real returns on its short-term debt securities to borrow cheaper. The interest rates on the twoyear and three-year FGN savings bonds were lowered to 9.091 percent and 10.091 percent per annum, respectively, according to a notice for December auction released Monday by the Debt Management Office (DMO). These rates are the lowest since March 2017 when the

Continues on page 39

Inside Crude theft persists despite multi-million-dollar surveillance contracts P. 38 The Nigerian dream and a damning reality P. A2

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We’ll strengthen business environment in Lagos – Sanwo-Olu JOSHUA BASSEY

agos State governor, Babajide Sanwo-Olu, has assured the business community that his administration is working to improve infrastructure around industrial zones in the state to allow for ease of doing business. Sanwo-Olu said necessary amenities that could enhance the growth of businesses in the state were also being put in place. He gave the assurance, Monday, at the Lagos House, Ikeja, while receiving the Ambassador of Switzerland to Nigeria, George Steiner, and board members of the SwissNigeria Business Council. Sanwo-Olu said his government would build up the relationship between the state and Swiss companies, as he hoped to make the state the preferred destination for Swiss businesses. He said: “I believe your trip will further reinforce and will signpost to other companies that we are ready and we can collaborate for good. And one of the things that we are doing is to make business environment in Lagos accessible. Something we’re continuously talking about is that we can make doing business here a whole lot better.

“We are building transportation, building infrastructure and reinforcing our security agencies to ensure that Lagos is secure for all of us.” The governor said the state government was optimistic of the opportunities that will foster the relationship with Swiss companies. “We want to see how we can grow the number of Swiss companies in Lagos and make Lagos a destination of choice for them.” The governor urged the ambassador to take back the message that “Lagos is ready” to Switzerland. Steiner, who spoke earlier, thanked Sanwo-Olu for committing time and effort to make the business environment of Lagos firm and inviting to foreign and local business owners. He emphasised on the importance of Lagos market to Switzerland and further stressed that they are making effort to expand their presence for the benefit of Lagosians. According to Steiner, “I believe we have an excellent relationship with this country, Lagos, most of all. We will like to create wealth for the benefit of Swiss companies and of course, benefit of a greater Lagos noting Lagos especially is an important market for us.

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Obaseki seeks intensified global fight against human trafficking, illegal migration, others

do State governor, Godwin Obaseki, has called for increased collaborative efforts among nations, governments and their agencies in the fight against human trafficking, illegal migration and all other forms of modern-day slavery. The governor said this in commemoration of the International Day for the Abolition of Slavery marked every December 2, by the United Nations and its sister agencies. Obaseki noted that collaborative efforts across international borders would go a long way to identify, arrest and prosecute traffickers and smugglers in their different countries and states of origin. Governor Obaseki said Edo State had recorded impressive gains in the fight against human trafficking, which include opening up economic opportunities for youths, building local capacity to drive economic growth and strengthening institutional capacity to check the trend. He commended international development groups and non-governmental organisations (NGOs) that were working with the state on the scourge, adding, “As we reflect on this day, the International Day for the Abolition of Slavery, we must remind ourselves that slavery still

thrives in our various communities, taking different forms and types. The International Labour Organisation (ILO) estimates that more than 40 million people worldwide are victims of modern slavery including forced labour, debt bondage, forced marriage, human trafficking and other situations of exploitation that a person cannot refuse or leave because of threats, violence, coercion, deception, or abuse of power. “We must continue to collaborate and forge paths to eliminate modern-day slavery in all its forms, just like we are doing in Edo State with human trafficking and illegal migration. While campaigning, I made a commitment to tackle human trafficking head-on. Today, according to the International Organisation for Migration (IOM), Edo State has recorded drastic drop in the incidence of irregular migration with less people recorded to have left the state since the commencement of our campaign against the scourge.” He continued, “So far, we have received over 4900 of our sons and daughters who had embarked on dangerous journeys abroad and were trapped under inhuman conditions at the Mediterranean Sea and its neighbouring countries.

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Insight Publicis partners UPG on Greater Lagos campaign Daniel Obi

nsight Publicis has partnered United People Global (UPG) for an advocacy campaign to groom impactful interactions between citizens and the government of Lagos State. Tagged ‘Towards a Greater Lagos’, the campaign is in the bid to stir intra-community conversations and to harness the opinions and ideas of citizens for a greater Lagos. As the leading marketing communications agency in Nigeria, Insight initiated the first community conversation for the campaigns and provided creative communications support. The community interactions would be focused on the six development pillars of the Lagos State government led by Governor Babajide Sanwo-Olu. The pillars, captured in the acronym THEMES, represent Traffic Management and Transportation; Health and Environment; Education and Technology; Making Lagos a 21st Century state; Security and Governance. Being a socially responsible company, Insight’s partnership stems from its resolve to support, in particular, the strides of the Lagos state government and its current agenda to deliver on a greater Lagos. “Our partnership with

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United People Global and extensively the Lagos State government is both noble and timely,” said Tendai Mhizha, managing director/CEO, Insight Publicis. She further explained that as an organisation with a track record of excellence in delivering on engagements in its forte as the leading communications group in Africa, Insight Publicis considers it a thing of pride to partner with UPG and by extension, the Lagos State government, in starting this journey toward a greater Lagos. “The partnership is also timely because it is coming at a period when preparations for our 40th anniversary are underway,” she said. Delighted with the partnership, Yemi Babington-Ashaye, UPG president, expressed profound gratitude to Insight Publicis for choosing to host the first of the series of community conversations and for being an integral part of the campaign from the inception. Insight Publicis is West Africa’s largest communications outfit and a member of the world’s third largest communications group – Publicis Groupe. UPG is a global initiative on the move, in partnership with the Lagos state government to foster citizen participation in governance.

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Exemplars of decency and dignity STRATEGY & POLICY

MA JOHNSON

rom the earliest time in history, humanity has been facing challenges. The Great Book gives a sad account about the state of humanity prior to the worldwide flood during the days of Noah. In the world of Noah, the level of sin and corruption among human population was staggering because people allegedly though, thought about doing evil all the time. In other words, the world of Noah was incredibly corrupt and pervaded. The situation was so bad that our Creator decided without any committee meeting to wipe from the face of the earth the human race He created. But Noah found favour in the eyes of the Creator. Noah and his family were spared from destruction as the polluted, unrighteous population of the world at the time disappeared from the earth. So, Noah and his family became our ancestors. Some of our ancestors were role models whose values and beliefs are still worthy of emulation. They were consistent in building trust and credibility with integrity, honesty, loyalty and respect. For instance, in Nigeria, the Yoruba race speaks gracefully about the omoluabi when situation demands. The Omoluabi Concept is an adjectival Yoruba phrase which according to Wikipedia, has the words – “Omo + ti + Olu-iwa + bi.” In English, it “is

a person of honour who believes in hard work, respect the rights of others, and gives the community in deeds and in action. Above all, an omoluabi is a person of integrity. I am convinced that all tribes in Nigeria have adjectival phrases for describing a person of integrity. Some omoluabis have emerged and they must be celebrated. The omoluabis are Mrs Josephine Ugwu, a former cleaner at the Murtala Mohammed International Airport, Lagos, and Bashir Abubakar, an Assistant Comptroller General of the Nigeria Customs Services. Both Nigerians were decorated with the Independent Corrupt Practices Commission and other Related Offences Integrity Award by President Mohammadu Buhari (PMB) a few weeks ago. In line with best traditions, these two Nigerians if you permit me, are additions to the list of exemplars of decency and dignity in our country. Report has it that Ugwu was honoured for returning a huge sum of money which she stumbled upon in the course of her cleaning assignment, and Abubakar, for rejecting a N150 million (one hundred and fifty million Naira) bribe offered to allow traffickers to import 40 containers of tramadol into the country. In order to boost the morale of Mrs Josephine Ugwu, an update to that report shows that a team of civil society activists arranged for her to have a new house awarded to her. I hope both recipients of the award will continue to demonstrate their leadership qualities as they march on in life. One of the reasons for focusing on this worthwhile and commendable development is that something good can still come out of Nigeria despite the negative character of some people. These two honest Nigerians have proved some crit-

ics wrong that nothing good can come from Nigeria. In fact, Nigeria is blessed with good people in all walks of life who are doing great things and contributing to the development of humanity nationally and globally. These outstanding achievements must be harnessed for national development through rewards and recognition by those in authority. We must continue to celebrate Nigerians who shun corruption despite the decay in our value system. How do we build a nation on a society that is morally deficient? A nation where it is difficult for reforms to take place. Once upon a time, there was a nation founded upon relatively sound ethics, integrity and values. PMB noted with concern the need to uplift the values of loyalty, honesty, trust and integrity in our public service while presenting the awards to the awardees. That Nigeria is not playing the leadership role expected of her in the African continent and international arena is partly due to the quality of leadership the country has mustered over the years at all levels in public and private sectors. Regrettably, most politicians elected to serve at state and federal levels have ceaselessly govern the country with impunity and reckless immorality. Once elected into office, most politicians are always at risk of spending too much time imagining how much of material wealth they would acquire in office rather than strategically thinking about the security and wellbeing of those they govern. Who do we blame? The electorate is to blame for getting it wrong. The good news however, is that as rotten as the society is today, our politicians and leaders of all political hues in the government can still turn around the political arena for

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Nigeria is blessed with good people in all walks of life who are doing great things and contributing to the development of humanity nationally and globally. These outstanding achievements must be harnessed for national development through rewards and recognition by those in authority

good by introducing a noble pulpit from which encouraging homily can flow. We can still have a stellar pulpit from which workable actions, policies and strategies that are conterminous with national security flows. When Nigeria’s economy was booming, the stock market was soaring and the unemployment rate was low, most of us felt rather content with life. But as soon as the wheels of the economy started coming off and cratered, most Nigerians lost focus and the good feelings we were experiencing deserted many of us. Most of us- leaders and followers- are responsible for the parlous state of our nation. Our level of patriotism is low and this has negatively affected the development of the country. As citizens we need to be more patriotic to the country. Globally, politicians want to be in office for many reasons. Some want power. Others seek riches because they are in love with it. Many are driven by ideology or a desire to change the world. I align myself with views expressed by some experts that the only worthy motivation for leadership is a desire for servant hood. The true leader serves. They serve people, not themselves and their immediate families. And in doing so, will not be popular, and may not impress. If anyone wants to lead others but unwilling to serve people, they need to check their motives. To be a good leader you must first be a good follower. The best leaders know what it is like to follow. “Who would learn to lead must…. first of all, learn to obey,” according to Aristotle. We all need to make our country and the world a better place. Thank you! Johnson is an author and a retired naval engineer who has passion for African development and good governance

Regulatory bodies as agents of business growth and economic development

Regulatory body is defined by Wikipedia as a public authority or government agency responsible for exercising autonomous authority over some area of human activity in a regulatory or supervisory capacity. According to Encyclopaedia Britannica, Regulatory agencies became a popular means of promoting fair trade and consumer protection as problems of commerce and trade became more complex, particularly in the 20th century. Regulatory bodies are usually creations of statutes. There are quite a number of regulatory bodies in Nigeria regulating various facets of the economy. Some of the major duties of regulatory bodies are as follows; To set standards and best practices; To monitor and ensure compliance with best standards and practices as well as laid down rules and procedures; To receive and address complaints against businesses from the general public accordingly; To collect levies and revenues; To impose sanctions for failure to comply. A lot of times, the relationship between Regulatory bodies and businesses is some-

what not too cordial. Sometimes, a scheduled or an unscheduled visit from a regulatory body can be one that leaves businesses with a sense of dread. On the other hand, it would appear that sometimes, Regulatory bodies tend to see themselves as overlords over businesses as they can determine their fate. The need for regulation of businesses cannot be overemphasised, as there is the likelihood of chaos in a society where there is none. An unregulated business environment can easily lead to a total collapse of the economic system. However, a very important issue to be addressed is the way regulation is being carried out by regulatory bodies. A closely related issue is the way regulatory bodies see or perceive their relationship with the businesses which fall under their regulatory purview. There is a need for Regulatory bodies to see themselves as Agents of change that can help strengthen businesses and in turn contribute to economic development. There is no doubt that regulatory bodies are creations of statute and their powers are derived from the relevant statutes. www.businessday.ng

However, in carrying out their functions as provided under the statute, it would seem to be more beneficial to the economy to take an empathetic stance towards businesses. This is not in any way saying that Regulatory bodies should condone non-compliance or flaunting of laid down procedures. Regulatory bodies should wield the big stick where necessary. It is however suggested that a case by case approach instead of a one size fits all approach should be adopted putting into consideration the financial standing and proven track record of compliance of the business. The comply or explain approach can be used by Regulatory bodies to carry out their functions where appropriate. A Reward system for compliant businesses should also be adopted to encourage compliance. Consistent periodic engagement and interactive sessions between Regulatory bodies and businesses are also important to foster business growth. It is noteworthy that some of these approaches are already being adopted by some regulatory bodies but there is still

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ULOAKU EKWEGH

room for improvement. The time has come for Regulatory bodies to see beyond their primary functions and carry out their functions with the bigger picture of fostering business growth and economic development. Ekwegh is a private legal practitioner with over 15 years legal experience in law firms and as in-house counsel. She is also a fellow of the Institute of Management Consultants. Email: uloekwegh@yahoo.com

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Changing culture in Africa (2) Rafiq Raji

Intercultural exchange ntergenerational transmission of human traits, particularly culturally transmitted traits, has led to divergence between populations over the course of history” which in turn, has “introduced barriers to the diffusion of technologies across societies.” Knowledge and experiences are easily and often first shared between peoples that are closely related in culture, language, and habits. In other words, the success of a developed country is closely related to the practices of its ancestral population or its cultural proximity to a developed one. As “historical

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and cultural variables affect the propensity of the citizens of a country to trust the citizens of another country”, “perceptions rooted in culture are important determinants of economic exchange.” Still, while ancestry matters, it is not insurmountable for disadvantaged populations if the barriers to “communication and interaction across cultures and societies” are addressed. Still, the intercultural exchange required to overcome these disadvantages must be deliberate and focused. Does that then mean contemporary development policies are efforts in futility? Spolaore & Wacziarg (2013) argue they are not. An understanding of a people’s history and culture allows for the identification of the barriers to the spread of knowledge and innovation they create and thus allow solutions to be fit-for-purpose and effective. And there are examples of these. For instance, “Japan is geographically, historically and genetically distant from the European innovators, but it got the Industrial Revolution relatively early” (Spolaore & Wacziarg, 2013). And because of Japan’s success, South Korea and later other Asian

nations were able to also climb the economic ladder. (Japan “became a cultural beachhead”.) Hong Kong was similarly a “beachhead” through which modernity spread to China. “Southern Chinese cities or special economic zones developed largely as the result of having generalized what had worked in Hong Kong” (Spolaore & Wacziarg, 2013). This view underpins how special economic zones are today used to accelerate economic development around the world. In the current era of globalisation and high-speed innovation, these hitherto high barriers are easier to scale. “There is still room for development policies to reduce barrier effects and to accelerate the spread of ideas and innovations across populations, especially in the context of an increasingly globalised world where barriers to the diffusion of development can be brought down more rapidly” (Spolaore & Wacziarg, 2013). There is evidence technology adoption is faster nowadays. Still, while “adoption lags have converged across countries over the last 200 years”, “penetration rates have diverged.” This is what explains why despite the ubiquity of new technologies, the

income gap between poor and rich countries remains wide.

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Still, while ancestry matters, it is not insurmountable for disadvantaged populations if the barriers to communication and interaction across cultures and societies are addressed. Still, the intercultural exchange required to overcome these disadvantages must be deliberate and focused

Cultural entrepreneurship Being as cultural change largely consists of social learning and persuasion, cultural entrepreneurs, like today’s celebrities and social media influencers, can be effective cultural change agents. According to Mokyr (2016), “cultural authorities [or celebrities] often have no special expertise and yet somehow become the source of authority or focal points in cultural choices.” Mokyr further argues that when knowledge is effective (that is, when techniques or predictions based on this knowledge work well), beliefs can change quickly: once people see an airplane fly, they will accept the propositional belief that objects heavier than air can actually defeat gravity”. References are available at https:// rafiqraji.com/2019/10/31/culturedevelopment-the-case-of-africa/ “Dr Raji is chief economist at Macroafricaintel. He was previously an Africa Economist at Standard Chartered Bank, London, UK. (Twitter: @ DrRafiqRaji)”

African art museums: Survival and growth in a world of restitution and reduced funding

was delighted to be asked to participate in conversations at the Global Consortium on Cultural Preservation in Washington in late October, hosted by Yale University and the Smithsonian National Museum of African Art, where I am privileged to be on the Advisory Board. This is my personal take and these are my personal views. Step back from the art and museum world and culture. What does Africa need? With a fast growing, very young population, an extreme power and infrastructure deficit and serious issues with rule of law, it needs to be able to support a growing population urgently. Failure to do so could result in civil strife, increased inequity and further mass migration (whether to urban centres or to other countries often outside Africa). Politicians and business are looking at how to address this, in multifarious ways. It is however a truth universally acknowledged that a critical factor in delivering a solution lies in education. Improved education has a direct and positive impact on GDP and without better education Africa cannot effectively access the benefits of the 4th Industrial revolution. A strong and developing Africa is also critical not only to the continent but also to the world, given the demographic shifts on the continent, its natural resources etc. Education plays a key role in delivering this. In addition, good relations between countries in Africa and those outside are becoming increasingly important in the 21st century scramble for Africa. Which of course gives Africa opportunities. Make 3 assumptions; first that properly presented and funded local art enhances education, and ideally creates a sense of pride, heritage and belonging to place – what are museums if not drivers of education; second that returning at least some objects is considered an act of good diplomatic sense in the context of ongoing economic and geopolitical needs; and third that there is a moral imperative to return many artefacts to the land they came from. These 3 assumptions

should mean that restitution implemented properly could satisfy a moral need, enhance relations between countries, improve education and stability of population, and hence make a material contribution economically to a global issue. But this will only work with mutual respect, cooperation and material levels of funding, which will be challenging absent a clear political will outside the art and museum world. This is especially so where many institutions are in any event public rather than private, and are bound by layers of bureaucratic, fiscal and legislative constraints as to what practically they are allowed to do. If, following the lead of President Macron and others museums take a view that they need to pursue material restitution the issues are legion: Who pays (given funding issues)?; Who decides (e.g. trusts set up by original donors/public policy/ the law)?; How far back do you go?; How do you preserve the long standing excellence of institutions in the West whilst satisfying the legitimate demands of the country of origin?; How do you preserve the integrity of the artefacts (indeed do you have any right to require this)? These are issues for others sager than myself and the new methodologies of the museum business discussed at the Consortium give great signposts for the future. But let’s look specifically at funding, without which none of the above is achievable in a sensible way and without which many institutions especially I fear on the African Continent will wither on the vine (regardless of restitution!). First, source of funds for museums and similar institutions is challenged in a world where we have increased challenges to the status quo in a social media “single issue” world which deals with complex problems in a simplistic, aggressive and effective manner. Thus, sources of funding (and investment of funding) are regularly challenged; from issues and products which only recently caused no concern but which in a more activist world are considered unacceptable and

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challenges both to those involved in them as primary contributors to the relevant issue/ product and secondary enablers (advisers/ financiers/shareholders). Increasingly institutions are responding to campaigns by rejecting funds. Without making any judgment on the merits, if these sources are no longer acceptable (and those who provide them give up giving as a result), alternative sources will be needed. And then what other sources genuinely can be considered ‘safe’? – in the global world of business, processes are highly complex and to put at its most neutral individual donations can be as risky as corporate. And this is before asking questions about the sources of funding and original acquisitions which form the basis of many older institutions. So, we have a tension between the genuine philanthropic approach of many big companies and a genuine concern about what they do – similar to museums who have fine ambitions but got their ‘cash’ and many of their objects in ways some now find unacceptable. The result could in the long term simply dry up the well of funding. Can these sources be replaced or enhanced (which is basically what is needed)? This is difficult. In terms of Africa first there is the public purse. This tends to have art and culture low on its priorities list especially in countries with high poverty levels or other economic focus. However with the increasingly commitment of many of the global powers and the relevant DFI’s and Multilaterals to commit to supporting development, these funds should not be overlooked and could be approached and discussions started not least on the basis of the economic and cultural arguments ( for example the “education” impact or simply the tourist dollar). In recent years these funds have materially increased, as countries focus more and more on Africa (and many find projects hard to find and fund). A further and complementary potential route forward is to engage and partner with African institutions and the wider African

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ANDREW SKIPPER

communities on a much more consistent and respectful basis seeking mutual benefit. This means involving Africa in the decision-making processes (at political and local board level), developing joint business planning and funding for specific projects and especially those deliberately designed to enhance education (see above) where expertise and knowledge can be effectively transferred to support capacity building. This will open up greater opportunities for local funding by business and HNWI’s as well as government. This (coupled with restitution) could also enhance the reputation of the relevant institution at “home” and in Africa and allow greater access to the viewing public if handled correctly (e.g. by joint exhibitions). This can then again be further coupled with increased democratisation of funding through physical entrance and digital access fees of a limited but widespread nature, and broader engagement programmes on line etc with concomitant income impact. These are difficult questions in a challenging geo-political and economic environment. But there is potentially a way forward through a combination of the ideas in the paper as well as those admirably and passionately expressed at the Consortium. It does however require hard thinking and a mind-set change in many. Andrew Skipper is partner & head of Africa practice, Hogan Lovells, London. He is also a member, National Advisory Board of the Smithsonian National Museum of African Art.

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EDITORIAL Publisher/CEO

Frank Aigbogun editor Patrick Atuanya DEPUTY EDITOR John Osadolor, Abuja NEWS EDITOR Chuks Oluigbo EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, STRATEGY, INNOVATION & PARTNERSHIPS Oghenevwoke Ighure ADVERT MANAGER Ijeoma Ude FINANCE MANAGER Emeka Ifeanyi MANAGER, CONFERENCES & EVENTS Obiora Onyeaso BUSINESS DEVELOPMENT MANAGER (South East, South South) Patrick Ijegbai COPY SALES MANAGER Florence Kadiri DIGITAL SALES MANAGER Linda Ochugbua GM, BUSINESS DEVELOPMENT (North)

Bashir Ibrahim Hassan

Repealing repellent retirement laws: Zamfara example

he political establishment in Zamfara State moved with remarkable speed on November 25-27, 2019 to repeal an obnoxious law that offered unearned and unjust preferment to the resources of the state to former officials. The law mandated the state government to pay pension and other entitlements of former governors, deputy governors, speakers and their deputies as a first-line charge. The action of the Zamfara State political class has reverberated across the country for its significance and positive messaging on governance and priorities. We join in the commendation of the Zamfara government for acting in the interest of the present and future of the state by blocking a leakage borne of greed, avarice and impunity. No fewer than 20 states where such obnoxious legislation exists must also take a second look at them. We call on their state houses of as-

sembly and governors to repeal these laws. Zamfara State fittingly commenced the return to sanity on the imponderable matter of the continued payment to former officials. Zamfara State has been a poster-child for poverty in resources and management of the little that accrues to it. Zamfara State under Abdulaziz Yari suffered the worst incidents of attacks by Boko Haram terrorists, decline in all indices in education, health, agricultural production and more. Former governor Yari was notable for his absence from the state. It, therefore, takes uncommon nerve and disregard for the citizens for this absentee governor who supervised the continued immiseration of citizens to pass a law that entitled him to continued remuneration. Impunity is the only description when that law further provides for a monthly “upkeep allowance” of N10 million for this same non-performer. It would have remained unacceptable if he performed. Yari kicked off the storm in

Zamfara through an October 17 letter to his successor Bello Mattawale. State officials leaked the letter to public opprobrium. They then took advantage of the vox populi to do the needful. Yari in the letter stated, “I wish to humbly draw your attention to the provision of the law on the above subject matter, which was amended and assented to on March 23, 2019. The law provides, among other entitlements of the former governor, a monthly upkeep allowance of N10m only and a pension equivalent to the salary he was receiving while in office. Accordingly, you may wish to be informed that since the expiration of my tenure on May 29, 2019, I was only paid the upkeep allowance twice — i.e. for the month of June and July, while my pension for the month of June has not been paid.” Yari educated his successor that the pension and upkeep allowance should not be “truncated without any justifiable reason”. Zamfara State officials said the state was losing N700 million to these payments to persons

who no longer render services to the state. The state economy cannot bear such expenditure. Indeed, no state economy can. Legislation authorising continued remuneration for former officeholders in the states is one of the aberrations introduced at state level in this Fourth Republic. It borrows from the military-era provision for erstwhile Heads of State and their deputies. The laws do not bother with the immorality of continued payment to persons who earned full remuneration for a political office of defined duration. In some states, there is provision for at least two houses in the state capital and the federal capital and maintenance at the level that existed when they were in the office until death. It is greedy. More critically, those laws show a manifest disregard for the citizens and, especially, for civil servants whose pensions and emoluments the states do not honour. There should be a nationwide effort to repeal these obnoxious laws. Well done to the folks at Zamfara State.

GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu HEAD, HUMAN RESOURCES Adeola Obisesan

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Tuesday 03 December 2019

BUSINESS DAY

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To whom much is given: Accountability in public life (3) ‘ The Reformer

JOE ABAH

s former Soviet Premier Nikita Khrushchev once said, “Politicians are the same all over. They promise to build a bridge even where there is no river.” Once elected into power, politicians are supposed to devise policies to respond to the demands that the electorate has placed on them and that they had promised in their manifestos and during their campaigns. Their performance against these demands and promises should determine the extent to which they can retain power in subsequent elections. Quite rightly, some civil society organisations have started tracking these promises and campaign commitments and reporting them to citizens through the media. Politicians focus on outcomes, such as the life expectancy rates of citizens, and rely on public servants to deliver outputs, such as ensuring that a patient in a hospital is attended to within a reasonable time of arriving at a health facility. The politician provides the enabling environment for the public servant to perform, including setting out the right policies, approving suitable

budgets and refraining from undue political interference. Once the politician has created the enabling environment, they pass on the responsibility for direct delivery to the public service. It is important to note that politicians who are in government either in the Executive of Legislature are also public servants. However, I will make a distinction for the purpose of this paper by using the term “Public Servant” to refer to those public officials in the Executive arm below the rank of Minister. Therefore, when I refer to public servants in this paper, I mean Permanent Secretaries, DirectorsGeneral and below. The politician demands accountability from the public service, or at least is supposed to. The mandates of Ministries are not clear and efforts to clarify them remain inchoate. Many agencies and parastatals have duplicate or conflicting mandates and the political will to address the Oronsaye Report has not been apparent with successive governments a full 7 years after the report was completed. Without clarity about what each organisation is supposed to deliver to the people, it is rather difficult for the politician to demand accountability from the public service in a way that helps to deliver on the mandate that they obtained from the people at the polls and the campaign promises that they made. I recommend that the political class should make urgent efforts to clarify the mandates of ministries, agencies and parastatals and to streamline delivery mechanism by removing duplication

and working with the National Assembly to avoid further proliferation of delivery agents. Without this clarity, it is difficult to know which public service organisation to hold accountable for what. An example is the role of the National Emergency Management Agency and the National Commission for Refugees when dealing with internally displaced persons. Unfortunately, we do not have a robust performance management system through which politicians can demand this accountability of the public service. The Office of the Head of the Civil Service of the Federation, the Ministry of Budget and National Planning and the Federal Civil Service Commission had made some effort to develop a new performance management system, but it seems that the support of politicians have been lukewarm at best. I believe that if politicians make it a priority that there must be a means through which they can hold public servants to account, the system, which has been in development for quite a while now, will finally be completed and put into use for the benefit of citizens. The current public financial management system only demands accountability for expenditure, not accountability for performance. Therefore, there does not appear to be any means through which public servants are held accountable for the results that monies were budgeted and released for. The current audit function only tries to ensure that monies received were not stolen, not that the monies released delivered the benefit that the politician

The current public financial management system only demands accountability for expenditure, not accountability for performance. Therefore, there does not appear to be any means through which public servants are held accountable for the results that monies were budgeted and released for the politicians

promised the public that it would. The proper thing should be that government priorities, taken from manifestos and campaign promises, should guide organisational priorities. Suitable organisational mandates should then be clarified to help deliver on those priorities. That should guide capacity building efforts to ensure that public servants can deliver required outputs. This, in turn, should guide how both the organisation and the individual public servants should be held accountable and have their performance managed. This golden thread from government priorities all the way through to individual performance is sadly missing in the Nigerian public service. Efforts to introduce it when Ministries were merged in 2015 remain inchoate 3 years on. Without clarity about government priorities, without clear organisational mandates, a functional performance management system, and a robust impact assessment mechanism, the ability of the politician to hold the public servant to account is severely constrained. This, in turn, constrains the ability of the politician to deliver on campaign promises in a coordinated way. The politician becomes reliant on the goodwill of a few good public servants who have, entirely on their own, become pockets of effectiveness and accountability. The sustainability of this arrangement is suspect.

Dr Abah is a development practitioner and the immediate past Director-General of the Bureau of Public Service Reforms.

Preconditions for BRIC-style growth in PH

n the post-war and post-Cold War era, the Philippines could have been an economic success story. Yet, the opportunity was missed between the mid-’60s and mid2010s. In the Duterte era, the country is back on track, but BRIC-style growth is needed to overcome the legacy of past policy mistakes. In the post-war era, the Philippines was one of the expected economic success stories in Southeast Asia. The country was positioned for rapid growth. Or so it was thought. Dreams of economic success, realities of stagnation In 1950, Philippine living standards, as reflected by per capita incomes, were only a third lower than in Malaysia, the leading Southeast Asian economy (present-day Singapore excluded). In Indonesia and Thailand, those standards were still 20 percent behind, while Vietnam and Laos trailed 30 percent to 40 percent behind Filipinos. In the mid-1960s, following the terms of Roxas, Quirino, Magsaysay, Garcia and Macapagal, living standards in the Philippines were only 10 percent less than in Malaysia, while Thailand still trailed behind, whereas Vietnam had fallen further behind, due to the decolonisation struggle against France and the United States. Despite challenges, the Philippines was catching up with regional leaders until the ‘60s. When the Marcos era ended in 1986, living standards in Malaysia and Thailand continued to rise. However, Filipino per capita incomes were now 50 percent lower than in Malaysia and 25 percent lower than in Thailand; even behind those in Indonesia. Vietnamese living standards had plunged 50 percent lower than those in the Philippines, but that was due to a devastating war with the U.S. What followed was a quarter of a century of the People Power Revolution. The assumption was that democratic rule – under Corazon Aquino, Ramos, Estrada, and Arroyo– would spark a dramatic comeback. Yet in 2008, at the

eve of the global financial crisis, living standards in Philippines had fallen even further behind Malaysia (-72%), Thailand (-66%) and Indonesia (-34%), even behind Vietnam. Here’s the irony: When Philippines began its democratic experiment, Vietnam launched Chinese-style economic reforms. The outcome? Philippines stagnated even further, while Vietnam grew in leaps. In some two decades, Vietnam’s GDP almost tripled, whereas that of the Philippines increased only by 50 percent. In the Benigno Aquino III era, Philippine living standards remained more than 70 percent behind those in Malaysia, 54 percent behind Thailand and 34 percent after Indonesia. Despite the rhetoric, the period failed to change the course. Half a century of missed opportunities What the Duterte government is now trying to cope with is not just half a century of missed opportunities, but the consequent legacies, particularly corruption. Here’s one example: Not so long ago, inflation concerns were still fuelled by the supply abuses and hoarding of rice and the consequent destabilised prices (rice smuggling soared already in the Benigno Aquino III era). Today, the government must try to contain corruption in the local rice industry, which is one of the goals of the Rice Tariffication Law, while protecting the welfare of local farmers who are struggling with volumes of imported grains. After the 2016 election triumph, the Duterte government has fought hard to focus on its “Build, Build, Build” investment program, which is what the country has needed ever since World War II. Yet, the implementation has suffered from domestic politics, particularly the (very costly) budget debacle in the spring. Nevertheless, the government has been able to re-energise Philippine modernisation and catch-up growth, thanks to its domestic investment drive and the recalibration of Philippine foreign affairs, which has fuelled Chinese

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investment in the country. To gain a better understanding of the stakes, let’s compare Goldman Sachs’s original BRIC projections in the 2000s with the actual BRIC prospects today. Assuming peaceful conditions and managed trade tensions, it now seems that between 2000 and 2024, Vietnam would grow fastest (compound annual growth rate at 5.8 percent), followed by Indonesia (4.2 percent) and Philippines (4.0 percent). If the Duterte government can complete its investment program by 2022 and if the subsequent government will continue to focus on economic development, the country could grow its GDP seven to eightfold by 2025; more than originally projected. Vietnamese living standards would almost quadruple, while those in Indonesia would nearly triple. In the Philippines, living standards would increase 2.5-times. Preconditions for BRIC-style expansion Here are some necessary preconditions to achieve Philippine BRIC-like growth in the early 2020s. First, policy mistakes – such as the past budget debacle – are not acceptable anymore. In view of people’s livelihood, such mistakes represent a legally-sanctioned way to penalise living standards in the future. Second, prosperity cannot be created without stability at home. And the current stability will erode, if the country will face new waves of terrorism, or if economic development fails to accelerate in Mindanao. A refocused struggle against drugs and corruption should prevail. Even if prosperity can be created, corruption will reduce its benefits. Between 2003 and 2014, the Philippines lost $10 billion in illicit financial flows annually. Tax evasion costs the country $7.4 billion annually; 2.7 percent of its GDP. Efforts at progressive taxation are elusive as long as the country ranks at par with Haiti and Morocco in tax evasion. Fourth, as the country moves toward an upper-middle income status, inclusive growth

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Dan Steinbock is vital. For decades, exporting people rather than goods and services has been used to offset inadequate job creation. Now BRIC-like growth must increasingly benefit many rather than few – and that means more affordable education, broader welfare and rapid progress in the eradication of poverty. Prosperity cannot be created without peace and stability in the region. One of President Duterte’s greatest achievements has been his willingness to recalibrate Philippine foreign policy between the U.S. and China. No foreign power should have bases in the Philippines, or rotation arrangements that achieve similar objectives without actual presence. Otherwise Philippines risks being perceived as the proxy of foreign powers that have their own interests in the region. Sixth, the Philippines needs to further strengthen its economic, political and defence ties with ASEAN nations. Regional mass fosters international bargaining power. BRIC-style growth is not easy. But when it is successful, it can significantly reduce the weight of past policy mistakes – such as the decades of missed opportunities in the pre-Duterte era. Dr. Steinbock is an internationally recognised strategist of the multipolar world and the founder of Difference Group. He has served at India, China and America Institute (US), Shanghai Institutes for International Studies (China) and the EU Centre (Singapore). For more, see https://www.differencegroup.net/ The original commentary was published by The Manila Times on November 25, 2019.

