Businessday 03 may 2018

How FG tardiness led to US ban on Nigeria’s fish imports Josephine Okojie & Bunmi Bailey

N

igeria quest to drive economic growth through the agricultural sector is being threatened by the current ban on the importation of smoked

catfish (siluriformes) and all fish products from the country into the United States.

BusinessDay investigations found that the ban was imposed after Nigeria’s Federal Government failed to fully address

information requested by the United States in the Self Reporting Tool (SRT) before the due date.

The ban which has since taken effect in March 2018, has reduced market access for fish farmers in the country, as majority of

See BusinessDay Market Monitor page 4

Continues on page 34

news you can trust I **thursDAY 03 may 2018 I vol. 15, no 46 I N300

Banks’ profits surge the most since 2015 bad loan crisis ... 10 lenders make N693.92bn in 2017 BALA AUGIE

T

he gradual recovery in the Nigerian economy combined with higher oil prices is begging to show up in the numbers of banks as their profit has grown the most since the recent bad loan crisis.

For the year ended December 2017, after tax profits for the 10 lenders that have reported results spiked by 44.28 percent to N693.92 billion from N478.19 billion the previous year (2016).

The banks are Zenith Bank Plc, Access Bank Plc, Fidelity Bank Plc, First City Monument Bank (FCMB) Plc, Guaranty Trust Bank (GTBank) Plc, Stanbic IBTC Holdings Plc, First Bank Nigeria Holdings Plc, Sterling Bank plc, Continues on page 34

L-R: Managing Director, First Bank of Nigeria, Adesola Adeduntan; Head of the Civil Service of the Federation, Winifred Oyo-Ita, and chairman, Africa Initiative for Governance, Aigboje AigImoukhuede.

@

g

Farmers smile to the bank as manufacturers expand local input sourcing ODINAKA ANUDU

N

igerian farmers are enjoying the fruit of their labour as manufacturers increasingly source more raw materials from them, thereby reducing a huge import

bill.

Nigerian Breweries (NB) is already substituting barley for sorghum sourced locally from an agriculture-based firm called Psaltery Nigeria Limited.

Jordi Borrut Bel, managing director of NB, said at the pre-AGM meeting held recently in Lagos that the brewer would raise lo-

cal inputs from 50 to 60 percent.

More than 250,000 farmers spread across several agronomic zones in the North are directly or indirectly involved in planting sorghum for the country’s biggest brewer, BusinessDay gathered.

“We optimise the cassava value chain in the country by

Inside National Assembly to lay 2018 budget report next P. 35 week

OHCSF, AIG partner to shop for leaders P. 35 in PPP

L-R: Edwin Devakumar, group executive director, Dangote Industries Limited; Joe Kaser, president/CEO, Siemens AG; Onyeche Tifase, MD/CEO, Siemens Limited Nigeria; Aliko Dangote, chairman, chief executive/president, Dangote Industries Limited; Lisa Davis, member of the managing board, Siemens AG; Sabine Dall’Omo, chief executive, Siemens Southern and Eastern Africa, and Jibola Akindele, corporate account manager, at the Hannover fair in Germany.

N

igeria may have 192 trillion standard cubic feet of gas reserves, the largest in Africa and a thriving liquefied natural gas operation for export but new money is seeing Egypt as the most attractive destination for investment on the continent.

A visit by Miguel Arias Cañete, European Union Energy Commissioner last week promising support to transform Egypt into a regional energy hub should have Nigeria worried – assuming its administrators can still muster capacity for outrage.

Last week Monday, Egypt and the EU signed a four-year Memorandum of Understanding for a

Strategic Cooperation in Energy, which opens up a wide range of opportunities for investment between the two sides in the field of renewable energy. Another deal that will see Cairo become a major gas supplier to Europe is on the cards.

A string of factors share a disproportionate amount of blame for Nigeria’s sorry pass. There is

I can’t support failure - Obasanjo

F

a deadlock over the Nigeria LNG which lawmakers want amended to allow NDDC collect three percent of its revenue though this negates the Act. As a result Nigeria seems willing to forego over $25billion investments in LNG Trains 7 and 8, leading to loss of investor confidence and reputa-

ormer President Olusegun Obasanjo has dismissed the speculations that he has made a uturn in support of President Muhammadu Buhari’s second term bid for the Presidency, saying he will never support failure.

In a press statement release last night, the former President said there was no truth in the speculations, and instead he called the speculators blackmailers and their claims “a pathetic fallacy.”

Continues on page 34

See full statement on page 35

Nigeria’s loss is Egypt’s gain, as investors shun Africa’s biggest gas reserve ISAAC ANYAOGU

providing industrial quality cassava starch to extract maltose syrup for use in NB’s brewing process,” said Oluyemisi Iranloye, MD/CEO of Psaltery, at a recent visit.

Iranloye added that the firm has created a supply chain involving up to 5,000 farm families, which included more than 2,000 registered and unregistered out grower farm families, marketers, transporters and retail input suppliers.

Nestlé Nigeria is sourcing 80 percent of its maize, sorghum, millet, soya, cassava starch, cocoa powder, palm olein from more than 41, 600 local farmers and processors scattered across the country.

Nestlé Cereals Plan project has over 30,000 farmers who supply 100 percent of the grain requirement for Golden Morn Maize.

Through its Sorghum and Millet in the Sahel (SMS) project, now called Nestlé Nigeria & IFDC / 2Scale Project Sorghum Continues on page 4

2

BUSINESS DAY

Thursday 03 May 2018

Thursday 03 May 2018

BUSINESS DAY

3

4

BUSINESS DAY

Thursday 03 May 2018

C002D5556

businessday market monitor Commodities

NSE

Brent Oil

Biggest Gainer

$72.89

Mobil N191.5

Cocoa

US $2,826.00

Biggest Loser

9.55pc

Everdon Bureau De Change

Bitcoin Nestle N1570

41,306.02

-1.81pc

3,282,355.85

+0.30pc

Powered by

Buy

Sell

$-N 360.00 363.00 £-N 498 .00 508.00 €-N 433.00 443.00

FMDQ Close Foreign Exchange Market

Spot $/N

I&E FX Window 360.67 CBN Official Rate 305.70

fgn bonds

Treasury Bills 3M

6M

5 Years

10 Years

20 Years

0.83 11.64

-0.31 10.94

-0.11% 12.96%

-0.03% 12.95%

0.00% 12.92%

meets FX Nigeria airlines lose out on bilateral air service agreements CBN demand at

…Air Peace still processing certifications, Medview suspends operations ... Foreign airlines increase frequencies, open more routes …Rewane dismisses Sudanese airline terrorism threat ing good corporate governance to their operations or else they will be left behind.

Aligbe urged the operators to look inwards and put their house in order, as it was too late to stop a moving train.

Two months ago, the federal government approved two Sudanese airlines - Badr Airlines and Tarco Airways to operate into Kano. The two airlines are currently operating two flights weekly from Khartoum, Sudan to Kano.

Ethiopian Airlines has gradually evolved to become a Nigerian indigenous carrier as it presently flies to five destinations in the country from its base in Addis Ababa.

The East African carrier operates scheduled flight operations to Murtala Muhammed International Airport, MMIA, Lagos; the Nnamdi Azikiwe International Airport, NAIA, Abuja, Aminu Kano International Airport, AKIA, Kano and recently, Akanu Ibiam International Airport, Enugu and Kaduna International Airport with over 21 frequencies weekly.

Apart from Ethiopian Airlines, other foreign airlines like RwandAir, British Airways, Etihad, Air France/ KLM, Egypt Air, Emirates and South African Airways among others have joined the bandwagon of carriers that operate multiple entries into Nigeria regularly without reciprocity from any of the nation’s carriers.

On the other hand, Medview, a Nigerian carrier which flew into Dubai and London has suspended operations into these countries because the airline did not have adequate operational aircraft to sustain the routes.

Arik Air which flew London, Johannesburg-South Africa and almost all countries in West and Central Africa suspended operations into these countries because of its huge debt to its foreign partners.

AirPeace, is still in the process of getting certifications from the Nigeria Civil Aviation Authority (NCAA) and the countries it intends to fly into.

Chris Iwarah, Corporate Communications Manager, Air Peace Limited told BusinessDay that as

a result of the issues Nigerian airlines are having with their foreign operations, NCAA has directed all airlines that intend to commence international operations to apply through them.

“Normally, we send the letters directly to the countries we hope to fly into through the Nigerian embassy.

“However, with this new directive, all applications we have made before, we had to withdraw and send them through NCAA. This will enable NCAA screen all documents so that no country will have any excuse for denying Nigerian airlines from operating in their countries,” Iwarah added.

Ikechi Uko, a Nigerian travel business consultant and tourism development expert told BusinessDay that more foreign airlines will come into Nigeria as long as there is demand and he dispelled the Sudanese terrorism threat associated with the latter’s airlines which will now easily fly into Nigeria.

The ease of entry by Sudanese airlines into Nigeria, will not necessarily aid the obnoxious activities of terrorists like Boko Haram and Al-Qaeda, as is widely believed, according to Uko. Uko further explained that Badr Airlines got a new aircraft and decided to expand within Africa, le-

Farmers smile to the bank as manufacturers expand...

ers Association of Nigeria (MAN) show.

The raw materials inventory of the Purchasing Managers Index (PMI) was at 59.5 points, as the index grew at a faster rate.

Dairy maker FrieslandCampina WAMCO is sourcing some of its raw milk from farmers in communities in Oyo State.

As of 2017, over 70 farming communities, including 962 women, supply raw milk to FrieslandCampina WAMCO on a daily basis, BusinessDay found.

“The capacity the company has there is even more than what I can supply. Things have dramatically changed for us dairy farmers,”

IFEOMA OKEKE

D

omestic Airlines are losing out in revenue and flight frequencies, while foreign airlines are increasing and opening more routes in Nigeria after the government signed the Bilateral Air Services Agreements (BASA).

BASA, founded on the principle of reciprocity, is a deal that enables a country’s airlines to enjoy equal leverage, in terms of flight operations, in countries with which their home country has an air agreement.

The Single African Air Transport Market, (SAATM) which is part of the BASA agreements is a flagship project of AU Agenda 2063, which aspires to create a single unified air transport market in Africa, liberalise civil aviation in Africa, and motivate the continent’s economic integration agenda.

The SAATM agreement which was signed by 23 countries including Nigeria in January 2018 at Addis Ababa has seen more foreign airlines such as Sudanese airlines, Ethiopian airlines, RwandAir, open more routes and increase frequencies in Nigeria, while Nigeria airlines suspend operations into foreign countries.

The agreement has seen more foreign airlines such as Sudanese airlines, Ethiopian airlines, RwandAir, Emirates open more routes and increase frequencies in Nigeria, while Nigeria airlines suspend operations into foreign countries.

There are currently 24 foreign airlines operating in Nigeria and most operate into Lagos, Abuja, Port Harcourt and Kano, while only two Nigerian carriers, Arik and AirPeace currently fly into or from West African countries.

Nigeria currently has seven domestic airlines but the NCAA says more airlines have applied for Air Operating certificates.

Chris Aligbe, former spokesman of the defunct Nigeria Airways Limited, said it is time for domestic airlines to key into advantages that SAATM agreements offer by apply-

Continued from page 1

& Millet, the food and beverage giant has engaged up to 10,671 farmers.

“The Industry has huge needs and we must help farmers improve their yields to meet them.

To achieve real success with connecting farmers to industry, a 360 degree approach which will include the aggregators, processors, and logistics suppliers must be considered within this value chain,” said Mauricio Alarcon, CEO of Nestlé Nigeria Plc. Nestle Nigeria’s revenue climbed

10.3 percent to N67.5 billion in the first quarter of 2018, while after tax profits for the period increased by 3.0 percent to N8.6 billion.