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Tuesday 03 December 2019

BUSINESS DAY

Media business Media advertising spend drops, press sees increase Daniel Obi

edia industry latest report has shown that advertising spend in most traditional media categories dropped from N88 billion in 2017 to N81 last year. In the last three years, total advertising spend for traditional media including TV, radio, press and outdoor, called Above- theLine; has been declining. In 2015, it stood at N98 billion, it dropped to N91 in 2016 then to N88 billion in 2017. The report, Media Facts, published by mediaReach OMD, shows that TV, radio and Outdoor suffered declines while press had increase in advertising spend. In the previous years, press had also recorded decline.

New continental talents to emerge soon from BIC Art Master Africa 2019 competition

lobal stationer y brand, BIC is organizing its first continent-wide art competition tagged, BIC Art Master Africa 2019. The competition, which aims to foster local creativity, invites African talents to create artwork using the BICBall Pen as their medium. The competition was also held in South Africa in 2017 and 2018. Following the success of the campaign in South Africa, the brand decided to expand the competition to include all African countries. Artists residing in Africa were given the opportunity to submit up to three pieces of art on the competition’s site, bicartmaster.com until the 31st of October, for a chance to be titled BIC Art Master Africa champion. The platform has been open for the public to vote for their favourite artwork during this entire month of November, 2019. Yemi, Ojo, Country Business Development Manager revealed that BIC was originally founded on one hero product, BIC’s Cristal ballpoint pen, that served as an essential tool for people everywhere. In his words “As we expanded our range of ballpoint pens, we saw consumers around the world redefine how they used our signature blue ink.

Spend on TV declined from N33.5 billion to N29.4 billion, radio suffered decline from N12.4 billion to N10.1 billion and spend on Outdoor dropped from N24.6 billion to N20.7 billion. Press enjoyed increase in spend from N17.6 billion to N20.8 billion. The increase on advertising spend

for press could be that the politicians leveraged the press the more for political campaigns in the past elections. From the report, a total of N34 billion spend, accounting for 43 % was spent by advertisers in Lagos alone; while a total of N9.4 billion was spent in South South region. N9.9 bil-

lion was spent in North Central; North West N8.8 billion; South West N8.1; while a total of N6.7 billion was spent by advertisers in South East. The advertisers spent N3.2 billion to capture North Eastern market. Interestingly, the nation’s telecommunications sector still remains a top spender in the ATL category, with MTN, Airtel topping the list of the top 20 advertisers for the year, with Ad spends of N7billion and N3.6billion, respectively, constituting 13 percent of the total ad spend in the category. Banking and Finance sector spent N6.5 billion, Soft drinks category spent N2.6 billion while ‘Others’ where political adverts could have been categorised spent N29.2 billion accounting for 36 percent of the total N81 billion. The annual report tracks above the line advertising spend.

Casers Group gets National Productivity Order of Merit award

ne of Africa’s foremost advertising g ro u p s, C a s e r s Group, has been awarded the prestigious National Productivity Order of Merit (NPOM) Award at the 18th National Productivity Day held recently in Abuja. The event which is organised by the Federal Government through the Federal Ministry of Labour and Employment was held at the NAF conference centre, Kado, Abuja. Organisers of the event noted that Casers Group was nominated and subsequently awarded the NPOM Award for its “high professionalism, continuous improvement practice and immense contribution s

to wealth creation and overall development of Nigeria.” At the corporate level, the National Productivity Merit Award acknowledges and awards organisations that are self-reliant in their adaptation and application of technology in order to guarantee for themselves cost effective operation and productive efficiency. Also, the award, according to organisers, “recognizes companies which show a trend for sustained increase over the years in such areas as capacity utilisation, sales turnover, profitability, employee welfare schemes and training facilities.” Speaking to newsmen after the awards ceremony, the

Chairman of Casers Group, Enyi Odigbo, who received the award from, President Muhammadu Buhari, represented by the Secretary to the Government of the Federation, Boss Mustapha, said that the award speaks volume of the excellence from the Casers stable in helping people make choices through the way it promotes brands. On the implication of the win for the industry, he noted that based on the importance of the industry to the country, a lot more needs to be done. “Our industry has a lot of fundamental work to do but what this tells us is to appreciate the enormity of our responsibility as a profession.

Chris Ngige, minister of labour and productivity,(left), congratulating Casers Group chairman, (right) as he received the National Productivity Order of Merit (NPOM) Award from, President Muhammadu Buhari, represented by the Secretary to the Government of the Federation, Boss Mustapha in Abuja, recently. www.businessday.ng

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At book launch, industrialist links culture ambassadorship to nation branding Daniel Obi

he President, Fertilizer Producers Association of Nigeria, Thomas Etuh has hinged the economic survival and growth of the country on how strong the citizens are willing to be ambassadors of change and culture, insisting same should be the major anchor for any potentially successful nation marketing effort and project. Etuh who spoke in Lagos, Lagos recently at the public presentation of a book; PITCH: Debunking Marketing’s Strongest Myths, authored by brand analyst, Ikem Okuhu warned that the country may not achieve much at the various platforms of global exchange if the citizens do not make themselves available as ambassadors of everything the country stands for. Represented at the event by a former National Chairmanship aspirant of the Peoples Democratic Party (PDP), Barrister Ibrahim Shehu Birma, Etuh, who is also the Chairman, Tak Agro Plc, described Nigerian writers as flag carriers, whose works go a long way in moulding Nigeria’s perception. “Writers, be they of fiction

or management, are agents of culture and nationalism. Their reflections of the country in their books form the pictures and impressions that readers, especially in other climes have about our dear country,” he stated. He said, contrary to widely held beliefs, Nigerians are still avid readers of books and called on those gifted with the skills of writing to continue to document events, trends and stories around them as a means of preserving the history and heritage of the Nigerian people. Also at the event, Vice President, Corporate Communications and CSR, Airtel Nigeria Emeka Opara described the book as “tableshaking”, alluding that the author’s track record as a journalist that approaches issues usually from a different perspective may have helped in shaping a book he was sure would stir a lot of debate in the Nigerian marketing and communications industry. The author, Ikem Okuhu, said that in writing the book, he was inspired by the paucity of engaging literature with particular focus on the Nigerian environment despite the compelling accomplishments of practitioners in the country.

AAAN President explains how advertising can respond to digitalisation

resident of the Association of Advertising Agencies of Niger ia (AAAN ), Ikechi Odibo, has declared that advertising practice needs to undergo a change to cope with the demands of post-digital age. Odibo made the declaration in a paper he presented in Abuja at the National Advertising Conference organised by the Advertising Practitioners Council of Nigeria (APCON) in conjunction with other sectoral bodies. According to the AAAN President, practitioners need to acquire new business mindsets and approaches, which he said are crucial to the business in a rapidly evolving business landscape. He noted that the evolution has been marked by the emergence of e-commerce, with television advertising transferred to digital platforms such as Youtube, Instagram advertising taking the place of print advertising and with celebrity endorsements mutating into influencer @Businessdayng

marketing. This process, he said, is still treated by practitioners as requiring just a few changes when wholesale changes are required. “We congratulate ourselves a lot for adapting things that have been done before, making minimal changes and feeling like we understand the modern world. However we cannot force-fit old templates to new expectations, new objectives and expect to be regarded as relevant, strategic and indispensable by the clients,” he said. He noted that in a fastchanging business environment, clients seek up-to-themoment partners, who are ahead in terms of proffering understanding, thought leadership and fresh solutions to their marketing problems. We need to accurately understand and embrace our digital reality, continuously broaden our perspectives and take creative responsibility without waiting for marching orders from clients,” Odibo stated.

Tuesday 03 December 2019

BUSINESS DAY

ADVERTISING When Nigerian advertising industry identified growth path with APCON torch A new vista in the Nigerian advertising industry was opened last week when about 300 practitioners converged on Abuja for conversations to collectively seek solutions on the threatening challenges confronting the industry. The forum organised by APCON in conjunction with media and advertising sectoral groups, recorded impressive attendance which signposts their readiness towards creating a vibrant industry for the benefit of their clients and the nation. Daniel Obi reports.

L- R: Biodun Shobanjo, chairman, Troyka Group; Ijedi Iyoha, CEO Advertising Practitioners Council of Nigeria, APCON; Bello Kankaroffi, former registrar, APCON, at the National Advertising Conference in Abuja recently.

chairman of APCON was in 2015 and he served a few months before Buhari administration scrapped all boards of parastatals including APCON. Sadly, APCON has been running without a council since then”, Lolu said. On the effects of the absence of council, Lolu said “Right now we are aware of some Nigerian and foreign individuals and organizations quietly, illegally operating in Nigeria, much against the law, and even breaking APCON’s laws on the ownership of agencies. It’s like fake doctors opening up hospitals, fake lawyers sitting on legal issues, fake engineers taking briefs for construction jobs, and fake pharmacists dispensing drugs. We hope that the government will resolve whatever it is that is holding down the appointment of an APCON Chairman and the constitution of the Council. There is so much the Council needs to do to clean up the practice”, Lolu said. Further underscoring the importance of advertising to the economy and why government should urgently appoint APCON board to oversee the industry, the CEO of the apex agency, Ijedi Iyoha solicited for more perceptive support, encouragement and partnership of various levels of government with the private sector in the advertising business. “The advertising profession is essential bridge which requires no dichotomy between public and private sector. The intensification of promotional policies by government for this profession will translate to immeasurable boost in the economy,” she said. Iyoha said Nigeria is a destination to reckon with in investment in Africa. “We have the desired market for every business and this market comes with the need for advertising”. She underscored the contribution of advertising to economic growth, stating that the www.businessday.ng

advertising brings positive balance in dealing with nations and people. Adequate capitalisation of agencies The forum also highlighted the need for adequate capitalisation of agencies as one of the pillars for the industry growth and respect. Akinwunmi further said that inadequate capital means many agencies cannot attract and remunerate good people, have modern facilities, invest in relevant training and equipment. “It also means we cannot compete with foreign agencies that come into Nigeria. Indeed, many clients and investors will not touch many agencies when they see the books and see inadequate capitalization. “I was the Chairman of the AAAN Committee a few years ago which was mandated to manage agencies capitalization. On inspection of books, we found agencies with N1m capitalization doing over N100m business. This was of course wrong. Again, under the 5th Code, APCON addressed this issue and hopefully will see to the implementation when a new Council is put in place”. Other speakers were in agreement of adequate capitalisation of agencies but no figure was put to it. One of the panellists, Dapo Adelegan believed that adequate capitalisation was critical for agencies. When agencies are capitalised, other professionals can work for agencies” Other building blocks for vibrant industry To further build a vibrant industry, the practitioners believed on Mergers and Acquisitions to guarantee bigger firms and collaborations. Steve Omojofor, a frontline advertiser said the industry cannot achieve much with ‘little particles’ as agencies. He said practitioners must find areas of collaborations

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to play big in the market. But such M&As cannot grow the existing market, it can only possibly crowed less firms out of the market. The industry also needs to deal with media debt and delay payment by clients as keys to creating energetic industry. Biodun Shobanjo, chairman of Troyka Group, who spoke at the conference with about 300 delegates proposed 60 days duration for payment of media contracts by clients as an option of saving the media business. He said the debt within the industry between clients, service providers, media owners and advertising agencies, with its implications, must be checkmated perhaps through legislation. Explaining to BusinessDay how the 60 days payment period can be achieved, Tunji Olugbodi, the Group CEO of Verdant Zeal who endorsed Shobanjo’s suggestion believed that the 60 days payment period can also be realised through agreement with

‘

The advertising profession is essential bridge which requires no dichotomy between public and private sector

‘

fter six years of nonappointment of a board for the Advertising Practitioners Council of Nigeria, APCON, the regulatory agency, by the Buhari-led government, nobody needs to tell the industry players to rise up and begin to take their fate in their own hands. The practitioners in all sectoral groups who are also drastically affected by socio-economic challenges therefore responded in unison last week to the long overdue National Advertising Conference, initiated by APCON, to address their challenges and find a growth path for the struggling industry. In addition to the absence of APCON council, the industry is facing many other challenges that are diminishing its growth. This include the effects of 2015/16 economic recession, budget cut by clients, competition from clients who set up their shops, inconsistent policies by government, industry debt, lack of research, poor human capital, poor agency capitalisation, coping with digitisation and multiple taxations, especially in Outdoor sector. All these have combined to create cloudy and dark days for the industry operators. The conference with central theme ‘Advertising in the Post Digital Age: The Profession, the Business and Nigeria’s Socio-economic Development’ afforded the players the opportunity to collectively take a critical re-assessment of the industry, its relationship with government, how to promote its economic impact that is downplayed and operating in digital era. Self-regulation as solution While Lolu Akinwunmi, Group CEO of Prima Garnet Africa, the lead speaker at the conference joined the call for the reconstitution of APCON council to achieve sanity in the industry, the forum believes that the industry can move ahead with self-regulation like other professional bodies. This idea of self-regulation is getting strong in the minds of practitioners and when it materialises, the players in the advertising industry will regulate themselves while APCON will be a government regulatory agency run by the government functionaries. This will require amendment of the Act setting up APCON. Present government has deliberately denied the industry the supervisory board in spite of the major roles APCON plays in ensuring that wrong and offensive communication is not shared with the public; supervising the programmes of Mass Communication in higher institutions and determining and registering higher institutions and practitioners. “It was inconceivable that last

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the clients. Olugbodi also said that the clients and agencies need education and enlightenment. It is important for clients to see things from the perspective of the agency and agencies too can also understand the financial situation of the clients. He also suggested engagement with all the stakeholders and operators in the advertising value chain to address the debt challenges. On adequate regulation within the industry, Shobanjo whose presentation addressed contemporary issues in the industry further called on APCON to play its regulatory functions without fear or favour. “A situation where interlopers are allowed to infiltrate the business as the case in many sectoral sectors must be stopped”. For instance “where the law prescribes that foreigners acquire not more than 25 percent equity in Nigerian advertising companies but this is circumvented by using unscrupulous Nigerians, must be stopped and reversed”. Shobanjo challenged the practitioners to galvanise themselves to save the profession because if “we don’t, the possibility of the profession being endangered is obvious” Digital as a way forward Most of the speakers encouraged the practitioners to embrace digital to tap into the increasing digital spend expected to hit $15 billion globally this year. They were also advised to invest in manpower development and make consumers the central focus of their operations by being ethical in their operation. The brands and agencies exist because of the consumer, Shobanjo said. The Minister of Information and Culture, Lai Mohammed who did not attend the conference, a major industry forum, but send his Perm Secretary, Grace Ekpe advised the practitioners to make national interest paramount as advertising can be used to tell our story as a nation and correct misconceptions. To further create bond between the industry and government and establish its relevance, Bunmi Oke, former Chairman of Advertisers Practitioners Council of Nigeria, AAAN, told her colleagues that the industry can plan for Nigeria at 60 with a probono creative Advert. The two-day conference organised in conjunction with media and advertising sectoral groups really delved into almost every important issue bugging the industry. At the end, participants were delighted to have begun a new chapter in addressing the issues towards creating a vibrant industry for the benefit of the nation in terms of employment, GDP and nation branding. With the success, they look forward to the next summit.

Tuesday 03 December 2019

BUSINESS DAY

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Tuesday 03 December 2019

BUSINESS DAY

COMPANIES & MARKETS

Company news analysis insight

EQUITIES

Nigerian stocks fall out of favour as foreign outflow hits all year high OLUFIKAYO OWOEYE

ctivities on the nation’s bourse continued a tepid performance in the month of October as figures released by the Nigerian Stock Exchange show foreign outflows hit N65.88bn, the highest since January while foreign Inflow stood at N37.85billion. Value of domestic retail transaction also plunged to N18.23bn in October, the lowest year to date. In the period, the total value of transactions executed by foreign investors in the month of October outperformed transactions executed by domestic investors by 28percent to hit an all year high of N103.73billion while domestic investors could only manage N59.43billion. In all the total value of transactions at the nation’s bourse increased by 15.35percent from N141.45 billion in September to

N163.16 billion in October. The performance when compared to the performance in the same period last year shows that total transactions increased by 34.34percent. Foreign investors are adopting a cautious and active trading strategy,” said Gbolahan Ologunro, an equity research analyst at CSL Stockbrokers, the

investment arm of FCMB Group Plc. “This strategy involves buying when there are opportunities in the market and cashing out almost immediately.” Nigeria’s economy continued to gasp for growth after it came out of a recession in 2017. The country’s stock benchmark index, the All Share Index (ASI), has dropped more than

16 percent since the start of this year after a 17.8 percent decline recorded in 2018, creating good entering points for investors in fundamentally sound

stocks. Comparatively, the total transactions executed between October and September revealed that total domestic transactions increased by 26.45percent from N47.00 billion in September to N59.43billion in October. During these two periods, foreign transactions increased by 9.83percent from N94.45 billion to N103.73 billion between September and October. Analysis over a twelveyear period, shows domestic transactions decreased by 66.68percent from N3.556t in 2007 to N1.185t in 2018 whilst foreign transactions increased by 97.88percent from N616bn to N1.219t over the same period. Total foreign transactions accounted for about 51percent of the total

transactions carried out in 2018, whilst domestic transactions accounted for about 49percent of the total transactions in the same period. The value of domestic transactions executed by Institutional investors outperformed retail investors by 38percent. A comparison of domestic transactions in the month of September and October showed retail transactions decreased by 21.96percent from N23.36 billion in September 2019 to N18.23 billion in October 2019. However, the institutional composition of the domestic market increased significantly by 74.28percent from N23.64 billion in September 2019 to N41.20 billion in October.

INDUSTRIALS

Cutix Q2 profit dips 36percent to N141.2m amid low sales OLUFIKAYO OWOEYE

utix second-quarter result for the period ended 31 October revenue declined 12.4percent to N2.44bn from N2.78bn in the same period last year. Profit before declined by 26.2percent to N294.5m, profit after tax declined by 36.9percent to N141.3m. Net Assets also grew by 5.6percent to N1.6bn from N1.5bn From its Cables & Wire Sales, it earned revenue of 1.89bn as compared to N1.76bn same period last year, Metal

Product Sales increased to N5.19million while sales of armored cables plunged to N534million from N1.02bn same period in 2018. At the last annual general meeting shareholders of Cutix has approved the management’s plan to acquire Adswitch, a related electrical switchgears company that was delisted on the Nigerian Stock Exchange (NSE) about 3 years ago. Adswitch had delisted from the NSE due to what the directors of the company then broadly described as harsh oper-

ating environment. The company, which was listed as a second-tier stock in 1991, filed for voluntary delisting at the NSE As part of efforts to increase its installed production capacity, Cutix recently invested about N300 million on a new extension of its factory. Cutix, a Nnewi-based cable manufacturing company was established in 1982. The company manufactures and distributes various kinds of cables such as electrical wires, telecommunication wires, to automobile wires.

L-R: Temitayo Pitan, secretary, IADC NIG.; Valentine Iheasirim, vice-chairman, IADC NIG.; Hisham Zebian, IADC, regional representative, Middle East & Africa.; Abioye Omoseni, treasurer, IADC NIG.; Chuks Enwereji, Chairman IADC NIG.; Tokunbo Akinuli, EX secretary, IADC NIG. and Ote Enaibe, EX Chairman, IADC Nig., at the Iadc Annual Dinner Event Invoice in Lagoa.

L-R: Ahmed Joda, director, Tajbank Limited; Habib Alkali, director; Hajia Mariam Ibrahim, director; Kogis Luka, director; Tanko Gwamna, chairman; Hamid Joda, founder/chief operating officer ; Norfadelizan Abdul Rahman, managing director; Tata Omar, director, and Sherif Idi, co-founder/chief marketing officer, during the commissioning ceremony of Tajbank in Abuja.

Tuesday 03 December 2019

BUSINESS DAY

COMPANIES&MARKETS

Business Event

FCMB produces more millionaires, empowers customers as season 6 of promo ends MICHAEL ANI

he Season 6 of the First City Monument Bank (FCMB) bumper reward scheme tagged ‘’FCMB Millionaire Promo’’, has come to an exciting end with the grand finale draw. At the end of the promo, which ran from March to October this year, another set of 16 lucky customers of the Bank emerged as millionaires by winning cash ranging from N1million to N2million. In addition, 2,560 others won LED televisions, generating sets, decoders, tablets and smartphones. The winners emerged through electronic selection of all qualified customers at the colourful grand finale draw of the promo held at the four regions and nineteen zones that make up FCMB across Nigeria on November 27, 2019. It had in attendance officials of the National Lottery Regulatory Commission, Consumer Protection Council, thousands of customers of the Bank and other top dignitaries. The first draw of the promo was held in May this year, followed by the second in July and the third in September. At each of the

draws, 644 qualified customers won cash of N1million and other exciting prizes. At the Lagos grand finale regional draw, Obiajulu Ujunwa won the star prize of N2million, while Nabegu Bushira smiled home with the same amount at the Abuja & North regional draw which took place in Abuja. Nwachukwu Chigozie emerged winner of N2million at the South-East & South-South regional draw held in Umuahia, Abia state, just as Yetunde Olubanwo got the reward of the same amount at the South-West regional draw in Ijebu-Ode, Ogun state. The winners were unanimous in commending FCMB for sustaining and boosting its support to customers through various empowerment opportunities, including the millionaire promo. One of the winners of N2million, Obiajulu Ujunwa, said “FCMB has positively changed how the rest of the year turns out for me and my family. My heart is completely filled with joy! I would never have guessed that I would be ending this year as a millionaire. But as you must have now heard, I am the newest

millionaire in town. And its all because of this amazing bank. God bless FCMB and all its endeavours”. Speaking on the just-concluded season 6 of the promo, FCMB’s Executive Director, Retail Banking, Olu Akanmu, said the Bank has fulfilled the promise it made to customers to reward those who participated and qualified for the promo. According to him, ‘’one of the major objectives which characterised the Millionaire Promo was our commitment to drive financial inclusion and promote savings culture in the society, particularly the unbanked segment. Through this promo, we have consistently achieved this aim. The fact that the lives of thousands of Nigerians have been positively changed through the promo speaks volumes about its impact. We are committed to distinguishing our offerings in the retail banking space by delivering exceptional products and services that would ultimately ensure the growth and achievement of the aspirations of our customers. We encourage the winners to make wise use of their prizes’’.

Ahmed Lawan, Senate President being presented with a souvenir by Nnamdi Okwuadigbo, president, The Institute of Chartered Accountant of Nigeria (ICAN), during a courtesy visit to the Senate by ICAN recently.

Company release

SBI Media Group bags multiple awards at MWA 2019

BI Media, one of Nigeria’s top 7 largest media agencies, Streams Media and Communications Network, its subsidiary, and the media group’s founder and chief executive officer, Rotimi Bankole, one of Nigeria’s media and marketing communications eggheads, emerged winners in three different categories at the 9th edition of the Marketing World Awards 2019 held recently in Accra, the capital city of the Republic of Ghana. While SBI Media clinched the Media Agency of the Year award, Streams Media and Communications Network won the award for the Creative Agency of the Year; while Rotimi Bankole, the Founder, and Chief Executive Officer of the group emerged the Media Personality of the Year. At a well-attended ceremony which held at Movenpick Ambassador Hotel in the heart of Accra and which had the crème de la crème of the marketing and advertising com-

munity in Africa and other parts of the world in attendance, the erudite professional and his iconic agencies were honoured with the awards among so much glitz and glamour. As the organizers of the event disclosed, while SBI Media and its subsidiary, Streams Media and Communications Network were rewarded and celebrated for delivering superior product values to the integrated marketing communications market and having exhibited excellence in upholding concrete marketing strategies, displaying uniqueness among offerings, conveying clear message to consumers and standing out from the competition; Bankole was recognised and rewarded for his doggedness and hard work in growing the SBI Media Group to an Olympian height within just a few years. Commenting on the event, Bankole, the media advertising guru applauded the organizers of the MarketingWorld Awards for their consistency in identify-

ing deserving brands, agencies, companies and personalities across Africa and according them the recognition, commendation and celebration that are due to them, adding that for them to have done so for nine long years, with consistent improvement and greater impact year on year is laudable. And while responding to exiting feat of his agencies and his own personality award, Bankole said, “On behalf of all the good people and team behind the SBI Media Group, we are elated to receive these tripartite awards,” adding, “We will be looking into the future with our heads up, with the mindset that impossible is nothing and that we can achieve much more if we put our minds to it. We look forward to breaking new grounds, going global and putting our country, region and continent on the map as a place filled with opportunities and talents and most especially, companies like us doing good work and making brands famous and profitable”.

L-R: Kehinde Paul, Kwara State president, Junior Chamber International (JCI); Kayode Alabi, deputy governor of Kwara State; Raimi Akanbi, JCI; Adetola Juyitan, JCI national president, and Jimoh Musa Yusuf, JCI, during a courtesy visit to the deputy governor in his office recently.

L-R: Yinka Edu, partner, Udo Udoma and Belo-Osagie; Ibrahim Oredola of Skillng, UUBO Black Friday 1st prize winner; Fela Akinse Of Salubata, UUBO Black Friday 2nd prize winner, and Aniekan Ukpanah, managing partner, Udo Udoma and Belo-Osagie, at the Uubo black friday free legal clinic.

L-R: Grace Olaniyan, corporate communications executive, Halogen Group; Akakabota Ogaga, managing partner, Eko Excellence Awards; Joseph Nnodim, operations and service manager, Lagos Mainland, and Lilian Ugoh, account executive while receiving Awards of Excellence for Halogen Group at the Eko Excellence Awards held at the Oriental Hotel, Lekki, Lagos recently

L-R: Josephine Sarouk, general manager, regional operations, Lagos and South West, MTN Nigeria; Taofik Kassim, CEO, FT Global Concepts; Ugonwa Nwoye, chief customer services officer, MTN Nigeria; Odunayo Sanya, general manager, planning and customer management, MTN Nigeria, and Olumide Olufade, CEO, E5icient Global Services, at the MTN High Value Customers Forum held at Oriental Hotel, Lagos.

Tuesday 03 December 2019

BUSINESS DAY

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Tuesday 03 December 2019

BUSINESS DAY

FEATURE ‘Promoting investors’ confidence in Nigeria Maritime sector via sanitising agreement process’ The Nigerian maritime sector seems to be heading for another season of crisis as the sector regulators NIMASA and the Nigerian Ports Authority find faults in the Secure Anchorage initiative; Harrison Edeh sought stakeholders’ view on the implications of the crisis on the nation.

he priority placed on safety and security of ships, cargo and personnel by the global shipping community cannot be overemphasised. Thus, implementing measures to enhance security without impeding the timely flow of legitimate commerce is critical for any nation that depends largely on the operations of blue economy. According to the World Shipping Council (WSC), one of the greatest security threats to the maritime industry globally is Piracy. Buttressing the danger of the issue, Oceans Beyond Piracy, a firm dedicated to the fight against piracy, recently disclosed that the shipping industry spends around $1 billion a year on private security. Similarly, in 2012, ABC News, the American News media, reported that about 50% of ships in the Indian Ocean (an area high in pirate incidents) had armed guards. They also reported that a lot of former US military personnel were joining companies or creating companies to provide security for ships navigating these dangerous areas. By implication, the concept of involving the private sector in tackling this menace is fast becoming a global phenomenon. Nigeria, as a nation is not exonerated from this maritime risk, as it is been reported that the Gulf of Guinea has become a security threat to the industry. Evidence abound that around 2007 piracy in the country peaked, the result was a drastic reduction in the country’s crude production. Consequently some of the multinational companies operating in the sector were on the verge of pulling out of the country. Similarly, platforms, vessels and ships were almost avoiding Nigerian ports because of the activities of these criminals. Investigations conducted by this Newspaper revealed that at the height of these critical challenges of piracy, armed robbery at the sea and proliferation of illegal arms importation at the Gulf of Guinea, the need for a local solution to the situation became imperative. The Nigerian Navy, which is charged with the statutory responsibility of protecting the nation’s maritime territory in collaborations with the IOCs set up a steering committee, which involved stakeholders in the maritime industry, the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Port Authority (NPA) to proffer last-

ing solutions to the security within the Lagos Harbour Approach. According to a reliable source an indigenous security firm, OMS, was invited to a meeting with the steering committee. The main decision reached by the committee was the creation of fresh demarcations for better governance of the sea area. These demarcations include Traffic Separations Scheme (TSS), ShipTo-Ship transfer operations (STS) Area and the Secure Anchorage Area (SAA). The appropriate authorities like NIMASA and NPA then went ahead to publish the steering committee’s resolutions in some national dailies as Marine Notice. According to a recent publication signed by the chairman of OMS, Idahosa Wells Okunbo, it was based on the public advertisement that his company was encouraged participate in the venture of providing security for the Lagos Harbour Approach using the SAA model. Meanwhile, investigation further revealed that the purpose of clarity the designated place for SAA operation was defined as 10 nautical miles outwards of the Fairway Buoy. And by implication the specified area is outside the NPA jurisdictional purview, which informed sourced described as beginning from the Fairway Buoy, inwards. Having defined the areas operations of the SAA, OMS according to its chairman was encouraged to “undertake significant to procure platform to be utilised within the SAA and went further to develop and submit a business plan of 20 years for return on investment to the Nigerian Navy.” According to him, the document was described by the Nigerian Navy as a laudable initiative and was highly commended as a positive contribuwww.businessday.ng

tion of the private sector in support of government efforts to make Lagos waters safe and secure for legitimate business to strive. Elaborating on how the initiative was consolidated, Okunbo stated that upon submission of the business plan, “The Nigerian Navy, subsequently, informed the NPA of its collaboration with OMS on the SAA project and stated that the project compliments the Navy’s efforts to secure our maritime space and gives added comfort to operations in the region.” Collaborating Okunbo’s narrative, an industry expert who is aware of how the project was conceptualised told our reporter that the SAA initiative was a strategic decision by the Nigerian Navy, the IOCs, and other stakeholders, which included the NPA and NIMASA, to tackle the menace and provide a lifeline for Nigeria. According to the source, OMS was invited to participate in the noble ideal because of its past records in securing crude oil pipelines in the Niger Delta. Speaking of how it all started, he said, IOCs where favourably disposed to the funding of the Nigerian Navy, bearing in mind the fact that they are business entities that had other responsibilities. Stressing that in the face of the circumstances prevailing then where the IOCs were sufficiently threatened to consider exiting the country, all the industry stakeholders approved of the SAA modus operandi. His words, “The Navy did not have adequate platforms or logistics to tackle the dangerous criminals. Kidnapping was soaring. Demand for ransom was getting out of hand.” The nation’s image was at stake. Relevant stakeholders were begging the IOCs not to depart Nigeria. And then, suddenly, out of the blue, the

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IOCs came up with the idea of an SAA. The only problem was where to find the private investors, who would be willing or adventurous enough to procure relevant vessels costing about $3m each, to hand them over to the Nigerian Navy, without any insurance cover. “But, one company called OMS or something like that opted to take the risk. It was a stupid risk. To invest about $3 million in each vessel and leave it to operate uninsured. It looked stupid. But I guess it is now paying off. And that explains why Nigerians, in our characteristic greedy nature, want to either kill it now, or put sand into it,” he explained further. “Individually, we hailed them and the idea of secure anchorage area. But I think it was the NIMASA that first hailed the idea as a corporate breakthrough”, our source noted further, explaining that “NIMASA also endorsed the emergence of the OMS–Navy accord, via an advert. He highlighted that the SAA would be a ‘spherically shaped‘ off-shore Lagos 5nm, located with a centre-point at Longitude 06° 17’ 30’’; and Latitude 003° 12’ 00”, located about 10 nautical miles southwest, before entering Nigeria, through the Fairway Buoy. The agency also, in the advert, emphatically acknowledged that the SAA exists to “serve as an additional security service for provision of dedicated 24/7 watch, to vessels seeking extra protection while at anchorage offshore Lagos”. Meanwhile, industry stakeholder say recent opposition to the SAA by the NPA is uncalled for describing it as an unnecessary distraction. The NPA in October issued Marine Notice to maritime stakeholders on a proposal to discontinue OMS operation of SAA. @Businessdayng

Some stakeholders have expressed surprise at the sudden change of position of NPA wondering if the decision is in the interest of the nation’s maritime industry. An executive director with one of the IOCs operating in the country said he could not understand why an issue which was generally agreed to, by both the NIMASA and the Nigerian Ports Authority, to ensure adequate security of the Lagos maritime so as to guarantee formidable protection for foreign vessels, at no cost to the government or any of its agencies, has suddenly become engulfed in controversy. On his part, the President, National Association of Government Approved Freight Forwarders, Increase Uche, has cautioned against the proposed sudden dismantling of the SAA. According to him, those calling for the scrapping of the SAA project must provide a superior alternative, stressing in the absence of such would lead to a resurgence of maritime crimes, attract higher insurance cost of vessels coming into Lagos, and further tarnish the good image of Nigeria. He therefore warned that dismantling the SAA may result in a new era of spiralling inflation, or subsequent diversion of cargoes to ports of neighbouring countries, whenever government suspends the current land borders closure policy. Uche said, “We have seen what the industry had passed through and we do not want to go back to the old order. We do not want our cargoes to be exposed to criminals. So, we are appealing to the Nigerian Ports Authority to rescind the decision to dismantle the SAA. On allegations that OMS was using NPA’s three vessels to make money for itself, OMS General Manager, Business Development and Government Relations, Chuma Adogu, who debunked the claim described it as a deliberate attempt to misinform the public. He stated that although NPA provided three vessels for the Nigerian Navy, none of the vessels is in the secure anchorage area. “All the vessels that are used in the secure anchorage are owned by the OMS, donated to the Navy. Like I told you, the relationship we started in 2007 made us to acquire vessels that are domiciled with the Navy, painted in Navy colours; an outsider may not know the difference, but we know, the Navy knows. It is not true that we are using government asset to make money and the money is being directed to private pocket. It is very untrue. It is because people do not know this arrangement.

Tuesday 03 December 2019

BUSINESS DAY

FEATURE How Fitness Fair entrance is shaping the healthy living and wellness industry BALA AUGIE

Uganze Eke, chief wellness officer, Fitness Fair Limited

reach for the things that you should eat,” said Uganze Eke, the chief fitness officer/ chief consultant of Fitness Fair, a wellness and lifestyle company. According to Eke, imbalance in the body composition is the cause of various diseases like hypertension, diabetes and other cardiovascular diseases. However, regular monitoring of body fat deposits and muscle mass empowers the body to understand how strong or weak the body system is. She stated that a good lifestyle equates work-life balance, beneficial recreation, strong mental resilience and Sleep. “We encourage you to eat healthy foods not diet, exercise by having fun and be empowered by taking charge of your medical conditions head on not in fear or ignorance,” said Eke. www.businessday.ng

According to the CDC Foundation survey, Leaders may downplay personal wellness because they feel they need to be working all the time. “We know we need to have a little more balance in our lives, but it’s all about connecting productivity to the bottom line. Leadership has to be convinced of that. It’s hard to deny that personal well-being and having a team that feels good is not better for the organization.” Change happens slowly, so start by scheduling time for yourself on your calendar. Think about what it means to you to be physically healthy, as well as what it means to have high energy in your life and how you might work on feeling more calm. If you work for a change-averse organization, taking this time may be a bigger challenge, but it is important if you want to

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Our corporate social project is to raise a healthier generation focusing on children by reducing childhood obesity and empowering kids to develop lifelong health habits. Our goal is to bring you calorie measured healthin-a-bowl

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nderstanding the critical role wellness play in the overall healthy living and national productivity can never be overemphasized considering the nexus between productivity and wellness. Accordingly, regular exercise and healthy dieting contribute to improve wellbeing and a healthy lifestyle. This is because committing to a healthy diet can be considered as one of the smartest decisions to be taken, as eating well do not only contribute to making us look and feel better, it can also save both individuals and corporate some on future health costs. A January 30, 2018 publication on “One Way to Improve Productivity: Focus on Wellness” by TalentCulture quoted a survey by CDC Foundation saying, “workplace illnesses, injuries, absenteeism and sick employees at work cost U.S. employers billions of dollars each year, averaging out to more than $1,600 per employee. However, the survey suggested that focusing on health and well-being can turn that around. According to the survey, “Employees at one company who took part in a free, voluntary wellness program saw their health improve and improved productivity by 10 percent — 11 percent among those with medical conditions. Most notably, already healthy workers whose health did not improve still boosted productivity by 6 percent. “The beauty is that exercise strengthens not only your muscles but your heart to pump strong and push blood with less beats and your lungs to breathe deeply and supply oxygen better as well as detoxify more efficiently. When you understand choosing life and choosing nutrition, you will be able to eat more of those natural foods and begin to

reap the benefits. Speaking on other packages offered by Fitness Fair, Eke said several special packages have been put together for its round the clock, on the move corporate individuals. She opined that the package is set to improve staff productivity, work attendance, reduction in healthcare cost, improve staff moral and increase employee’s satisfaction and more. Fitness Fair provides healthy food and salad options designed to support busy lifestyles while helping individuals’ maintaining health goals. Membership at the company’s wellness club offers the opportunity to receive free health education and support. “Let your body heal with needed vitamins and nutrients supplied by our organic freshly made foods daily,” said Eke stating that Fitness Fair aim to take the message of preventive health maintenance and disease prevention to the grassroots. “Our corporate social project is to raise a healthier generation focusing on children by reducing childhood obesity and empowering kids to develop life-long health habits. Our goal is to bring you calorie measured healthin-a-bowl,” she stated assuring that Fitness Fair’s delicious pre-packed fresh salad meals are available in-store, for pick up or delivery within specified areas. Eke started her working experience as a Pharmacist in one of the leading oil and gas corporate firms in Nigeria by helping people pay attention to their health. “But I couldn’t help but observe that younger and younger people were coming down with non communicable diseases that they had no business having at their ages. I have always been interested in lifestyle change and tried my best at the time to live that way with my family so I always shared my positive experiences with others in my cubicle,” she stated. @Businessdayng

Speaking on the importance of healthy living, Eke said “The Body – is what it has been created to be. It knows what foods are good for it, what cleans it, what builds it to strength or damages it but most of all it knows how to heal itself. The body has been wired form past environment, ancestry and available foods of long ago. What we tolerate is usually wired in our genes already. “Unfortunately, modern medicine tends to treat the body in compartments without finding out and dealing what is actually wrong. Because the body does not want to die, it usually starts to give you signs long before it actually starts dying. And the process of living or dying is interestingly a daily choice,” said Eke. That choice has to do with the fact that we cannot cheat nature, because the key health choices made by individuals or corporate are interlinked and work in the body holistically. They form the four pillars of the ‘Choose life Wellness Platform’ introduced by Fitness Fair. So, how does Fitness Fair connect the dots to Wellness? This is the company’s mission, that is, to empower every single person with the knowledge and opportunity to live the best lives possible. Fitness Fair exists for positive health and corporate wellness. “It’s our passion and Lifeblood. Recognizing that there are no one size fits all for any organization so we work with you to create programs that suit you and your team,” said Eke. According to her, Fitness Fair work to bridge trust gap; fill the gap; provide wellness analytics with verifiable reports and equally help to track and motivate. “We have been conducting On-Site Wellness Assessments to do just that and many thank us for opening their eyes and its working but then we realized a gap existed which needed to be bridged,” she concludes.

Tuesday 03 December 2019

BUSINESS DAY

property&lifestyle Land buying: Risks investors, buyers should look out for in inherited property Stories by CHUKA UROKO

ecause of the expensive nature of buying a finished house and also for its quicker value appreciation potential, land is always in demand by people who want to buy houses and investors as well. Because government’s land and land in serviced estates are expensive, limited in supply and generally inaccessible, most land buyers usually buy from native land owners. Much of the land on offer in this informal market is inherited. In other words, the land belongs to deceased persons. A lot of people who have bought land from this market have had their fingers burnt because they did little or nothing to find out the risks in such transaction or after the transaction, did nothing to guard their ownership of the property. Experts advise that an investor who intends to buy land or property must conduct due diligence to know the original owner of the property. Where the owner is deceased, the investor must find out who has capacity to sell the property. According to them, it is risky to buy or invest in an inherited property where the deceased original owner left no will. They stress that it is risky to buy where there is no letter of

administration granting ownership of the property to a person or group of persons to act as executors and administrators of that property. “Where there are so many family members such as wife or wives, children or step children that the deceased left behind without instructing anyone to be the sole owner or in charge of the property, investing in a property here could be a huge risk,” Morinsola Ipaye, CEO, K . Pa rkw o o d C o m p a n y said. Ipaye who spoke at the third edition of Real Estate Investors Series organized by K.Parkwood Company in Lagos recently, noted

that, in some cultures, the extended family of the deceased can lay claim to the ownership of the property that their son, brother or nephew left behind. She added that, in some cases, family members may intend to obtain letters of administration but because of the pressing need to sell the land, they avoid going through the court system to get a letter of administration because of the lengthy delay associated with getting the letter of administration. She cited instance of Okiki Thomas, a successful banker who decided to diversify her investment portfolio from stocks and bonds to real estate.

She acquired a sprawling 5-bedroom old colonial house on 3,000 square metres in Ikeja GRA from the estate of Late Reverend James who had died without a will. Thomas renovated her property it was snapped up by a start-up renewable energy company with offices in San Francisco, South Africa and Dubai with rental income of N20 million per annum. Five years later, the company made a whopping offer of N500,000,000 to purchase the property. Thomas presented her title documents to the company’s external lawyers, Kent & Baptist Commercial Solicitors.

But the bubble burst when it was discovered during the due diligence that Thomas’ title to the property was defective as the signature of Reverend James was forged and backdated to disguise the fact that he had died prior to the sale of the property. That was how Thomas lost the offer of N500,000,000 and was served with court summons, a sign of the start of a lengthy contentious litigation. Ipaye however has pieces of advice to offer. She recommends that investors and buyers should get in touch with a lawyer that is well experienced in property and family law. They should also investigate properly to know all the wives, children and extended family members that the deceased left behind. Buyers should also insist on getting that Letter of Administration but if they can’t get it, make sure all of them draft and sign a Memorandum of Understanding (MoU) all jointly agreeing to sell the land to you. That MoU must be duly stamped and sworn to at the court. “Besides getting all payments, documentations and forms signed by all the surviving relatives of the deceased jointly, pictures, videos and any form of digital capture must be used at all times as evidence in case something goes wrong,’ Ipaye advised further.

Move to site immediately, govt tells contractors on LagosHOMS

ontractors and organizations ha n d l i ng c o n struction and related tasks at LagosHOMS Sangotedo Scheme 1 in Etiosa local government area of Lagos State have been told to return to site with immediate effect in order to effect the delivery of the homes in the estate within the next three months. Moruf Akinderu-Fata, the state commissioner for Housing, made this demand during a meeting with contractors and other stakeholders of the housing sector recently. He pointed out that the meeting was held to announce the intention of government to add to the

housing stock available in the state through the immediate completion of LagosHOMS Scheme 1. He further said that the meeting was also to deliberate on challenges that could impede the completion of the project and to jointly seek workable solutions for the envisaged problems. In response, the representatives of the contractors spoke about funding and the need to accommodate fluctuations based on the fact that the project had been delayed for a while. The commissioner for Housing replied that the s t a t e g ov e r n m e n t h a s made due arrangements for payment of outstand-

i n g f i na n c i a l c o m m i tments that are genuine and relevant to the project. “The state government is committed to the speedy completion of the project, hence adequate financial approval has been given to its timely completion, i n cl u d i ng ou t st a n d i ng payments owed on job already done ,” AkinderuFatai said. The Permanent Secretary of the ministry, Wasiu Akewusola however pointed out that payments will only be made after due assessment of the readiness of individual contractors to continue the work as well as an evaluation of the capacity of the organizations to meet up with

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the stipulated timelines given by the State government. Akewusola also listed other prerequisites for payments, to include renewal of registration with the appropriate agencies of government, evidences of payment of taxes, as well as provision of bond as a form of security for the fund. Akinderu-Fatai seized the opportunity to reiterate the unalloyed commitment of Lagos State Government towards reducing the housing deficit in Lagos State. “We will not relent in our efforts in reducing the housing deficit in the state, all hands must be on deck to achieve the desire

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of Housing for all in Lagos State,” he added. In response, Architect Tony Aruede speaking on behalf of the contractors appreciated the state government for revisiting the scheme and pledged the commitment of the contractors to ensuring that the scheme is delivered before the deadline given by government. L AGOSHOMS The project consists of 744 homes, made up of 1, 2 and 3 bedroom flats in 62 blocks. It also comprised mini water works, sewage Treatment Plant , power generating plant, good drainage system and ample space designated for car parks and community activities. @Businessdayng

664 new homes coming as FMBN gives N5.4bn loan to cooperatives

number of Nigerian families will be having shelter over their heads as the Federal Mortgage Bank of Nigeria (FMBN) has given out N5.4 billion loan to some co-operative societies to build about 664 new homes which are at different levels of completion in various parts of Nigeria. Given an average of six persons per family, comprising a father, mother, two children and two domestic staff, it means that about 3,384 persons will be enjoying the comfort of these homes when they are completed and delivered. Ahmed Dangiwa, FMBN’s managing director, who disclosed the loan release to the cooperatives, confirmed that the fund was being used to finance nine different housing projects. Dangivwa spoke at the 4th Annual Conference of Federal Civil Service Staff of Nigeria Cooperatives (FEDCOOP) in Abuja where he was represented by the bank’s Deputy General Manager, Usman Osidi He listed the housing projects to include the 101 housing units by Connect Coop Investment, 220 units of Nigeria Police Cooperative Society, 81 houses of FUTA cooperative society and Omowumi Ilorin Cooperative society among others. “These projects, scattered across the country, are nearing completion,” Dangiwa said, assuring that FMBN was committed and ready to give loans to cooperative societies in the country to enable their members own houses. Mohammed-Bello Umar, the Permanent Secretary in the Ministry of Agriculture, emphasized that the benefits of cooperative societies were enormous. He urged civil servants to utilise whatever they got from cooperatives for meaningful projects that would impact on their lives and enjoined them to go into farming as the prospect for agriculture in the country was promising. The permanent secretary pledged the ministry’s determination to provide farm implement to any civil servant willing to go into farming.

Tuesday 03 December 2019

BUSINESS DAY

property&lifestyle Hope for tenants as Lagos renews push to curb fraudulent activities in estate agency business Stories by CHUKA UROKO

he Lagos State government says it has renewed push and bared its fangs against all fake and fraudulent real estate agents and developers who make estate agency practice in the state a loathsome and high risk business, thereby raising hope for prospective tenants. The state would be working through a department in the Ministry of Housing known as the Lagos State Real Estate Transaction Department (LASRETRAD) which is being supervised and coordinated by the Office of the Special Adviser to the Governor on Housing. Estate agency practice or business in Lagos has, in recent time, assumed a monstrous dimension with some pseudo practitioners defrauding unsuspecting home seekers, renters and buyers alike, who are made to rent or pay for non-existent houses and apartments. Lagos is a very expensive housing market. A recent report on the state of its housing market says the state has approximately three million housing units deficit which requires an annual delivery of about 200,000 housing units for the next 10 years to close the gap Due to affordability is-

sues, the state has a very active rental market. According to the report which was compiled by Pison Housing Company, about 80 percent of the state’s over 20 million residents live in rented accommodation, spending a sizeable proportion of their income on house rents. This means that demand in the rental market here is high and that is what these fake developers and estate agents are exploiting to defraud renters. The number of victims of these fraudulent activities is very high and still counting. But the state government says it is committed and determined to put a stop to that. “What we are out to do is to take our regulatory position as a department or a ministry; we believe that we will be failing as a government if we don’t do this to protect members of the public who are looking for houses to rent or buy,” Toke Benson-Awoyinka, Special Adviser to the Governor on Housing, told BusinessDay. Benson-Awoyinka disclosed that her mandate at LASRETRAD was to regulate real estate transactions and the activities of estate practitioners from conception to delivery. “What we seek to do as a department in the ministry of housing is to do a compendium of stakeholders in this industry,” she said. This action, she said, had

L-R: Wasiu Adedamola Akewusola, Permanent Secretary, Ministry of Housing; Toke BensonAwoyinka, Special Adviser to the Lagos State Governor on Housing; Babajide Sanwo-Olu, Lagos State Governor, and Moruf Akinderu-Fatai, Commissioner for Ministry of Housing, at a Stakeholders’ Engagement on Real Estate/Agency Business in Lagos recently

become necessary given the growing number of victims of this unregulated business. She cited a case in Alapere where only 15 units of self-contained apartments were sold to 262 home seekers, recalling that the estate agent on this fraud collected as much as N68 million from these unsuspecting home seekers. In Gbagada, there were five units of housing and 70 people paid to a fraudulent estate agent for those few units. In Agege, there was a case where 300 people paid

AfDB sees technology, innovation resolving land sector issues in Africa

s technology and innovation gain traction in Africa in various sectors of its economy, African Development Bank (AfDB) says they will help to speed up removal of land sector issues, especially corruption, on the continent. The bank says it is committed to working with its partners to improve governance in land administration as part of efforts to boost real estate, agriculture production and other economic activities. In Nigeria, land as a factor of production is very important. From traditional, economic and industrial perspectives, experts see land is very unique and strategic and its availability plays a pivotal role in the development of any economy as it increases investment inflow. But the country has a rigid traditional land tenure system coupled with the current land titling system which excludes many people from formal land ownership, hampering full scale economic activities, especially real estate which

happens on land. This is why Nigeria needs, urgently, comprehensive reforms in its land and property ownership systems just as it needs to develop more infrastructure across sectors. Andrew Nevin, Partner and Chief Economist for PwC, says it is only land and property ownership reforms that could unlock the huge stock of dead assets in Nigeria in particular and Africa in general, estimating the value of such assets at N307 billion or 81 percent of the country’s GDP. Charles Boamah, a Senior Vice President at AfDB, says African countries must act faster to purge corruption in the continent’s land sector by harnessing technology and innovation. Boamah, who spoke to policymakers and stakeholders at a conference on Land Policy in Africa in the Ivorian capital, Abidjan, also called for the deployment of more financial and human resources to land policy development, “especially in rural areas and among the most vulnerable, including women.” www.businessday.ng

The biennial conference, organized by the Land Policy Centre, provides a central platform for African stakeholders to network and deepen their commitment to land policy development, implementation and monitoring, through access to knowledge and evidence-based policy-making. This year’s dialogue, hosted by the AfDB has as theme, ‘Winning the Fight Against Corruption in the Land Sector: Sustainable Pathways for Africa’s Transformation’. According to Transparency International, globally, one in five persons has paid a bribe for a land service. In Africa, every second, a client of a land administration service has paid a bribe. “This corruption takes many forms — bribery or illicit land transactions is just one example. Land developers and speculators specifically target countries with weak governance systems. Local powerful elites are also more likely to manipulate such systems to serve narrow ends not to benefit the public,” Boamah noted.

for only 15 units of housing. There was also another case of an agent in Ajao Estate who, the special adviser said, has been prosecuted and sentenced to 20 years in jail for fraudulent activities. The state government has taken over his property and will sell it and the money realized will be given back to the victims. To check these activities and put an end to them, Benson-Awoyinka said government would be introducing a platform through

which people could do their real estate transactions such that the people don’t have to come to the ministry of housing for them to register as real estate practitioners. “We are developing a portal that will be going life as from January next year; as a player in the industry you just log in and make all your enquiries. We will take all their data and thereafter go to verify their claims. We have to do this because we have a lot of briefcase agents and developers,” she em-

phasised. It is expected that when this is done, a home seeker` can just open his computer, log into LASRETRAD website and find property in his or her preferred location in Lagos. The special adviser hopes that this would reduce fraudulent activities in the real estate industry. . Babajide Sanwo-Olu, the state governor, had said at a summit organized recently by LASRETRAD that “the launching of this portal became imperative to find lasting solution to incidences of fraudulent and unprofessional practices observed in the real estate sector and as a way of promoting transparency and best practice in the business. The special adviser assured that it would no longer be business as usual in estate agency practice in the state as all practitioners who must possess minimum academic qualification, not less than Senior School Certificate have to be registered and their activities regulated and monitored by government. She added that those who would disregard the new order and remained in practice would be prosecuted according to the provisions the law already in place for that practice, assuring that they were going to collaborate with relevant stakeholders in the private sector to achieve this goal.

Possible solutions to common FM challenges

acilities management practitioners will be the first to tell anyone that proper maintenance of facilities can be very complicated with an unending stream of challenges and obstacles to deal with. Identifying these issues and establishing the most efficient and effective ways to overcome them can also be daunting but remains the best way to be a key playerin the industry. The purpose of this article is to identify some of the most challenging issues faced by facility managersand proffer solutions. Costs – Controlling cost has and remains a major problem in FM. it is not uncommon for facility managers to have inadequate resources for a heavy workload. As a result of such budget constraints, expenses must be strictly controlled. Experienced facility managers achieve strict control by doing the following: •preparing for all costs in their budget estimates —

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fixed, variable, direct and indirect etc.; •tracking the items in their inventory; •selecting the best possible teams to carry out the projects; •negotiating prices with suppliers; •regularly tracking maintenance costs and financial information; •investing in technology as value for money. Even in to day’s e cofriendly environment, other options that can save cost in FM operationsinclude: •Upgrading to automated technologies that will reduce energy waste; •Considering simple practices, such as using more natural light; •Moving to LED lighting; •Integrating distributed energy resources (DER) C o o r d i n a t i n g Te a m s - To make operations run smoothly, it is crucial to implement workplace practices that foster communication, organisation, productivity, and innovation. @Businessdayng

With an increasingly mobile and dynamic workplace, a preferred solution is to use a facilities management software that allows the FM team to report failures, generate reports and check equipment history. The importance of such software is being understood more and more in the context of performing your daily tasks. Adopting digital calendars is also a good way to stay on top of the team’s maintenance responsibilities and to plan the workload accordingly. Handling Failures - Dealing with failures can be a complex process that requires a significant information flow and a quick call-to-action. Many facility managers don’t always have access to a centralized information platform wherethe status of all operations can be checked including failures reports. The solution may involve centralizing all daily work and using mobile devices to register every failure and to manage and monitor the next steps in real-time.

Tuesday 03 December 2019

BUSINESS DAY

Annual performance reviews do a disservice to workers and firms Younger workers want useful, real-time feedback from their line managers Elizabeth Uviebinene “Any feedback from you will be appreciated.” nother year nears its end, and another annual performance review season draws near. Your manager is probably busy gathering feedback about your work and highs and lows of 2019. If you have ever left your end-of-year performance review confused, blindsided or even surprised by how well or not well you are (apparently) doing, then your company doesn’t have an effective feedback culture in place. For many of us, these dreaded annual reviews are characterised by anxiety, stress and — in some cases — relief. Yearly reviews are hugely outdated. Performance appraisals date back to the first world war. Why are they still plaguing our modern offices? With so much talk of companies putting their employees at the heart of their business, it seems odd that so many of them are still wedded to these yearly “highlight reels” that do little to motivate or inspire people. A survey by the Society for Human Resource Management, a professional organisation, found that 95 per cent of employees say they are dissatisfied with their employers appraisal process. The reality in most companies is that performance reviews are still closely tied into promotion and pay, so they play an outsized role. We need to find some other objective measures to assess people fairly — and make sure rewards are distributed in as fair a way as possible. Too many organisations approach performance assessments in an arbitrary and inconsistent way. This opens the door to discrimination and bias and therefore to missed opportunities, unequal pay and career stagnation, which can disproportionately affect women and minorities. Black Facebook staff recently described their experiences of racism in an anonymous letter in which they accused

“Women’s reviews are more likely to include critical language focused on their personality” © Getty demotivated. managers of only focusing on adjustments. This is tied to ineffective review. However performance Annual reviews should be negative feedback in reviews. a desire to feel challenged, In one employee’s case, a develop faster in our careers future-oriented and provide management evolves, with an manager actively sought out a n d f i n d m e a n i n g i n o u r guidance about what some- increasingly diverse generacriticisms from the employee’s work. It also fits with our digi- one needs to improve on or do tion entering the workplace, colleagues. This all contrib- tal habits, which are driven differently to get them to the let’s ensure that people are by instant likes and com- next level. This allows us to put at the heart of these conutes to a toxic workplace. As does not ensuring that ments on social media posts. take ownership of our learn- versations. Then what we creAlarmingly, a PwC report ing development and helps ate will be accurate, inspiring men and women receive equal treatment. A Harvard re v e a l e d t hat o n l y 1 2 p e r keep motivation to perform and effective. Although there is not yet study shows that men tend cent of millennial women are high throughout the year. any objectively agreed upon The current approach to to get more helpful feedback satisfied with the quality and during performance reviews. frequency of feedback they performance reviews is un- or widely used alternative Sixty per cent of men com- receive. The Harvard study suited to workers of all ages approach to performance repared to only 40 per cent of among others show that wom- — not just millennials. Ac- views, you should nevertheless women have their feedback en’s reviews are more likely cording to a McKinsey study, come to the annual meeting tied to business outcomes. to include critical language some companies do not have prepared. Have a list of your Women also tend to receive focused on their personality c l e a r a n d sp e c i f i c p e r f o r- accomplishments and evivaguer comments (meaning or communication style and mance criteria before reviews dence of your contributions to they are not tied to concrete use words and phrases such as begin. Improving the review hand. But if the meeting does performance measures, for “assertive”, “bossy”, “abrasive” process would not just give not go to plan, advocate for us a better way to track our yourself, direct the conversae x a m p l e : “p o s i t i v e s t a k e - or “watch your tone”. For one of my reviews, I progress but would also help tion towards the future and holder feedback”). The yearly performance spent days trawling through companies to improve their be ready to suggest your next review does not suit millen- my past year’s work, making performance as they would performance goals. As the saying goes, “if it nial and Gen Z workers whose an inventor y of all my ac- be able to support and decommitment to self improve- complishments and measur- velop their staff better. It is ain’t broke, don’t fix it”. But ment means we prefer real- ing them against objectives, vital that managers learn how since backwards-looking and time feedback throughout only to find my manager only to give feedback that works — overly critical yearly reviews the year. We value ongoing wanted to focus on my per- a feedback session should not are clearly a broken way to asconversations so that we can sonality, not my performance. be a moment you dread. Nor sess people at work, we must make frequent incremental It was an uncomfortable and should it leave you baffled or fix it — and fast. www.businessday.ng

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Tuesday 03 December 2019

BUSINESS DAY

HEC takes top spot in FT Executive MBA Ranking 2019 French school jumps from sixth place to first among institutions offering the part-time degrees Jonathan Moules

HEC Paris has risen to top spot in the rankings ranking for three years before slipping to second place in the current list. Its percentage of female students is just 22 per cent, down from 28 per cent in 2018. One explanation might be the seniority of EMBA students. Course participants usually have about 14 years’ work experience, compared with five for those on the fulltime degree course, according to Embac. Gender balance among more senior business roles tends to be worse than at lower levels of organisations. Where EMBA courses score highly is in the ethnic diversity of students and faculty members. The majority of staff and students among top five programmes on the FT list are overseas professionals. At HEC Paris, 69 per cent of faculty and 81 per cent of students are from outside France. This is one of the big attractions of executive programmes: students want to learn from people with different backgrounds and world views, and to travel during study trips. Many of the EMBA courses in the ranking are j oint-s cho ol pro grammes, which encourages such opportunities. Despite the appetite for global perspectives, the locations of the world’s leading EMBA courses have barely changed. The FT’s list continues to be dominated by courses from the US, China, www.businessday.ng

France and the UK. Those in the business education sector are alive to the need to adapt and enhance courses, but our ranking list also shows that in the EMBA market at least, stability remains an important feature. HEC Paris has built on last year ’s strong performance when it was the highest new entrant, in joint sixth place. The success of its international EMBA programme is partly t ha n k s t o ra n k i ng t o p f o r career progression (up from third in 2018) and a sharp rise in its work experience performance, jumping from 39th last year to fifth. One

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n this year’s Financial Times executive MBA ranking, HEC Paris takes the top spot, up from sixth place last year, helped by the career progress and work experience of the graduates surveyed. There is little movement elsewhere among the list’s top five programmes. The rankings of the EMBA-Global Asia, run by Columbia Business School, the University of Hong Kong and London Business School, and the Ceibs Global EMBA remain unchanged from last year, for example. The executive MBA is a part-time programme often taken by people more established in their careers compared with those on full-time courses. Applications for traditional two-year, full-time MBA programmes in the US have declined overall for five straight years, according to the Graduate Management Admission Council, which administers business school entrance exams. The EMBA, in contrast, “is a competitive market, but more stable than other MBA programme types,” says Michael Desiderio, executive director of the Executive MBA Council (Embac), an academic association. EMBA students tend to be from more senior levels, where the gender balance is worse. One possible reason for EMBAs’ enduring popularity is that while the courses often involve a lot of travel between countries, students do not need to move countries and disrupt their home life in the way that some full-time MBA students might for full-time study. Diversity is a key goal for all MBA programmes, but gender balance remains a challenge for many executive courses at the top of the FT list. The joint programme run by Washington University’s Olin School of Business, in St Louis, and Fudan in China is the only member of the top 10 to achieve near parity in its class intake, with women accounting for 49 per cent of the student cohort. Other programmes have much less diversity and, in some cases, it is getting worse. Kellogg School of Management’s joint programme with Hong Kong University of Science and Technology had been top of the FT executive MBA

EMBA students tend to be from more senior levels, where the gender balance is worse

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alumnus, who was inspired to set up their own company after the course, said: “The strong HEC entrepreneurship culture gave me the self-confidence and courage to move ahead.” Kellogg/HKUST has lost its top spot overall in the EMBA rankings, held since 2016, to fall to second. However, the programme’s alumni have the highest average salary in this year’s ranking at $513,014, three years after completing their studies. The salary increase for students on the course is 63 per cent, putting the school in joint 26th position in this category. London Business School rises to eighth position, its first time in the top 10 since 2011. This is partly the result of a strong increase in salary, up from $243,250 last year to $292,023 for 2019. There has also been a rise in the percentage salary increase, from 68 per cent last year to 78 per cent now. Other strong factors are increases in career progression, from 24th last year to 12th position, and research, from 17th to 10th over the same timeframe. After a big jump into the higher echelons of the rankings last year, Chinese school Ceibs has retained fifth position this year, making it the highestranking solo programme in Asia. The school’s alumni have strong career progression, ranked seventh in the category overall, with many alumni in @Businessdayng

senior roles such as directors or vice-presidents. It was also number three for average salary, at $446,495. Best work/international course experience: Trium: HEC Paris/LSE/NYU: Stern The Trium Global EMBA comes third overall in this year’s ranking, down one place from 2018, but retains the top spot for both work experience and international course experience. The 18-month course is spread over five locations — modules are taken in Shanghai, Paris, London, New York and California — but the format is designed so that students spend 10 weeks away from the office. Best for alumni aims achieved: EMBA-Global Asia: Columbia/HKU/LBS T h e E M B A- G l o b a l A s i a course has held on to its fourth position in the ranking overall, and is one of the best in the alumni aims achieved category. This includes factors such as improving earnings and establishing a professional network. The programme has also risen three places to rank second for international course experience and from 68th to third position for career progression between 2018 and 2019. Biggest riser : Antwerp Management School Antwerp Management School is the table’s highest riser, moving up 23 places to joint 62nd with Grenoble Ecole de Management and Incae Business School. One reason is improved diversity among staff and students: between 2018 and 2019, it achieved the highest increase in the proportion of female students and one of the highest increases in the share of female faculty. Alumni also reported improved earnings, offsetting a drop in the school’s career progression rating. Highest new entrant: Yale School of Management Yale School of Management, in 17th position, is this year’s highest new entrant. Its success is mostly due to alumni’s reported financial compensation: they have the highest salary rise three years after graduation, up 123 per cent on average. The programme’s healthcare track was also popular among graduates: “Yale was the perfect business school for me; [it] had just opened up the asset management and sustainability tracks, alongside healthcare, which gave me the opportunity to cross-train in these disciplines.”