Nestlé’s share price marginally declined 1.81 percent to N1, 570 in Wednesday trading, according to Bloomberg data.

Nestle is the largest listed FastMoving Consumer Goods (FMCG) with a market capitalisation of N1.2 trillion.

Local input sourcing increased significantly to 60.72 percent in the first half of 2017, from 46.3 percent recorded in the corresponding half of 2016, data from the Manufactur-

veraging on the SAATM agreement and Nigeria was one of the countries they chose to operate into.

“The highest numbers of Nigerians in diaspora live in Sudan. During the pilgrimage to Mecca before aviation started, everyone went by foot to Sudan. The road to Mecca is through Sudan and Nigerians settled all along the road,” Uko said.

Bismarck Rewane shares a similar view on the Sudanese threat.

“It is true that Sudan is a hub for terrorism activities, but terrorist are not going to come by air,” Rewane, and economist and CEO at Lagos-based financial advisory firm, Financial Derivatives Ltd said.

“If we have a bilateral air service agreement with a country that is a hub for terrorism, the authorities will need to be more careful with people they allow in from Sudan.

But the Sudanese airlines have the right to fly. Sudan has an embassy operating in Nigeria and there are Sudanese in Nigeria. There are products that are exchanged between Nigeria and Sudan,” Rewane said by phone.

The current number of domestic operational airlines in the country may be unable to compete with foreign airlines, according to Tayo Ojuri, Chief Executive Officer, Aglo Limited, an aviation support service.

wholesale, SME segments with $210m HOPE MOSES-ASHIKE

F

oreign exchange demand at the wholesale, Small and Medium Scale Enterprises (SMEs) and the invisible segments was met as the Central Bank of Nigeria (CBN) on Wednesday injected a total of $210 million into the market.

Consequently the naira/dollar exchange rates maintained stability at the various segments of the foreign exchange market.

Naira gained N0.24k over the U.S. dollar as it closed at N360.17k per dollar on Wednesday as against N360.41k per dollar traded on Monday at the Nigerian Autonomous Foreign Exchange Fixing (NAFEX).

The local currency closed stable at N305.70k per dollar at the Central Bank official window. However, naira weakened marginally by 0.04 percent to close at N360.67k per dollar on Wednesday compared to Continues on page 34

L-R: Geoffrey Onyeama, Nigeria’s foreign affairs minister; Wale Tinubu, group chief executive officer, Oando plc, and President Muhammadu Buhari, at a meeting with energy companies in Blair House, Washington DC, USA.

Mayosore Olatunde Rafiu, CEO of Genius Integrated Farms, one of the milk suppliers in Iseyin, told BusinessDay. The country’s second biggest brewer Guinness Nigeria Plc says that it is ramping up local use of maize and sorghum sourced from farmers from 43 percent to 87 percent over the next two years.

“Our patronage has increased tremendously from manufacturing companies. Some of the crops we farm like dry maize were being imported into the country before the foreign exchange crisis. But with the shortage of forex, importers and manufacturers could not bring in dry maize to sell and make profit, so

they are now buying from us at large quantity,” Abiodun Olorundenro, chief executive officer, Green Vine Farms, said in an earlier interview with BusinessDay. Azeeco International a cocoa farmer supplies cocoa to Cadbury, Olam, and Bolawole international, BusinessDay found.

Major manufacturers such as De-United Foods and Chikason Group source palm oil from manufacturers, including Presco and Okomu. Dangote Farms, Savannah Farm and Ikara Processing Plants had off-taker arrangement with tomato farmers. But Dangote tomato plant is currently not in operation owing to high cost of tomato seeds.

Thursday 03 May 2018

BUSINESS DAY

5

6

BUSINESS DAY

Thursday 03 May 2018

Thursday 03 May 2018

C002D5556

How to get quick cash with no stress/collateral

I

n a study released by Stutern, the report reveals that the average Nigerian graduate earns less than N50,000 as the first salary, even as a related research by Salary Survey disclosed that the average Nigerian salary is N658,324 annually basically N54,330 each month.

Needless to say, many eagerly await their paydays, especially when it is important to access quick cash.

On the other hand, business owners also breach contracts with their employees by delaying the payment of salaries while expecting them to continue performing optimally at their jobs. This, unfortunately, leads to work-life imbalance that affects delivery and KPIs. While it can be agreed that salary workers in Nigeria do not earn enough, every person hopes to address personal financial issues timely and appropriately with as little hassle as possible.

Accessing loans, due to collateral, interest rates and other procedures and requirements, has always discouraged many Nigerians from requesting funds that can address urgent needs.

And therein lies an opportunity for financial institutions that can provide such solutions without making it difficult for their customers. More than anything, every loan seeker in Nigeria wants to explore opportunities that can be accessed in a speedy

and convenient way – which is totally addressed by the Access Bank PayDay Loan.

Launched last October in collaboration with Remita, the Access Bank Payday Loan/Salary Advance Scheme is a product created to make loans available to salary earners, irrespective of what bank their salary account is domiciled. Such offerings are intended to enable its customers meet their financial obligations especially in difficult times.

Commenting on the initiative, the Executive Director, Personal Banking, Access Bank, Victor Etuokwu, said, “This offering is unique given that the beneficiaries do not have to be existing customers of Access Bank but hardworking salary earners who now have the opportunity to obtain instant loans without a guarantor or stress.”

With USSD code *901*11#, Access Bank will approve the application for the PayDay Loan almost instantly when you provide the necessary information. The application process is simple and quick. Loan applicants can get up to 75% of their monthly salary in less than 5 minutes.

All the processes involved when applying for the Access Bank PayDay Loan can be performed right from a telephone device, with a tenor of 31 days or when the next salary is paid. This allows for as much flexibility as possible.

Airfreight growth slows to 22-month low as restocking cycle ends IFEOMA OKEKE

I

nternational Air Transport Association (IATA) released data for global airfreight markets show that demand, measured in freight ton kilometres (FTKs), rose 1.7 percent in March 2018, compared with the same period the year before.

This was five percentage points lower than the February result and the slowest pace of growth in 22 months.

The year-on-year increase in capacity, measured in available freight ton kilometres (AFTK) fell to 4.4 percent compared with 6.3 percent in February. This was the first time in 20 months, however, that annual capacity rose faster than demand.

The sharp growth slowdown is principally due to the end of the restocking cycle, during which businesses rapidly increased their inventory to meet unexpectedly high demand. A softening of global trade is also evident.

“It is normal that growth slows at the end of a restocking cycle. That clearly has happened. Looking ahead, we remain optimistic that air cargo demand will grow

by 4-5 percent this year. But there are obviously some headwinds. Oil prices have risen strongly, and economic growth is patchy. The biggest damage could be political.

“The implementation of protectionist measures would be an own-goal for all involved, especially the US and China,” Alexandre de Juniac, IATA’s director-general/CEO, said.

All regions, except Latin America, reported year-onyear declines in growth in March, with Africa in negative territory.

African FTKs fell by 3.4 perent in March. This result may, however, be influenced by the comparison with unusually strong growth in March 2017. Indeed, Africa has reported the fastest growth of all regions for 17 of the last 18 months, so it would be premature to suggest this is the start of a negative trend.

Asia-Pacific carriers reported FTK growth of just 0.7 percent compared with the same period a year ago.

Export orders in Japan and Korea have fallen in recent months and the region remains particularly exposed to the impact of protectionist

7 NEWS

BUSINESS DAY

measures.

European airlines FTKs rose 1 percent in March compared to March 2017. A stronger Euro and a softening of export orders in Germany partially explain the result, but the seasonally-adjusted trend in FTKs has been slowing in recent months.

Latin American airlines posted growth of 15.5 percent in March compared to a year ago, the only region to improve on its performance compared to February 2018.

Freight volumes in the region have been recovering over the past 18 months, in part due to the better performance of the Brazilian economy.

Middle East carriers saw growth of 0.8 percent in March compared with March 2017.

This is consistent with the general weakening in regional performance over recent months, and in particular may reflect an especially strong March 2017 result.

North American carriers’ freight volumes expanded 3.9 percent compared with March 2017. The US inventory-to-sales ratio has risen in 2018, indicating the boost to cargo growth from restocking is over.

Masked security men storm National Assembly OWEDE AGBAJILEKE, Abuja

H

eavily armed, masked security men on Wednesday stormed the National Assembly complex in Abuja.

The development comes two weeks after armed political thugs suspected to be loyalists of the suspended senator representing Delta Central Senatorial District, Ovie Omo-Agege, invaded the National Assembly, disrupted Senate plenary and snatched the symbol of authority - mace - on live television.

Our correspondent sighted a masked security man bearing AK-47 at the entrance of the chamber, while others were stationed at the entrance of the Senate president’s office and at the main entrance.

The Inspector General of Police (IGP), Ibrahim Idris, is expected to appear before the Senate on the alleged inhuman treatment meted on the chairman, Senate Committee on FCT, Dino Melaye, and killings across the country.

As of the time of filing this report, the Senate has embarked on closed-door session.

8

BUSINESS DAY

Thursday 03 May 2018

Thursday 03 May 2018

BUSINESS DAY

9

10

BUSINESS DAY

C002D5556

COMMENT

Thursday 03 May 2018

comment is free

Send 800word comments to comment@businessdayonline.com

The missing debate regarding the Buhari ‘youths’video: The welfare state in Nigeria UYIOSA OMOREGIE Dr Omoregie is a Petroleum Economist and Project Analyst

A

video of President Buhari was passed around on social media recently, and created a lot of discontent. In the video, Buhari is seen speaking during a questionand-answer session of the Commonwealth Business Forum in London. The president said that a lot of Nigerians want to sit and do nothing yet expect the Government to provide free education, free healthcare and free housing.

Well, that’s called the Welfare State ! That’s social security as it operates (in one form or another) in many developed countries like inEngland, the US, Canada, and in many oil-rich countries like Saudi Arabia, Kuwait, Dubai and Libya.

This is missing in the current debate: the absence of a Welfare State in Nigeria. In this age of twitter, Instagram and Facebook updates, only sound bites matter What is more disturbing is not so much what the President said what he said (and I completely RAHEEM OLUWAFUNMINIYI Raheem Oluwafunminiyi, an independent researcher, lives in Lagos and wrote via creativitysells@gmail. com

I

have watched with deep awe the needless controversy generated by the Oluwo of Iwo, Oba Abdulrasheed Adewale Akanbi’s declaration few days back where he said he could be regarded or called an Emir. First, it is important to state here that the writer has no cause whatsoever to defend the Oluwo or his purported statement; neither is this write-up intended to join the bandwagon which has consistently lampooned or commended the monarch’s ‘unfamiliar’ position. The intervention here is basically aimed at setting some of the records straight to assist as many as possible on the need to understand the reasons behind some of the actions taken by the Oluwo in recent times, particularly as it relates to Islam.

Since his installation as Oluwo in 2015, Oba Akanbi’s actions or rhetoric in connection with his Islamic belief, on the one hand, and the role the kingship institution plays in it, on the other hand, has not surprised a few.

Three examples suffice here. In 2016 during the popular Eid-el-Fitri, the Oba assumed the role of the town’s Chief Imam and led Muslim faithful in prayer. While this action was criticised by a few, it was evident to others who understood Iwo history that the Oluwo was simply exercising a spiritual/religious duty historically im-

disagree with his ideology here) but the reaction on social media and some newspapers which fed into the minds of many Nigerians. They now say President Buhari called Nigerians lazy. To say this is to take a conservative position on the ideological landscape. Many (including myself) would find it unfortunate that the beneficiaries of the Welfare State all over the world are regarded as lazy.

The one thing I take from all this, is that President Buhari is obviously more akin to a British Conservative or an American Republican, ideologically. And more worrying is that many Nigerians are being misinformed to believe that a Welfare State is for lazy citizens.

The social and economic well-being of the citizens is the purpose of the Welfare State.

The Welfare State is present in every developed society in one form or another. It is a form of protection, not unlike the protection the State provides via the police or the military, or through traffic regulations and the legal system. It must be regarded as a mark of civilization, progress and development : the Welfare State is an important aspect of capitalism in developed countries. Meeting half-way between capitalism and socialism, the Welfare State

The social and economic well-being of the citizens is the purpose of the Welfare State. The Welfare State is present in every developed society in one form or another. It is a form of protection, not unlike the protection the State provides via the police or the military, or through traffic regulations and the legal system helps to blunt the sharp edges of unbridled capitalism. The Welfare State helps capitalist economies become socially and economically sustainable. It is a safety net that cushions the downtrodden and helps them rise up again.

Critics of the Welfare State say it creates a culture of dependency: it makes the poor poorer and saps the finances of a country. Bad for the economy. The most potent criticism is that it makes the young lazy. The Welfare State has been described as a ‘narcotic that saps the spirit’ for misfits in society.

These criticisms have been taken into account and the Welfare State has gone through considerable reform in those countries.

Starting the middle of the 20th century, governments of countries such as Denmark, Australia, Germany, New Zealand and England experimented with a new form of government. These new governments had distinct and social characteristics. Even earlier in Germany, the Chancellor, Otto von Bismarck enacted social insurance laws in the 1880s. This move by Bismarck, created an embryonic version of the Welfare States that came into being in Europe and the US a few decades later. In the US, President Roosevelt created the New Deal (which included social security programs passed into law) in response to the Great Depression the country was passing through. In England the Fabian socialists had for decades pushed for social protection for the poor, and in that country The National Insurance Act of 1911 set up national insurance contribution for unemployment and ill-health protection. The Fabian Beatrice Webb was a lead writer of the Minority Report published by the Royal Commission on the Poor Laws and Relief Distress 1905-1909. Beatrice Webb stated that the purpose of the report was “to secure a national minimum of civilized life…sufficient nourishment and training when young, a living wage when able-bodied, treatment when

Wading into the Oba-Emir debate posed on the kingship institution. In late 2017, during an interview with a national daily, Oba Akanbi was quoted to have said that he relocated elsewhere in the town a popular Orisa which had been in the palace for over 800 years. When asked why, he attributed his action to his status as alase lori orisa (an authority over the gods) and because as a king, he was supposed to be a subject of God and not an idol. Lastly, in the same interview, the Oluwo was asked to state whether he performed some rituals or rites before ascending the throne. The first class monarch claimed that some rites had to be jettisoned because they were not in tandem with his religious belief.

Though several other interesting instances could be alluded to, it is obvious from the above that Oba Akanbi’s vantage points or reactions to most issues are heavily guided by a key manifestation – Islam. How? Southwest Nigeria is replete with a number of Yoruba towns which had embraced Islam dating back to the mid-1800s. This is not the case with Iwo for several reasons.

Islam came into Iwo through the palace and the first king to have led the Eid prayer was Oba Oderinlo popularly called Oba Alawusa. This was as far back as the 18th century.

Incidentally, Iwo, more than any Yoruba town in history, aside old Oyo, had made early contact with Islam which dates back to the 1600s where a mosque was erected in the year 1650. Narrations suggest that

the site of the mosque today referred to as Mogaji Oba mosque located very close to the Oluwo’s palace, still exist.

From the 1850s, Iwo witnessed one of the exacting Islamisation processes in Yorubaland. The newly installed king, Oba Momodu Lamuye began to Islamise not only the kingship institution but also all facet of Iwo life. Every home and compound was made to erect a mosque while all palace chiefs were required to become Muslims.

Iwo was so entrenched in Islam that when Reverends Meakin and Hinderer of the Church Missionary Society arrived Iwo in the 1850s, and after over thirty years in the town, described it as impregnable. James Johnson, another missionary in perplexing frustration, observed how Iwo Muslims rejected missionary education that was to form part of the evangelization in the town. In fact, while other Yoruba towns had welcomed Christianity into its fold in the late 1800s, Iwo frustrated this effort until 1920. Dramatically, the deep connection Islam has with Iwo kingship institution is indicative of the Turbaning ceremony carried out on all Oluwo since the 18th century.

It should, therefore, not be a surprise that the current Oluwo, like Oba Lamuye (1859-1906), wears a turban today which is a dress code not unfamiliar with the palace. What this suggests is that Iwo has a centuries-old relationship with Islam that appears rigid and explains why boundaries are often set when threats to that rigidity are triggered. The hijab crisis in Iwo is a very potent reminder of this sort of

threat and to be reassured that Islam remains the religion of the town, the kingship institution must as a necessity renew its religious pledge to reaffirm those boundaries.

The history of Islam in Iwo, like a few Yoruba Muslim towns, is the history of its kings’ compelling desire to make the town an ‘estate of Muhammed’. Because the Oluwo holds dual spiritual powers (traditional and Islamic), on the one hand, and temporal powers, on the other hand, the religious agencies in the town generally subsume their powers to him.

We are not unaware of the vacuum created in respect to the office of the Chief Imam during Iwo’s interregna in the 1980s and late 2000s, because the Oluwo, being the consenting authority, appoints the spiritual leader of the town and has such overwhelming powers to depose him. Therefore, had the League of Imams and Alfas understood fittingly this practical historical dynamics which often comes to play within the context of Iwo’s traditional and religious institutions, its recent letter to the Oluwo requesting him not to appoint a Waziri would not have arisen.

While the religious demography may have changed a bit in Iwo today, a century and 16 years ago, religious orders would have thread carefully. The suggestion that the Oluwo could be called an Emir may not be out of place if we take its strict meaning and attachment to Islam into consideration. The Muslim Students Society of Nigeria and over a

sick, and a modest but secure livelihood when disabled or aged.” She could in many ways be regarded as the ‘patron saint’ of the British Welfare State. She was a co-founder the London School of Economics and Political Science (LSE). The most famous Nigerian alumnus of the LSE is the late Chief Obafemi Awolowo. Awolowo enrolled at the LSE in 1944, two years after the Beatrice Webb-inspired Beveridge Report was published. The Beveridge Report, officially known as the Report of the Inter-Departmental Committee on Social Insurance and Allied Services, is the landmark document that established the Welfare State in England. The Beveridge Report sought to tackle “the five giants”: Want, Disease, Ignorance, Squalor and Idleness. Clearly influenced

by Fabianism, Chief Awolowo sought to create a Welfare State in the Western Region of Nigerian during his time as Premier.

The debate now, regarding the Buhari video should be the role of government in the provision of housing, education and healthcare. It was be ‘lazy’ of us to focus only on the sensational at the expense of the fundamental.

Send reactions to: comment@businessdayonline.com

hundred Muslim social movements today have spiritual heads who are referred to as Amir, a term which would later become localised and called Emir today. The Emir title in parts of the North may be lesser in rank to the Sultan and that it is a common title held by the former does not suggest exclusivity; neither does it de-emphasise the Oba title common among Yoruba monarchs which the current Oluwo proudly embraces. The decision to take on the Emir title should, hence, not have become a subject of debates in the first place if it is assumed that an Emir is nothing more than a Muslim leader.

It would seem to some that in re-enacting these historical dynamics, the Oluwo may not have fittingly expressed them which explains, therefore, why a few find the king’s rhetoric offensive or scandalous. That Iwo is popularly referred to as Iwo oni Kurani (Iwo land of the Qur’an) or Iwo gerin malami (Iwo land of scholars) suggest that the town had always been an estate of Islamic scholarship and bastion of Muslim evangelism. It would, hence, not be erroneous if the Oluwo is identified as an Emir so long such title is understood within the ambit of his religious headship over the entire Muslim community in Iwo and as far as it aims to reaffirm Iwo’s Muslim identity which dates back over four centuries.

Send reactions to: comment@businessdayonline.com

Thursday 03 May 2018

C002D5556

COMMENT

BUSINESS DAY

11

comment is free

Send 800word comments to comment@businessdayonline.com

APC and the crushing burden of police reform

TOSIN OSASONA Tosin Osasona writes from Lagos

M

ultiple indicators on security and public safety unanimously point to Nigeria as a failing state- a fragile one teetering on the edge of catastrophic implosion. The 2017 Legatum Prosperity Index ranked Nigeria 145 out of the 149 nations polled in the safety and security component; the 2018 Fragile State Index ranked Nigeria as the 14th most fragile state in the world; and the Mo Ibrahim Index subgroup on national security listed Nigeria as “one of the most deteriorated countries over the last five years in West Africa”. A UNDP report puts it aptly- “generally, the human security index for the country is low, this is an indication that Nigerians are not humanly secured”.

The economic and social consequences of this grim security outlook is huge – more than 2.1 million Nigerian citizens are displaced internally because of conflict and insecurity (close to the population of The Gambia); Niger-delta militants destroyed more than 1,447 pipelines in 2016, impairing the implementation of the 2016 budget in the process and

sending Nigeria into an economic recession that she is still recovering from. Again, ongoing conflicts between farmers and herdsmen across Nigeria is costing at least $14 billion in potential revenues annually; the North-East Nigeria Recovery and Peace Building Assessment (RPBA) team has put the cost of rebuilding destroyed infrastructure in the region blighted by Boko Haram insurgency at $US9 billion; and nothing summarizes Nigeria’s security challenges than the fact that Boko Haram insurgency according to Governor KashimShettima is responsible for the death of at least 100,000 people since inception.

What appears more terrifying is the seemingly progressive emasculation of the Nigerian state and her inability to defend herself. Of course, how will a state that cannot defend her institutions and totems of authority protect her citizens? Who then will protect schools and hospitals when bandits routinely sack police stations and butcher police officers at will without swift consequence? How will judges in session, in their wigs and gowns, be sacred when rogues can walk into the National Assembly and seize the mace?

We are seeing the development of a wide swath of ungoverned spaces within the Nigerian territory and the rise of well-armed non-state actors.

There is a connection between Nigeria’s security woes and the documented inability (orientationally, structurally, and capacity-wise) of the Nigeria Police Force to meet the demands of modern policing. The police are the most visible symbol of state power and the primary institution of social control in the hands

The Buhari led APC government must go beyond the cosmetics of sloganeering to total organizational and structural reform of the Nigeria Police Force and engender a democratic policing policy that reflects Nigeria’s current realities of the managers of public safety and consciousness across the world and that is why nations pay serious attention to their policing agencies. From the Boko Haram insurgency in the North-East to the spiraling herdsmen conflict across Nigeria; kidnapping to armed banditry-at their onset basic law and order issues-were allowed to fester to the point of crisis, highlighting how critical the police is to our collective and individual wellbeing.

Whether attributable to gross incapacity, deliberate heedlessness or cold political exigencies, the APC led government especially at the national level has failed to show a clear understanding of the centrality of the Nigeria Police Force and policing to security and public safety in Nigeria.

A clear understanding would have reflected in the policy choices the Buhari administration has made in the last three years. An informed choice which would have been to holistically reform the Nigeria Police Force and break

away from the century old colonial policing framework. The Buhari led APC government must go beyond the cosmetics of sloganeering to total organizational and structural reform of the Nigeria Police Force and engender a democratic policing policy that reflects Nigeria’s current realities.

Underpinning the operations of every policing agency in the world are conceptual and organizational credos that reflects its ideology and ours is one of the most visible legacy of colonialism - the use of strangers to police strangers. The British at the onset of colonization needed a policing outfit to enforce their narrow colonial objectives in the Lagos colony, so they assembled in 1861 a force made-up of Hausa recruits from across the Niger, referred to as the Hausa Guard which later metamorphosed into the Hausa Constabulary. This force was disconnected from the socio-historical processes of the local communities and was therefore effective for the enforcement of unpopular tax regimes, the raiding of labor camps, the violent suppression of strikes, and the supply and discipline of the labor force required by colonial capitalism.