Tuesday 03 December 2019

BUSINESS DAY

EDUCATION

Weekly insight on current and future trends in education

Primary/Secondary

Higher

Human Capital

Nigerian MBAs take on continent-wide problems at African Business Conference STEPHEN ONYEKWELU

oung Nigerians students learning about what a business is, how it works and where it thrives best and what talent mix is needed to sustain enterprises have taken on the challenge of coming up with strategies to boost intraAfrican trade. Intercontinental trade accounts for a large percentage of continental trade figures but the percentage of intracontinental trade is still high in most continents except Africa (Europe – 69percent, Asia – 59percent, North America – 31%, Africa – 17 percent). By comparison, it is obvious that the level of intra-African exports to its total exports is lower than its foreign counterparts. This is the gap students in Master of Business, Administration (MBA) at the Lagos Business School decided to tackle at 2019 edition of their African Business Conference (ABC). With the theme ‘African Solutions for African Problems – An Intra-African Trade Perspective’ the Conference

targets business leaders, financiers and policymakers across Africa and the world as well as investors seeking to do business in Africa with the aim of generating insights and gaining mindshare on current trends in Africa that would have positive effects on business in Africa and propel the continent to the fore-front of advanced economies in the world. “We plan to design and formulate strategies for different sectors of Nigeria’s economy represented at this conference and send them out to participants. We will be open for feedbacks and the possibility of consultancy services as the Lagos Business School trains us to use our skills for profit but we are also taught to make an impact,” Oluwaseun Egbeola, president ABC 2019 and an MBA student at LBS said. This initiative is remarkable because global full-time MBAs hardly have any engagement and impact on the city in which they live and study for up to two years. If local authorities knew they were there, they could use these students to help solve social problems. City governments could tap networks and tackle myriad

Eighth from left: Enase Okonedo, dean, Lagos Business School, with some panelists at the African Business Conference in Lagos Business School, Lagos

problems by implementing some of the methods used by innovative companies. “While there are obvious benefits for a city that discovers and capitalises on a highlyskilled MBA talent pool, the benefits for MBA students are also clear. Through collaborating across disciplines to solve social challenges at a local level, students can develop the entrepreneurial skills they will need to become infinite learners throughout their careers,” Ivan Bofarull,

Greensprings School engages millennials to improve work-life balance KELECHI EWUZIE

n Today’s organisation, Millennials are taking over the workforce. They’re smart, exposed, energetic, and technology-driven, but they are also difficult to retain as employees. Many of them last less than two years in new roles, as they are constantly looking for the next challenging and fulfilling opportunity. Concerns regarding worklife balance, inclusiveness, flexibility and personal development are top of mind, and if not addressed, employers will continue to witness rapid exits of millennials from their organisations. It is in recognition of this trend that Greensprings School, the first thinking school in Nigeria organised a forum, “Disruption: the new normal” to engage employees to address issues affecting millennials in today’s workplace. The initiative was executed as a panel session / bonding timeout with millennials; creating an atmosphere infused with fun and intellectual discussions. All the millennials across all four campuses of Greensprings School, includ-

ing Anthos House were invited to deliberate on issues bothering of work-life balance and explore ways to make their work experience more exciting. Cynthia Odunaiya, Head of Human resource at Greensprings School says the aim was to listen to their experiences within the system, without their line managers or principals present. Odunaiya noted that the initiative also afford them an opportunity to learn what will make them stay longer in the organisation, understand what will motivate and keep them engaged, adding that we need to hear them, otherwise we will lose them. According to Odunaiya, “When we did a statistics on the number of millennials in the system, we found out that millenials make up about 55 percent to 60 percent of both the teaching and administrative workforce,” “Millenials have a lot energy, which is good, but the ability to ensure that the energy stays positive and channelled towards achieving corporate goals is what leads to excellence.” The impact of the session was felt almost instantly. By the following Monday, positive www.businessday.ng

reports and feedback started pouring in. Two very talented millenials who had planned on exiting the system, stated that the programme changed their minds and made them feel more included. Some other members of staff shared that they were happy and glad to be at work. The HR department also responded instantly to feedback and made changes based on a survey conducted. Odutayo, assistant coordinator of wider curriculum at Greensprings Ikoyi campus, mentioned that “this programme was very apt to have for young people. It was great to be in a truly open and transparent environment where my opinion truly matters.” she also added that, “what we learnt here is that we can’t all keep quiet. If we don’t learn to speak up as young people, then nothing will change.” Olaitan Koshimo, shared her thoughts saying “I feel like it was long overdue and we need to have more avenues like this outside of the typical work day and environment where people can actually talk openly and share ideas. It is also a good way for the management to get feedback.

director of global insights and strategic initiatives at Spain’s Esade said in Financial Times opinion article. In this light, MBAs at the LBS have decided to solve the problems that might hinder Nigeria and Nigerian businesses from taking advantage of the opportunities that the African Continental Trade Agreement (AfCTA) will open up. The Agreement integrates a 1.2 billion people strong market. This is to ensure that enterprises in Nigeria start

having conversations around how to be position themselves. “The area covered by the trade agreement is one of the worlds largest. The biggest problems remain infrastructure, logistics and the need to liberalise and deregulate in order to free up the movement of people, goods, and services seamlessly across the continent. Africans need to solve Africa’s problem,” Enase Okonedo, dean of the Lagos Business School said. Seventy percent of the ex-

penditure businesses incur occurs in solving infrastructurerelated operational problems, they have to generate their own electricity, provide water and fix roads. Food inflation spedup to an 11 month high in the month of October largely due to the border closure, which stopped the free flow of people, goods, and services. Government officials know this. “We think businesses need to be better prepared and the best way to achieve this is by bringing industry experts and leaders together in at ABC,” Egbeola said. Beyond AfCTA, Nigeria now faces an upward hill task of making it beneficial for her citizens and businesses. Policy initiatives are needed to enhance industrial capacity – power availability, port efficiency, access to trade information and access to finance especially for the micro small and medium enterprises (MSME). “It is fitting therefore that the Presidential Impact and Readiness Assessment Committee of AfCTA came up AfCTA readiness intervention that is focused on addressing these limitations,” Tope Fasoranti, executive director at Zenith Bank Plc said.

‘Standardised curriculum key to solving Nigeria’s employability challenge’ SEYI JOHN SALAU

aving a standardised educational curriculum can be the catalyst to Nigeria’s employability shortfall, which bridges youth unemployment and an educational system that develops skills based manpower towards creating ready-made employees for the job of the future. “If you go abroad you will find out that everything concerning education whether it is at the secondary school level or at the higher institution is standardized. That standardization is very key and we don’t have that here; so there is a need for the government to take a conscious effort to get all stakeholders involved, and until we have good governance, we are not going anywhere,” said Omomene Odike, Managing Director/CEO, U-Connect and Gr8jobsng, stating that Nigerian universities are working in silos at the moment, hence there is a need

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for a unified, codified process of transferring employability skills across the country. Odike stated this at the second edition of project employ career fair organised by Gr8jobsng tagged “Project Employ 2.0: Repositioning Our Youth for a Digital Tomorrow”. According to her, employability courses need to be entrenched into secondary school curriculum. At the moment there is no consistent pattern in government’s employability initiatives said Odike, who opined that such initiative’s impact must be measurable. “…most of the employability issues that we see are more political than geared towards us solving a problem,” she stated. Speaking further on project employ 2.0, Odike stated that this year’s career fair focuses more on repositioning the youth for the digital space. “Understanding the trend in recruitment in Nigeria, we have noticed that there have been a shift from having people who have the certification and qualifications, to people who have the @Businessdayng

skills,” said Odike. According to her, feed backs from the last career fair, indicated that lot of the youth do not understand the idea of the digital space and the future of work on the global stage. This according to Gr8jobsng is a need to continually engage the youth on platforms that can prepare their mind ahead, with lots of training and discussion on the future of work. Ubong King, the chairman of Ubong King Foundation said problems are the beginning of opportunities. According to him, anywhere there is a problem, there is an opportunity. “We have over 62.5 million youth that cannot be employed because they don’t have skills, and why they don’t why skills is that they are not trained for skills”. King opined that the way forward is to reposition the educational sector to develop skills acquisition. Therefore, government must get the right people involved, while the institutions help to find out individual’s talent and how to groom it.

Tuesday 03 December 2019

BUSINESS DAY

EDUCATION Atlantic Hall awards N30m scholarship to indigent pupil to boost education aspiration

L-R: Andrew Jedras, Principal, Atlantic Hall; Awardee, Esther Ojooluwa Adebowale; Molenga, VicePrincipal Pastoral, Atlantic Hall at the presentation of the 30 million naira education scholarship.

N80 Million Naira in annual scholarships, benefitting 6 less-privileged children, three of whom have since graduated and moved on to institutions of higher learning. Offering top class, world class standards of education, Atlantic Hall persistently records excellent results in both academic and extracurricular activities, ranking top tier locally and globally year on year. Andrew Jedras, the principal of the school speaking at a recent prize giving day ceremony described the students’ performance at the International General Certificate of Secondary Education (IGCSE) and the West African Senior School Certificate Examinations (WASSCE) as simply exceptional. He gave a rundown of the IGCSE results as follows: SS3 – 91.5percent A - C Grade, 75.0% A - B Grade; SS2 – 89.4percent A - C (Grade), 64.3 percent A - B (Grade). In the West African Senior

School Certificate Examinations (WASSCE), the breakdown was given as: SS3 – 96.2 percent A1-C6 Grade and 72.4 percent A1-B3 Grade. Jedras described the statistics as the highest ever recorded by the school in both international examinations. Commenting further on the school’s determination to consolidate the track record of excellence it is known for, Jedras said: “We have aligned our strategic thinking, planning and direction to ensure that the education that students receive at Atlantic Hall reflects our transformative approach, one that is more than knowledge acquisition, but which has at its core, critical tools young people require to succeed in the 21st century.” Emphasizing the school’s successes in sports, Jedras described sports as “the most participatory activity, epitome of hard work, commitment and dedication and a major

part of life in Atlantic Hall. “In sports, Atlantic Hall has been able to record successes in various tournaments and competitions within and outside the country. The recently concluded 2019 California State Games and COPA DE MAR in San Diego, saw Atlantic Hall boys’ soccer team play exceptionally well and taking the Gold Medal. We are currently, the Association of International School Educators of Nigeria Champions in Volleyball, Soccer, Basketball, Athletics (Track and Field) events. And in the AISEN U-15 category, we currently hold the Gold medal in Volleyball (boys and girls), Gold in Basketball (boys) while our girls won the bronze medal,” he said. Atlantic Hall is committed to creating a crop of top flight young people for the 21st century and it is determined to take children from its host communities along.

Falling quality, quantity of teachers adversely impacts learning in students STEPHEN ONYEKWELU

ach stage in the learning process is designed to help students acquire some mental, emotional and physical skills but the fall in quantity and quality of teachers at various levels of the education system in Nigeria may be throwing spanners in the works. One such skill that is more hit is cognitive. Cognitive skill is the core skill the brain uses to think, read, learn, remember, reason, and pay attention. These skills work together, to take incoming information and move it into the bank of knowledge you use every day at school, at work, and in life. Folasade Adefisayo, the

RAZAQ AYINLA

KELECHI EWUZIE etermined to support the education aspiration of indigent pupils around its community, Atlantic Hall School, Lagos has awarded Esther Ojooluwa Adebowale, a pupil of A.U.D. Primary School, Ibonwon, an education scholarship worth N30,000,000 (Thirty Million Naira). Taiwo Taiwo, chairman of the school’s Educational Trust Council confirming the award says Esther from Igbooye in Eredo LCDA, emerged the best pupil in a series of oral and written examinations that drew 85 candidates from across Lagos State. “Esther Ojooluwa Adebowale won a full scholarship to cover her tuition, boarding fees, school uniform, sportswear, and other levies for the six years in which she remains a pupil of Atlantic Hall School. The scholarship, currently valued at N30 Million, is Atlantic Hall’s annual contribution to lifting the circumstances of children from within our host communities.” Taiwo said. Speaking in response to the award, Adebowale, father of the awardee, expressed unalloyed appreciation to the school: “My heart is full of so much gratitude I do not know how to express it. With my humble circumstances, I could never have dreamt of my child going to this beautiful school. Now see what the school has done for us. My whole family rejoices and prays for Atlantic Hall. Please help us thank them.” Since the commencement of its scholarship programme in 2010, Atlantic Hall School has contributed in excess of

Lafarge Africa improves Ogun education status with N20.4m grants

commissioner of education in Lagos State had told BusinessDay in an earlier interview that “teaching is the mother of all professions and teachers are nurturers of the nation’s talents and cognitive skills in particular.” Adefisayo said sound cognitive skills translate into a more productive and innovative workforce and entrepreneurs. However, something has gone terribly wrong with the formation and public perception of these agents of human and social transformation. Teaching today is regarded as a profession for those who could not find a place in other professions. She narrated an incidence to support her position. “I www.businessday.ng

was shocked to the bones the other day when a young man approached me to help him secure a teaching position. He had two-second degrees (Master’s) but had such a poor command of both oral and written use of English Language that I wondered what he would offer his students, if offered the position sought. Whilst teachers may not be burdened with all the blame they have an immense role to play.” In its Education for All (EFA) Global Monitoring report of 2005, the United Nations Children Emergency Fund acknowledged (UNICEF), stated “it is commonly presumed that formal schooling is one of several important contributors to the skills of an individual and

human capital. It is not the only factor. Parents, individual abilities and friends undoubtedly contribute. Schools nonetheless have a special place, not only because education and ‘skill creation’ are among their prime explicit objectives, but also because they are the factor most directly affected by public policies.” Tunji Abimbola, director of education at TMAB Education Consulting and former special adviser to the Ogun State Governor on Education said that “teacher training curriculum is obsolete. I was awarded a bachelor’s degree in Education from the University of Ibadan over 30 years ago. Three decades on, the curriculum has not significantly changed.

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s part of effort to support Ogun state government’s quest to provide quality education to the growing population of youths, the world renowned cement and building solutions firm, Lafarge Africa PLC has distributed N20.4 million to 204 indigent students of various tertiary institutions drawn from 12 communities in Ewekoro local government area of the state. The provision of N20.4 million tuitions to 204 indigent students of Ewekoro, Ogun state extraction which was undertaken in addition to other social interventions such as health, infrastructure upgrade, among others, is part of effort to give back and appreciate Ewekoro and Ogun state as the host state of Lafarge Africa cement plants since 1959. BusinessDay reports that the cement and building solutions company also constructed Health Centre in Olujobi Community; rehabilitated and reinforced 1.5 km concrete road and drainage in Alaguntan community; electrified Oke-OkoSekoni community with new energy transformer; provided agricultural support tools to scores of farmers; distributed stipends as elderly care support, just as it empowered scores of youths with tricycles and motorcycles. Speaking at the 2019 Annual Community Day organised by Lafarge Africa PLC in Ewekoro on Thursday to appreciate the Communities under Ewekoro Cement Plant, Michel Puchercos, Country CEO, Lafarge Africa PLC, said that the cement company has been in the forefront of social

interventions, cutting across four cardinal areas, including education, health, infrastructure development and other human empowerment in all the communities where it operates in Nigeria. The Country CEO, who was represented by Marie-Christiane Kaul at the event, said the world leader in building solutions is committed to sustainable development with special focus on the United Nation’s Sustainable Development Goals which is entrenched in the firm’s 2030 Sustainability Ambitions. Puchercos maintained that Lafarge Africa’s sustainability goals focus on four major pillars - climate and energy, environment, circular economy as well as community, had prompted the annual corporate social responsibility for host communities cutting across South-West, SouthSouth and North-East of the Country. Responding on behalf of Lafarge Africa’s host - Ogun state government, Olu-Ola Aikulola, Permanent Secretary, Ministry of Education, Science and Technology, said the social interventions and kind gesture of Lafarge Africa PLC would go a long way to support Governor Dapo Abiodun-led administration in achieving set goals for good governance. Represented by Olanrewaju Erinle, Deputy Director in the Ministry, called on other corporate organizations operating in the state to extend their corporate social responsibility to education growth and development as sound and quality education remains the best legacy any person or government can bequeath to the younger generations.

No going back December deadline says TRCN ... Inducts 200 Education Graduates in UI REMI FEYISIPO, Ibadan.

he Federal Government has again reiterated that all unqualified teachers will be flushed out of Nigeria classrooms by December 31, 2019. The Josiah Olusegun Ajiboye, Registrar, Teachers Registration Council of Nigeria (TRCN) stated this while inducting over 200 Education graduates of the University of Ibadan. According to Ajiboye, the quacks teaching Nigerian children would be thrown out and replaced by qualified and certificated Education graduates to mould sound future leaders for the country. The Registrar noted that Teachers must stand shoulder to shoulder with other professional groups in the knowledge driven economy. While administering the @Businessdayng

Oath of Practice on the inductees, Ajiboye, a Professor reiterated that any Teacher found wanting in the code of practice will be sanctioned. He also said that Nigerian Teachers now have a separate and unique career path with the recent approval of Teachers’ Career Path by the National Council on Education “It is worthy to stress the importance of today’s induction ceremony in line with government directives. The Federal Government has directed that by 31st of December 2019 all unqualified people practising the profession of teaching would be swept from the classroom and their place would be occupied by young and vibrant professional teacher like you. We need to appreciate the fact that education unlocks the key to modernisation, but the teacher holds the key to that door.

Tuesday 03 December 2019

BUSINESS DAY

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BUSINESS DAY

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NCC sets the scene for 5G deployment in Nigeria Jumoke Akiyode-Lawanson

he recent trial launch of 5G technology in the country has proven that Nigeria is indeed ready for rapid economic development and that the Nigerian Communications Commission (NCC), as the telecommunications regulator, is actively pushing the broadband revolution by modernizing regulation and policy reforms to boost the country’s digital economy and accelerate internet access for millions through increased mobile broadband penetration. 5G is the fifth generation cellular network technology. The industry association 3rd Generation Partnership Project (3GPP) defines any system using “5G NR software as, “5G”. it allows the seamless use of technologies like virtual realities, augmented realities, streamed Bluray quality video, driverless cars, drones, Internet of Things, etc. On Monday 25th of November 2019, Nigeria became the first country in West Africa to trial 5G technology, as MTN, the largest telecommunications operator in Nigeria, rode on the regulatory and technical platform provided by NCC to carry out proof- of -concept trial of 5G. Industry stakeholders and analysts acknowledge this to be a great step towards preparing Nigeria for the global launch of 5G in 2020. They are also of the view that the expected fastest internet speed connection (5G LTE) when launched will significantly boost economic development. Key benefits of 5G 5G will enable billions of new connections with speed and security. It is expected to offer unlimited potential and vastly transform the way we live and communicate. With much higher data rates (1-20Gbits

Umar Garba Danbatta

per second) which enables consumers to download content much quickly, lower latency – allowing users to experience less delay when requesting data from network provider and increased capacity as the network expands, this new technology will be of huge benefit to all sectors of the economy; enabling things like e-health, e-education, eagriculture, e-commerce etc. The launch of 5G is expected to further deepen penetration levels and position Nigeria as one of the fastest growing business economies in Africa, as 5G which supports fast data transfer rates of up to 20Gbit per second, will spur and support innovative ambitions and create new markets, transforming supply chain management and creating smarter, more efficient manufacturing. It is also a fundamental platform for the Internet of Things (IoT) - the rapidly expanding number of devices that collect, transmit and share data via the internet. Reports show that by 2020, more than half of all new businesses will rely on IoT to cut costs, build ef-

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ficiencies and grow their bottom lines. For the IoT to realise its limitless potential, 5G is critical. Nigeria’s readiness for 5G In November 2018, during the GSMA workshop in Abuja, Umar Garba Danbatta, executive vice chairman (EVC) of NCC told BusinessDay that the commission already had spectrum bands set aside for operators to purchase in order to roll out 5G services in the country as at when due. “We have taken steps to preserve the 26GHz (gigahertz), 38GHz and 42GHz spectrum bands for 5G. There will be a number of slots in all these bands and the commission has also made provision for subsidy payment for infrastructure companies (InfraCos) who wish to deploy 5G. Public private partnership, infrastructure and the right regulatory standards are also necessary to facilitate deployment of 5G services across the country,” Danbatta said. During the trial of 5G in Abuja recently, the EVC said that the com-

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mission will consult widely with stakeholders in developing the right regulatory framework for 5G rollout in Nigeria. “We are not oblivious of the global concerns around 5G network security vulnerability, and we will be working with our parent ministry and security agencies to develop measures to ensure a high level of cybersecurity of 5G networks,” he assured. The role of NCC in unleashing the 5G revolution In transiting from 2G, to 3G, 4G, and now 5G the telecommunications regulator, under the leadership of Danbatta has succeeded in licensing infrastructure companies (InfraCos) to solve the issue of deficiency in last mile infrastructure, hindering the expected penetration levels to the hinterlands. The NCC is actively taking steps to ensure the regulatory structure and technical infrastructure required for the successful roll out of 5G technology is available. Also, the telecoms regulator is

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fully encouraging operators and internet service providers in the country to jump on the constantly moving train of IoT by continuously looking for solutions to upgrade accessibility and deepen penetration of broadband in Nigeria. According to Olusola Teniola, president, Association of Telecommunications Companies of Nigeria (ATCON), NCC has provided the spectrum required for this technology and is in support of operators willing to provide this service to as many Nigerians that want it. “In the case of MTN, the NCC allowed the operator to use 100MHz of spectrum on the 3.5GHz spectrum to enable them demonstrate the capability of 5G. The commission has vowed to support other 5G trial with Airtel, Globacom, 9mobile and other service providers when they apply. This demonstrates the readiness and dedication of the regulator to ensure that as many Nigerians that want to experience very high speed internet and innovative technology are able to do so,” Teniola told BusinessDay in a telephone interview. However, Industry analysts say that the regulatory body and the ministry of communications and digital economy, apart from infrastructure provision, need to create an enabling environment for service providers and enables new investors to come in and deploy 5G as private and public networks over the next two to four years. “There are other factors that need to be taken on board to be able to commercialise 5G technology. We need to ensure that government is able to support the roll out of significant fibre across the country. We also need the support of government to ensure that the number of base stations deployed is at least doubled within the next two to four years. Currently, we have 39,000 base stations. We need 80,000 as a minimum,” Teniola said.

Tuesday 03 December 2019

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Cisco to scale SMEs with purpose built business solutions Jumoke Akiyode-Lawanson

isco, a global technology firm, seeks to promote the effectiveness and efficiency of small and medium scale enterprises (SMEs) in Nigeria by providing affordable, purpose built solutions to scale SMEs in Nigeria. The company recently announced its commitment to accelerate the digital development of the country by helping small businesses to grow in Nigeria through its provision of simple, secure and flexible portfolio of solutions. Speaking at a media roundtable ahead of the Cisco Small Business Summit set to take place in Lagos, Olakunle Oloruntimehin, the general manager, Cisco Nigeria and West African Countries said, “Cisco as an organization is specialized in SMEs and with the help of its authorized partners from Nigeria and abroad, will ensure that appropriate knowledge to thrive in a competitive market is disseminated to these SMEs.” “At Cisco we are focused on functionality, we are specialized in small businesses, we have also got architecture and we are working effectively with our authorized workers to disseminate the required knowledge needed to thrive SME in Nigeria,” he said.

Built under the Cisco “Designed for Business” brand, the small business portfolio delivers the right products at the right price for small businesses to thrive. To further accelerate growth, Cisco is doubling partner investments in Nigeria and creating an easy and frictionless experience for both partners and customers with faster response times and immediate

access to expertise. According to Oloruntimehin; “Today, every business around the world is in a position where they have to strategize in order to stay ahead of the competition. At Cisco, we have become dedicated to helping these small businesses leverage emerging technologies to accelerate their growth, thereby providing a fair ground where ev-

L-R: Steven Kewley, EMEAR commercial regional manager, Cisco; Lela Omo-Ikirodah, small business manager, Cisco West Africa; Shelly Wanless, small business manager, Sub Saharan Africa and Olakunle Oloruntimehin, general manager, Cisco West Africa at a media roundtable ahead of the Cisco Small Business Summit holding in Lagos.

QuickCheck deepens access to credit, partners with Jumia and PayAttitude Jumoke Akiyode-Lawanson

uickCheck, a microlending mobile platform that provides collateral-free loans, has announced its new partnerships with Jumia and PayAttitude, to get even closer to the majority of Nigerians who still lack access to credit. According to Fabiano Di Tomaso, CEO, QuickCheck, “The app was specifically designed to solve the difficulties Nigerians face in seeking access to credit. I believe that the increasing importance of financial inclusion as a catalyst for economic growth and development cannot be overemphasized. Internet is on the rise and according to the NCC, Nigeria had 123 million GSM internet subscribers in September this year, up 19 million from last year. More and more digital consumers use digital services, pay bills, shop and make payments online. Increased ecommerce transactions and smartphone penetration are indicative of a population segment seeking for a higher quality of living, it typically corresponds to the underbanked, which we currently serve.” For the past six months, QuickCheck has been the only credit provider for Jumia customers sub-

ery business no matter their size, can access the opportunity to realize the full potential of digitization in their operations”. Also commenting, Lela OmoIkirodah, small business manager of Cisco West Africa, said that digitization and technology are crucial areas of concentration for SME to thrive. “About 90 percent of busi-

scribed to the JumiaOne app. JumiaOne, Nigeria’s top lifestyle app lets consumers buy airtime, pay bills and have access to all Jumia services in one place. The company has taken it one step further by partnering with Jumia to provide their customers with access to loans, through its own credit scoring algorithm used for the underwriting of borrowers. Its affiliation with Jumia will allow customers to easily take loans on a mobile app they are already actively using. QuickCheck is also collaborating with PayAttitude - Payment Scheme and a key player in the fin-tech industry. Pay Attitude is the first and only multi-bank USSD and Mobile app for POS, Web payments, ATM Cash Withdrawal, and person-to-person transactions using just a phone number. Speaking shortly after the official sign-off, Babatunde Okeniyi, the CEO of PayAttitude, stated that “this partnership is a testimony to the commitment of PayAttitude to democratizing access to financial/ payment services. The future is mobile and PayAttitude is driving inclusion through mobile in a way never before done.” This partnership will therefore provide convenient platform for QuickCheck to make loans available to hundreds www.businessday.ng

of thousands of customers. Fabiano, commenting on the partnership expressed his excitement at the opportunity QuickCheck has in reducing the inclusion gap in the country and enabling consumers’ participation in the economy through its digital financial services. For Nigerians, it means that people who have been financially excluded now have multiple avenues to take loans from, on platforms they are already using. These digital partnerships support the rapid emergence of new crossindustry business models as everything becomes connected and digital. “Yes, we do rely on our leading product, the QuickCheck app, that is our main focus. However, we are driven by the relentless pace of innovation - we see challenges every day and we want to solve them and improve people’s lives. We have a team dedicated exclusively to problem validation and testing of new ideas. If we can imagine a solution, we can build it. We also have a few other projects in the pipeline with third parties We believe they will push us to an even wider audience and help to achieve our end goal- financial inclusion,” Di Tomaso said.

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nesses worldwide can be considered small or medium sized businesses. We at Cisco carried out some intense research to see what we can do globally to cater to this market, and I must say that Cisco is increasing the focus on small businesses globally. The Cisco Designed for Business portfolio delivers the right products at the right price for small businesses. It also provides increased investment in partner programs to incentivize partners who are focused in the small business space. The Small Business summit is a vital event for us because it is an opportunity for us to educate our partners on all these solutions available to help small businesses grow especially in Nigeria and West Africa,” Omo-Ikirodah said. Cisco says it will continue to invest in building a digital economy through its curated portfolio of products. The company offers a comprehensive package of products specifically designed for small businesses. The Cisco Designed for Business will offer solutions that enable small businesses to connect, compute and collaborate, securely. New additions to the portfolio include Cisco Business Wireless Access Points, a new Meraki Go full stack and the new Catalyst 1K switch, an affordable entry point to the world-class Catalyst range of switches for small business.

Start innovation hub recounts 5-year success in digital skills development …launches mobile app to solve meal budgeting problems Jumoke Akiyode-Lawanson

tart Innovation Hub, one of the foremost incubation hubs in the Niger Delta area of Nigeria, has recounted its five-year success in developing competencies in the area of capacity building and bespoke software development for organic, local talents, with in demand skills in design, coding and digital marketing. Celebrating the fifth anniversary of the innovation hub, Hanson Johnson, founder of Start innovation hub said; “We strongly believe that information technology is the key. As the country is desirous to diversify from the oil, we believe that the youths are the drivers of this new narrative. We established this hub to bring ICT closer to people and not going to Lagos every time they need to source for IT solutions be it in software or skills.” “We also envisaged while establishing this hub that we can outsource and export skills and capacity to various organizations and countries. We did put measures to ensure that this come into fruition. Today, we can say that we have been able to achieve some of our set objectives such that we have many of our local talents working for organizations in faraway countries in Europe and other organiza@Businessdayng

tions in the country,”Hanson said. The hub also launched Jiggle, a mobile app designed to help solve meal budgeting problems across Nigeria, leveraging digital payment. Speaking at the anniversary event, Aniedi Udobong, managing developer ecosystem for Google, Sub-Saharan Africa, said; “we at Google are impressed with Hanson and the tremendous strides he has made in the ecosystem. Having set the pace of what a hub should be and having developed talents, we are excited to have him as our partner especially in our annual program known as GDG DevFest.” With this in mind, the hub created Project CREATE, a job guaranteed ICT training designed to equip enable to produce globally recognized talents. This has prompted global brands to take note. Recently, Edidiong Asikpo, one of the graduates of the program who is now a software developer at Interswitch, was recognised by Facebook as an icon of change in Africa. Within these 5 years, Start Innovation Hub has not only developed skills, the organization has partnered with global giants such as Facebook, Google and a host of other major players in the IT ecosystem to bring value to Niger Delta region and Nigeria.

Tuesday 03 December 2019

BUSINESS DAY

Investments

ENERGY INTELLIGENCE

Market Insight Companies Commodity Tracker Policy

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GAS

PETROCHEMICALS

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Analysis

How new Finance Bill affects tax costs in Nigeria’s oil, gas sector STEPHEN ONYEKWELU

resident Muhammadu Buhari has submitted a new Finance Bill to National Assembly seeking to undertake a wide range of reforms in Nigeria’s tax laws aimed at stimulating economic growth and reducing the budget deficit as it shores up government’s non-oil revenue stream. Some of the strategic objectives of the new bill include promoting fiscal equity, reforming domestic tax laws to align global best practice, supporting small and medium enterprises (SMEs) and introducing tax incentives for investments in infrastructure and capital markets. The oil and gas sector has both incentives and disincentives to investment flows from the Bill. Gas utilisation incentive for downstream companies The new Finance Bill offers incentives for companies in the downstream oil and gas sector that are deliberate and strategic about gas utilisation. The Companies Income Tax Act (“CITA”) provides that companies engaged in gas utilisation (downstream operation) are granted a series of incentives for utilisation of gas. These incentives include: a tax-free period for up to five years, accelerated capital allowance after the taxfree period, tax-free dividends during the tax-free period and

tax-deductibility of interest payable on loans obtained with the prior approval of the Minister for a gas project. The Bill proposes to modify Section 39 through the following: capital allowances will be computed and considered utilised during the tax-free period such that after the tax-free period, the capital allowance will be claimable on the tax residual value of qualifying capital expenditure (QCE). It deletes the need for Ministerial approval for tax deductible interest and Companies cannot claim Gas Utilisation Incentives (GUI) and Pioneer Status Incentive (PSI) on the same QCE. According to PricewaterhouseCoopers (PwC) in its ‘Nigeria’s Finance Bill Insights Series’ the proposed amendment integrates the GUI and PSI into one incentive framework that would be applicable to downstream gas utilisation. Under the new consolidated framework, the tax-free period under

the GUI is renamed as ‘pioneer period’. The Bill introduces a clause which prevents companies that have enjoyed incentives under the Industrial Development (Income Tax Relief) Act (i.e. PSI) from utilising the GUI defined under CITA. Prior to this amendment, companies who have enjoyed the GUI, which is a three to five-year tax-free period could, theoretically also apply for PSI under Industrial Development Income Tax Relief Act (IDITRA), thereby enjoying another three to five-year tax-free period. Upstream hit by 10% withholding tax The proposal to repeal section 60 of the Petroleum Profit Tax Act (PPTA) and Section 43 of CITA means the dividend distributed from profits already charged to Petroleum Profits Tax would be subject to withholding (WHT) up to 10 percent. This could be quite adverse for the upstream oil and gas exploration and production

sector which is chargeable to the highest tax rate (up to 85% in some instances). This will affect the valuation of oil and gas assets; global competitiveness and investment appraisals going forward. Upstream oil and gas companies with significant retained earnings may consider distribution before the Finance bill is passed into law as there are no grandfathering rules in the proposed Bill. Nigeria may become unattractive as group headquarters Cur rently, companies are charged to tax at 30 percent on their dividend distributions where such dividends exceed the taxable profits for the year notwithstanding that profits being distributed may have been taxed in prior years, exempt from tax, or taxed under different tax law. This particularly affects holding companies on dividends received from their subsidiaries thereby making Nigeria unattractive as a headquarters or group holding company location. The Finance Bill proposes changes to limit the application of the tax only to untaxed profits that are not exempt from tax. Experts have sometimes argued that with peak oil demand forecast to happen around 2035, economic reforms need to stimulate non-oil exports. But the reality though is that the stream of income from oil revenue is still critical for massive industrialisation and diversification of the country.

Samsung Heavy Industries advocates local partnerships to compete in Nigeria’s oil sector ISAAC ANYAOGU

ompanies that would operate profitably in Nigeria must seek out local partners to develop mutually beneficial relationship to be able to compete in Nigeria’s challenging oil and gas sector as well as any other sector, says Jejin Jeon, managing director of shipbuilder, Samsung Heavy Industries Nigeria (SHIN). While speaking at the NigeriaSouth Korea Business Forum held in Lagos to promote business links between Nigeria and South Korea. Jeon shared Samsung’s success story of sustainable business engagement in Nigeria to validate his assertion. “Before considering operating a business or exploring the opportunities in Nigeria, you should thoroughly research the business environment, regulatory landscape and relevant statutory requirements. Finally you should

partner with a local company to develop a mutually beneficial relationship based on trust,” he added. The event was hosted by the Korea Trade-Investment Promotion Agency (KOTAR), the official trade and investment promotion agency of the Korean government. Samsung has been deeply involved in Nigerian develop-

ment since it entered the country in 2014. The construction of its SHI-MCI fabrication and integration yard in Lagos allowed the construction of the Egina floating production storage and offloading (FPSO). The Egina is a flagship offshore oil and gas project for French oil major, Total, which is producing

close over 200,000 barrels of crude oil per day, close to 10 per cent of Nigeria’s total oil production and is adding considerable revenue to the Nigerian economy. Jeon, who was invited to speak on: “Sustainable business for economic development,” gave an overview of oil and gas industry in Nigeria, followed by a detailed explanation of how Samsung successfully completed the Egina FPSO project for its client Total. “Samsung and its partners are dedicated to meeting Nigeria’s local content laws which stimulate local development. This is reflected in significant investments in human capacity development to meet the high demands of constructing the Egina including more than 560,000 man hours of training provided to local Nigerians who never had training in the shipbuilding or welding industries and 9.7 million man hours of labour which were carried out on Nigerian soil,” he explained.