The Nigeria Police Force in 2018 still runs on this colonial templateideologically, structurally and operationally-but time has since changed and the idea that sufficed for the colonialists in 1861 cannot serve the widely varied interests of the Nigerian peoples of today.

At the ideological level, there is need to return the ownership of the Nigeria Police Force and policing in its full spectrum to the immediate communities it serves through the

Unclaimed PVCs and political apathy TAYO OGUNBIYI Ogunbiyi is of the Lagos State Ministry of Information & Strategy, Alausa, Ikeja

U

niversally, democracy is referred to as the government of the people by the people and for the people to emphasise that it is the people that give impetus to democracy. In essence, democracy cannot exist without the people. It is the people that set democracy in motion. It is the people that act as the oil that galvanizes the wheel of democracy. Therefore, democracy cannot thrive where people display an indifferent attitude towards the political process.

The revelation that there are about 1.4 million unclaimed Permanent Voters Cards, PVCs, in Lagos State should undoubtedly get every enthusiast of democratic governance in the state and, indeed, the country concerned. According to reports, Lagos state has the highest number of unclaimed permanent voter cards in the country.

According to a latest Independent National Electoral Commission, INEC, statistics, Lagos has the highest number of (1,401,390) unclaimed PVC followed by Oyo with 647,586 and Edo which had 449,001, while Kano has 195,941.

A further breakdown shows that Bauchi State has the least number of uncollected PVCs, with 15,542,

followed by Bayelsa and Plateau which have 28,533 and 25,300 PVCs respectively.

A 2012 INEC data aptly captures the sad trend in the nation’s political process. According to the statistics, only about 35% of the over 70million who registered to vote in the 2011 general elections really participated in voting. This implies that over 65% of registered voters did not partake in the process. This is not good enough as it portends as it has grievous implications on the prospect of democracy in the country.

For one, it ensures that leaders who attain political power via the votes of the minority rule over the majority. Second, it casts serious aspersion on the kind of democracy we practice .Also, it makes it hypocritical for those who did not turn out to vote to criticize those who were elected through the same process that they shunned.

As it is often said, ‘you cannot eat your cake and have it’.

A lot of arguments have been put forward in defence of those who shun the political process.

One of such is that votes don’t usually count in our country. This is anchored on the notion that the outcome of elections is often pre determined. There is, thus, a conviction that the electoral process is a sham. Similarly, many consider the political class undeserving of their votes because of their perceived insincerity to electoral promises. Another factor is what has been termed as the failure of political parties to embrace internal

democracy as evidenced in alleged imposition of candidates and other such undemocratic tendencies.

However, irrespective of the genuineness of the argument, it is not enough for anyone to ignore the electoral process. In any case, when the majority refuse to participate in voting, that does not in any way invalidate the outcome of elections. Sadly, we all suffer the consequences of staying aloof when the wrong people get into power.

Active involvement in the political process signifies that everyone is a critical stakeholder, having the best interest of the country at heart. It is a practical demonstration of being a responsible citizen.

It is, therefore, important that those with the unclaimed PVCs make concerted efforts to collect them at the designated points as directed by INEC. The worth of the PVC in the current political process cannot be over -emphasised. For one, it offers electorates the right to have a say in deciding those who would rule over them. Possession of this all important item, thus, puts an enormous responsibility on the electorate. It places the destiny of the state right in their hands. It is such an enormous responsibility that must be carried out with every sense of honour, dignity and patriotism. It is a sacred task that must be performed with utmost diligence and patriotism. This is because any slipshod choice that is made in the coming polls could portend great danger to the lives of generations yet unborn. It could jeopardize the future of the country.

The destiny of this nation and that of future generations of Nigerians lies in the hands of the electorates. Whichever path the country would follow in the coming years would, thus, be a clear manifestation of the kind of choice electorates make. For our hues and cries over bad governance and poor leadership, we won’t be able to actually absolve ourselves of complicity if we disregard our civic duties.

Unlike other forms of government, the beauty of democracy lies in the ability of the people to have a say in the choice of those who preside over the apparatus of governance. This is the rationale behind the popular affirmation of democracy as the government of the people, for the people and by the people. However, for the people to actually maximize the benefits of democracy, they need to appropriately play their role of selecting leaders of their choice.

Public security, infrastructure development, the economy and much more are tied to the thumbs of the electorates. If we bungle things again, it would take us another four years or much more to get it right again. This is, therefore, not the time to indulge in undue political apathy.

If democracy is to truly be the government of the people and for the people, the people must own the process from the beginning to the end. Active involvement in the political process signifies that everyone is a critical stakeholder, having the best interest of the country at heart. It is a practical demonstra-

adaptive use of Community Oriented Policing. While law enforcement shares a lot in common across nations, however there is a reason why there is wide difference in the structure and operation protocols of the London Metropolitan Police and Mutaween in Saudi Arabia: the answer is the differences in the cultures and peoples they serve. Communities in Nigeria must be allowed to take the lead in defining their public safety and security concerns and design strategies for addressing them. If democracy would mean anything, it must include the right of communities to participate in securing themselves.

The Buhari led APC’s government of change must urgently reverse the progressive monopolization of the Nigeria Police Force and policing in Nigeria by the ruling elite. No matter how we look at it, a police force that expends at least half of its active human resource in policing political office holders and the few privileged as indicated by the 150,000 police officers currently on private guard duties out of the current 370,000 (a number that includes phantom police officers, the unfit, dead, etc) is one that has a very poor and indefensible strategic outlook. Planning and resource allocation for sustainable security must countenance the interest of the collective.

Note: the rest of this article continues in the online edition of Business Day @https://businessdayonline.com/ Send reactions to: comment@businessdayonline.com

tion of being a responsible citizen.

Therefore, INEC, political parties, the civil society, NGOs, the media and other stakeholders should give greater attention to voters’ education as well as other enlightenment campaigns that could re-enact the confidence of the people in the electoral process.

It is important to stress that the worst illiterate is the political illiterate who takes no part in political process. Sadly, he doesn’t understand that everything depends on political decision. Ironically, he even prides himself on his political ignorance by openly sticking out his chest that he hates politics. He doesn’t know that from his political apathy comes the prostitute, the abandoned child, the robber and worst of all, corrupt and incompetent public officials. At the slightest chance, he blames the government for every woe in the society but never really sees anything wrong in his own apolitical posture.

On a final note, it is imperative to stress that elected political leaders at all levels should not take the electorates for granted. It will only amount to sheer treachery for an elected official to ignore his/her electoral promises while in office.

Compatriots who ignore all difficulties in order to participate in the political process ought to be given a better deal. Also, the practice of turning elections into a ‘do or die’ affair should be discouraged to give credibility to the electoral process.

Send reactions to: comment@businessdayonline.com

12

BUSINESS DAY

C002D5556

Editorial PUBLISHER/CEO

Frank Aigbogun EDITOR-IN-CHIEF Prof. Onwuchekwa Jemie EDITOR Anthony Osae-Brown DEPUTY EDITORS John Osadolor, Abuja Bill Okonedo NEWS EDITOR Patrick Atuanya EXECUTIVE DIRECTOR, SALES AND MARKETING Kola Garuba EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, DIGITAL SERVICES Oghenevwoke Ighure ADVERT MANAGER Adeola Ajewole MANAGER, SYSTEMS & CONTROL Emeka Ifeanyi HEAD OF SALES, CONFERENCES Rerhe Idonije SUBSCRIPTIONS MANAGER Patrick Ijegbai CIRCULATION MANAGER John Okpaire GM, BUSINESS DEVELOPMENT (North)

Bashir Ibrahim Hassan

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

Thursday 03 May 2018

Army and approach to quelling protests

T

he Nigerian Army is the largest component of the Nigerian Armed Forces and is responsible for land warfare operations. The army, by rules of its engagement, has the responsibility of protecting the territorial safety, integrity and security of the country, and maintaining internal peace where necessary.

Given its considerable investment in men and material, the Nigerian Army has generally been perceived as one of the best equipped fighting forces on the African continent and it bears the brunt of the nation’s security challenges.

In terms of operation, the Nigerian army has, in many fronts, acquitted itself through the gallantry and successes recorded by its soldiers and troops who have gone out on peace missions in and across Africa, giving credence to the assertion that, in terms of personnel, it also harbours the finest crop of refined and intelligent officers who provide direction and intelligence for the various ranks and file.

In recent time however, Nigerians have been

alarmed by the activities and disposition of this same army to its civilian brothers and sisters on whom it unleashes mayhem at the slightest provocation. These are no easy times in Nigeria.

Many of the citizens have been suffering and experiencing dislocations, deprivations and maginalisation in their own country. Frequently, some of them take to the street in protests as a way of giving expression to the fire burning inside them.

Frequently too, the government, apparently bereft of alternative solutions, have called out the army to quell such protests and, to the amazement of sane and civilized world, soldiers have descended on defenceless civilians in manners that is not only unprofessional, but also brutal and, in some cases, bloody.

Recently, soldiers were alleged to have ‘opened fire’ and killed some people suspected to be pro-Biafra activists who were celebrating the 49th anniversary of the struggle for the actualization of an independent state of Biafra in Nkpor, Onitsha, Anambra state.

Similar incident was reported to have occurred in the Niger Delta region of Nigeria where the natives were protesting the oc-

cupation and harassment of their people by soldiers drafted to contain militant activities in that region that have led to the destruction of some oil and gas pipelines.

We join other Nigerians in condemning these acts and advise that both the government and the army should rethink and reconsider their strategies in quelling protests when they occur.

We recall that the military was in power in this country for a long time and it seems to us that they are yet to come to terms with the fact that the country is now in a democracy, meaning that every action or utterance of any individual or institution must have democratic content and consideration.

Though we are not against government’s decision to send soldiers to restore peace when there is an uprising, especially since the police, whose constitutional duty it is to undertake any internal operations to restore peace, appear to be overwhelmed, we are nonetheless against soldiers using life bullets as against rubber bullets or tear-gas to disperse protesters.

For us, the use of soldiers to stop or crush peaceful

protest is a democratic ante-thesis and runs against the current of democratic norms as seen in civilized societies where the police are a better option.

The preference of the army to the police in quelling civil and peaceful protests is an eloquent testimony by the government itself that the police as a branch of the country’s armed forces has failed and is in dire and urgent need of re-invention and re-organisation.

We urge the army authorities and President Muhammadu Buhari as the Commander-in-Chief of the armed forces to call the soldiers to order so that whenever duty calls and they have to answer, they should bring their professional training in arms handling to bear on their assignment.

These senseless killings of defenceless citizens by soldiers, who often claim to be acting on self-defence, speak volume of the weakness, not strength, of the army. They also show that professionalism in that body needs urgent rejuvenation. We advise that those bullets ‘wasted’ on civilians should be saved to serve better and more dignifying purposes another time in another place.

EDITORIAL ADVISORY BOARD Dick Kramer - Chairman Imo Itsueli Mohammed Hayatudeen Albert Alos Funke Osibodu Afolabi Oladele Dayo Lawuyi Vincent Maduka Wole Obayomi Maneesh Garg Keith Richards Opeyemi Agbaje Amina Oyagbola Bolanle Onagoruwa Fola Laoye Chuka Mordi Sim Shagaya Mezuo Nwuneli Emeka Emuwa Charles Anudu Tunji Adegbesan Eyo Ekpo

ENQUIRIES NEWS ROOM 08022238495 08034009034 Lagos 08033160837 Abuja

}

ADVERTISING 01-2799110 08116759801 08082496194 SUBSCRIPTIONS 01-2799101 07032496069 07054563299 www.businessdayonline.com The Brook, 6 Point Road, GRA, Apapa, Lagos, Nigeria.