Investment Foreign investment into Nigeria’s oil and gas records low of $38.66m in Q3 2019 … Still far away from Q3 2016 of $171.6m

oreign investment into Nigeria’s oil and gas is still in its lowest ebb as inflow hit a low of $38.66 million in third-quarter 2019 which is still a sharp decline compared to $171.63 million recorded in Q3 2016. Despite running an economy mostly dependent on crude oil earnings, figures obtained from public data agency National Bureau of Statistics (NBS) revealed foreign capital inflow into the oil and gas sector still accounts for 0.72 per cent of total foreign investments into the Nigerian economy compared to other sectors like the Telcoms sector contributing 16.49 percent in third quarter 2019. Further breakdown showed in the first quarter of 2019, capital importation into oil and gas sector increased by 74 percent from $17.22 million to $30.05 million recorded in second-quarter 2019 which also increased by 28 percent to $38.66 million recorded in Q3 2019. In the first three quarters of 2019, capital importation into Nigeria oil and gas sector has a combined total of $85.93million, with many stakeholders speculating that its full 2019 inflows might be unable to reach 2016 peak of $720.15 million which went lower to $331.36 million in 2017 while 2014 and 2015 figures stood at $208.18 million and $29.76million respectively. Some stakeholders say Nigeria could unlock a flood of capital into its oil and gas sector if it loosened up on its other assets in the manner it did with gas company, Nigeria Liquefied Natural Gas (NLNG). What this means is that despite obvious opportunities in the oil and gas sector, FDI is not rushing into Nigeria as the government continues to maintain a stranglehold on sectors that can attract foreign investment at the detriment of the economy and the people. “The solution to unlocking sufficient amounts of FDI in Nigeria could lie in replicating the winning ownership and management model of NLNG across sectors where government has exclusive ownership, from rail to airports,” Charles Akinbobola, an energy analyst at Sofidam Capital said. NLNG is run in a unique way that is different to other public assets, as it is owned partly by government and the private sector. It is however run exclusively by the latter, earning it plaudits along the way for its operational success. Other stakeholders believed Nigeria’s treatment of some of its largest foreign direct investors, from the oil companies who are being accused of owing billions of dollars in back taxes to phone giant MTN which has been at the receiving end of a number of hefty fines is surely not the best way to sell the country to potential investors.

Tuesday 03 December 2019

BUSINESS DAY

ENERGY INTELLIGENCE Market

We’re committed to helping NNPC achieve 3m barrels a day production - Jarmakani ISAAC ANYAOGU

igerStar 7, a leading contractor in Nigeria’s offshore energy sector has added two offshore construction vessels to its flagship Nigerian fleet. The company has acquired and reflagged the Seven Antares and Seven Inagha offshore construction support vessels, marking NigerStar 7’s investment in Nigeria, and support for government policies on local content. In his speech at the occasion, Anwar Jarmakani, chairman of NigerStar7 said “We are encouraged and fully support NNPC’s plan to increase national oil production to 3 million barrels per day. This will drive further investments and growth in the industry, supporting the Nation’s economic policies and strategic National Interest.” The event was held at the Nigerdock’s facility at Snake Island Integrated Free Zone, which is a leading West African port and industrial free zone supporting the

terminal operations, logistics, maritime and oil and gas sectors. Highlighting the impact of Nigerdock on the growth of Nigeria’s local content said, “We have safely completed Nigeria’s largest fabrication projects for the IOCs and have a proud record of over 17.5 million man-hours without a Lost Time Incident. This is indeed world class performance.” Despite the gains of the Ni-

gerian Content Act and its positive impact on the Nigerian economy, Jarmakani said there remain certain areas that need to be addressed to ensure that Tier 1 Nigerian companies can secure work in recognition of their investments, competence and capabilities. “In the area of competitive bidding, a number of tenders and project awards have been overshadowed by the activities

of pretentious companies that do not have the requisite experience. These are the kind of companies that have neither the intention nor aspiration to build in-Country infrastructure. They lack the national commitment, dedication and human capital to deliver complex projects on time and within budget,” Jarmakani said. While assuring that the company is focused on helping to lead the process of renewal and growth of the Nigerian Oil and Gas sector, Jarmakani appealed for increased transparency, fair competition and an ethical business environment, all of which he said will protect investments and the livelihood of Nigerians - and ensure the sustainability of the best Nigerian companies. “We recommend that an assessment point-based system be adopted for the contracting and oilfield service companies based on competence, capacity, achievements, safety record, training, visible investments

and presence in Nigeria. A classification system into Tier 1, 2 & 3 categories based on these criteria will significantly help clients in their selection of eligible contractors,” said Jarmakani. Jarmakani pointed that the common practice by many vessels who operate in Nigeria and do their drydocking services around West Africa and elsewhere did not bode well for Nigerian economy. “In order to prevent economic loss, and provide further jobs and opportunities, we recommend that NIMASA and NCDMB always request that vessels engaged in cabotage and oil and gas projects are mandated to provide evidence of in-country drydocking and Class repairs as part of any tender process. “We appeal to NNPC to recognize and support companies like Nigerstar 7 and Nigerdock – and to support our bold investment strategies, prized safety culture and transparent business ethics,” said Jarmakani.

Gas production in Africa doubles in 21 Nigeria has over $163bn worth of oil, years, Nigeria may lose dominance gas projects lying fallow STEPHEN ONYEKWELU

atural gas is proving to be the only hydrocarbon source to increase its share in the global energy mix and the fastest-growing fossil fuel; this will see production double in Africa in the next two decades. This is according to the Gas Exporting Countries Forum’s (GECF) Global Gas Outlook Model. GECF member countries currently represent 71 percent of natural gas reserves, 44 percent of marketed gas production, 55 percent of pipeline gas trade and 53 percent of Liquefied Natural Gas trade globally. Some of the members include Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, The United Arab Emirates and Venezuela. The African continent is set to increase its presence in the global energy sphere, more than doubling its natural gas production by 2040 and altering the global energy supply mix in the process. Africa will contribute as much as 9.2 percent to global natural gas production by 2040, resulting in an expansion from 255 billion cubic metres (bcm) to more than 505 bcm and corresponding to a compound average annual the growth rate of 3.4 percent. “Natural gas will continue to be in demand and will

help us meet the objectives of sustainable development and the energy transition for our country, for Africa and for the world,” Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea said at the just concluded GECF event in Malabo. “We are working on the gradual implementation and exploration of various gas fields. All of the work that we are doing is in line with the policies that the international community is asking us to have for fossil fuels. We want to protect the environment and provide for the needs of remote communities in rural Africa.” Nigeria holds Africa’s biggest gas reserve of 5,720 bcm (202 trillion cubic feet), almost 50 percent of Africa’s total gas reserves (509 tcf ) but may lose dominance to more aggressive and strategic but smaller African peers. Tanzania and Mozambique are preparing for the gas age. The East African duo have the sub-regions brightest projects, located on the southeast coast of the continent in Tanzania and Mozambique. The massive Coral South Floating Liquefied Natural Gas (FLNG) Project sits atop the prolific Rovuma Basin, offshore Mozambique. ENI’s Coral South FLNG facility is the first step in accessing the estimated 450 billion cubic metres of gas. The first gas is expected in 2022 and

thereafter ENI expects to produce five billion cubic feet each year. Further north is the Tanzania LNG Project that hopes to access the massive 1.6bn cubic metres of gas that lies in Tanzanian acreages. The $30bn facility located at Lindi would sit on Tanzania’s coast, acting as a terminal and gas liquefaction hub. Admittedly, Nigeria has more complex issues to deal with; this is probably also why investors avoid the country. Nigeria’s gas resources management has been evolving but overregulation has kept it at its infancy, analysts say. “The gas Nigerians are consuming today was explored over 20 to 30 years. We are not carrying out new explorations and this takes away from Nigeria’s future competitiveness in the gas space. Ghana is considering sending ganjs to Nigeria because they now have more than they needed,” Emmanuel Anyaeto, head, gas demand and supply at Axxela a fast-growing gas & power portfolio company said at BusinessDay’s recent Oil & Gas Roundtable in Lagos. West African peers, Mauritania and Senegal have also disposed of both political and infrastructural resources to develop their new discoveries of gas reserves, these countries will compete with Nigeria for market share as gas utilisation gains traction.

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ISAAC ANYAOGU

here are over $163billion worth of oil and gas projects lying fallow waiting for financing, government approval or some other trigger to bring them alive, says Gbolahun Elias, a senior oil and gas lawyer in Nigeria. At a presentation made at the Centre for Petroleum Information (CPI). Elias who has handled several projects in the oil and gas sector said the value of the projects unable to come on stream is six times the value of Nigeria’s Federal budget. “These projects are just sitting down there, not generating jobs, foreign currency and just sitting there. The potential value to the economy is huge if they are developed,” said Elias. Meanwhile, Nigeria’s loss in terms of new projects is ceding the inflow of new investments dollars to smaller African countries. Operators say that Mozambique with…. has seen over $30bn in new investments in the past three years while Nigeria has only managed less than 10 percent of these investments.

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“It is also possible that why these investments are going to these smaller African countries is that they are yet to plug gaps in their laws that allow the International Oil Companies to exploit them, when they catch on perhaps they will also make their laws more competitive,” said an senior level executive in an oil company in Nigeria. Nigeria’s PSCs for example granted generous concessions to foreign companies gifting them zero royalty rates in drilling above 1000 square meters, one of the most genereous rates in the world. the Nigerian government also did not activitate a provision its PSC that allows for increase in royalties when prices soar above $20 per barrel. The country now wants to recoup these loss by imposing a $62billion demand on IOCs. The government has also amended fiscal terms of these PSCs and the investments have dried. Worse still the International oil companies are selling down their stake in some of their fields in Nigeria. Energy giant Chevron has launched the sale of its stakes in two Nigerian offshore oil and @Businessdayng

gas blocks, according to a Reuters report. The company seeks to dispose of aging assets to focus on its fast-growing production in the United States. A Chevron spokesman confirmed the sale process. California-based Chevron is offering its 40 percent stake in the shallow-water Oil Mining Lease (OML) 86 and OML 88, which produce approximately 6,200 barrels of oil equivalent per day, the document says. The sale is also part of a broader retreat by international oil companies from Nigerian oil and gas fields that have been plagued by pipeline theft as well as uncertainty over the West African country’s tax regime. OML 86 and 88 contain 55 million barrels of yet-tobe exploited oil barrels and 79.3 billion cubic metres (2.8 trillion cubic feet) of undeveloped gas reserves, the document said. Foreign oil companies including Chevron, Royal Dutch Shell and Exxon Mobil have retreated in recent years from onshore and shallow-water production in Nigeria due to oil theft, selling assets mostly to local companies.

Tuesday 03 December 2019

BUSINESS DAY

offgrid Business

Each Disco’s can reduce up to N2bn losses using minigrid solutions - report DIPO OLADEHINDE

report funded by Shell seeded investor; All On has stated that each electricity Distribution Companies (DisCos) can reduce their losses by N1 to 2 billion year by using under grid minigrid solutions. According to the report produced by Rocky Mountain Institute (RMI), Clean Tech Hub and Energy Market and Rates Consultants (EMRC), these Under grid mini-grid will leverage on existing distribution infrastructure to achieve lower system cost than isolated mini-grid while improving service reliability from the status quo. “These systems can help DisCos reduce losses to serve these communities (by N1–2 billion per DisCo per year) and create a minigrid market with N400 billion in annual revenue, all while saving customers ₦60 billion per year compared to what they spend today,” the report said.

The report noted that for undergrid communities served by the DisCo but held back by unreliable power, minigrids offer transformational access to reliable electricity that can enable local development by adding distributed energy resources at the community level. “Low levels of reliability and planned investment, combined with attractive existing load profiles, make rural and peri-urban com-

munities excellent candidates to begin developing commercial undergrid minigrid projects,” the report said. Nigerian Electricity Regulatory Commission (NERC) regulation defines minigrids as self-contained electricity systems of less than one megawatt (MW) that include both generation and distribution. This regulation allows mini-grids to be installed under the

grid—where the distribution company (DisCo) is currently undeserving communities—with the DisCo’s agreement. The report acknowledged that the undergrid minigrid opportunity is a new concept, and exploratory projects are needed to test and refine potential business models which begin with a set of critical decisions that form the building blocks of a business model.

REA offers young women future in energy sector with STEM workshop

he Rural Electrification Agency in its bid towards building young women in energy has held its first female Science Technology Engineering and Mathematics (STEM) workshop in Lagos State, Nigeria. The workshop was organized by the Agency in partnership with leading private sector developers and was attended by power sector stakeholders and business professionals with the aim of bringing together young women in the same room with top power sector and business professionals to share knowledge and discuss the opportunities for women in the industry. The Energizing Education Programme (EEP) being implemented by the Rural Electrification Agency to provide sustainable and clean power supply to 37 Federal Universities and 7 University Teaching Hospitals across Nigeria creates an avenue for the training of 180 female

STEM students (20 from each benefiting university) during the construction phase of the project which serves as a catalyst towards ensuring sustainability of the project and building young women for the future in renewable energy. Damilola Ogunbiyi, managing director/CEO of REA in her opening remarks said, “This Workshop is designed to facilitate the increase in leadership and development of professional women. It is also a platform for the 180 female students and professionals present to network, share their knowledge, discuss achievements and encourage the advancement of women across the energy sector” Delivering the keynote address, the minister of State for Power, Goddy Jedy-Agba said “To the young women who have participated in the STEM Internship Programme, I want you to know that gender and social exclu-

sion will soon be a thing of the past. As a government, we are working to ensure that we mitigate the plight of women and promote equality and inclusiveness across all sectors. We cannot hope to reform the power sector without the skills, innovation and expertise of our women. That is why the importance of events like the one we are having today cannot be overemphasized. I therefore urge you to take charge of your future and make good use of the platform that has been established for you. The final activity of the workshop was the Project Shark Tank competition between the participating universities in which students of Bayero University, Kano emerged first and won a prize of N1,000,000 (One million Naira). The Rural Electrification Agency (REA) is the Implementing Agency of the Federal Government of Nigeria (FGN) tasked with electrification of unserved

“Undergrid minigrids are a promising and commercially viable solution that can deliver reliable electricity to hundreds of thousands of Nigerians today,” said James Sherwood, principal at RMI and co-author of the study. These include project development roles, including who invests in the project and who enrols customers; project ownership roles, including both generation and distribution assets; project operations roles, including who bills and collects from customers and who operates and maintains system assets; and commercial terms of operation, including the distribution usage fee calculations and contract term. The report seen by BusinessDay, described the four business models that are practical solutions to guide stakeholders through the process of implementing under-grid mini-grids in Nigeria although it also acknowledged that each business model has strengths and weaknesses. The first business model

is a Minigrid operator-led model, where a private mini-grid operator leads development of the mini-grid with consultation across the DisCo and community while the second model is a Special Purpose Vehicle (SPV)–led, where development is led by an SPV, potentially formed by a DisCo’s investors, and certain functions are subcontracted to a mini-grid operator. The third model is a Cooperative-led model, where a cooperative formed by the community leads minigrid development while the fourth model is a Collaborative SPV-led, where ownership and operation functions are shared among the mini-grid operator, community cooperative, and DisCo investors. “As undergrid mini-grid business models are tested, the approaches described in this report can quickly replicate at scale to improve service to 40 million rural residents across Nigeria and nearly 200 million undergrid households globally,” the report noted.

Solar photovoltaic power capacity to exceed 8,000 GW by 2050 and underserved communities. The Energizing Education Programme (EEP) is an initiative of the Federal Government of Nigeria to provide sustainable and clean power supply to 37 Federal Universities and 7 University Teaching Hospitals across Nigeria. The project includes the provision of an independent power plant, upgrading existing distribution infrastructure, street lighting to improve security within the universities’ campuses, as well as the development of a world class training centre on renewable energy for each university. The STEM Internship training of the EEP aims to train 20 female STEM students from each university during the construction phase of the project. The programme is being implemented in three phases and funded by the Federal Government of Nigeria, the World Bank and the African Development Bank respectively.

Analysts: Isaac Anyaogu (Team Lead), Stephen Onyekwelu, Dipo Oladehinde

lobal solar photovoltaic (PV) capacity is expected to exceed 8,000 Gigawatt (GW) by 2050, 18 times the current levels, according to an analysis by the International Renewable Energy Agency (IRENA). Accelerated deployment of solar PV alone can lead to significant emission reductions of 4.9 Gigatonnes of carbon dioxide (Gt CO₂) by 2050, representing 21 per cent of the total emission mitigation potential in the energy sector. Solar PV could cover a quarter of global electricity needs by midcentury, becoming the second largest generation source after wind. “Such a transformation will only be possible by significantly scaling up solar PV capacity in the next 3 decades. This entails increasing total solar PV capacity almost six-fold over the next ten years, from a global total of 480 GW in 2018 to 2,840 GW by 2030, and to 8,519 GW by 2050,” said the IRENA

report. Globally, the total installation cost of solar PV projects are expected to decline significantly in the next three decades. The levelised cost of electricity (LCOE) for solar PV is already competitive compared to other fossil fuel generation sources. According to IRENA, the LCOE for solar PV will continue to fall from an average of $ 0.085 per kilowatt-hour (kWh) in 2018 to between $0.02 to 0.08/kWh by 2030 and between $0.014 to 0.05/ kWh by 2050. Going by the trend, the solar industry would employ more than 18 million people by 2050 out of which 14 million would be employed by solar PV alone. To maximise outcomes of the energy transition, however, a holistic policy framework is needed. The energy transformation would also boost gross domestic product by 2.5 per cent and total employment by 0.2 per cent globally by 2050.

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email: isaac.anyaogu@businessday.ng, stephen.onyekwelu@businessdayonline.com, oladehinde.oladipo@businessdayonline.com

Tuesday 03 December 2019

BUSINESS DAY

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Tuesday 03 December 2019

BUSINESS DAY

Live @ The Exchanges Market Statistics as at Monday 02 December 2019

Top Gainers/Losers as at Monday 02 December 2019 LOSERS

GAINERS Company

Company

Opening

Closing

Change

N16.1

N17.7

1.6

CCNN

UNILEVER INTBREW

N9.4

N10

0.6

UACN

DANGCEM

N142.8

N143

0.2

GLAXOSMITH

MANSARD

N1.7

N1.8

0.1

N1.97

N2.05

0.08

STERLNBANK

Opening

Closing

Change

N20

N19

-1

ASI (Points)

26,990.59

DEALS (Numbers)

N7.3

-0.7

N6.25

-0.25

VOLUME (Numbers)

GUARANTY

N30.45

N30.3

-0.15

VALUE (N billion)

FCMB

N2.01

N1.9

-0.11

3,093.00 246,507,806.00

MARKET CAP (N Trn)

2.436

Stories by Iheanyi Nwachukwu

price moved down from N20 to N19, losing N1 or 5percent, followed by UACN Plc which dipped from N8 to N7.3, after losing 70kobo or 8.75percent. Recently positive sentiment at the Nigerian

Bourse may have stopped as economic catalysts remain absent. In 3,093 deals, equity traders exchanged 246,507,806 units valued at N2.436billion. The value of listed equities decreased

to N13.027trillion. Unilever Plc rose from N16.1 to N17.7, adding N1.6 or 9.94percent, while International Breweries Plc advanced from N9.4 to N10 adding 60kobo or 6.38percent.

Top distributors endorse Vitafoam’s products

i t a f o a m Ni g e r i a P l c ’s t o p c l a s s distributors in Lagos Region at the weekend endorsed its products and pledged continuous par tnership with the company for mutually beneficial business relationship. Besides, the company’s management has assured the distributors of sustaining its polic y of producing customised products to meet diverse needs of the end users. Responding to his outstanding award as the Lagos Best Regional Key Distributor at Vitafoam’s Distributors’ Award forum, the Chief Executive Officer, Sadim Nigeria Enterprises, Samson Ajibulu explained that Vitafoam had a long tradition of quality products and the company should sustain it. Ajibulu, who spoke on behalf of his colleagues

appreciated the company for creating healthy competition to reward hard work. According to him, Vitafoam has always met demands of its distributors at all times. “O n behalf of myself and my co-distributors, I appreciate Vitafoam for this important award. Vitafaom has always been associated with quality products. I Have been dealing with the company for 30 years and I am proud to be its distributor. We must thank God for enabling us to operate despite the challenges in the economy”, he said. Other distributors also showered encomiums on the company’s management for the awards. On the honour’s roll of the awards were Lagos Second Best Regional Key Distributor, Slochanta Nigeria Limited, Third Best, Rhine Designs and Lagos Best Volume Movers. In all 70 active distributors were rewarded. www.businessday.ng

In his welcome address, Vi t a f o a m’s C o m m e rc i a l D i re c t o r, S o l a O w o a d e who represented the Group Managing Director congratulated the awardees f o r t h e i r l oya l t y t o t h e company. Owoade explained that without the distributors, the company’s products would be unknown. According to him, the Aw a r d C e r e m o n y i s t o create a relaxed atmosphere where the company and the distributors can unwind as partners in progress. “Vitafoam places premium on its customers and will continue to encourage feedback in order to ensure that they make the company’s

products their first choice. This forum shall be sustained as we shall continue to reward hard work and perseverance. “The company shall not renege in its policy of quality, innovative and customized p ro d u c t s t o c o n s t a n t l y meet expectation of diverse customers in this era of Information Technology”, Owoade said. The Distributors’ Award has been held in Benin City, Kano and Abuja. The grand finale is scheduled for Wednesday, December 4, 2019 at Sheraton Hotel, Lagos. Market watchers commended the company’s strong third quarter financial performance despite the inclement operating environment. It’s Group Ma na g i n g D i re c t o r, M r Taiwo Adeniyi has always assured the investing public that the company shall continue to place premium on shareholder value.

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FTSE 100 Index 7,284.78GBP -61.75-0.84%

Nikkei 225 23,529.50JPY +235.59+1.01%

S&P 500 Index 3,111.25USD -29.73-0.95%

Deutsche Boerse AG German Stock Index DAX 12,964.25EUR -272.13-2.06%

Generic 1st ‘DM’ Future 27,814.00USD -259.00-0.92%

Shanghai Stock Exchange Composite Index 2,875.81CNY +3.83+0.13%

13.027

Stock market opens new month on a negative note ig e r ia sto ck m a r k e t opened this new month on a negative note. This comes despite expectations that investors will lock in value stocks with attractive dividend yields in anticipation of the December rally. The NSE All Share Index (ASI) decreased by 0.04percent while its yearto-date ( YtD) negative performance increased to -14.13percent. The NSEASI moved from 27,002.15 points to 26, 990.59 points. Investors lost about N5.58billion as 12 stocks gained while 17 lost their day-open values. Cement Company of Northern Nigeria Plc led the losers table after its share

Global market indicators

ASHON, five others inaugurate global securities group

n a strategic move to facilitate cross-border trading and settlement of securities, promote innovation and diversification, Association of Securities Dealing Houses of Nigeria (ASHON) and five international associations have signed a Memorandum of Undertaking (MoU) that effectively established the African Stockbrokers and Securities Dealers Association (ASSDA) in Botswana, Southern Africa. B y t h e Mo U, j o i n t l y signed by ASHON and other founding -member securities associations from Egypt, Kenya, Mauritius, Morocco, and the West African Economic and Monetary Union, ASSDA is to deepen Africa’s financial market through cross - border trading and seamless clearing and settlement of securities among the participating markets in Africa. The President, African Stock Exchange’s Association (ASEA), Karim Hajji is an observer. The Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Patrick Ezeagu who represented Nigeria’s Capital Market at the historic ceremony in Botswana at the weekend explained that the decision to establish ASSDA was taken at a roundtable organised by the African Development Bank in Abidjan on April 24, 2019, for the African Exchanges Linkage Project (AELP). According to him, the

AELP is a co-initiative by the African Securities Exchanges Association (ASEA) and the African Development Bank (AfDB) to enable and facilitate cross-border trading and settlement of securities across participating exchanges in Africa. A statement from ASHON provides more insight to the philosophy and benefits of the MOU, “It would foster PanAfrican investment and trading of securities, and actualize the AELP. The Members present unanimously resolved to create a Pan-African association to be called the African Stockbrokers and Securities Dealers Association (ASSDA) through which they would achieve these and other objectives. “ The memb ership of ASSDA shall be an association of associations constituted of full members that are registered stockbrokers or securities dealers or associations whose members deal in securities in one form or another as approved by the Governing Council of ASDDA. The AfDB and ASEA shall also serve as Observer Members of ASSDA. “Among the objectives of ASSDA is the deepening of financial markets in Africa by encouraging and supporting measures that shall enable and facilitate trading and settlement of securities through stockbrokers and securities dealers across exchanges in Africa.

Chams emerges NAPAAS technology provider

hams plc has been appointed technology solution provider by the National Personal Asset Acquisition Scheme (NAPAAS) which has just automated its asset acquisition scheme, specifically designed for the Nigerian Legion. NAPAAS, an association of ex-service men and women in Nigeria has been able to deploy a robust, integrated, secure and multi-channeled asset acquisition platform online and via mobile app, to automate key processes and transactions endto-end, with minimal human intervention. The platform, designed for simplified and automated registration, asset discovery, application, approval, collections, monitoring and reporting of activities is a simple @Businessdayng

and flexible application imbued with artificial intelligence features, including aliveness detection and face matching. Commenting on the new partnership initiative, Gavin Young, the Group Managing Director of Chams plc said, “Military pensioners are the ultimate beneficiaries of the platform, ensuring they can acquire goods and services at affordable rates, linked to a structured and automated repayment plan. As the technology partner to NAPAAS and its esteemed members, our aim is to assist with fulfilling the vision of the scheme, which enables military service pensioners acquire personal basic assets with ease through the NAPAAS customer technology platform, designed with NAPAAS and developed by Chams Plc.

36 BUSINESS DAY

Tuesday 03 December 2019

Insight

Women struggling to secure land rights

What women (at the bottom of the pyramid) want - and need seyi john salau & NKEM OKOCHA

he inability to access finance is one of the biggest challenges facing women in Nigeria, but the women at the bottom of the pyramid have even greater odds stacked against them: little to vocational skills and financial literacy. Temitope had never even walked into a bank before she found herself in debt. With limited education and no income, she decided to start her own cooking business. She rented a stall on a payment plan, bought a gas cooker, and some ingredients, and got to work. However, her cooking skills were limited, and so she never acquired a solid customer base. I met her late last year in dire straits: the bank who loaned her money had come knocking. Tope’s story is unusual, in that most other women like her, do not even have access to credit facilities to set up or expand their own businesses. What’s not at all unusual, is that, often, financial systems do not take the time to fully understand what these most vulnerable of their customers need. If they did, Tope would have understood the fundamental flaw in her business plan- selling cooked food without the ability to create the kind of tasty dishes that rewards one with loyal customers. Women with little or no income often lack the skills to generate sufficient income; which limits their ability to save and further compounds the problem of a lack of credit history. They are then unable to access the required credit to

expand their businesses or to create their own income-generating businesses in the first place. According to the 2018 EFInA report, 32person of women lack the product and service knowledge with which to evaluate financial services. Empowering them must go beyond giving them access to a bank account, or seed loans. It is significant, but ultimately not enough, to open up access to credit for underserved women. Over the past two decades, our nation’s financial systems have made significant strides: with new strategies and substantive investments in innovation. Banks, financial technology companies, and a number of other financial service delivery organisations have made some headway in making banking processes easier, providing valueadded services, and driving participation for Nigerians. Despite these advancements in the financial sector, we still have too many Temitopes and have to question why the impact of so much activity is not being felt by the very people who need it most. Put simply; the credit gap is worsened by the alarming skills gap. Over 76 million Nigerians are illiterate and lack the basic skills for modern living -- and the majority of them are women. The skills/knowledge gap is central to the inability of these women to generate an income. Beyond that, however, the barrier extends to their incapacity to make informed decisions -- given the increasing complexity of financial products and services out there. As such, countrylevel inclusion strategies that do not incorporate measures to increase financial literacy or skills acquisiwww.businessday.ng

tion, are doomed to realise sluggish gains, if at all. The bottom line is this: in order to meet anyone’s needs, you must first understand it. Blanket structures no longer work. While many financial service providers are beginning to understand this and sponsor skills trainings, the work being done falls far too short of what is required to make a dent. Adequate educational/ vocational training remains a lever for increasing women’s participation in the economy; that we have yet to pull. Not every industrious woman at the bottom of the pyramid qualifies for credit structures and many who do are likely to be further hindered by the lack of functional skills or by financial illiteracy. As we search for sustainable approaches to resolving the challenges posed by financial exclusion; we must be clear that there are no easy answers -- nor is there even a single answer. Skills training, improved savings habits, improved financial literacy are only a few key stepping stones for beginning to better the economic outcomes of our most marginalised women. From the work that my organisation, MamaMoni, has done, I have seen first-hand and repeatedly, how focused skills development efforts have enabled economically marginalised women to develop ideas, start new businesses, expand, and provide for their families in previously unimagined ways. Within a year and a half of participating in holistic skills development activities; Chinasa, in Oriade LCDA went from sitting idly at home, to baking her own bread rolls and selling to other

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women in the community. We got her to understand that she needed to manage her funds and save in a more intentional manner. She soon qualified for more targeted credit; was able to rent a larger space; expand her business and begin training other women in different communities. In this instance, skills acquisition and an understanding of the need to establish a history of saving, magnified the impact of access to credit. I have heard some women refer to credit offered by financial institutions as ‘juju money’. The lack of trust these women have, highlights the complexity facing financial literacy efforts. Intensive and ongoing engagement methods are a necessity to effectively relate with, and gain a firm grasp of their current situations, ambitions, and desires. Identifying the nuances at the bottom of the pyramid is not an easy feat, but it is possible. The use of agent networks and strategic partnerships with on-the-ground establishments can bridge the gap between financial institutions and these potential customers. Similar observations and references were also made during the discussions at the recently held Lagos Business School Financial Inclusion Conference. The route out of poverty for women is not always more capital, but rather, inclusion at this more basic level, which enhances women’s ability to manage those financial resources that are already accessible. The most financially vulnerable women in our society just want to survive. One major way to ensure this is to ensure that they have the requisite basic skills and @Businessdayng

knowledge to earn a living, and the confidence in their own abilities to seek out support. There is no denying the exponential impact that comes from empowering women and creating a sustainable ‘femeconomy’ - the evidence shows that financial products that come with additional services—technical training, awareness-building, warehousing services for farmers, market information, etc.—create better outcomes for customers than financial products alone. In Burkina Faso, for example, a women’s savings group that provided an integrated package of financial services and women’s empowerment programming found that there was a 9percent increase in the quality of work that they did and a 12percent increase in the women’s savings. In a country where the basic dignity of our most marginalised citizens is neglected, we often forget that women tend to spend disproportionately more on the feeding, education and health care of their families - the kinds of expenditure that have a significant inter-generational impact. Beyond that, there is an even greater untapped economic potential that these women bring to their wider communities; in the form of increased contributions as literate economic actors. Nkem Okocha is the founder of Mamamoni – a social enterprise which provides loans to low-income women from rural and urban areas, who were unable to secure funds from financial institutions, and organises vocational skills programmes for women to help them start businesses.

Tuesday 03 December 2019

BUSINESS DAY

news Government will no longer tolerate violation of urban planning law, Sanwo-Olu says JOSHUA BASSEY

overnorBabajideSanwoOlu of Lagos State has warned that the state government would no longer tolerate undue flouting of the state physical planning and urban development laws. Sanwo-Olu gave the warning while inaugurating the physical planning and building control appeal committee to interface with members of the public and government in the implementation of the state’s urban planning laws and regulations. The 13-member committee is to mediate and balance the interest of the citizens and government in disputes that may arise from actions taken in line with the state’s urban development laws. The constitution of the committee, according to Governor Sanwo-Olu, is part of the framework of the Lagos Urban and Regional Planning and Development Laws of 2010, which provides for a public engage-

ment channel for stakeholders and the citizens to channel their complaints to the government. Sanwo-Olu charged members of the committee to work for the interest of the people, saying the success of the team would be dependent on their objectivity. He said: “This committee is such an important body to the finality to the laws setting up the physical planning regulations that we have in Lagos. It is the first time we are inaugurating this committee, which is an independent body that is not only meant to advise the ministry, but also to advise the governor because its members are to give the citizens an independent view about things we are doing. “This is not only democratising our engagements with members of the public, it is also about doing the right thing and doing it all of the time. Each member is selected based on their pedigree as professionals in the field. I urge you all to discharge the task with sense of responsibility, because citizens will be relying

on your objectivity.” Reiterating the government’s readiness for dialogue to resolve disputes arising from urban regulations, he said his administration would not condone what he described as “unguided, reckless physical development.” He said: “We are out to let Lagosians see the benefit of our intervention, but it is also about time we made correction and say that government would not condone reckless and unguided development in our state. “It is clear to everyone that we need to have a sustainable means of growth. Every development we embark on as residents of this State must be done within the purview of our physical planning laws.” Commissioner for physical planning and urban development, Idris Salako, noted that the quest for a socially and economically sustainable Lagos could not be achieved without institution of a platform to settle disputes in the interest of all parties.

NNPC to deepen collaboration on expansion of Frontier Basin Exploration HARRISON EDEH, Abuja

roup Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has expressed the commitment of the National oil company towards intensifying collaboration to achieve desired outcomes in ongoing exploration activities in Nigeria’s frontier basins. Speaking on the side line of the 2nd Summit on Research Activities in Nigeria’s Frontier Basin held in Abuja, Monday, Kyari affirmed the readiness of NNPC to lead the campaign that would ultimately ensure that more works were carried out in this regard, with a view to increasing the nation’s reserves, investment opportunities and create employment for the teeming youths in the country. The GMD, however, noted that this feat could only be

achieved through doggedness, consistency, creative thinking as well as innovative ideas and the deployment of new emerging technologies, a release by NNPC Acting Group General Manager, Group Public Affairs Division, Samson Makoji, has said Kyari said NNPC was ready to actively collaborate with competent institutions of learning to carry out exploration activities, especially in the areas of geological and geophysical data generation, environmental baseline studies, drilling location preparation, among others, saying this would bridge the gap between the academia and the industry. He acknowledged that the Industry’s position today was that expanding the nation’s reserve can only be realized through huge investment in research as an enabler for innovation and new technology. He expressed optimism

that the summit would add valuable contribution in the quest to expand the frontiers of oil and gas exploration in the Country. Als o speaking at the event, the Director General, Energy Commission of Nigeria, Eli Jidere Bala, expressed total confidence in the collaborative capacity of NNPC to galvanize the commitment and leadership needed to achieve the expansion drive through research and development, as part of the goals of and target of the summit. The event was organized by the National Centre for Petroleum Research and Development (NCPRD), Energy Commission of Nigeria in collaboration with the NNPC, Nigerian Geological Survey Agency and the Abubakar Tafawa Balewa University, Bauchi. The theme of this year’s summit was “Nigeria’s Frontier Basins: Vehicle for Reserve Growth through R&D.”

Tony Elumelu Foundation to open applications for the 2020 TEF Entrepreneurship Programme January

he Tony Elumelu Foundation (TEF) — Africa’s leading philanthropy dedicated to empowering African entrepreneurs — will begin accepting applications for the 2020 cohort of the TEF Entrepreneurship Programme, on January 1, 2020. Applications are made through TEFConnect, the digital networking hub for the African entrepreneurship ecosystem, created by the Foundation. The TEF Entrepreneurship Programme is open to entrepreneurs from across Africa, either with new startup ideas or existing businesses of less than 3 years existence, operating in any sector. Successful applicants will

join the over 9,000 current beneficiaries, from 54 African countries, and receive business training, mentoring, a non-refundable $5,000 of seed capital and global networking opportunities. Last year, the Foundation received about 216,000 applications, with 42% coming from women entrepreneurs, from every country on the continent. The Programme is a 10year, $100 million commitment to identify, train, mentor and fund 10,000 young African entrepreneurs. The goal is to create millions of jobs and the revenue required for the sustainable development of the continent, implementing the www.businessday.ng

philosophy of Africapitalism, which positions the private sector as the growth engine for Africa and emphasises the importance of creating social and economic wealth. According to the Foundation’s 2018 Impact Report, 70% of the total number of businesses in its alumni network were still operational two years after benefitting from the Programme. The report also identified an increase of 189% revenue generated and 197% increase in the number of additional jobs created by beneficiaries post-graduation from the Programme, as well as a 100% commitment to the Sustainable Development Goals. https://www.facebook.com/businessdayng

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Tuesday 03 December 2019

BUSINESS DAY

news IGP, not PSC, has power to recruit police personnel – Court …dismisses suit against IGP FELIX OMOHOMHION, Abuja

L-R: Mohammadu Adamu, inspector general of police; Abba Kyari, chief of staff to the president; Babatunde Fashola, minister of works and housing, and Mele Kyari, group managing director, Nigerian National Petroleum Corporation (NNPC), at a stakeholders meeting on petroleum products distribution at Presidential Villa in Abuja, yesterday. NAN

Crude theft persists despite multimillion-dollar surveillance contracts DIPO OLADEHINDE

espite multimillion dollar pipeline surveillance contracts the Nigerian National Petroleum Corporation (NNPC) awarded to private security companies for the protection of major pipelines across the country, Africa’s biggest oil-producing country is yet to get a grip on oil thieves who brought its oil industry to its knees a few years ago. These pipeline surveillance contracts are awarded with surveillance contractors ostensibly tasked with monitoring sections of oil pipelines, identifying any breaks and protecting them from vandalism. One of such contracts is the popular contract between NNPC and Ocean Marine Solutions (OMS) for the protection of the strategic 87-kilo-

National Economic Council on Crude Oil Theft, Prevention and Control, earlier in September disclosed that 22 million barrels of crude was stolen in the first half of 2019. In July alone, NNPC said Nigeria lost a total of 1.2 million barrels to a combination of crude oil theft, pipeline vandalism and other petroleum wreckages while oil and gas pipeline vandalism rose by 77 percent in June this year with as much as 106 pipeline points breached as against the 60 points vandalised the preceding month. Also, the country’s biggest onshore operator, Shell, which has a network of approximately 4,000 kilometres of oil and gas pipelines and flow lines, said crude oil theft experienced on its pipeline network resulted in a loss of around 11,000 barrels of oil a day in 2018, which was more

metre Trans Forcados Pipeline (TFP) valued at about $18.4 million which sparked huge controversy last year. Some stakeholders claim there are subsisting N9.3 billion pipeline security contracts that the NNPC has with various companies. In justifying these awards, Ndu Ughamadu, NNPC’s group general manager, public affairs division, claimed the corporation lost over 11 million barrels of crude oil, which on face value equates over $800m in lost revenue, due to incessant breaches on the TFP in 2018. But despite these contracts, oil facilities in Nigeria still frequently come under attack from militant groups ranging from small-scale pilfering to industrial-scale theft. Godwin Obaseki, Edo State governor and chairman of the ad-hoc committee of the

than approximately 9,000 barrels a day in 2017. Another cause of worry for stakeholders is that like most of NNPC’s operations, the award of these surveillance contracts has also been an opaque affair. The details of pipeline surveillance contracts are rarely made public, purportedly for security reasons, with government officials frequently citing such concerns to justify withholding information about schemes involving security sector corruption. Also, the security-related nature of these contracts exempts them from competition, transparency, and oversight provisions within the Public Procurement Act of 2007, making them even more prone to corruption and political manipulation than other government contracts. “Pipeline surveillance

ustice Inyang Ekwo of a Federal High Court, Abuja on Monday dismissed the suit brought by the Police Service Commission (PSC) challenging the power of the Inspector General of Police (IGP) to recruit personnel into the force. In a judgment, Justice Ekwo said it was the Nigerian Police Council under the supervision of the IGP that has the statutory power to recruit into the force. The Police Service Commission had accused the IGP of usurpation of power over the recruitment. The PSC filed a suit to challenge the IGP, alleging it was constitutionally empowered to carry out the recruitment exercise. In the motion on notice filed on Sept. 24, with suit number FHC/ABJ/ CS/1124/2019, the commission prayed the court for an order of interlocutory injunction restraining the defendants from “appointing, recruiting or attempting to appoint or recruit by any means whatsoever any person into any office by the NPF pending the hearing and determination of the substantive suit”.

Gbemi Faminu

NASS to summon SGF, AGF, finance minister over N400bn pension liabilities ...as unremitted accrued rights hit 12-month high

oint Committees for Establishment and Public Service of the Senate and House of Representative Committee on Pensions have vowed to summon the Secretary to the Government of the Federation, Accountant General of the Federation and Minister of Finance over pension liabilities put at over N400 billion said to be crippling Nigeria’s Contributory Pension Scheme (CPS). The le gislators expressed concern over inability of retirees to access their pensions over nonpayment of accrued rights, non-regular remittance of monthly pensions, and non-funding of Pension Protection Fund by government, saying this could not be taken for granted.

Federal Government workers who retired since December 2018 to date are yet to access their pensions. This follows the non-payment of their accrued rights from the old Defined Benefits Scheme, making it impossible for the Pensions Fund Administrators (PFAs) managing the CPS to commence payment of their pensions. Ibrahim Shekarau, chairman, Senate Committee on Establishment and Public Service, and his counterpart, Hassan Rurum, chairman, House Committee on Pension Matters, made the commitment on Monday at a threeday retreat organised for the lawmakers by the Pension Fund Operators Association of Nigeria (PenOp) taking place in Uyo, Akwa Ibom State.

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A c c o r d i n g t o S h e karau, pension payment at the Federal or State level should be treated as a first line charge, and any government that does not take this as a priority does not deserve to be there. Shekarau, it would be recalled, established the CPS in Kano State, when he was the governor, and accumulated N9 billion in pension trust fund at the end of his eight years tenure. “We have realised this. The Pension Commission has brought this to our knowledge and my Committee has written a letter to the Senate President and he is concerned, and I believe my counterparts at the House of Representative will also do the same. “I am sure and to be

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Continues on page 39

Foreign import VAT sees biggest slump in 5 years amid border closure

ot only has the move of the Federal Government to close the land border, coupled with its FX restriction on some products, Continues on page 39 resulted in a rise in commodities prices, it has also caused a surge in inflation rate at 11.61 percent as well as further shrink in consumer wallets which reduced trading activities in the economy. Potential fair to Mr President, he is revenue from taxes on imnot aware of this, so we ported goods also plunged. The non-import foreign will engage the executive to understand what the VAT for the third quarter of problem is and find a last- 2019 dropped by 34 percent to N63 billion from the N94 ing solution to it. “The president may not billion recorded in the second know about this because as quarter of the year. This is the chief executive he has also the lowest third-quarter one million and one issues remittance in five years. This was seen in the sectoral and cannot be bothering himself about salaries and VAT report released by the pensions. When salary is National Bureau of Statistics paid, when salary is not (NBS). The report also showed paid, unless is brought to that general VAT remittance for the quarter under review his attention. “We want to pursue this, dropped by 11 percent to N275 and actually if this is the billion, which is also the lowest only thing the 9th National recorded in five years. Trailing closely on the Assembly will succeed in achieving we would have VAT remittance decline was done a lot for this country,” the NCS import VAT which dropped by 6.27 percent to Shekarau said. N61 billion and also the lo•Continues online at cal non-import remittance www.businessday.ng which dropped minimally by

MODESTUS ANAESORONYE, Uyo

The NPF, IGP, the Nigerian Police Council, Minister of Police Affairs and the Attorney General of Police (AGF) were defendants in the case. However, Ekwo yesterday dismissed the PSC’s suit, stating that it lacked merit. The judge held that the plaintiff was unable to prove it has the power to recruit into the force and the court cannot ascribe to the plaintiff power it does not have. Ekwo said though the Police Act gave the PSC the power to promote, transfer, and discipline policemen, it does not confer on it the power to recruit except it is directed by the president of the country, otherwise the power to recruit rests with the Police Council which the IG heads. He, therefore, struck out the suit filed by the PSC to stop the ongoing exercise. “Consequently, I hold that it is the police council under the supervision of the Inspector General of Police that has the power to carry out recruitment into the police force. I hereby make an order dismissing the case for lacking in merit,” Ekwo held. He held that by the provision of Section 71 of the Police

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0.54 percent to N150 billion. An economic research report released by Renaissance Capital (RenCap), an investment and securities firm, stated that the closure of Nigeria’s land borders could lead to a slowdown in Nigeria’s economic growth in 2020. “We believe the pick-up in inflation, on the back of the border closures, will undermine confidence and demand in subsequent quarters,” the firm said. “This will also counter the positive impact of improving credit growth, resulting in a neutral impact on GDP growth.” According to the Lagos Chamber of Commerce and Industry (LCCI), the border closure by the Federal Government which commenced in August had a ripple effect across the sub-Saharan Africa, especially local producers and traders who are forced to use alternative routes for their exports. In addition to reducing trading activities, the border closure also contributed to the headline inflation which recorded the highest in 18 months. Due to the reduced trading activity, FG’s revenue also dropped which is evident from the tax remittance.

•Continues online at www.businessday.ng

Tuesday 03 December 2019

BUSINESS DAY

news FG cuts savings bond rates to record low... Continued from page 1

DMO, which is offering the retail product on behalf of the FGN, conducted its maiden savings bond auction. “The alternative to savings bond for retail investors is treasury bills which are currently at low-yield levels,” Omotola Abimbola, a micro and fixedincome analyst at Lagos-based Chapel Hill Denham said. He noted that “the DMO had to re-price the savings bonds lower to reduce the cost of borrowing for the Federal Government” following a “healthy retail participation”. The Federal Government’s plans to cut its borrowing cost and ramp up its revenue collection have led the CBN to restrict participation in its Open Market Operations (OMO) to foreign investors and local banks, a move that left individual and non-bank local corporate investors searching for alternative investable options to reinvest proceeds of OMO maturities. Consequently, investors rotated into treasury-bills market, forcing interest rates on T-Bills at the last auction to crash to 6.495 percent, 7.23 percent, and 8.37 percent on the 91-day, 182-day and 364day papers, respectively, the lowest since January 6, 2016. The average discount rate on the bills at the secondary market also declined to 6.86 percent last week from 12.25 percent a month earlier. Similarly, rates on FGN savings bonds trading at the FMDQ have declined within the past month. For instance, the yield on 13-DEC-2019 maturity fell to 5.99 percent on November 29 from 12.39 percent at the close of business on September 20, while the yield on 16-AUG-2022 maturity declined to 11.58 percent from 14.23 percent within the same period. “What we do with those

bonds is pricing,” Patience Oniha, director-general of DMO, had said while explaining the rationale behind changes in auction rates in an exclusive chat with BusinessDay. “We look at what our benchmark bonds are trading at FMDQ, and we apply that.” The state-funded debt agency said the subscription of the savings bonds, which commenced on Monday, December 2, is expected to end on Friday, December 6 with a settlement date of December 11, 2019. Furthermore, the DMO noted that the two-year tenor will be due on December 11, 2021, while the three-year savings bond will mature on December 11, 2022. Also, interest payment on the instruments will be made every quarter on March 11, June 11, September 11, and December 11. The bonds are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter. But that’s limited to a maximum subscription of N50 million. The DMO assured that the bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of the country, implying there is no risk of default. However, the debt agency said those investors who do not wish to hold on to the securities till the maturity date can trade their investments at the secondary market as the securities will be listed on the Nigerian Stock Exchange. The DMO noted that the bond qualifies as securities in which trustees can invest under the trustee investment act; government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds, amongst other investors; and as a liquid asset for liquidity ratio calculation for banks.

Kayode Pitan (l), managing director/CEO, Bank of Industry (BoI), and Akinwunmi Adesina, president, Africa Development Bank, at the signing of the Expression of Interest between Bank of Industry and the African Development Bank Group to implement the “Affirmative Finance Action for Women in Africa” programme to support women businesses in Nigeria held in Kigali, Rwanda.

Without reforms Nigeria will harbour... Continued from page 1

Crude theft persists despite ... Continued from page 38

contracts function as a palliative for reduced, diverted or discontinued Presidential Amnesty Programme (PAP) payments because when such contracts end, ex-militants feel at liberty to engage in pipeline sabotage and related criminal activities once again,” Charles Akinbobola, an energy research analyst at Sofidam Capital, said. A research report by Stakeholders Democracy Network (SDN), a nongovernmental organisation established to support those affected by activities in the extractive sector and weak governance, described the concept of pipeline surveillance contracts in the Niger Delta as a misnomer. SDN noted that contractors

were rarely involved in any actual surveillance; instead, the NNPC uses these contracts as disguised “payment for peace” to agitating groups, and as patronage to political allies. “Pipeline surveillance contracts have similar short-term effects as amnesty programme payments to ex-agitators. They are not sustainable, especially as they are not part of a more holistic security and development plan,” said the report titled ‘Pipeline Surveillance Contracts in the Niger Delta’. The SDN report noted that the value of security contract does not relate to the surveillance costs or replacement value of that infrastructure, or some other quantitative measure.

•Continues online at www.businessday.ng www.businessday.ng

capital and infrastructure, it said. This edition of the Nigeria Economic Update (NEU)

discusses selected reform areas, including leveraging trade integration to harness the benefits of the Africa Continental Free Trade Area; improving basic education financing to improve human capital outcomes; monitoring the impact of conflict on household’s welfare to protect the poor and vulnerable; and leveraging digital technologies to diversify the economy and create jobs for young workers. Reforms in these and other areas would enable Nigeria to strengthen its macroeconomic resilience and promote private sector resilience. The report titled “Jumpstarting Inclusive Growth: Unlocking the Productive Potential of Nigeria’s People and Resource Endowment” notes that Nigeria’s labour force is growing rapidly, as over 5 million Nigerians entered the labour market in 2018, resulting in 4.9 million more unemployed people in the last year. According to the report, between the first quarter of 2017 and the first quarter of 2018, 10 states saw some positive job creation, but the number of new jobs was not enough to absorb the new entrants into the labour force. The situation improved by the third quarter of 2018 as four states (Lagos, Rivers, Enugu, and Ondo) created more jobs than the entrants to the labour market, and as a result reduced unemployment. Marco Hernandez, World

Bank lead economist, speaking at the launch of the update in Abuja, stressed that Nigeria’s economy has remained vulnerable to external and domestic risks with the absence of structural reforms. This is as the economy is confronted by the sharper-than-expected slowdown in the global economy as well geopolitical and trade tensions. “Domestically, the main risk is associated with the degree of predictability of macroeconomic policies, the pace of structural reforms, and the country’s security situation. The economy’s sensitivity to volatile oil markets is a major cause of uncertainty and a disincentive to long-term investment,” Hernandez said. Hernandez said that though the economy has recorded growth, it is not as fast as expected as it cannot meet the need of the nation’s population, emphasising the need for the government to help the private sector to create job. “Building reform momentum is essential to mitigate risks and promote faster, more inclusive and sustainable growth that improves living standards and reduces poverty,” Hernandez said. “Robust growth and job creation will require strengthening macroeconomic management while increasing fiscal revenues to attenuate the impact of oil-sector fluctuations and advance much-needed investments in human capital and infrastructure.” He further said the productivity gap between Nigeria and comparator countries reflects

IGP, not PSC, has power to recruit police... Continued from page 38

Act, it was the Nigeria Police Council under the leadership of the IGP that was empowered with the enlistment of rank and file in the force. The judge further held that the law guiding the enlistment of constables into

the NPF was the Nigeria Police Regulations of 1968, issued by the Nigerian president in accordance with the provisions of Section 46 of the Police Act 1967 (No 41), providing for the organisation and administration of the police force.

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both its lower relative stocks of physical and human capital and the inefficiency with which inputs (capital and labour) are transformed into outputs. Shubham Chaudhuri, World Bank country director for Nigeria, in his remark said the report is aimed at promoting ways to boost the productivity and resilience of the Nigerian economy, as well as increasing productivity which is vital to support robust growth and job creation in the country. “Building on recent efforts, going forward we recommend actions in priority areas, including increasing fiscal revenues and improving the quality of spending to manage oil-sector volatility, investing in muchneeded human capital and infrastructure, and improving the business climate to unlock private investment and tackle Nigeria’s jobs challenge,” Chaudhuri said. “Leveraging trade integration to harness the benefits of the Africa Continental Free Trade Area; improving the efficiency of spending in education; monitoring the impact of conflict to protect the poor and vulnerable; and leveraging digital technologies to diversify the economy and create jobs for young workers are ways to boost productivity and resilience in the economy,” he said. Chaudhuri said while Nigeria has achieved considerable progress in boosting income levels and living standards, it has not yet managed to reach a convergence path with advanced economies. He stressed the urgent need to create jobs by effectively maximising the available re-

sources, human capital and infrastructure as well as ensure environment conducive for entrepreneurs and investors thereby unlocking the private sector financing. Tunde Fowler, executive chairman, Federal Inland Revenue Service (FIRS), said the report points to the need for collaboration among the state and federal governments regardless of the constituted independent nature of states. ”Nigeria has been the first market in Africa as it is a consumer economy, but we need to change this narrative and take advantage of our resources, both capital, land and human resources to create the economy we desire,” Fowler said. “The Federal Government cannot do it alone. If we have more cooperation among the federal and state governments, we would achieve more growth in the nearest future.” Abubakar Atiku Bagudu, governor of Kebbi State, said the report which speaks to the need to ensure inclusive growth in Nigeria brings out the quantum of challenges in the country and the need to mobilise and make effective use of its resources. “It is important for the government to promote policies that will reward the hard work of our hardworking men and women in the various sectors. This will deliver value to everyone,” he said. Bagudu said that crisis and insurgencies recorded across the country have to do with lack of inclusion, adding that the government as well as all development bodies should promote programmes that would boost inclusion across the country.

According to the judge, there is nothing in the documentary evidence placed before the court by the PSC to support its claims that the IGP has usurped the powers of the commission in the enlistment of rank and file into the Nigerian police. Justice Ekwo said that though counsel to the plaintiff had defined the

w o rd “ re c r u i t m e nt ” t o mean “appointment”, the definition of recruitment in Chapter 1 (2) number 02, 03, 01 of the Public Service Rule 2008 edition is not in total agreement with the legal framework of the 1st defendant.

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•Continues online at www.businessday.ng

Tuesday 03 December 2019

BUSINESS DAY

POLITICS & POLICY African politicians replacing military coup with political coup d’état - Jonathan IDRIS UMAR MOMOH, Benin

ormer President Goodluck Jonathan has accused African politicians of replacing military coup with civilian coup d’état. Jonathan spoke during the 17th convocation ceremony of Igbinedion University, Okada, Edo State after being conferred with the honorary Doctor of Science. The former president, who lamented the spate of killings and destruction of properties during elections on the Africa continent, noted that the development cannot sustain the continent. He also noted that something is fundamentally wrong with the continent’s political system. “Let me plead with my fellow politicians, they should stop killing people, destroying properties because people want to own offices. What happened in the last governorship elections in my state, Bayelsa and Kogi States, especially in Kogi State when a young lady was burnt alive in her house; something that should not happen in any

normal nation. Something is fundamentally wrong with our political System,” he said. “Only yesterday in one of the Africa countries, we were discussing the politics of our continent, most of us former Heads of State, former presidents and former vice presidents, we begin to see that the way African politics is going, we are replacing

military coup with political coup d’état and that cannot sustain the continent,” he further said. Jonathan however, charged Nigerian youths, especially the gradaunds of the University to go out and play a significant role in the development of the nation and the global world. He opined that “what makes

you is not the temporary position we gain through politics. These are very ephemeral and not significant.” While positing that nobody notices an individual after he or she leaves office, he added that “your creative ability is the only thing that can sustain anybody in life if God gives you that talent in any form, that is what sustains you; that

L-R: Ebere Ifendu, president, Women in Politics Forum; Bisi Fayemi, first lady Ekiti State/president African Women Development Fund; Abiodun Olujimi, former Senate minority leader and Josephine Anenih, former minister of Women Affairs and Social Development, during the National Women’s Dialogue, the Womanifesto 2019, themed ‘The Nigeria Women Want’ held in Abuja. picture by TUNDE ADENIYI.

is what makes you important. That is what you will live with until you die.” He further explained that his administration established 12 conventional universities and two speciliased universities because of the premium the administration attached to education He however, urged the founder of the university, Gabriel Igbinedion to resuscitate his moribund Okada Airlines, noting that the nation’s aviation sector needs expansion. Earlier, the chancellor of the university, Gabriel Igbinedion announced the naming of the institution’s College of Arts and Social Science after the former president. Igbinedion assured that the students of the college will be proud of the now Goodluck Jonathan College of Arts and Social Science. The chancellor, who however, was worried over the huge deficit of medical professionals in the country, called on the Medical and Dental Council of Nigeria (MDCN) to as a matter of urgency; consider increasing the admission quota for the institution as well as other medical schools in the country.

He said the call became necessary due to the huge deficit of medical professionals in the country. He said that out of the over 82,000 doctors so far inducted by the medical and dental council of Nigeria, over 1000 of them graduated from the university. In his speech, Lawrence Ezemonye, the vice chancellor of the university, said the institution had since its inception in 1999 graduated a total of 10,032 first degrees and 645 postgraduates. He added that a total of 464 students spread over seven colleges with 17 first class, 173 second class upper, 161 second class lower and three third class graduated in this year convocation. He also disclosed that a total of 123 bagged post graduate degrees, comprising five postgraduate diplomas, 87 masters and 31 PhDs. Those conferred with honorary awards with the former president are Oba Saheed Ademola Elegushi with Doctor of Public Administration, Sow Bertin Agba, a Togolese, with Doctor of Business Administration and Jalade Omotola Ekeinde, Doctor of Arts.

Sacked Oyo LG bosses cry out over Makinde’s plan to appoint replacement

ECOWAS identity card: Benin Republic begins census of nationals in Nigeria, Monday, Dec 2

…PDP says ‘sacked LG bosses benefitted from illegal elections’

REMI FEYISIPO, Ibadan

he Association of Local government Chairmen of Nigeria (ALGON), Oyo State has decried the planned appointment of caretaker chairmen for the 33 local government areas in the state by Governor Seyi Makinde. Makinde is to appoint caretaker chairmen for council areas and sole administrators for local council development areas this week. This is coming as the Oyo State chapter of the People’s Democratic Party (PDP) has described members of the sacked local government chairmen under the aegis of Association of Local Government of Nigeria (ALGON) as mere noise makers who want to keep benefiting from illegal conducts. The PDP in a statement by its State Publicity Secretary, Akeem Olatunji said that the ALGON members who were raising issues about Governor Seyi Mankinde’s

proposed composition of the Local Governments leadership as swimming against the tide of public opinion in the state. But a statement by ALGON Chairman in the state, Ayodeji Abass-Aleshinloye described the plan as tales by moonlight on grassroots democratic governance. According to Abass-Aleshinloye, the governor’s plan is a tale better told to the uninformed and co-deceptive wreckers of the democratic culture. The ALGON Chairman described democracy as a seed that germinates and develops on the practice and strict adherence to the rule of law and a willingness to entrench the democratic culture by its proponents. “So far, Gov. Makinde’s undemocratic disposition and flagrant disobedience, with impunity, of court orders by illegally dissolving constitutional bodies, elected democratic local government structures, breaches of contractual obligations www.businessday.ng

in Oyo State clearly show a despotic government. Perhaps, the governor may want democracy, but it appears his spirit is too weak to take the necessary courageous steps to be on the right path for its evolution”. Abass-Aleshinloye drew the governor’s attention to the subsisting judgments of the Supreme Court that declared as illegal, null and void, any dissolution of elected local government councils by state governors and state assemblies. “The governor is fully aware of this and the specific judgment of the Oyo State High Court, which re-emphasised same and restrained the Oyo State governor and House of Assembly from dissolving local governments”. However, according to the PDP, there is every need to reconstitute the leadership in the Local Governments and the LCDAs, noting that such step will be in the right direction and in satisfaction of the yearnings of a teeming majority of residents in the state.

o guarantee their security in the host country, the Republic of Benin will from Monday begin the census of her nationals all over Nigeria in compliance with the ECOWAS treaty. The Deputy General Secretary of Benin Government, Cyrille Govgbedji who announced this in Ibadan, Oyo State capital, told journalists that the census exercise will be flagged off simultaneously in Abuja, FCT and Saki in the Oke Ogun area of Oyo State. While the census will last three weeks, the objectives of the census, Govgbedji told newsmen that “is to make sure

that any Beninoise national resident in Nigeria has ECOWAS Identity Card to guarantee his or her stay in accordance with the existing statute.” In addition, he said, the Beninoise government wants to use the census to ensure how many of her nationals are resident outside the country to assist government in formulating her socioeconomic and budgetary planning. He submitted that “it is also for security in compliance with the laws of the host country to accord genuine resident permit to stay,” a statement which observers perceived as an apparent compliance with part of the conditions laid down by Nigerian government to Benin Republic for reopening of

New Taraba speaker receives names of commissioner - nominees Nathaniel Gbaoron, Jalingo

araba State House of Assembly on Monday elected Joseph Kunini as the new speaker, following the resignation of the former speaker,

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Abel Diah on Sunday evening. The House also elected Haman Adama as the new deputy speaker, while Douglas Ndatse was elected as the majority leader. At plenary on Monday, the House also received an executive communication @Businessdayng

the land borders closed since August this year. The Deputy General Secretary of Benin Government explained that leadership of Beninoise cultural organisations and town unions in Nigeria have been mobilised to ensure effective sensitisation of their members and ensure that they are well captured in the exercise by rallying them to participate effectively. While informing Beninoise nationals in Nigeria that lots of benefits are derivable from the exercise, Govgbedji urged them to give all the necessary support to the census officials who have already arrived at their various designated centres in thec36 states of the country and the FCT.

from Governor Darius Ishaku containing names of commissioner-nominees for screening by the House. Reading the communication, the new Speaker, fixed Tuesday for the commencement of screening of the 21 commissioner-nominees.

Tuesday 03 December 2019

BUSINESS DAY

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Tuesday 03 December 2019

BUSINESS DAY

news

NEWS ANALYSIS

The Nigerian dream and a damning reality OSA VICTOR OBAYAGBONA

oll a handful of Nigerians on what their biggest wish is and you would not be surprised by the consistency of their response: to ‘blow,’ ‘hammer,’ ‘arrive,’ all of which basically mean to succeed despite unfavourable odds. Challenges such as infrastructure gaps, poor governance, corruption and others have informed the adoption of the word ‘hustle’ for work, more often than not, because it adequately describes the feeling of always putting that extra effort to get results in a land of opportunities and poverty. In many instances, from automobile to fashion, and consumer goods, etc., Nigerians have defied the odds and put in the effort necessary to break barriers. However, recent discussions around the leak of an email purported to belong to a popular global carbonated soft drink maker, which planned on killing local rivals, brings into perspective an under-reported reality many indigenous businesses face competing in an unfair domestic market against big global brands. The email, which has gone viral on the internet and sparked a debate on capitalism in practice and the need to protect indigenous entrepreneurship as well as discussions around ‘hate speech,’ reads in part: “…it is extremely obvious to me that we are not yet ready for war By Any Means, but the encouraging news is that we have all the prerequisites to be ready Very Soon… in case we decide to change our mindset! (sic). The email continues : one company will Flourish, one will Diminish, one will Finish. B-brand disruptive business model will either become a temptation for anyone who has a bit of money to start own brand in Nigeria, or it will become a curse that ensures no one takes such a decision again!!! The email ordinar ily should be nothing more than a corporate entity charging executives and leadership to improve performance, which should mean more intense market competition with advantage to consumers. Instead, the email reads, “Let me start by explaining the competitive playground once again. This season is not like any other, so the mindset of growing vs last year, achieving budget, business as usual cost management etc Will Not Work!!!! The outcome of this season Must write the future and destiny of the 3 major competitors, along with the future of Bbrand industry (Bigger pack and lower price concept)

disruptions in Nigeria”. The ‘kill that brand’ tone is not as pleasant as even in the most capitalistic markets, the fear of monopoly is the beginning of wisdom. With a strategy to kill ‘diminish and finish’ competition in an oligopolistic market (one with already limited competition), traditional economics show that the welfare of the consumers will be jeopardised eventually. On the short run, executing the ‘kill them’ strategy would present the illusion of better products or services from the aggressor, however, with rivals gone, there would no incentive to keep offering quality products at fair or competitive rate because consumers do not have any alternative or in some cases, choice. This realisation has seen the US, the gold standard for capitalism, ordered the breakup of many big corporations over the years to encourage competition in the market. Some of these instances include Microsoft and Standard Oil Company, among others. Early this year, the Federal Competition, Consumer Protection Act 2019 was introduced to encourage greater market competition, fair play ground and healthy rivalry. In the 80s, Canada Dry brand was franchise brought into Nigeria by the Igbinedion family and the brand enjoyed quite a reception, especially in the South South until it was mysteriously phased out. This raises the question of how many local ideas have surmounted problems of infrastructural deficit and other typical challenges only to be silently killed by bigger brands, especially multinationals that have the resources to do so. A strong implication of a move to wipe out indigenous brands by cash-rich foreign established counterparts is the effect on the local entrepreneurial spirit. Given the limited means in the country, local risk-takers who find gaps in markets already dominated by foreign players would find it difficult to grow and many ideas would seek other climes (maybe Canada) where they can thrive. This has severe implication on local employment, wealth creation and distribution, the viability of SME sector and undermines economic growth. The Nigerian dream is about opportunities that would be non-existent if market leaders abuse their power to kill rivals, especially through unethical means. While it is not wrong for corporates to have strategies to grow in the market, competition should be stimulating and not destructive.