01-2799100 LEGAL ADVISERS The Law Union

MISSION STATEMENT To be a diversified provider of superior business, financial and management intelligence across platforms accessible to our customers anywhere in the world.

OUR CORE VALUES

BusinessDay avidly thrives on the mainstay of our core values of being The Fourth Estate, Credible, Independent, Entrepreneurial and Purpose-Driven.

• The Fourth Estate: We take pride in being guarantors of liberal economic thought • Credible: We believe in the principle of being objective, fair and fact-based • Independent: Our quest for liberal economic thought means that we are independent of private and public interests.

• Entrepreneurial: We constantly search for new opportunities, maintaining the highest ethical standards in all we do • Purpose-Driven: We are committed to assembling a team of highly talented and motivated people that share our vision, while treating them with respect and fairness. www.businessdayonline.com

Thursday 03 May 2018

BUSINESS

COMPANIES & MARKETS

13

DAY

‘Market looks forward to introduction of Exchange Traded Derivatives’

Pg. 14

Co m pa n y n e w s a n a ly s i s a n d i n s i g h t

Leadway Assurance’s profit surges on investment income, gains on fair value …Gross Premium income up 60 percent in FY’17 BALA AUGIE

L

eadway Assurance Limited, the largest insurer by premium income and asset has recorded a surge in full year profit, thanks to contributions from investment income and gains in fair value asset.

For the year ended December 2017, Leadway Assurance’s net income surged by 82.45 percent to N13.83 billion from N7.58 billion the previous year.

The growth in profit was largely driven by 61.05 percent year on year increase in investment income and net fair value gain on assets of N7.47 billion that help make up for the underwriting loss in the period under review.

Leadway Assurance has yielded returns higher than the risk free rate of return, the market rate of return and the inflation rate respectively as return on equity (ROE) increased to 25.0 percent in December 2017 from 19.52 percent the previous year.

However, the Underwriting firm recorded an underwriting loss of N10.41 billion in the period under review despite a double digit growth in premium income.

The loss was largely due to 1015.15 percent surge in annuity fund to N49.31 billion in the period under review.

Leadway Assurance paid total claims of N27.43 billion in 2017; this represents an 18.95 percent increase from last year’s figure of N23.06 billion as the insurer continues to keep to promise made to customers.

Claims ratios increased to 39.29 percent in the period under review as against 54.70 percent the previous year. In other words, the company has spent N39 in claims out of every N100 generated in premium income.

Some experts interviewed

by BusinessDay said that Leadway has the financial strength to acquire or absorb other insurers with weak capital bases. But they added that such a target firm should be seen to add value to underwriter’s business.

For instance, Leadway’s net premium income of N69.81 billion as of December 2017 is more than the N55.37 billion combined premium incomes of AXA Mansard Insurance Plc, Wapic Insurance Plc, NEM Insurance Plc, Consolidated Hallmark Insurance Plc, Law Union and Rock Insurance Plc and Equity Assurance Plc. What’s more, the un-

derwriting firm’s total assets of N283.78 billion as at December 2017 dwarfs the N251.15 billion of the above insurers.

The insurance industry contributed less than one percent to an economy of $493 billion, a figure that is abysmally poor when compared to the contribution of some Sub Saharan African countries to their economy.

Analysts say tradition and cultural beliefs are increasingly hindering the performances of insurers as many people have refused to take a cover.

Also, lack of awareness about the benefits of insurance, poverty and high unemployment has combined to undermine the industry.

For instance, approximately 1.5 per cent of Nigerians within the insurable class are covered by insurance today, which means the large chunk of the population do not have a cover for risks they encounter on a daily basis.

Despite the above challenges, Leadway Assurance’s gross premium income, Net premium income and net premium income increased by 84.12 percent, 57.42 percent, 69.23 percent to N84.17 billion, N84.61 billion and N69.11 billion respectively in the period under review.

Africa Prudential grows profitability and key ratios in Q1 2018 BALA AUGIE

A

frica Prudential Plc was able to grow profitability and other key financial indicators despite operational challenges arising as a result of macroeconomic headwinds.

For the first three months through March 2018, Africa Prudential’s net income increased by 22.02 percent to N460.89 million from N377.66 billion the previous year.

Gross earnings were up

49.29 percent to N957.80 million in March 2018 as against N641.54 million the previous year.

Net investment income increased by 72.04 percent to N734.25 million in the period under review from N426.79 million the previous year.

The growth in net investment income was driven by a 328.05 percent surge in interest on term deposit to N418.69 million in the period under review.

Brief Historical Background UBA Registrar Department was created in 1970, which is the phase 1a of the

company’s history. While transactions were done manually, accounts/clients increased from 15 to 17 while the company had an asset book of over N1.40billion with N63.40 million gross earnings.

UBA Registrar was incorporated in 2006, which is the phase 1b of its history.

From 2006-2012, the period of innovation and capacity building, accounts/ clients increased from 17 to 50 while gross earnings rose to N1.9billion and asset book rose to N14.1billion.

The second phase (20132017), formed the bed rock

of the major milestone in the history of Africa Prudential. In 2013, the company changed its name from United Bank for Africa (UBA) Registrar Limited to Africa Prudential Registrar Limited.

In addition to that, the company’s client base in the period under consideration (2013-2017) increased from 50 to over 70 that it currently has today.

Also, the company’s book assets increased to N18 billion while gross earnings increased to N3.30 billion from the N1.90billion it had at the end of 2012.

Africa Prudential Plc got listed precisely on 11January 2013; making it the first registrar outfit in Nigeria to achieve such feat. Shareholders base continued to garner momentum as total number of shareholders increased to over 280,000 today.

In 2013, the company concluded the strategic acquisition of UAC Registrars Limited, a subsidiary of the conglomerate company, UAC Group.

In 2017, the company got approval from shareholders to change its name from Africa Prudential Registrar Plc to Africa Prudential Plc.

Phase 3 (2018-2025) company tells investors and shareholders where it wants to be in the next 4 years in terms of earnings and profit growth.

Africa Prudential Plc has projected gross earnings of N10billion and it will kick start the Implementation of Strategic Business Segmentation.

According to the company, there shall be total separation of registrar business and total separation of E-Solutions Business. The company is also planning an aggressive entrance into the African market.

14

BUSINESS DAY

C002D5556

Thursday 03 May 2018

COMPANIES & MARKETS

‘Market looks forward to introduction of Exchange Traded Derivatives’ Uwana Ekpat heads Coronation Securities Limited. She speaks in this interview with Iheanyi Nwachukwu. Excerpts Currently, many securities traders in Nigeria and other global markets are leveraging technology to ensure efficient service delivery to their clients. How has Coronation Securities Limited played in that aspect? ith the advancement in technolo g y , t hes e days’ investors can conduct capital market transactions from the comfort of their homes through the internet, Coronation securities has continued to stay abreast with the diverse changes in technology as we continually deploy edge cutting technologies to aid our clients in investment decision-making and execution of trades.

We have made it possible for investors to place their orders/ mandate using our online trading platform and to also get real time market updates, it is important that our clients derive supreme value first before any other consideration.

You provide full-service platform that allows your clients to take advantage of market opportunities, as well as access to structured products, bonds and alternative investments. So far, what are the challenges you encounter in the market place?

The primary challenge faced by the stockbroking business with regards to clients taking advantage of market opportunities is poor level of participation by the investors, especially local retail participation which is partly underpinned by inadequate investment education and bearish sentiments around the Nigerian capital markets as a whole.

There is a growing need for regular and intensive Investor education in the market place in-order to keep abreast with current and new product developments in the space; we also need to take proactive measures that would aid in building retail investor confidence.

Can you tell us about your remodeled Online Trading Portal that enables you execute trades in real-time on the Nigerian Stock Exchange (NSE). What makes the Portal different from that of others?

Coronation e-trader is an online trading platform which allows users buy and sell stocks online through

W

the Nigerian Stock Exchange (NSE) from anywhere in the world. The platform creates a world class experience, bringing the broker to the comfort of investors’ homes and offices. The platform guarantees investors’ convenience as it enables investors open virtual stockbroking accounts. In addition to this, the platform gives real-time notifications on trade executions and provides convenience for the investor to trade the way he/she wants whilst taking full control of their investments at all times.

Another amazing feature of the platform is that it provides users with market data and information on all quoted companies, accompanied with quality research reports that help our customers make safer investment decisions.

It is barely four years now since you started operating independently as an investment securities and financial advisory firm. What strategies do you have in place to see you play in the “top ten” league in terms of deals volume and value?

Although there are some players operating above us on the Nigerian Stock Exchange league tables, you will agree with me that our market is still a perfectly competitive structure, hence Coronation as a group have outlined strategic and trajectory growth initiatives to ensure that we are on the path to being market leaders in all aspects of our business by 2022. In the little time we have operated, we have made considerable strides especially when compared to where we were a few years ago.

Our strategy focuses primarily on growing the retail client base and dominating the foreign & local institutional aspects of the market.

As a forward thinking organization we will continue to strive for excellence through exceptional service delivery by ensuring immediate and efficient transaction process, offering personalized solutions that are tailored to meet our customers’ specific business needs and conducting ourselves in a manner that exemplifies deep industry knowledge in the execution of daily transactions.

Many schools of thought see need for Nigeria to deepen tradable instruments in the capital market. Are you one of them?

Uwana Ekpat

Certainly, we are aligned with that school of thought.

Market deepening is a major priority, it is a vital part of increasing the enthusiasm, penetration and competitiveness of our capital market. One major instrument that the market is looking forward to is the introduction of Exchange Traded Derivatives (ETD’s) as this is expected to further augment the complexity and scope of the capital market following the introduction and listing of an Exchange Traded Fund (ETF) in 2011.

Given the derivatives market’s global nature, users can trade around the clock and make use of derivatives that offer exposure to almost any “underlying” asset class across various markets around the world.

However, It is imperative that adequate feasibility studies are carried out and appropriate regulatory measures are put in place to mitigate counterparty, operational, liquidity, systematic and legal risks, the global financial crisis between 2007 and 2010 is a testament to the adverse side of derivatives.

As stockbrokers for primary issues, you intermediate between new and existing clients and the Nigerian Stock Exchange (NSE). Do you have plans (even if incubatory stage) that will see you bring any “big issuer” to

the market soon?

We certainly do! Nigeria is officially out of recession, hence there is no better time than now for any issuer with a compelling story that promises favorable returns for investors, to list on the Nigerian Stock Exchange. Stockbroking Firms live for moments like this as the onus is on us to convince Investors of the viability of ‘the Listeners compelling story’ thereby contributing to the growth and expansion of the Capital Markets.

Which of these investors dominate your clientele base? – Foreign investors, domestic investors or a mix of both. What also is the place of domestic institutional investors in your clientele base?

Our clientele base is a cocktail of domestic and foreign Institutional investors, we also have a healthy mix of retail players who are seeking to grow their portfolio through our Online Trading Platform.

I must say that the introduction of our Online Trading Platform has enabled investors move away from the traditional method of executing trades through stockbrokers by either giving them orders to buy or sell, allowing them trade real-time and execute mandates themselves from the comfort of their homes and offices.

In response to your sec-

ond question, domestic institutional investors in our clientele base are largely skewed towards Pension Fund Administrators (PFA’s).

We also record a fair amount of participation from Asset Management Companies that have equity based funds and some Insurance Companies. It is not news that if you look at their overall portfolio most of their investments are largely fixed income securities, however with the current yield environment and the favorable macro-economic conditions, we anticipate a ripple effect which will culminate in the rebalancing of their portfolios to favor the equities market.

Despite earlier weak sentiment around equities trading, most operators still maintain their positive nearterm outlook on the market especially as first-quarter (Q1) 2018 results start to trickle in. What is your take on this? …What is your outlook on equities market and fixed income market?

We continue to maintain a positive outlook for the equities market, as share prices are still relatively low amid positive macroeconomic fundamentals such as declining interest rates, the continuous fall in inflation levels and the recent hike in crude oil prices.

The fixed income space has witnessed some pressure in recent times and we believe that yields will decline further in the short to medium term as system liquidity remains sturdy.

You are registered with both the NSE and FMDQ to trade fixed income instruments on their platforms.

For unlisted securities, you also provide access to the Over-the-Counter (OTC) NASD platform. How has it been operating in these markets? …Are there areas these Self-Regulatory Organisations (SROs) need accolades or improvements?

The capital market has evolved over the years and I must commend our regulators on the implementation of transformational initiatives which has helped improve the system. However, considering the dynamic nature of the global economic system particularly the financial sector, our regulators should not relent in their quest for relevant initiatives that create opportunities and tackle

emerging challenges.

To increase confidence in the market, I think Capital Market regulators need to intensify their efforts in investor education and protection..

However, as a key stakeholder in the sector, we will continue to benchmark ourselves with advanced markets and support our regulators in the delivery of a more robust and transparent market, all hands are surely on deck.

Regulation is key in attracting foreign inflows into the markets. What is your advice to capital market regulators?

Market regulations are very friendly to foreign investors, this is seen in the recent creation of the Investors and Exporters FX window by the Central Bank of Nigeria (CBN) which is aimed at improving liquidity in the foreign exchange market. Other initiatives is the creation of the Premium board by the Nigerian Stock Exchange (NSE) in 2015, this was enacted to showcase Nigeria’s best stocks to the global markets.

The Premium Board is the listing segment for the elite group of issuers that meet the exchange’s most stringent corporate governance and listing standards, four (4) Companies recently migrated to the board in 2018, making it a total of seven (7) companies so far in this elite list.

Also the co-branding of index series such as the MSCI Nigeria Index which is designed to measure the performance of the large and mid-cap segments of the Nigerian markets is another initiative geared to foreign investors. My advice to our regulators is to not relent on these efforts as the current ones have undoubtedly gone a long way in restoring foreign investor confidence in our markets.

What is Coronation Securities Limited biggest goal in 2018 and beyond?

Our biggest goal is to be industry leaders in our business segment. Synonymous to the brand we represent, we are on a journey to become Africa’s premier Securities firm, hence in other to achieve this, we would continue to drive comprehensive investor education among retail investors and also restore general investor confidence in the markets. We will also continue to work with the regulatory bodies to deliver on the goals and development of the market.

Thursday 03 May 2018

C002D5556

BUSINESS DAY

15

COMPANIES & MARKETS Continental Re envisions Africa that grows from within Modestus Anaesoronye

B

oard and Management of Continental Reinsurance Plc is looking to see an African Insurance industry that grows from within, developing its capacities and taking advantage of available growth opportunities.

The company believes that efforts must be geared towards developing insurance capacity within the content, by building human capital, acquiring new skills and utilizing capabilities from within.

Ajibola Ogunshola, chairman, Continental Re told shareholders at the Company’s Annual General Meeting in Lagos that the firm’s view on Africa is permanent. “Our objective is an Africa that grows from within and our strategy is always towards taking advantage of the immense opportunities that abound across the continent for the benefit of all stakeholders”.

Femi Oyetunji, group managing director/CEO said at the meeting that as competition

continues to grow stiffer with the entrance of new players in a number of markets, its footprint and permanent view on Africa will propel it to continue waxing stronger.

“In 2017, we enabled our Tunis office to write Retakaful business through its Re-takaful window to consolidate our presence in the region and also sought accreditation as a local reinsurer in line with local content requirement in the Tanzanian market which was granted in year 2018.” According to him, “these moves are to significantly improve its revenue and assist toward realizing Project Alpha 2020 strategy of consolidating brand presence and enhance client services to guarantee sustainable growth and strengthen our already formidable multi-national talent pool to the benefit of our continent at large.”

Oyetunji stated that the realization of the likelihood of shocks in its principle markets, and vulnerability to portfolio concentration, made Continental Re commit to diversification as a core element of its strategy.

“We will continue to see stability and stronger traction in specific locations across our network and our pan-African footprint, which allows us ample room to counterbalance local volatility and hedge downside risks in our investments portfolio.”

Oyetunji noted that knowledge sharing and thought leadership are key aspects where Continental Re develops the market and add value to her partners.

“In line with this, we rolled out a series of training programmes that focused on imparting re/insurance skills to our clients and partners; we are happy that the programmes contribute to delivery of sustainable business practices and impacting positively on human capital requirement within the industry and the continent at large.”

Looking forward, he observed that a well-balanced pan-African footprint has been sustaining our growth momentum; this reinforces our confidence in our ability to continue to record and achieve a year growth in premium income and profit.

ATSL redefines hospitality business with launch of funplex centre Josephine Okojie

A

llied Thrust and Systems Limited (ATSL), a leader in Nigeria’s hospitality business, has launched its multi-million naira funplex event centre with 2,000 seat capacity.

Located in the heart of Magodo, Lagos, the formal launch of the funplex event centre played host to crème-de-lacrème of the society, top executives in the corporate and hospitality industry amongst others.

In his welcome address, Emeka Nwasike, managing director, ATSL, said the commissioning of the event centre is a dream come true for the organisation.

“This feat is borne out of

our love for hospitality and our desire to be a strong contender and pacesetter in the industry.

Already, you can see that Funplex resort is a one-stop-shop for fun and entertainment. Our goal is to provide Nigerians with an event centre that can cater for all their corporate and social needs,” Nwasike said.

According to him, the dream was ignited when ATSL won a BOT contract with Centre for Management Development (CMD) with a proposal to build a conference hall for the centre.

However, the company surpassed that dream by erecting a magnificent edifice which not only houses halls for events but also facilities like bush bar, gym, cinema, among others.

Speaking at the event, Joseph Yakubu, former director general,

CMD, described the project as a good example of a publicprivate partnership.

Yakubu revealed that the concession was done as an alternative means of generating income for CMD despite it being funded by the government; the institution felt there was a need to develop other ways of generating revenue.

He expressed satisfaction with what ATSL has done with the property, so far, and hoped that the purpose for the construction of the event centre will be realised.

The event centre delivers the industry’s finest level of expertise to small, medium and large organisations as well as individuals who desire the perfect venue for weddings, social and corporate events.

Business Event

L-R: Darkey Africa, Consul General of South Africa to Nigeria (l), and Michael Larbie, CEO, RMB Nigeria and regional head, West Africa, during the 100 Nelson Mandela Centenary National Day Celebration of the Republic of South Africa 2018 sponsored by Rand Merchant Bank Nigeria.

Olumide Balogun, Head of Marketing at HMD Global West Africa (l); Emmanuel Ossai, Business Manager at HMD Global West Africa (r), presenting a cheque of one million naira to one of the winners of Nokia Phones Duo Clip Challenge on the just concluded Big Brother Nigeria, Tobi Bakre (m), at HMD Global - The Home of Nokia Phones - office in Lekki, Lagos recently.

L-R: Femi Folorunsho, director, Joseph Liberty Foundation; DCP Seye Oduntan, I/C Maximum Security Prison; Ituah Ighodalo, founder, Joseph Liberty Foundation; Ibidun Ighodalo, and Toyin Ajakaiye, coordinator, Joseph Liberty Foundation, during the visit to the inmates of the prison to celebrate the birthday of Ighodalo.

Rack Centre wins best ICT local content provider at 2018 LCCI excellence awards Jumoke Akiyode-Lawanson

T

he Lagos Chamber of Commerce and Industry (LCCI), has verified Rack Centre, Tier III certified data centre as the winner of its local content in ICT, as it honours excellence in this year’s commerce and industry awards.

Muda Yusuf, director general of LCCI explaining the rationale for the awards which is in its fifth edition said; “the objective is to recognise, celebrate and promote private and public

institutions that have exhibited the core values of best business practises, business sustainability and have positively impacted the society.’’

The Chamber said the award to Rack Centre and other winners was “an outcome of painstaking selection process from numerous entries received for the award category and backed by feedback from industry’s market intelligence.’’

Vincent Nwani, director, advocacy &enterprise development, LCCI, said, “Rack Centre has made sustained and dedicated commitment to the

Nigeria’s economy by its huge investment in data centre and network connectivity thereby saving Nigeria’s economy millions of foreign exchange on an annual basis, and providing the much needed employment for the youth while also enhancing data security and reliability for corporations across the African continent.’’

“We are very proud of Rack Centre and LCCI in its 2018 Commerce and Industry Awards; we recorgnise and celebrate the company for its value addition to the Nigerian economy,” Nwani added.

L-R: Victor Orie-Ononogbu, health portfolio manager, MTN Foundation; Macus C.D, Permanent Sectary Ministry of Health; Amina Abubakar Bello, First Lady, Niger State, and Hajiya Saratu Marafa, Wife of the Speaker, Niger State House of Assembly, at the MTN Foundation Yellow Heart Walk For Life initiative in Minna, Niger State

16

BUSINESS DAY

Thursday 03 May 2018

C002D5556

Investor

In association with

Helping you to build wealth & make wise decisions NSE All Share Index

Year Open

38,243.19

Market capitalisation

N13.609 trillion

NSE Premium Index

The NSE-Main Board

NSE ASeM Index

2,564.13

1,713.69

1,087.32

Week open (20 – 04–18)

40,814.89

N14.743 trillion

2,975.03

1,784.72

966.49

Week close (27 – 04–18)

41,244.89

N14.940 trillion

2,947.62

1,839.20

958.52

Percentage change (WoW) Percentage change (YTD)

1.05 7.85

-0.92 14.96

NSE Lotus II

NSE Ind. Goods Index

NSE Pension Index

330.69

2,560.39

1,975.59

1,379.74

952.67

352.82

2,644.73

2,172.59

1,588.94

1,012.70

364.28

2,696.52

2,066.32

1,603.74

NSE Banking Index

NSE Insurance Index NSE Consumer Goods Index NSE Oil/Gas Index

1,746.68

475.44

139.37

1,840.84 1,875.32

514.04

148.08

517.48

145.76

NSE 30 Index

3.05

-0.82

1.87

7.32

-11.85

7.36

0.67 8.84

-1.57 4.58

976.10

6.30 3.75

3.25

1.96

-4.89

0.93

10.16

5.32

4.59

16.23

Forte, Nestle, Learn Africa, 30 others drive N197bn market gain … Sentiment may trend sideways as Q1 earnings season winds down HEANYI NWACHUKWU

I

n the trading week to April 27, 2018, Nigerian stock market gained about N197billion as thirty-three (33) equities appreciated in price against f o r t y - o n e ( 4 1 ) e q u i t i e s t hat depreciated in price.

The value of listed Nigerian equities increased to N14.940 trillion in the review period as against N14.743 trillion in the preceding trading week.

Amid record N1.3trillion gain in the stock market this year, PenCom’s latest data do not point to a surge of investment in domestic equities. “The share of Pension Fund Administrators (PFAs) Asset Under Management (AuM) invested in equities has risen but we are not witnessing a sea-change. The generally average results of listed companies other than tier-one banks militate against such a change”, according to Gregory Kronsten-led team of research analysts at FBN Quest Capital in their April 20 note to investors.

In the trading week under review, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated by 1.05percent, from 40,814.89 points recorded at the beginning of the week to 41,244.89 points at week-close.