L-R: Charles Obafemi, business head marine, CFAO Yamaha; Victor Momodu, marketing head, CFAO Yamaha; Akeem Odusina, head of public affairs, LAGFERRY; Ueguchi Hideki, technical director, CFAO Yamaha; Ibrahim Famuyiwa, operations manager, LASWA, and Ian Appleby, managing director, SEWA West Africa Limited, at a seminar on the Future of Marine Transportation Business in Lagos, organised by CFAO Yamaha Motor Nigeria in partnership with Lagos State Waterways Authority (LASWA), at LASWA Yard, Falomo, Lagos.

Six months after, Bayelsa airport fails to kick off over absence of perimeter fencing … security arrangement across airports receives commendations IFEOMA OKEKE

igerian Civil Aviation Author ity (NCAA) has shed light on why full commercial flight operation is yet to commence in Bayelsa Airport despite its inauguration about six months ago. Abdullahi Sidi, acting director-general, NCAA, in an interview with aviation correspondents at his office at the Murtala Muhammed Airport (MMA), Lagos, on Monday said absence of adequate perimeter fencing at the airport prevented the regulatory authority from issuing it certification.

Sidi, however, assured that once the perimeter fences were perfected, NCAA would not hesitate to issue it certificates for commencement of operations, stressing that the government would not compromise security. He said: “Somebody called me on the issue of Bayelsa Airport, then, after I did my own investigation. Perimeter fencing is number one requirement for any airport, which is safety. Someone said the government has done about 60 per cent of the perimeter fencing and said the other side of the airport is creek, but I said that is not acceptable to aviation industry.

EFInA, FSI, Omidyer Network launch Sandbox at financial inclusion conference 2019 GBEMI FAMINU

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he Financial Services Innovation Association (FSI), supported by the Nigeria Inter-Bank Settlement Systems plc (NIBSS), Enhancing Financial Innovation and Access (EFInA) and Flourish (a member of the Omidyar Network), will launch the first Industry Innovation Sandbox in Nigeria. The conference will take place in Lagos, December 9, at the Eko Hotel and Suites from 8.30am. The Industry Innovation Sandbox is intended to lower the barriers to innovation in the fintech industry for young innovators across the country in our drive to make Nigeria a global leader in financial services innovation, they say. As the Nigerian fintech landscape has burgeoned in the last several years, developers have increasingly han-

kered for a safe environment to test the viability of their ideas and products, rather than immediately launching into protracted integration and licensing discussions with commercial banks and regulators, respectively. With the innovation, sandbox start-ups will be able to access national infrastructure, national identity, bank and telco APIs from partners like NIBSS. According to Iyin Aboyeji, chairman of FSI, the developers will be able to test their ideas in the sandbox and then decide whether to be a fullfledged fintech company licensed by the CBN or position themselves for partnership or acquisition by an existing licensed financial services provider. Whatever their decision the FSI will provide support and guidance that ensures the most innovative products come to life.

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“Perimeter fencing is the only thing remaining for Bayelsa Airport. There is no politics about it. That is the requirement. And anything security is taken seriously. It is a security issue. If we need to close an airport because of security issue, we will until they comply.” This is as the security arrangements at major Nigerian airports received commendations from the regulatory body, but said the current status could still be improved upon. He also lauded the Federal Airports Authority of Nigeria (FAAN) for providing quality security systems at

the nation’s airports, particularly the international aerodromes. He said despite some of the teething challenges at the airports, the major aerodromes - Lagos and Abuja - had continued to receive high ratings in the area of security in international community. Sidi, who is also the director of Operations and Training, NCAA, explained that Lagos and Abuja airports had consistently scored over 90 percent in international security audits, stressing that the government was focusing on security and safety at the nation’s airports.

FG committed to road infrastructure development via PPP - Fashola HARRISON EDEH, Abuja

inister of Works and Housing, Babatunde Fashola, says the Nigerian government is committed to entrench the Public Private Partnership (PPP) arrangement to improve road infrastructure in Nigeria. The minister spoke at a workshop on Nigeria - South Africa Road Transport Infrastructure and PPP Collaboration Initiative held in Abuja on Monday. Fashola was represented at the event by the Minister of State for Works and Housing, Abubakar Aliyu. The workshop, the ministry explained in a statement, was organised under the auspices of the office of the Secretary to the Government of the Federation (SGF) in partnership with the Infrastructure Concession Regulatory Commission (ICRC), Development Bank of South Africa (DBSA), Federal Road Maintenance Agency (FERMA) and South African National Roads Authority @Businessdayng

(SANRAL). While commending the ICRC for its commitment to increasing infrastructure investment in Nigeria, Fashola also appreciated other partners for organising the workshop, adding that his ministry was in alignment with the objectives of the initiative He explained that the workshop would provide an opportunity to expand West African roads and rail infrastructure, thereby improving the socio-economic wellbeing of the people. Accordingly, the minister assured that the government would continually support the PPP and improve private sector participation, pointing out that government was already engaged in many PPP investments in the country. Also in his earlier remarks, Chidi Izuwah, had listed the benefits derivable from the provision of roads infrastructure he said among others include - creation of jobs, boosting production, creation of industrial parks, springing up of new residential areas and township.

Tuesday 03 December 2019

BUSINESS DAY

news

INSIGHT

Dapo Abiodun: Six months of giant strides in Ogun Kunle Somorin

ot many Nigerians would have failed to notice the highly significant event that happened in Ogun State shortly after the current state governor, Dapo Abiodun, assumed office. On the Lagos/ Ibadan expressway, some pastors of the Redeemed Christian Church of God (RCCG) had been kidnapped, but the governor was attending a retreat in Abuja. So, what did he do? He asked President Muhammadu Buhari’s permission to leave the meeting, got the president to release a helicopter for aerial surveillance, and headed back to Ogun. Within a few hours, seeing the artillery mounted in the skies, the assailants buckled and panicked, and all the hostages were rescued, including others that were not previously known to be in the kidnappers’ den. This event, just one out of very many, is an eloquent testimony to the fact that good governance is currently ongoing in Ogun State. Consider the scores of souls that have perished in forests across the country while some governors dithered, spewing empty rhetoric as bandits committed murder and rape with reckless abandon. Significantly, Governor Abiodun did not hype that incident, content with the fact that he had done what the law and duty apportioned to him. Such a noble approach however often serves only as weapons in the hands of the purveyors of fake news. a prime example is one Segun Sowunmi’s latest two diatribes casting the Ogun helmsman in the mould of a failure in six months. Tactlessly insulting Oyo State in the bid to prove Ogun exceptionality, the writer claimed that Abiodun is running an “all-inclusive (sic), now clearly cosmetic, uninspiring administration.” Of course, there are those who, without any introspection, would ingest his spin hook, line and sinker. While the writer is, like every citizen, qualified to criticize, even rebuke, the governor, I do not think he has a duty to ignore facts, even if he is only intent on undue attention, in doing so. And so his qualms, built on fancy rather than facts, need not detain us further as we show, with ample evidence, why Dapo Abiodun may yet be the best governor that Ogun has had since the return to civil rule. Security, as everyone knows, is the raison d’etre of the state, yet it is a fact that when Abiodun resumed at Oke Mosan, law enforcement agencies did not have good equipment in place, meaning that the Commissioner of Police could not readily engage his counterpart in the military or Department of State Service (DSS). Governance being problemsolving, Abiodun did not whine about this: he set to work immediately, sourcing and providing the needed equipment. He also purchased 100 ‘4x 4’ patrol vehicles and 200 motorcycles to aid the police in their work. Apparently enthralled by his strides in security, the Business Day Research and Intelligence Unit gave Ogun an award: The Most Improved State On Security. That was not fortuitous, re-

ally: when in Lagos between 1995 and 1997, car snatchers from neigbouring Republic of Benin put Lagos under siege, it was to him that the state turned for relief. His two major interventions, the vehicle tracking system and Alarm Network, an initiative that led to the Rapid Response Squad project, quickly passed the message that there would be no escape route for robbers, as the criminally-minded in Ogun must be finding out right now. The Ogun helmsman apparently does not subscribe to the pernicious practice of window-dressing state capitals while leaving other parts of the state to rot. Through the newly set up Ogun State Public Works Agency, roads that were hitherto a nightmare to motorists are now being rehabilitated, and this is being done simultaneously in all the local government areas of the state. Go to Otta, go to Ifo, go to Abeokuta, Sagamu and IjebuOde; the roads are being worked on with renewed vigour, especially now that the rainy season is gone. Again, it is doubtful that any right-thinking person would find fault with the rehabilitation of 236 schools, one school per ward, across the state. Is that not better than building a few mega schools in major towns and leaving the majority of schools in the state to rot? How can it be a crime that there is no ward without government’s educational presence in Ogun State? Has the revocation of the N3,700 education levy per pupil not alleviated the suffering of parents in the state? In the last six months, the Ogun governor has approved the years 2016 and 2017 promotion of over 10,000 teaching and nonteaching staff in public schools, resolved the MAPOLY crisis and ensured its re-accreditation; implemented the recommendations of the visitation panel on the Tai Solarin College of Education (TASCE), including appointment of a Governing Council, and established a Government Delivery Unit for Education, among others. The job portal which seems to be giving critics nightmares was put up to determine the number of underemployed and unemployed youths in Ogun State. Within three weeks, it recorded over 120,000 names. Businesses operating in the state post vacancies on the portal, and a local content law is afoot that will stipulate that a certain minimum of companies’ staff must be Ogun State indigenes. Besides, skills acquisition centres have been set up across the state, the first being the Tech hub in Kobape, Abeokuta. The technology hubs have been set up to rejig ICT across the state and confirm the premium position of the state in digital economy. In fact, the Federal Ministry of Communications and Digital Economy rated Ogun as the Best State In ICT Penetration And Adoption. In any case, in partnership with the Central Bank of Nigeria, the Anchor Borrowers Scheme is on course to produce Ogun agricpreneurs. Continue online @ www.busi-

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Somorin is Chief Press Secretary to the Ogun State governor www.businessday.ng

Mobile money experts point ways to deepen last-mile financial inclusion in Nigeria Jumoke Akiyode-Lawanson

he burden of delivering financial inclusion to the last mile has become one that needs the strategic participation of all industry stakeholders in the ecosystem, so as to deliver value propositions that will deepen financial services culture for the benefit of the citizenry. These were the views of participants at the 2019 Mobile Money Conference organised by Association of Licensed Mobile Payment Operators (ALMPO) in Lagos, recently. Speaking on the theme, “Beyond Payments,” Chinedu Onuoha, chairman, ALMPO, noted that the aims of financial inclusion should not be limited to making and receiving payments. He stated that financial services should be made to cover

areas germane to the needs of the average citizen, if the sector was to achieve the objectives of financial inclusion. “The theme of this year’s conference aptly captures the general direction of the industry. We are of the opinion, and rightfully so, that for the objectives of financial inclusion to be realized, we must go beyond payments, as we try to attract more people into formal financial services. “We are aware that the financial needs of the average citizen are much more than pay and receive. People want to save and earn interest. They want to participate in pensions; they need some form of insurance, and many more. We also know that for all of this to be realised, there must be adequate security and trust in the system,” Onuoha said.

As a way forward, the chairman of ALMPO said that collaboration of security agencies and other government departments would create the right synergy that would secure the payment system and provide adequate protection to operators as they go about their business. Aishah Ahmad, deputy governor, financial systems stability, Central Bank of Nigeria (CBN), said Mobile Money (MM) was vital to CBN as a regulator and as such, the bank was open to suggestions on the way forward, without holding on to rigid regulations. Ahmad who was represented by Aisha Isa-Olatinwo, assistant director, payments system management department, CBN, noted that since estimated reports show that Nigeria has over 100 million unique mobile numbers, if mobile money operations

work properly, there will be over 100 million subscribers. Using Kenya as an example of mobile money success, Uzo Eziukwu, group CEO, BlueTag Group, in a keynote address said that mobile money was fast becoming Africa’s legacy to the world, as MPESA in Kenya is doing about 1.7 billion transactions per year and making up to 50 percent of Kenya’s GDP. He revealed that there are over 120 Mobile Money Operators (MMOs) in sub-Saharan Africa (SSA), and they came into Nigeria in 2010 with a focus to drive financial inclusion and as an adjunct to mainstream banking. Also speaking, Olayinka David-West, a professor and academic director, Lagos Business School, decried the low adoption rate of mobile money in the country.

L-R: Eric Fantodji, general manager, Suzuki, CFAO Motors; Etop Ikpe, CEO, Cars45; Mayokun Fadeyibi, vice president, C2B Services, and Mohammed Iyamu, vice president, B2B Services, at the Cars45Suzuki partnership event held at the Suzuki Place in Lagos.

Access Bank named Most Outstanding Company in Sustainability in Africa SEGUN ADAMS

ccess Bank has cemented its position as the leader in Sustainability in Nigeria, winning its third consecutive ‘Most Outstanding Company in Sustainability in Africa’ award at the SERAS CSR Awards Africa. The bank was recognised for its efforts in promoting sustainability in its business operations and contributing to positive development across the various communities it serves. Receiving the award, Omobolanle Victor-Laniyan, the bank’s head of sustainability, credited the leadership of the bank for its sustainability vision and unwavering support in the development and execution of ground-breaking projects. “We are delighted to be recognised as the ‘Most Outstanding Company in Sustainability in Africa’ for the third consecutive time. This award speaks to the effort of our team and the support we receive from the

leadership of the bank, starting at the Board level. We feel motivated to sustain this level of excellence, knowing our efforts in conceptualising and implementing ground-breaking sustainability projects will go a long way in helping us achieve the 2030 Sustainability Development Goals,” she said. Other award recognitions received by the bank include the ‘Best Company in Partnership for Development,’ ‘Best Company in Climate Action,’ ‘Best Company in Sustainability Reporting,’ and ‘Best Corporate Communications Team Award.’ The annual SERAS CSR Awards Africa, now in its 13th edition, has grown to become the prime corporate awards promoting and measuring corporate social responsibility and sustainability in Africa. Key industry stakeholders rate it as the industry gold standard recognition for impactful investment in CSR and sustainability. It is the biggest event on the CSR & Sustainability calendar in Nigeria and Africa.

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BoI, AfDB sign pact on $3bn funding for women entrepreneurs ODINAKA ANUDU

ank of Industry (BoI) and the African Development Bank (AfDB) have mutually agreed to mobilise $3 billion to support women empowered businesses. The funding incentive, a brainchild of the AfDB’s affirmative Finance Action for Women (AFAWA), is a pan-1African initiative aimed at bridging the financing gap facing women on the continent. Both the BoI and the AfDB share similar focus of promoting industrialisation and economic growth by providing financial and funding support to entrepreneurs. The expression of interest, which was signed on Monday, will enable the two development financial institutions collaborate in addressing the financing gap for women enterprises by supporting AFAWA activities of bridging the $46 billion women financing gap, engaging in policy dialogue to create enabling environment for women empow@Businessdayng

ered businesses and developing appropriate frameworks for the smooth implementation of the programme. AFAWA programme objective is to bridge the gender gap to finance through three pillars of access to finance, provision of advisory services to financial institutions to ensure successful implementation of dedicated women programmes including strengthening the capacity of women entrepreneurs through training to enhance business productivity and growth. It also includes provision of an enabling environment through engagement with African governments and other key stakeholders to support legal, policy regulatory reforms and strike down the structural barriers impeding women empowered businesses. It will be recalled that in its bid to promote women entrepreneurship, the BoI established a gender directorate resource with 22 billion facilities to provide financial and non-financial services to empower women businesses.

Tuesday 03 December 2019

BUSINESS DAY

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Tuesday 03 December 2019

BUSINESS DAY

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Tuesday 03 December 2019

BUSINESS DAY

Live @ The STOCK Exchanges Prices for Securities Traded as of Monday 02 December 2019 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 327,016.08 9.20 -0.54 193 10,130,520 UNITED BANK FOR AFRICA PLC 239,395.95 7.00 -0.71 185 11,969,762 ZENITH BANK PLC 583,974.78 18.60 0.54 388 21,778,753 766 43,879,035 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 240,498.46 6.70 1.49 191 15,192,967 191 15,192,967 957 59,072,002 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,442,541.57 120.00 - 135 910,850 135 910,850 135 910,850 BUILDING MATERIALS DANGOTE CEMENT PLC 2,436,792.56 143.00 0.14 107 2,468,451 LAFARGE AFRICA PLC. 225,509.14 14.00 - 78 1,603,799 185 4,072,250 185 4,072,250 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 323,467.98 549.70 - 3 210 3 210 3 210 1,280 64,055,312 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,710.00 85.50 - 2 1,500 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,175.81 40.70 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 11,873.80 4.45 - 2 474 4 1,974 4 1,974 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 0 0 0 0 4 1,974 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 OKOMU OIL PALM PLC. 47,361.63 49.65 - 11 5,512 PRESCO PLC 37,850.00 37.85 - 15 44,134 26 49,646 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 8,520.00 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,530.00 0.51 - 20 1,198,700 20 1,198,700 46 1,248,346 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 953.02 0.36 - 0 0 JOHN HOLT PLC. 217.92 0.56 - 0 0 S C O A NIG. PLC. 1,903.99 2.93 - 0 0 TRANSNATIONAL CORPORATION OF NIGERIA PLC 40,647.99 1.00 -0.99 37 1,536,458 U A C N PLC. 21,033.47 7.30 -8.75 121 6,513,799 158 8,050,257 158 8,050,257 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 25,080.00 19.00 - 1 9,000 ROADS NIG PLC. 165.00 6.60 - 0 0 1 9,000 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 2,598.40 1.00 - 2 9,540 2 9,540 3 18,540 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 7,986.09 1.02 - 0 0 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 67,901.87 31.00 - 53 455,093 INTERNATIONAL BREWERIES PLC. 85,958.62 10.00 6.38 18 728,735 NIGERIAN BREW. PLC. 408,241.85 51.05 -0.10 75 12,045,960 146 13,229,788 FOOD PRODUCTS DANGOTE SUGAR REFINERY PLC 165,600.00 13.80 - 39 255,060 FLOUR MILLS NIG. PLC. 74,831.93 18.25 - 38 154,313 HONEYWELL FLOUR MILL PLC 8,723.22 1.10 2.80 15 1,444,309 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 0 0 NASCON ALLIED INDUSTRIES PLC 37,092.14 14.00 - 9 38,379 UNION DICON SALT PLC. 3,321.07 12.15 - 0 0 101 1,892,061 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 18,594.20 9.90 - 12 49,431 NESTLE NIGERIA PLC. 1,070,085.94 1,350.00 - 43 36,801 55 86,232 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 4,878.29 3.90 - 28 498,011 28 498,011 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 20,845.00 5.25 - 29 140,340 UNILEVER NIGERIA PLC. 101,686.60 17.70 9.94 28 400,358 57 540,698 387 16,246,790 BANKING ECOBANK TRANSNATIONAL INCORPORATED 128,446.86 7.00 - 28 182,242 FIDELITY BANK PLC 60,557.33 2.09 1.95 95 6,510,290 GUARANTY TRUST BANK PLC. 891,764.73 30.30 -0.49 136 7,128,459 JAIZ BANK PLC 19,446.40 0.66 -1.52 35 2,070,267 STERLING BANK PLC. 59,020.36 2.05 4.06 12 298,939 UNION BANK NIG.PLC. 203,845.27 7.00 - 27 310,290 UNITY BANK PLC 7,598.07 0.65 -8.45 7 284,282 WEMA BANK PLC. 28,159.36 0.73 1.39 24 896,523 364 17,681,292 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 4,851.14 0.70 1.43 33 2,518,485 18,900.00 1.80 5.88 13 1,613,766 AXAMANSARD INSURANCE PLC CONSOLIDATED HALLMARK INSURANCE PLC 3,170.70 0.39 - 4 50,000 CONTINENTAL REINSURANCE PLC 22,820.04 2.20 - 0 0 CORNERSTONE INSURANCE PLC 10,752.54 0.73 -7.59 7 1,366,598 GOLDLINK INSURANCE PLC 909.99 0.20 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 1,904.09 0.26 - 5 237,800 LAW UNION AND ROCK INS. PLC. 3,050.39 0.71 9.23 6 2,281,949 LINKAGE ASSURANCE PLC 4,080.00 0.51 - 2 20,906 MUTUAL BENEFITS ASSURANCE PLC. 2,234.55 0.20 - 3 814,300 NEM INSURANCE PLC 10,561.01 2.00 - 4 120,778 NIGER INSURANCE PLC 1,547.90 0.20 - 0 0 PRESTIGE ASSURANCE PLC 2,745.10 0.51 - 0 0 REGENCY ASSURANCE PLC 1,333.75 0.20 - 7 1,517,550 SOVEREIGN TRUST INSURANCE PLC 1,668.16 0.20 -9.09 6 863,100 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 0 0 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 2,773.33 0.20 - 2 104,650 WAPIC INSURANCE PLC 4,817.79 0.36 -5.26 26 833,108 118 12,342,990 MICRO-FINANCE BANKS NPF MICROFINANCE BANK PLC 2,538.17 1.11 - 4 52,000 4 52,000

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MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,200.00 1.00 - 0 0 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 INFINITY TRUST MORTGAGE BANK PLC 5,796.93 1.39 - 0 0 RESORT SAVINGS & LOANS PLC 2,265.95 0.20 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 0 0 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,400.00 4.20 - 51 359,104 CUSTODIAN INVESTMENT PLC 35,291.19 6.00 - 12 81,416 DEAP CAPITAL MANAGEMENT & TRUST PLC 660.00 0.44 - 0 0 FCMB GROUP PLC. 37,625.15 1.90 -5.47 166 97,771,849 ROYAL EXCHANGE PLC. 1,234.89 0.24 4.35 10 1,023,430 STANBIC IBTC HOLDINGS PLC 399,562.19 38.15 - 12 7,550 UNITED CAPITAL PLC 13,800.00 2.30 -2.13 61 6,573,869 312 105,817,218 798 135,893,500 HEALTHCARE PROVIDERS EKOCORP PLC. 1,994.40 4.00 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 852.75 0.24 - 3 66,000 3 66,000 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 494.58 0.50 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 7,823.85 3.75 - 4 11,250 GLAXO SMITHKLINE CONSUMER NIG. PLC. 7,175.26 6.00 -4.00 12 149,786 MAY & BAKER NIGERIA PLC. 3,536.73 2.05 - 7 44,400 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1,386.38 0.73 - 4 63,250 NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 325.23 1.50 - 2 52,260 PHARMA-DEKO PLC. 29 320,946 32 386,946 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 923.52 0.26 8.33 12 8,211,977 12 8,211,977 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 NCR (NIGERIA) PLC. 486.00 4.50 - 0 0 TRIPPLE GEE AND COMPANY PLC. 316.77 0.64 - 0 0 0 0 PROCESSING SYSTEMS CHAMS PLC 1,784.50 0.38 8.57 35 2,530,394 E-TRANZACT INTERNATIONAL PLC 9,996.00 2.38 - 0 0 35 2,530,394 TELECOMMUNICATIONS SERVICES AIRTEL AFRICA PLC 1,123,311.48 298.90 - 7 38,795 7 38,795 54 10,781,166 BUILDING MATERIALS BERGER PAINTS PLC 2,173.68 7.50 - 1 2,000 CAP PLC 17,010.00 24.30 - 14 300,500 CEMENT CO. OF NORTH.NIG. PLC 249,726.52 19.00 -5.00 73 1,284,277 MEYER PLC. 313.43 0.59 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,769.32 2.23 - 0 0 PREMIER PAINTS PLC. 1,156.20 9.40 - 0 0 88 1,586,777 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 2,518.69 1.43 -1.38 11 279,900 11 279,900 PACKAGING/CONTAINERS BETA GLASS PLC. 26,898.49 53.80 - 0 0 GREIF NIGERIA PLC 388.02 9.10 - 0 0 0 0 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 99 1,866,677 CHEMICALS B.O.C. GASES PLC. 2,547.42 6.12 - 2 510 2 510 METALS ALUMINIUM EXTRUSION IND. PLC. 1,781.64 8.10 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 83.60 0.38 - 0 0 0 0 2 510 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 -4.76 23 2,768,760 23 2,768,760 INTEGRATED OIL AND GAS SERVICES OANDO PLC 45,996.23 3.70 -1.33 60 2,726,763 60 2,726,763 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 53,332.04 147.90 - 11 15,733 CONOIL PLC 12,838.11 18.50 - 11 5,898 ETERNA PLC. 3,651.61 2.80 - 11 88,775 FORTE OIL PLC. 23,574.91 18.10 - 26 109,432 MRS OIL NIGERIA PLC. 4,663.23 15.30 - 3 3,220 TOTAL NIGERIA PLC. 37,652.97 110.90 - 12 4,622 74 227,680 157 5,723,203 ADVERTISING AFROMEDIA PLC 1,509.28 0.34 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 17,551.17 1.80 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 270.56 0.23 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,623.26 4.45 - 7 25,580 TRANS-NATIONWIDE EXPRESS PLC. 421.96 0.90 - 0 0 7 25,580 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,259.15 2.75 - 0 0 IKEJA HOTEL PLC 2,349.04 1.13 - 5 43,100 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 41,042.18 5.40 - 1 800 6 43,900 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 1 500 1 500 PRINTING/PUBLISHING ACADEMY PRESS PLC. 223.78 0.37 - 0 0 LEARN AFRICA PLC 964.31 1.25 -0.79 6 1,020,089 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0 UNIVERSITY PRESS PLC. 629.86 1.46 - 3 4,303 9 1,024,392 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 679.66 0.41 - 1 4,800 1 4,800 SPECIALTY INTERLINKED TECHNOLOGIES PLC 757.44 3.20 - 1 100

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Tuesday 03 December 2019

BUSINESS DAY

FINANCIAL TIMES

World Business Newspaper GIDEON RACHMAN

oth men would detest the thought. But, in crucial respects, the foreign policies of Donald Trump and Barack Obama are looking strikingly similar. The wildly different styles of the two presidents have disguised the underlying continuities between their approaches to the world. But look at substance, rather than style, and the similarities are impressive. Both Mr Obama and Mr Trump have sought to disengage the US from the Middle East — a policy that has caused much tut-tutting in the Washington establishment, the group derisively labelled “the blob” in the Obama White House. As they pulled back from the Middle East, both presidents focused on Asia instead. Mr Obama strove to make a “pivot” to Asia the signature foreign-policy of his period in office. And Mr Trump has also made his two biggest foreign policy plays in Asia — through a trade war with China and nuclear talks with North Korea. Increasing suspicion of China and growing concern about the Korean nuclear programme were also themes of the late Obama years. The two presidents have both had to appeal to an electorate that is profoundly war-weary. As a result, both Mr Obama and Mr Trump tried to cut back on America’s global military commitments in ways that have alarmed not just the blob, but America’s allies too. That concern underpins the uneasy atmosphere as the Nato alliance gathers for a summit in the UK this week. Mr Trump’s vocal discontent with Nato is often

Trump, Obama and their battle with the ‘blob’

The Nato summit underlines a surprising continuity in US foreign policy

portrayed as a stark departure from the American norm. But it was actually Mr Obama’s defence secretary, Robert Gates, who warned in 2011 that the future of the alliance would be “dismal” if Europeans continued to rely on the Americans for their security. The similarities between the two presidents’ instincts has become clearer since Mr Trump sacked the bellicose John Bolton as his national security adviser in September. The crucial disagree-

ments between Mr Trump and Mr Bolton concerned the president’s eagerness to pursue negotiations with Iran, North Korea and the Taliban in Afghanistan. The hawkish Mr Bolton was appalled. But Mr Trump is determined to press ahead. The result is that, after his warlike “fire and fury” phase, Mr Trump is now pursuing a diplomacy-first strategy that is strongly reminiscent of Mr Obama. Foreign policy caution inevitably leads to clashes with the

blob — Mr Obama was attacked for “weakness” and Mr Trump has been lambasted for “isolationism”. The debate over Afghanistan illustrates the point. Both Mr Obama and Mr Trump came to office very sceptical of the case for continued military involvement. Both presidents were then persuaded to send more troops — only to start pulling them out again, later in their presidencies. The story of two cancelled air strikes underlines their joint cau-

tion. Mr Obama’s last-minute decision in 2013 to cancel a bombing raid on Syria, intended to punish President Bashar al-Assad for using chemical weapons, was widely denounced by the Washington establishment. When Mr Trump ordered some air strikes on Assad regime targets in 2018, in response to another chemical attack, he got bipartisan praise in Washington for correcting Mr Obama’s “error”. But these raids were just oneoff gestures that did nothing to change the trajectory of the war in Syria. More recently, Mr Trump also made a last-minute decision to ignore his advisers and cancel an air strike, this time on Iran, after balking at the likely level of casualties. Mr Trump’s reluctance to attack Iran was significant. It underlines the fact that his tough-guy rhetoric disguises a strong preference for diplomacy over force. The fact that Mr Trump and Mr Obama arrived at similar policies of pullback from the Middle East is crucial — given that the region has long dominated US foreign policy. On other issues, however, there are important differences between the two presidents. Mr Obama believed in the importance of international agreements, while Mr Trump is highly sceptical of them. He has pulled the US out of the Paris climate treaty and a host of other international accords.

Finland pushes for cuts in EU cohesion US Federal Reserve considers letting inflation run above target funds amid budget deadlock Bid to avoid weak price growth would be biggest policy revamp since 2012 Proposal by country holding EU presidency will raise concerns in bloc’s poorer regions SAM FLEMING

inland has proposed deeper cuts to EU cohesion spending to try to break a stalemate over the bloc’s budget plans. The plans risk the anger of member states that receive the cohesion funds, which are designed to help poorer regions catch up with the rest of the EU. As holder of the EU’s rotating presidency, Finland on Monday put forward a new negotiating document to help steer discussions over the seven-year multiannual financial framework (MFF). Finland is suggesting a budget of 1.07 per cent of gross national income in the EU, or €1.087tn, over the period from 2021-27, Tytti Tuppurainen, the country’s European affairs minister, told the Financial Times. That is less than the figure proposed by the European Commission, which had asked for 1.11 per cent of GNI, or that of the European Parliament, which asked for 1.3 per cent of GNI. The Finnish proposals include deeper reductions in cohesion funds

than were mooted by the commission, Ms Tuppurainen said. However, the Finnish proposals still comfortably exceed levels of 1 per cent of GNI that Germany and other deep-pocketed contributors have said they are willing to support, teeing up a fresh battle over the budget plans. Finland has been struggling to bridge divisions as EU states jostle over how to pay for the bloc’s priorities. The impending loss of the UK as a net contributor to the EU has sharpened the debate over EU funding, as have commission attempts to divert more money to priorities such as scientific research and handling migration. EU capitals no longer think the MFF will be settled during Finland’s six-month presidency and expect that negotiations will continue deep into 2020. Ms Tuppurainen told the FT that Helsinki was attempting to find common ground. “Our proposal is the result of careful consultation,” she said. “We have to address climate change, migration and so on. We will not be able to deliver without a budget that can address all these new challenges.” www.businessday.ng

BRENDAN GREELEY

he Federal Reserve is considering introducing a rule that would let inflation run above its 2 per cent target, a potentially significant shift in its interest rate policy. The Fed’s year-long review of its monetary policy tools is due to conclude next year and, according to interviews with current and former policymakers, the central bank is considering a promise that when it misses its inflation target, it will then temporarily raise that target, to make up for lost inflation. The idea would be to avoid entrenching low US price growth which has consistently undershot its goal. If the Fed adopts this so-called “make-up strategy”, it would mark the biggest shift in how it carries out its interest rate policy since it began to target 2 per cent inflation in 2012. Policymakers are frustrated by the failure of prices to hit their target even as US unemployment has plumbed 50-year lows. The new policy would require “making it clear that it’s acceptable that to average 2 per cent, you can’t have only observations that are

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below 2 per cent,” Eric Rosengren, president of the Federal Reserve Bank of Boston, said in an interview with the Financial Times last week. Consumer and investor expectations for what inflation will be in the future play a crucial role in determining the rate of price increases. In their meetings and speeches, Fed officials have expressed concern that their interest rate policy will become less effective if inflation expectations become anchored permanently lower, as they have in Japan and Europe. Fed researchers first looked into make-up strategies in the early 2000s, but at the time, with its policy rate around 6 per cent, it was an academic question. Now, by comparison, interest rates are much lower, at 1.5 to 1.75 per cent. That leaves the Fed little room to drop them further in a downturn, given it does not intend to pursue negative rates. And policymakers, having been forced to tinker with their policy tools after the last recession, are now inclined to consider other changes before the next downturn takes hold. Janet Yellen, former chair of the Fed, said the discussion was “a worthwhile thing” and the policy would be similar to the “forward @Businessdayng

guidance” the Fed used during the recovery, when it signalled to markets that it intended to keep short-term interest rates low well into the future. That drove down longer-term rates as well. An explicit make-up strategy would be “more aggressive”, Ms Yellen said — if it were explained to markets effectively, investors would know at the start of a downturn that the Fed was already committed to keeping rates lower for longer during the recovery. In September when Fed staff economists presented make-up strategy options to the central bank’s Federal Open Market Committee, several policymakers were concerned that a rigid, mathematical rule might restrict the Fed from being flexible as new economic data came in. Some Fed members are worried that a make-up rule would rely too much on the as-yet unknown will of future policy committees. “Future committees might not be as comfortable with that formulaic approach,” said Mr Rosengren. “Which is why I prefer something that is a little bit more flexible, maybe not as constraining, but makes it a little clearer that we should be having [some inflation readings] over 2 per cent.”

Tuesday 03 December 2019

BUSINESS DAY

NATIONAL NEWS

FT Incoming Nomura boss warns of ‘sense of crisis’

Kentaro Okuda to replace banker who led Japan group’s lengthy turnround effort LEO LEWIS

he incoming chief executive of Nomura said he would take charge with a “sense of crisis” as adverse demographics, a testing global backdrop and digitalisation batter Japan’s biggest brokerage After months of speculation, Kentaro Okuda was named on Monday as the successor to Koji Nagai, whose seven years at the top were largely spent steering the company around its ill-fated 2008 acquisition of the non-US operations of Lehman Brothers. The promotion of Mr Okuda from his current role as chief operating officer marks a practical and symbolic break with Nomura’s past. It is both the first time that the company has been led by a former head of its investment banking division, and that the reins have been handed to an executive with no experience in the core retail brokerage business. However, Nomura had already become a business with fewer and fewer sacred cows, Mr Nagai told the Financial Times earlier this year. Mr Okuda, who will formally take over on April 1 next year and has spent his entire career at Nomura, will inherit a company that suffered a Y100bn ($897m) full-year loss in the most recent financial year, has been hit by scandal and demoralised by a series of three $1bn cost-cutting exercises. In the clearest admission that radical change was overdue, Mr Nagai announced in April plans to

close about 20 per cent of its domestic brokerage branches — once regarded as the untouchable jewel in Nomura’s crown but now under siege from online brokerages. On Monday, Mr Okuda told a press conference in Tokyo that Nomura faced threats from new competitors and the same “megatrend” headwinds that dogged Mr Nagai’s tenure. “When Mr Nagai took over in [July] 2012 he said he wanted to fundamentally change the company . . . I think that the sense of crisis is even stronger now,” said Mr Okuda. The events surrounding Mr Nagai’s departure echo his seesawing fortunes as CEO — an unusually long stint that began when his predecessor was forced out by an insider dealing scandal. His tenure included a long and mostly unsuccessful battle by Japan’s brokerage sector to convince households to move more of their assets from bank deposits into stocks. He had also hoped — despite many setbacks — to use the legacy Lehman Brothers business to build Nomura into a force to compete directly with the Wall Street titans. In October, Nomura posted its strongest quarterly profit in 17 years as the previously weak wholesale division rocketed back to health on stronger equity trading and investment banking. But just a few months earlier in June, Mr Nagai had endured a rare humiliation from shareholders at the company’s annual meeting.

New phase of impeachment probe hangs over Trump’s Nato trip House inquiry findings into claims of Ukraine ‘quid pro quo’ to be presented next week JAMES POLITI

onald Trump’s top White House lawyer attacked the impeachment probe against the US president as “baseless and highly partisan” and rejected an invitation to participate in the next stage of the inquiry. Pat Cipollone, the White House legal adviser, on Sunday evening sent a letter to Jerrold Nadler, the chairman of the judiciary in the House of Representatives, saying the US president would not be represented when the congressional panel meets on Wednesday. “As you know, this baseless and highly partisan inquiry violates all past historical precedent, basic due process rights, and fundamental fairness,” Mr Cipollone wrote. “An invitation to an academic discussion with law professors does not begin to provide the President with any semblance of a fair process,” he added, referring to plans for the panel to consider the legal foundations for impeachment. The hearing later this week will launch the second phase of the impeachment proceedings following weeks of public and private testimony in the House intelligence committee. Wednesday’s meeting will come as Mr Trump attends a Nato summit in London to mark the 70th anniversary of the defence alliance. Democrats are trying to increase pressure on the US president and break entrenched Republican resistance to the probe partly by forcing the White House to present its

defence directly to lawmakers on Capitol Hill. Mr Trump has resisted engaging with the committees investigating allegations that he put aid to Ukraine on hold in exchange for actions intended to damage Joe Biden, the former vice-president and a potential Democratic challenger in next year’s election. Although a string of sitting Trump administration officials have testified, other key officials have declined. The White House has also refused to hand over documents related to the probe. Mr Nadler had given the White House until Sunday to say whether its legal team wanted to appear at Wednesday’s hearing and until Friday to say whether it wanted to call any witnesses for future hearings. “We want to give the president every opportunity to present exculpatory information,” Hakeem Jeffries, a member of the House judiciary committee, said on Fox News on Sunday. “We need to be guided by the truth. If they come forward with relevant witnesses, we all may want to hear from John Bolton [the former national security adviser], we all would like to hear from Mick Mulvaney [the acting White House chief of staff], we’d like to hear from the secretary of state,” Mr Jeffries said. Tom McClintock, a Republican member of the judiciary committee, said the testimony of witnesses such as Mr Bolton or Mr Mulvaney would be to Mr Trump’s “advantage”. But he added the president would not allow it because it would betray confidential discussions among his top officials. www.businessday.ng

‘Tourists’ help fuel risky emerging market bond sales Low yields in developed world prompt investors to search further afield TOMMY STUBBINGTON

ngola is limping out of a four-year recession. Its debt burden has soared to about 100 per cent of its annual economic output as its currency, the kwanza, tumbles in value. The government is propped up by a $3.7bn IMF credit facility, the largest ever for an African country. None of that prevented investors queueing round the block to buy new Angolan bonds earlier last month, with a $3bn sale attracting more than $8bn of orders. Fund managers are buying into President João Lourenço’s drive to reform the economy and tackle corruption, and were undoubtedly impressed by the professionalism of Angola’s finance ministry during a recent international roadshow to market the debt. But there is a deeper reason for the enthusiasm: in a world awash with $12tn of negative-yielding debt, an annual coupon of 8 per cent can be very persuasive. As one emerging market fund manager put it recently: “The dirty secret of EM investing is you just buy the bonds with the highest yields.” So much for the highly sophisticated economic modelling and

penetrating insight into policymaking. Of course, buying emerging market debt has always been a matter of being prepared to stomach greater risks to earn higher returns. But the flippant remark is more relevant than ever. With interest rates in the developed world close to record lows, there are signs that investors are travelling further afield in search of yield — creating an opportunity for countries such as Angola. The IMF last month sounded the alarm over a “borrowing binge” this year by so-called frontier markets — countries at the lower-rated, riskier end of the EM spectrum. These economies are on course to borrow $38bn in foreign currency (mostly dollar) debt from bond markets this year, equalling a record set in 2017. The pool of countries able to access capital markets has widened, with Uzbekistan and Benin making debut bond sales this year. Others, such as Angola, are becoming semi-regular issuers. This is good news for governments that can borrow relatively cheaply to finance their development. But the resulting build-up of debt is starting to raise eyebrows. As the IMF said: “There can be too much of a good thing: countries that don’t put the money to good use may have trouble servicing their loans and find themselves at risk of default.”

Over the past five years, frontier market hard-currency debt has tripled to more than $200bn. The tally of bonds for the average borrower is up to 7 per cent of gross domestic product and nearly half of their foreign currency reserves, up from 3 per cent in 2014. Those levels sound low by developed market standards, but investors who have been eager to pile into the debt while global yields are low are likely to prove fickle about rolling it over should yields start to rise in major economies. “Frontier borrowing is not a new thing,” said Stuart Culverhouse, head of fixed income research at developing markets data platform Tellimer. “What’s different this time is public debt burdens are much higher than they were a few years ago.” As long as the cash raised goes into productive investment that lifts growth, investors will keep on buying. If they feel borrowing has been opportunistic, bondholders may prove less sympathetic when the tide of global rates turns. Some investors also feel forced to take extra risks. A striking feature of recent frontier bond sales is the predominance of mainstream emerging market asset managers over smaller niche specialists or hedge funds. These investors bought three-quarters of the bonds in the Angola deal.

Goldman to avoid setting strict financial targets at investor day Chief executive David Solomon risks disappointing shareholders with ‘through the cycle’ goals LAURA NOONAN, PATRICK JENKINS AND DAVID CROW

oldman Sachs will avoid setting strict profitability targets at its upcoming investor day, according to people familiar with the plans, leaving executives with more room to manoeuvre in an economic downturn but risking disappointment among shareholders. The bank’s leadership team, under chief executive David Solomon, is laying the final preparations for the high-stakes event in January, when Goldman will try to steer investors’ attention towards its core Wall Street businesses, instead of its recent push into consumer banking, which insiders say could take a decade to meaningfully have an impact

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on earnings. Among the centrepiece announcements, Goldman is set to detail its ambition to become an asset management powerhouse to rival the likes of Blackstone with the launch of a string of new funds to bolster a new merchant banking division with $135bn of assets under management. Some elements of Mr Solomon’s plans for Goldman are still in flux, but the key decisions have been taken, including setting targets for “through the cycle” profitability rather than a fixed return on equity or efficiency target for the future. “Institutions that have tried . . . to be overly precise as to a deliverable [return] have themselves found it frustrating because circumstances can alter that are not entirely in anybody’s control,” @Businessdayng

said one person familiar with the discussions, citing the vulnerability of trading and investment banking to market conditions. Other big Wall Street groups have taken a variety of approaches including annual efficiency targets and medium-term return targets within a range, but Mr Solomon’s team has decided that they could make Goldman a hostage to fortune. Rival Citigroup is facing pressure from investors who doubt its ability to meet targets for returns. Glenn Schorr, analyst at Evercore ISI, said there was a “chance some people would be disappointed” by the absence of harder targets but that Goldman, whose shares are trading close to historic lows on a price-to-book basis, still had two months to manage investor expectations.

BUSINESS DAY

Tuesday 03 December 2019

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Trump to hit Brazil and Argentina with steel and aluminium tariffs US president cites currency ‘devaluation’ as he reignites trade tensions PHILIP GEORGIADIS, JAMES POLITI, BRYAN HARRIS AND BENEDICT MANDER

onald Trump is to reimpose tariffs on imports of steel and aluminium from Brazil and Argentina after accusing the countries of a “massive devaluation” of their currencies that hurt American farmers. The move by the US president sharply escalates trade tensions with the two large Latin American economies as they have ramped up their trade ties with China in recent years. It also highlights Mr Trump’s continued willingness to use metals tariffs as a negotiating tool, even though they were originally introduced last year for national security purposes. Both Latin American countries have seen their currencies tumble over the past two years. The Brazilian real slumped to a record low against the US dollar last week, and is down nearly 10 per cent this year amid a series of interest rate cuts, rising political tensions and wider weakness in emerging markets. Mr Trump’s decision to slap tariffs on steel and aluminium from Brazil and Argentina marks the latest twist in the tale of the metal levies, one of the US president’s signature policies. After announcing that imports of steel and aluminium were threats to national security last year, meriting 25 per cent tariffs, the US president has pressed ahead with levies against some trading partners like the EU; applied and then withdrawn them against others like Canada and Mexico; and raised and then lowered them again as with Turkey. Argentina and Brazil were initially shielded from the tariffs along with Australia and South Korea, but they have now become targets. Although steel prices in the US surged after an initial burst of tariffs was announced last year, they have since retreated. Several American steel producers have been forced to reduce capacity and begin laying off workers. Mr Trump’s use of metals tariffs on national security grounds — under section 232 of the 1962

Trade Expansion Act — is being contested at the World Trade Organization and also faces legal challenges under US law. The move by Mr Trump will be an embarrassing blow to Brazilian president Jair Bolsonaro, who has put improved relations with the US at the centre of his international and political agendas, including much closer trade ties. Brazil’s finance minister appeared to welcome a drop in the currency last week. “I’m not worried about the high dollar,” Paulo Guedes said. “On the contrary, I think it is absolutely understandable.” On Monday, Mr Bolsonaro said he may speak with the US president after consulting Mr Guedes. “I have an open channel with [Trump],” said Mr Bolsonaro. The Brazilian president has said he would like to see a stronger currency, but that it was “not merely a question of domestic issues”. Between January and October this year, Brazil exported $2.2bn of steel and iron to the US, more than 9 per cent of its total exports to the country. In Argentina, the peso has lost nearly 60 per cent of its value against the dollar in 2019, as capital controls were imposed and markets were rattled by resurgent populist politics and the country’s debt burden. Argentina’s steel and aluminium exports account for about 3 per cent of total exports, which are dominated by agricultural commodities. After Brazil and China, the US is Argentina’s third-largest trading partner. Agricultural exporters from Brazil and Argentina have also been taking advantage of the US trade war with China by wrenching market share from American farmers, who are facing retaliatory levies from Beijing on products like soyabeans. The announcement comes just a week before Argentina’s president, Mauricio Macri, who strengthened ties with the US and sought to open up Argentina’s economy during his four-year term, hands power over to leftist Alberto Fernández on December 10.

Lagarde’s green push in monetary policy would be huge step Critics say climate change is political but economists say it could be part of ECB remit MARTIN SANDBU

ast week’s gush of enthusiasm for green finance suggests European politicians might finally walk the walk on climate change. The European Parliament has declared a climate emergency; the new European Commission has taken office on a promise of an imminent “green new deal”, and Commission president Ursula von der Leyen has vowed to accelerate emissions cuts. But the real game-changer could come from the European Central Bank. Christine Lagarde, its new president, is pushing to include climate change considerations in a review the central bank is due to hold into the way it conducts its monetary policy. Until now, the expectation was for a review into purely monetary matters, such as whether the inflation target should be revised. An explicit focus on climate change policy would be a huge move. Because the central bank is by far the biggest influence on financial conditions in the market, it can make a significant difference to the investment decisions that determine how Europe’s climate transition goes. Ms Lagarde’s move is bold in a political sense too. She was already unlikely to have much of a honeymoon. Many of her colleagues on the ECB governing council laid down markers for future debates with their unprecedented public criticisms of the central bank’s lat-

est package of monetary stimulus. The review is going to be a highly contested affair. Adding climate change policy to the mix — which Ms Lagarde has said she sees as “mission critical” — is probably going to inflame passions further. Green finance experts are backing Ms Lagarde’s move. “More than good, it is a necessary idea”, says Daniela Gabor, professor of economics and microfinance at University of West England Bristol. Currently, “ECB monetary policies have an implicit carbon bias” because the rules for buying securities under its quantitative easing programmes “rely on traditional credit ratings where climate exposures are irrelevant, she says. “Financial markets misprice climate risks, and monetary policy operations reproduce this market failure,” she adds. The commission, too, is looking into ways to channel private capital into green investments. It is considering easing capital requirements on banks insofar as they provide climate-friendly loans. That has raised hackles among bank regulators, who fear that banks will be allowed to get away with excessive risk on the pretext of green investing. If a “green discount” on capital requirements really does change investment decisions, a less risky alternative might be to raise capital charges on “brown” or climate-unfriendly assets rather than lower them on green ones.

The devil is in the detail of how “green” investments are defined. Ms Gabor warns that “you need a credible taxonomy of green and brown assets . . . so that it avoids greenwashing” by defining “green” assets too broadly. “Without a penalty for brown assets to go hand in hand with preferential treatment of green, we have too much carrot and too little stick,” she says. These questions will come up in the ECB’s strategy review if Ms Lagarde gets her way. Her detractors have already argued that an explicit focus on climate change lies outside the central bank’s mandate. But here Ms Lagarde has expert support: In a submission to the European Parliament on Monday, University College Dublin economics professor Karl Whelan underlines that the mandate is much broader than is often understood. As long as price stability is secured, the ECB is obliged by treaty to “support the general economic policies” of the EU. That could warrant, for example, financing European Investment Bank bonds for climate investments at low interest rates. “The new presidency is a good opportunity for some more radical change,” Mr Whelan told the Financial Times. “As a former politician, hopefully Lagarde will be less afraid to use her substantial mandate and powers to do more than just achieve impeccable price stability.”

Rush to avoid cash crunch boosts demand at NY Fed’s repo auction Investors soak up $25bn of short-term loans on offer from US central bank’s markets arm JOE RENNISON

nvestors are clamouring to secure financing over the end of the year, lapping up $25bn of short-term loans from the Federal Reserve Bank of New York on Monday in an attempt to insulate themselves from a potential spike in borrowing costs. Demand at the second term-repo operation by the Fed extending over year-end, where the markets arm of the US central bank offers cash in exchange for high qual-

ity collateral like Treasuries and mortgage bonds, swelled to almost twice the available funds on offer at $42.6bn. It follows the New York Fed’s first operation last week, which received $49bn in orders for the $25bn on offer. There remains one more repo operation next Monday that will provide $15bn over year-end. “There is a lot of demand to lock up funding going into year-end,” said Jon Hill, an interest rate strategist at BMO Capital Markets. “I would expect the Fed to upsize the final operation. From their perspecwww.businessday.ng

tive they would rather err on the side of providing too many reserves than run the risk of reserves being scarce.” Investors remain concerned the end of the 2019 could spell a repeat of September’s cash crunch where the interest rate paid to borrow cash overnight in the repo market skyrocketed. Banks typically pull back from the market at the end of the year as they seek to shrink the size of their balance sheets in time for important December 31 regulatory calculations, reducing the availability

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of cash in the market and pushing repo rates higher. The average interest rate paid to borrow the cash from the US central bank reached 1.62 per cent on Monday, down from last week’s more elevated 1.65 per cent, in a sign demand is beginning to temper, despite remaining elevated. An additional concern is traders are already seeing signs of banks pulling back from the market. “People are already being told they won’t be able to finance trades over year-end,” said one trader. An earlier test for the market @Businessdayng

could arrive in the middle of December, when tax payments are due at the same time as investors will be required to pay up for Treasuries they have bought at auction, draining cash from the market and mimicking the conditions that led to September’s spike in borrowing costs. “I’m not expecting anything as crazy as September just because there are hundreds of billions more of reserves in the system but before year-end that is the big day to watch,” said Mr Hill. “If people have been pulling back you could see some upward pressure on that day.”

Tuesday 03 December 2019

BUSINESS DAY

ANALYSIS FT Why staff who make internal complaints fight to be heard When concerns are swept under the carpet, businesses lose goodwill as well as employees ALICIA CLEGG

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orrible.” That is how Sam Walker, former chief human resources officer of the Cooperative Group, describes fighting her former employer, first through an internal grievance process and then an employment tribunal, followed by an appeal lodged by the Co-op against the tribunal ruling, which had found partially in Ms Walker’s favour. She had claimed that she was sacked for refusing to accept a demotion after complaining that she was paid less than her male peers. In October an appeal tribunal upheld one aspect of the Co-op’s appeal, in connection with the equal pay claim, and rejected another, relating to the tribunal’s finding of direct discrimination in an end of year appraisal in 2015. Ms Walker, who intends to appeal the ruling, has already paid a high price for her tenacity. To pursue her claim, she remortgaged the family home and exhausted her savings — and herself. Fighting an employer grinds you down. After a few months, she says, “you’re not sleeping, not eating properly, you think ‘is it me?’” Dissatisfaction with how organisations handle complaints is widespread. The journalist Carrie Gracie writes in Equal, her account of challenging unequal pay at the BBC, of receiving “10 barely recognisable pages [of notes] littered with errors, omissions and additions,”, after her grievance hearing. She had assumed that her evidence would be audio recorded but was told it was not BBC policy. Ms Walker, who now works as an equal pay campaigner and coach, talks of a “toolkit” that employers can dip into to defeat rather than investigate complaints. She warns that employees who use internal channels to challenge injustices may discover that their performance is suddenly found lacking and that the employer may withhold documents helpful to their case. She wants changes to employment practice to make victimisation of complainants harder and audio recording of grievances the norm, and supports the Fawcett Society’s new #Right To Know campaign. Its aim is to oblige employers to give women who suspect that they are underpaid the right to see salary data on male comparators. It is not only unhappy staff who question employers’ good faith in handling claims of unfair treatment. Asked how he would advise someone contemplating making an employment complaint, Peter Cappelli, professor of management at the Wharton School, University of Pennsylvania, hedges. “If the advice is to people in general, of course, you should fight the good fight,” he says. He adds: “If it’s your child you probably want to tell them don’t do it . . . because you’re really going to get hurt, even if you win.” When concerns are brushed under the carpet, employers lose the opportunity to nip problems in the bud, and sacrifice goodwill. Ms Gracie says she felt more betrayed by the mishandling of her grievance than by discovering that she was paid less than male peers. “Many people, myself included, are really shocked

when they come face to face with the complaints process inside their organisation,” she says. So, can anything be done? Emma Webster, joint chief executive of Yess Law, an employment law charity, wants to make mediation the first response in disputes. She says that grievances — the clue is in the name — are polarising because they focus on what went wrong and take place on the official record. “Employers find themselves doing everything to not uphold a grievance . . . because they’re advised not to expose themselves to legal proceedings.” Yet mediation can have drawbacks, especially when there are power imbalances. It puts the onus on those involved to resolve their differences, implying that both sides may need to change, which, critics say, risks handing bullies a free pass. By looking forwards, mediation may also deflect attention from misconduct, allowing the perpetrator to escape sanction, especially if that individual is close to senior management. At the root of the problem, are not processes, but rather the willingness of leaderships to abuse process and a lack of checks that enables this behaviour. Recent reports in the FT and elsewhere show a repeated pattern of allegations of HR not responding appropriately to reports of sexual misconduct and bullying at big companies. “Even if HR likes to think of itself as a profession, HR works for the leaders; it isn’t going to do things that the leadership doesn’t want,” Prof Cappelli says. Georgina Halford-Hall, chief executive at WhistleblowersUK, a not-for-profit organisation, says that when employees raise concerns, HR is often sympathetic, though this can change when senior staff get involved. Citing an email exchange between an HR officer and a whistleblower that the organisation is assisting, she says: “You can tell from the change of tone that the HR director has been put under pressure to back off and we see it in many cases.” Research by the CIPD, the UK professional body for HR, in 2018, adds to the picture of a function that feels torn. According to the survey, 28 per cent of HR personnel perceive a conflict between their professional judgment and what their organisation expects of them; the same proportion feel “it’s often necessary to compromise ethical values to succeed in their organisation”. Though the survey does not go into details, Ms Walker says that most HR directors know colleagues who have been fired for standing their ground. Such departures are glossed over with a non-disclosure agreement that protects the company and allows the departing HR professional to avoid being labelled, because: “Who wants to hire an HR director that’s going to stand up to them?” Maggie Brereton launched Eos Deal Advisory in September, after she and her co-founder left KPMG over concerns at its handling of bullying allegations. Describing HR as “something of a victim”, she says that the way to empower HR is for top leadership to say, “these are issues we need to deal with, and mean it”. www.businessday.ng

Europe First: how Brussels is retooling industrial policy FT series: the push to develop a batteries industry for electric vehicles reflects a big change in EU thinking

BEN HALL AND RICHARD MILNE

n a patch of woodland 100km west of Stockholm, an entirely new industry for Europe is taking shape. Inside a grey box structure hundreds of workers are rushing to complete the first big Europeanowned production line for battery cells to be used in electric vehicles, grid networks and many other areas. With production due to begin by the end of the year, the Northvolt site in Vasteras, central Sweden, is buzzing with activity. But the yellow tape cordoning off certain areas bears the words “limit line” in English and Japanese — one indication that Northvolt has had to tap Asian expertise in research and development to build its facility. European carmakers were slow to respond to the electric vehicle revolution and are almost entirely dependent on imported battery cells. Global production is dominated by Japan’s Panasonic, South Korea’s Samsung and CATL and BYD of China. European factories account for only 3 per cent and they are mostly Asian-owned. Yet According to EIT InnoEnergy, an EU-backed investment vehicle and research house, the potential value of the entire battery value chain in Europe – mining, refining, cell manufacturing, battery packs and recycling – could be €250bn in 2025. That has left EU policymakers and businesses scrambling to make sure European companies take a big slice of the action, and with it boost jobs and skills. Flush with €1bn of funding from Volkswagen, Goldman Sachs and Ikea, Northvolt will launch its Vasteras plant as a dress rehearsal for its own, much larger gigafactory in Skelleftea, northern Sweden, where production should start in 2021. “We knew there would be battery factories built in Europe,” says Peter Carlsson, a Swede who set up Northvolt with the idea of creating a European rival to Tesla, where he used to be a manager. “But would they be satellite factories of Asian manufacturers or a real European battery ecosystem? The choice has a really significant implication for the European economy, for jobs, for the automotive industry.” The new battery factory is one of the first steps in a big shift in the way that Europe thinks about how to develop new industries as it tries to deal with competition

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from China and the US. Mr Carlsson and his Northvolt venture are at the vanguard of an ambitious effort — one that would have been unthinkable a decade ago — to create an entire battery industry on European soil, owned by European companies. The initiative stretches from mining and refining the raw materials such as lithium to manufacturing and recycling batteries. Column chart of Planned number of models, by manufacturer showing European carmakers are widening their range of electric vehicles Governments, universities, EU institutions and scores of businesses, including the leading carmakers, have joined forces in a new industrial policy drive that could become a blueprint for many other technologies and sectors. Fearing European industry could be crushed by US technological supremacy, Washington’s growing protectionism and Chinese state capitalism, German, French and EU leaders have embraced a reinvigorated industrial policy as a tool to assert the continent’s technological independence and ensure its economic survival. Tesla’s recent announcement that it would build its own gigafactory to build cars and batteries near Berlin only adds to the pressure for Europe to get its act together. The news that Audi is to cut 9,500 jobs in Germany is a further reminder that the shift to EVs could hit an industry that has been a backbone of industrial employment in many European countries. Together with efforts by the EU to ensure that other countries share the burden of carbon emissions reduction and a renewed drive to challenge the supremacy of the US dollar, it amounts to a bold attempt to put Europe’s economic interests first. “I really think of this issue in terms of sovereignty,” says Bruno Le Maire, French finance minister. The auto industry is vital to Europe’s industrial base. But if it has to import batteries, which account for about 40 per cent of the cost of an electric vehicle, Europe risks losing the value-added part of the production chain and the technological knowhow that stems from it, he says. “Mobility is a matter of sovereignty.” Column chart of Projected demand for vehicles powered by electric batteries (millions) showing The electric car market is set for a decade of expansion To its proponents, the combination of industrial collabora@Businessdayng

tion, publicly funded research, transitory subsidies and global standard setting to encourage a large-scale European value chain is an intelligent reinterpretation of an old-fashioned industrial policy of state-directed investment. “When you have learning going on through new technology you want to be part of it because it can spill over to new sectors,” says Dalia Marin, professor of economics at Ludwig Maximilian University of Munich. “It is knowledge creation for the whole economy.” A few years ago, this approach was out of fashion in Europe. While France and some other states have always advocated an active role for government in supporting industry, the EU was more concerned with building open, competitive markets with strict controls on public subsidies. But US technological supremacy and Chinese advances have forced a rethink. “When we started this in 2016, we saw a fairly big difference between how China approached this and how Europe did,” says Mr Carlsson, in a corridor of Northvolt’s makeshift office in Vasteras. “In China, they are financing companies, helping the build-up of the industry but also developing the market for electric vehicles. Europe is starting to catch up now.” A turning point was the creation in 2017 of the European Battery Alliance, a group comprising EU policymakers and scores of companies with the aim of creating an innovative and competitive “ecosystem” for batteries in Europe. “We discovered two years ago an assumption in the motor industry that the shift to EVs would come much later and that batteries would be a commodity,” says Maros Sefcovic, the EU’s outgoing energy commissioner, who spearheaded the EBA. The industry’s complacency spurred the commission to intervene and declare batteries a “strategic value chain”. The EU had learned the lesson of solar power, a technology it invested heavily in — only to see Chinese companies dominate mass production partly because of much tougher EU environmental standards. The challenge was to persuade carmakers that nascent European suppliers could massively scale up production while in turn reassuring battery makers that the carmakers would become long-term buyers. “We needed to use the convening power of the European Commission to get the right people in the room,” Mr Sefcovic says.

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BUSINESS DAY Tuesday 03 December 2019 www.businessday.ng

Bolaji Ogundare: Dental surgeon breathing freshness into Nigeria’s oil and gas sector

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DIPO OLADEHINDE

olaji Ogundare, a Dental Surgeon and CEO of Newcross Petroleum Limited is embarking on a journey to change the narrative in Nigeria’s oil and gas industry; from one about pollution, corruption, conflict and dependence on foreign capacity to tales of bold innovations, social investments, and local capacity development. With over twenty years of experience in health science and rising to the role of an attending Physician/ Professor and Diplomate of the American Board of Oral and Maxillofacial Surgeons, CEO of Newcross Petroleum Limited, crossed over to the energy sector For many, Newcross Petroleum Limited was not a name that rang a bell four years ago but the company is gradually rising from obscurity to arguably a major player in the upstream sector. As typical of emerging giants in the sector, the Company is primarily focused in the upstream industry, harnessing exploration and production opportunities in the African continent with current emphasis on the Niger Delta Petroleum Province and the West African sub-region. After 58 years of independence, Nigeria’s oil sector is responsible for 90 per cent of Nigeria’s foreign exchange earnings, but contributes little to grow the country’s GDP which has remained in the one-digit margin, despite boasting of having Africa’s second-largest oil reserves with estimated known reserves of 37 billion barrels of oil and 5 trillion cubic metres of natural gas. At Newcross, one of the things Bolaji Ogundare did ten years ago was to take advantage of an opportunity to pursue exploration assets in Nigeria. “We decided we want to start finding new oil from Greenfield, which indigenous producers are never keen on. We acquired two assets in similar states at significant costs, and high risk because we believe sometimes luck favours the brave. We hope to commercialize one of these assets in the next 6-9 months. For a small company of our size, this is a significant feat,” Ogundare said in an exclusive interview with BusinessDay. Yet it was only two months ago that LEKOIL announced it was acquiring 45 percent interest in Newcross operated Oil Prospecting Lease (OPL) 276, in the eastern Niger Delta. The onshore Nigerian license is near three existing producing fields – Effiat-Abana in OML114, Stubb Creek straddling it and OML13, and Uquo in OML67, all located within 20km from it. “We always aimed to partner with indigenous companies who

We see gas in the competitive landscape for companies, knowing that in the future a one-product country or company, majorly focused on oil will struggle to survive

Bolaji Ogundare

share our philosophies. In Lekoil, just like our relationship with Platform Petroleum, we found a company that values its people in the same way that we do. They also share our passion for the development of the economy of Nigeria. The project we will be collaborating on is predominantly gas-driven development where Lekoil will come in as an equal partner,” Ogundare said. Newcross Petroleum had identified ten prospects and seven leads in the acreage under the licence 276. Four wells were drilled in the asset between 1972 and 1986, which led to two oil and two gas discoveries, which include the Uda oil and gas discovery, Okposo-East oil and gas discovery, Mbo gas discovery, and the Davy Bank gas discovery. Based on data from the four wells, the preliminary resource estimates by Newcross Petroleum is gross recoverable volumes of 29 million barrels of oil and 333Bcf of gas, and an upside of 33 million barrels of oil and 476Bcf of recoverable gas. The Newcross Group is also excited about the results of Awoba

NW-2, reporting over 400 feet of pay more than encountered in Awoba NW-1, the discovery well drilled by Shell in 2001. According to report, this is the first well the company would drill as an operator of Oil Mining Lease (OML) 24, which it purchased from Shell, TOTAL and ENI in 2015. Awoba NW-2, drilled with the Chinese rig Sheng Li-4, successfully appraised multiple reservoir complexes, “through a focused, highly deviated well trajectory that targeted spatially diverse pools because of complex geology”, the company reports. The well discovered four new hydrocarbon accumulations. Total footage was 450feet Net Oil Sands and 520 feet Net Gas Sands (True Vertical Depth). Under the leadership of Ogundare, Newcross believes gas and not oil is a bigger enabler of Nigeria’s quest for industrialization. “I always tell people that I am more proud of the assets we build from the exploration phase than the producing assets we acquired. We value each asset in our portfolio but we have stronger attachments to the full cycle assets.”

“As an organisation, we are working on some initiatives; we are a big believer in distillation of gas molecules into Liquefied Petroleum Gas (LPG) utilisation and enabling LPG usage. So, one of our assets that is coming onstream in the next 12 months is targeted at the LPG chain, where we will be producing LPG Nigeria,” Ogundare said. Newcross is already a minority partner in LPG producing plant in Nigeria; however its subsidiary Newcross Exploration is also working towards producing gas for power in the eastern part of Nigeria. “Recently, we formed a new team completely different from our main team to look at our infrastructure from a gas perspective, which means we are paying more attention to gas, irrespective of how much oil we are producing. Gas investment takes time, but we are happy at the direction we are going. We are not too far behind the leaders in commercializing our gas,” Ogundare said. Beyond oil, Bolaji Ogundare is also interested in access to global information and learning, which

was why he donated a digital library to the Faculty of Dental Sciences, College of Medicine, University of Lagos Idi-Araba, Lagos. During his address at the event, the Dental Surgeon remarked that the library donated to his alma-mata was built in memory of his late father, Samuel Olatunji Ogundare, describing the project as his contribution to health education in the country. Ogundare said he was challenged to take on the project due to the low level of infrastructure in the College, appealing for urgent private sector intervention for infrastructure upgrade at the Faculty of Dental Sciences. On the future for Newcross, Ogundare say the “long-term goal is to be seen as an energy company and not just a petroleum company. We are looking at the global market and what will change Nigeria. We see gas in the competitive landscape for companies, knowing that in the future a one-product country or company, majorly focused on oil will struggle to survive.” “Our emphasis on oil operations will continue but we are clearly looking at how to contribute to the renewable energy industry,” Ogundare concluded. Ogundare is charting new territories, proving that with vision and determination, the supposed insurmountable barriers can be scaled thus leading the way for a new breed of forwardthinking indigenous CEOs who believe that the future should not be defined by the realities of today. Ogundare is creating a new world of possibilities and the world is beginning to notice.

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