“Driven largely by relatively positive first quarter (Q1) earnings, market activity was on a slight uptrend at week close. So far, a huge number of large cap stocks have released their first quarter results, with earnings either coming in line or outpacing expectations” equity research analysts at Lagos-based Vetiva Capital said in their April 30 breakfast report to investors.

“Whilst reactions to earnings have not been as intense as would

Bola Ajomale MD/CEO NASD, Okechukwu Enelamah, Minister of industry, trade and investment, and Olutola Mobolurin, chairman, NASD, at the launch of NASD Enterprise Portal in Lagos.

have been expected, we highlight the steady accretion in year-to-date (ytd) returns (March end: 6.69percent, Ytd: 7.85percent) as a signal of overall positive sentiment since the results have begun rolling in. Barring the arrival of a significant market catalyst, we expect activity in the market to slow down in coming weeks and market sentiment should trend sideways as the Q1’18 earnings season winds down”, Vetiva analysts added.

In the review trading week, Forte Oil Plc recorded the highest price rally after its share price advanced from week-open level of N37.45 to close at N45.20, indicating an increase of N7.75 or 20.69percent.

Also on the “top rally” table include Nestle Nigeria Plc which advanced from N1, 422.50 to N1, 615, representing an increase of

N192.50 or 13.53percent; and Learn Africa Plc which its stock rose from N1.20 to N1.35, up by 15kobo or 12.50percent.

“Looking ahead, we expect investor sentiments to track the inflow of first-quarter (Q1) 2018 earnings numbers”, said United Capital research analysts in their recent investment views.

Veritas Kapital Assurance Plc stock price advanced by 3kobo or 12percent last week, from 25kobo to 28kobo; Consolidated Hallmark Insurance Plc increased from 29kobo to 32kobo, up by 3kobo or 10.34percent ; International Breweries Plc rallied from N47.50 to N51.80, up by N4.30 or 9.05percent; while N.E.M Insurance Company (Nigeria) Plc rose from N2.62 to N2.85, up by 23kobo or 8.78percent.

Also on the top gainers table last week include Linkage Assurance Plc which recorded price increase from 79kobo to 85kobo, up by 6kobo or 7.59percent; Wapic Insurance Plc increased from 53kobo to 57kobo, up by 4kobo or 7.55percent; while Honeywell Flour Mill Plc increased from N2.55 to N2.73, up by 18kobo or 7.06percent.

On the losers’ league, Unity Bank Plc led others after its share price declined by 27kobo or 21.26percent, from N1.27 to N1. GlaxoSmithKline Consumer Nigeria Plc lost N6.30 or 20.79percent, from N30.30 to N24.

Jaiz Bank Plc dipped from 86kobo to 71kobo, down by 15kobo or 17.44percent; while Mutual Benefits Assurance Plc stock price declined from 29kobo to 24kobo, down by 5kobo or 17.24percent.

Shareholders laud Transcorp’s return to profitability

S

hareholders of Transnational Corporation of Nigeria Plc (Transcorp) have commended the management of the company for their effort and commitment towards bringing the investment conglomerate back to profitability.

The shareholders who spoke during the company’s 12th Annual General Meeting held in Lagos on Monday, said that the leadership of the company had showed their doggedness and hard-work which according to them has translated into huge returns for the shareholders as reflected in the financials which was being considered at the meeting.

Faruk Umar, National President, Association for the Advancement Rights Nigerian Shareholders who spoke at the meeting, said that the management of the company kept to their words of delivering superior returns to the shareholders just as they promised in the previous meeting.

He said, “The results we are considering today is very commendable.

We have hardly ever seen a company that went from a loss position to a profit position by over 1000percent. This is beyond impressive. This has gone a long way to increase shareholder’s faith in the company and has proven to us that Transcorp Plc. It is even more exciting to note that shareholders will be rewarded with a total dividend payment of N812, 959,820 translating to 2 kobo per share. We are very pleased with this turnaround, and we trust that the company will do all it can to uphold this.”

Transcorp’s results for the financial year ended December 31, 2017, showed that Group revenue hit N80.28billion translating into a 35percent revenue growth compared to its result the preceding year. Group Profit Before Tax closed the year at N12.31billion, this is a huge leap compared to Loss Before Tax of N5.93billion which was recorded at the end of the 2016 financial year.

Tony O. Elumelu, Chairman, Transnational Corporation of Nigeria Plc while addressing shareholders, said, “Your company is truly Nigeria’s own conglomerate. It was setup to drive the nation’s economy in a positive direction by investing in catalytic sectors, capable of improving lives and Transforming Nigeria. When Transcorp is doing well, you don’t have to check to see if Nigeria is also doing well. Their journeys are intertwined.

Thursday 03 May 2018

C002D5556

BUSINESS DAY

17

Investor

Helping you to build wealth & make wise decisions

United Capital investment views

Investor’s Square

The bulls gain momentum …as NSEASI inches 1.1% higher week-on-week

I

n the trading week to April 27, 2018, the local bourse backpedaled l o s s e s re c o rd e d i n the preceding week, appreciating 1.1percent weekon-week (w/w). This is the highest weekly gain recorded in the last four weeks. The NSE ASI closed at 41,244.89points.

Though, the market started off on a bearish note, it snapped out of the dull mood towards the end of the week, advancing on three of the five trading days.

Hence, market capitalization gained N197.2billion to N14.9trillion while year-todate (YTD) return accelerated to 7.8percent.

Performance across sector indices tracked the bullish theme on the exchange as all indices advanced w/w save the Industrial Goods (-2.1percent), n o t h a n k s t o WA P C O (-8.6percent), which reported yet another disappointing earnings for the Q1-18, and DANGCEM (-1.8percent).

The Consumer Goods (+6.7percent) index accreted the highest gains w/w as bargain hunting in NESTLE (+13.5percent), INTBREW (+9.1percent), NB (+3.1percent) and DANGFLOUR (+2.9percent) buoyed the index.

The Agriculture (+4.8percent) and Oil & Gas (+2.4percent) indices trended northwards consequent on gains recorded in PRESCO (+5percent), OKOMUOIL (+4.9percent), Forte Oil ( + 2 0 . 7 p e rc e nt ) , SE P L AT (+3.8percent) and MOBIL (+1.4percent). The Financial Ser vices (+0.3percent) index also leaped the hurdle as gains recorded in ACCESS (+1.3percent), UBA (+3.6percent) and ZENITH (+1.5percent) buoyed the index.

Despite the bullish theme, investors’ sentiment remained dampened as market breadth flopped to 0.9x (formerly 1.1x); 33 stocks advanced while 35 stocks declined. Activity levels were downtrodden as average value traded shed 18.6percent weekon-week (w/w) to N4.9billion while average volume traded declined 39.3percent w/w to close at 365.1mn units. We expect investor sentiments to track the inflow of Q1-18 earnings numbers.

Money Market: Liquidity splurge keeps rate at 3percent Sy s t e m l i q u i d i t y w a s awash with cash in the week ending 27th April 2018, as money market rates averaged 3.1percent (Previous week: 3percent). The weeks’ liquidity profile was kept afloat by maturities to the tune of N226.7billion, inflows from retail FX refunds (c.

N150billion) and the absence of any significant funding pressure.

On the tightening end, two

OMO auctions were carried on Thursday and Friday, wherein the CBN mopped up a total of N276.7billion. The auction saw a robust demand of N1.176trillion (bid-cover: 4.2x) that was filled by only 23.5percent at an average stop rate of 11.5percent (previously: 11.4percent). On Wednesday, the Debt Management Office (DMO) conducted its monthly auction of FGN bonds, wherein it successfully raised a total of N90.0bn, despite an oversubscription of 191.6percent, with bid-tocover ratio at a high of 2.9x.

The auction was carried out at an average marginal rate of 12.8percent vs. 13.5percent in the last auction. In terms of liquidity profile, N377.5billion maturing bills are expected to hit the system this week (N190.8billion from primary issuance maturities and N186.7billion from OMO issuance maturities). The CBN is also scheduled to hold

closes flat across FX windows Th e cu r renc y market witnessed relative stability in the week ending 70th April after trading sideways across all the FX windows we track.

The parallel market closed at N361.5/$1, the official market ended at N305.7/$1 and the I & E window finished at N360.4/$1. The outlook of the naira is expected to remain tied to the spate of CBN’s intervention in the spot and forward market.

G l o b a l s t o c ks c h e e r Korea’s historic peace talk Performance of equity indices across the globe was mixed in the week to end 29th of April 2018. A noteworthy event on the global scene was the historic peace talks between South and North Korea. This was well received by investors as South Korea’s KOSPI index appreciated 0.6percent w/w.

I n t h e U. S. m a r k e t s, as corporates continued declaration of Q1-18 earnings,

RSA fund price of PFAs as at April 20, 2018 S/N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

PFAs CrusaderSterling Pensions Premium Pensions ARM Pension Mgrs.

Stanbic-IBTC Pensions Legacy PFA PAL Pensions NLPC PFA First Guarantee Pension Trustfund Pensions Leadway Pensure PFA SigmaVaughn Pensions AIICO Pension Managers APT Pensions Fidelity Pensions AXA Mansard FUG Pensions OAK Pensions Investment One Pension Mgrs.

IEI Anchor Pension Managers Radix Pension NPF Pensions

its bi-monthly NTB auction with a total offer amount of N95.4billion.

Yields: Fixed income bulls take a breather Compared to the bullishness of the preceding week, the week to 27th April 2018 saw a mixed market as players took profits in anticipation of better clearing rates at the bond auction on Wednesday, while buoyant system liquidity fueled some bargain-hunting. Average T-bill yield shed 31bps w/w to close the week at 11.9percent (91-day (up 55bps to 11.0percent), 182day (up 5bps to 11.5percent) and the 364-day (down 154bps to 13.3percent). In another theme, average bond yield inched higher by 5bps to end the week at 12.9percent. Generally, we expect sentiments to be guided by whether the CBN retains its prior tightening stance via OMO auctions.

However, given that most instruments are trading below 13percent, we are likely to have a mixed market this week.

Currency Market: Naira establish sense of balance;

CURRENT PRICE 3.9405 3.8814 3.8370 3.7302 3.5611 3.4081 3.3779 3.2401 3.2088 3.0994 3.0908 2.9898 2.7651 2.6784 2.6495 2.6025 2.5038 2.4304 2.3011 2.0063 1.4447

the release of first quarter GDP numbers at 2.3percent, slower than the prior three quarters, appeared to have dampened investors sentiment. Thus, the DJIA (-0.5percent, NASDAQ (-0.3percent) and S&P 500 (-0.0percent) booked modest losses.

In the European markets, U.K .’s Q1-18 GDP added 0.1percent, receding to a fiveyear low, earnings declaration continued, and the ECB kept policy rates constant. As such, equity indices recorded broad gains, led by the UK’s FTSE (+1.8percent). France’s CAC (+1.3percent), Pan European STOXX (+0.7percent) and Germany’s DAX (+0.3percent) all followed positively.

All emerging markets equity indices mirrored the positive momentum in the global markets except South Africa’s JALSH (-0.2percent). Hence, Russia’s RTSI (+1.9percent), Brazil’s IBOV (+1.3percent), India’s SENSEX (+1.2percent) a n d C h i n a’s S C H O M P (+0.3percent) trended northwards w/w.

•Have you been shabbily treated by your registrar, stockbroke r or other capital market operators?

Let us know and investor will help you investigate and report back.

E-mail: iheanyi.nwachukwu@businessdayonline.com

C&I Leasing assures shareholders of continuous value, future returns …stock price rallies by 17.8% year-to-date IHEANYI NWACHUKWU

C

&I Leasing Plc held its 27th Annual General Meeting (AGM) in Lagos last week (Thursday April 26, 2018). At the meeting the shareholders received and adopted the company’s audited financial statements for the year ended December 31, 2017 together with the reports of the directors, independent auditors and audit committee thereon.

The stock price of C&I Leasing Plc increased by 17.8percent in the first

In 2018 financial year and beyond, we plan to continuously improve on our operations to maximize returns for our shareholders and other stakeholders”.

In the financial year under review, C &I Leasing Plc reported 21.8percent increase in profit before tax (PAT), from N1billion in 2016 to N1.3billion in 2017 while the group’s total assets grew from by 17.2percent, from N38.4billion in 2016 to N45billion in 2017.

The company which commenced operations in 1991 as a limited liability

profile generated by the purchase of these assets on its accounts, Otike -Odibi said C & I Leasing Plc has just redeemed a percentage of the ABRAAJ convertible note so with this redemption, the dilution effect of existing shareholders if the notes were converted has been avoided.

C&I Leasing Plc conducted a restructuring in 1997 which resulted in its public listing on the Nigerian Stock Exchange. The company commenced its operations with a license from the Central Bank

L - R: Mbanugo Udenze, Company Secretary C&I Leasing Group, Chukwuma Okolo, Chairman C&I leasing Group, and Andrew Otike- Odibi, MD/CEO C&I Leasing Group at the company’s annual general meeting held in Lagos.

four months of year 2018; it stood at N1.52 as at Monday April 30.

Andrew Otike -Odibi, Managing Director, C &I Leasing Plc assured that the management of the company is committed to continually deliver value for all shareholders and grow the business to yield profit and return on their investments.

He said “although 2016 was a challenging year for businesses in Nigeria, our strategy to yet invest in assets and aggressive growth in 2017 definitely paid off as we increased not only our assets but our profits in the process.

company dealing in finance leases has since evolved to a credible brand for business support services in personnel outsourcing, fleet management and marine services where it is heavily invested in an assortment of tug boats, Ballistic Boats, Patrol vessels and other vessels all tied in mid to long term contracts for Marine Operations, Offshore support leasing, charter and logistics with various International Oil Companies(IOCs).

In response to the issue of balancing out the impact of the liability

of Nigeria for finance leasing in 1991 but today; over 2 decades later, it has evolved to become a valuable resource and business partner for several indigenous and multinational bluechip organizations.

The company currently provides support services along three lines; Fleet Management, Personnel Outsourcing and Marine Services. The C&I Leasing group of companies which has its operational offices in Lagos, Port Harcourt and Abuja is also invested in subsidiaries Leasafric Ghana and Epic International FZE.

18

BUSINESS DAY

C002D5556

Thursday 03 May 2018

Investor

Helping you to build wealth & make wise decisions

SEC extends forbearance window Sterling Bank grows for investors with multiple accounts Q1 profit by 65.2% S IHEANYI NWACHUKWU

T

he Securities and Exchange Commission (SEC) has extended till S eptemb er 2018 the forbearance window for investors with multiple accounts and subscriptions.

During the stock market boom, some investors bought shares with different names which they had forgotten, hence could no longer access the benefits of such investments. The Acting Director General called on the affected investors to take advantage of the forbearance window to ratify their accounts.

The forbearance is to enable shareholders who bought shares with multiple names to consolidate such multiple identities with the registrars and Central Securities Clearing System (CSCS) into one that bears their official names.

Mar y Uduk, Acting Director-General SEC stated this at the first 2018 postCapital Market Committee (CMC) press briefing in Lagos.

On e-dividend, she said that the technical committee on e-dividend reported that the total and approved mandate currently stood at 2.5 million, translating into 466,000 unit investors.

Also, Uduk disclosed that retail players in the domestic

capital market investe d N5billion in the Sukuk (ethical) bond issued by the Federal Government last year.

The amount represents 5percent of the N100billion bond with a seven-year tenor, for fixing 25 key economic road projects across the six geo-political zones, with N16.67billion earmarked for road projects in each geopolitical zone.

She noted that the Technical Committee on Non-Interest capital market as reporting the sovereign sukuk issued in 2017 attracted about 1,600 retail investors.

Ud u k a l s o e x p re s s e d commitment to ensure listing of multinationals adding that de-listing by quoted companies posed a threat to the growth of the capital market.

“Increase in de-listing by public companies pose a threat to the market in view of the fact that quite a number of them are highly capitalised,” she said.

The acting director-general said that the commission mandated the committee to come up with strategies aimed at tackling de-listing and boosting listing of more multinationals.

She said that some highly capitalised companies had delisted, thereby, affecting the growth of the market.

According to her, the

…share price up 49.1% year-to-date

Mary Uduk, Acting Director-General SEC

committee will meet with stakeholders and find out why they are delisting as well as discuss with eligible ones why they are not listed.

Ud u k s a i d t hat s o m e companies had complained o f t a x i s s u e s, a n d gav e the assurance that the commission would engage

the government to address the issue. She said that the committee would come up with recommendations.

“If they are regulatory issues – more rule amendment – we are open to it, but our rules must be in line with international best practices,” Uduk said.

terling Bank Plc on Friday reported a profit after tax (PAT) of N3.1 billion on gross earnings of N39.8 billion for the first quarter(Q1)endedMarch31,2018.

The bank’s impressive first quarter net income is an improvement on net income of N1.9 billion for the corresponding period of 2017, representing an increase of 65.2percent. In four months to April 30, 2018, the bank’s share price at N1.61 shows an increase of 49.1percent, year-to-date (ytd).

Afurtherreviewofthefinancial performance indicates that net loans and advances increased by two percent to N609.8 billion, customer deposits rose by 4.9percent to N718.5 billion, while total assets (excluding contingent liabilities) were relatively flat at N1.05 trillion.

“We are pleased to be starting 2018 on a good note, by sustaining the strong performance delivered in 2017 with growth across key financialindices.Thisdemonstrates strength and is indicative of our outlook for the financial year,” said Abubakar Suleiman, Chief Executive Officer, Sterling Bank Plc while commenting on the financial performance.

The bank’s gross earnings grew by 39.3percent to N39.8 billion from N28.6 billion in the first quarter of 2017, with the improvement in earnings directly linked to measured growth in retail lending as well as a 90percent increase in transaction banking revenues.

“Our net operating income also grew by 34.2percent, aided by a 50percent reduction in impairmentcharges.Wecontinued to experience a significant improvementinassetqualityascost ofriskdeclinedby140basispointsto 0.8percent from 2.2percent in 2017.

Overall,ProfitafterTax(PAT)roseby 65.2percent to N3.1billion resulting in a 410 basis point increase in ReturnonAverageEquityto12.8%,” Suleiman further stated.

He added that Sterling Bank is actively mobilising private sector capital to solve some of the most pressing social and economic needs of Nigerians.

“We have aligned the bank’s business model to offer financial and non-financial solutions to key areas which are at the HEART of Sterling Bank – Health, Education, Agriculture, Renewable Energy, and Transportation.”

In the period under review, the bank successfully launched Farepay, a contactless payment system as part of its transport sector intervention in Lagos State.

The payment system which is ensuring efficient fare collections will plug pilferage and revenue leakage making it possible for the sector to attract the much-needed capital investment required to transform it. Sterling Bank’s goal is to replicate this nationwide as it remains resolute in its conviction that the transport sector is an important catalyst for socioeconomic growth and sustainable development.

FMDQ Learning

Introduction to Asset-Backed Securities

T

he March 2018 edition of FMD Q Spotlight explored the fundamentals of Securitisation, the pooling and repackaging of similar financial assets, which on their own may be illiquid (i.e. difficult to trade) into a new (consolidated) financial security, which is subsequently sold to investors.

In essence, assets with a stable cash flow such as corporate and sovereign loans, mortgage loans, consumer cre dit, project finance, lease/trade receivables, individualised lending agreements etc., can be securitised.

Securitised assets are generally classified based on the underlying components.

These are generally categorised into Asset-Backed Securities (ABS) and Mortgage-backed Securities (MBS). This edition of FMDQ Learning focuses on the fundamentals of ABS, including their features, credit enhancements and benefits.

Overview ABS are investible securities, backed by financial assets which are not mortgage-based but typically receivables-based.

E xamples of ass ets that can be used to create ABS include, but not limited to, credit card receivables, bank

loans (business, automobile etc.) and leases. In creating ABS, financial institutions that originate loans (such as banks, credit card providers, automobile finance companies and consumer finance companies) convert their pools of loan receivables into credit-enhanced financial securities which are sold to investors in the debt capital markets. Technically, these loan originators are generating more cash for their businesses while providing investors the opportunity to invest in a wide variety of income-generating assets.

As an example, consider a financial institution, ‘XYZ PLC’, that provides automobile loans to middle and highincome clients. Assume that these automobile loans have a maximum maturity of twelve (12) months within which the borrower is expected to repay the principal amount and interest. XYZ PLC can pool its bouquet of automobile loans and sell this pool as a financial security to an investor, “ABC Investments”, in exchange for an agreed cash sum.

Subsequently, XYZ PLC will transfer the automobile loans from its balance sheet and same will be featured on ABC Investments’ balance sheet.

Based on a given criteria,

f o r i n s t a n c e, p e rc e i v e d default risk, ABC Investments can group the automobile loans into tranches. These tranches (usually senior and subordinated tranches) are offered to investors as “Asset-Backed Securities”.

Su b s e q u ently, investors in these securities receive periodic principal and interest p ay m e nt s o n t h e i r A B S investments, from the loan repayments which accrue to ABC Investments from the initial borrowers. Where the ABS satisfy all requirements of the capital market regulator, it may be listed on an organised securities exchange such as FMDQ, where it can be traded.

Features of ABS ABS are typically structured

such that the loans, including the rights attached to their collateral, are sold by the loan originator to the issuer; thus, ensuring that in the event of a default, the ABS investors a re p ro t e c t e d , w i t h t h e issuer being able to exercise rights to the underlying loan collateral. In addition, owing to its credit enhancement feature (as mortgage-backed securities generally have higher credit quality), ABS are an attractive investment asset class which allow/provide investors additional default risk protection.

Simply put, credit enhancement implies an improvement in the credit quality of a security, to rate above that of the sponsor (i.e.

the asset/loan originator), or the underlying asset pool.

Enhancements can be either internal or external, depending on the unique characteristics of the asset pool and/or issuer’s preferences.

Investors in ABS are mostly institutional investors with the required capital and technical capacity. These investors are expected to analyse the ‘expected’ cash flows from ABS obligations for valuation purposes, rather than rely only on the current market prices, the reputation of a sponsor, or the presence of an investment grade rating.

Benefits of ABS ABS offer b enefits to both issuers and investors, with ABS enabling issuers securitise assets, which are usually illiquid, providing them with an alternative source of funding; freeing up capital when assets are removed from companies’ balance sheets; lowering a company’s weighted average cost of capital; and facilitating the issuance of higher rated debt by issuers with credit ratings below investment grade.

The unique benefits of ABS to investors, on the other hand, include, but are not limited to: Attractive yields: Owing

to the associated credit risk, ABS offer attractive yields relative to other fixed income securities with comparable maturities and credit quality.

High credit quality: ABS are secured by collateral and credit enhancements using internal structural features and/or external protections, to ensure that payment obligations to investors are met, thereby reducing the credit risk of an ABS investment considerably.

Investment diversification: The pool of ABS is often constituted from different sectors and/or business interests - from credit card receivables to automobile loans, equipment leases to small business loans, etc. – thus, creating a diverse pool of securities and effectively spreading the risks involved in investing in any single s e cur ity. Similarly, ABS offer investors the ability to diversify their fixed income portfolios away from more traditional concentrations in money market, government and corporate debt securities.

Predictable cash flow: The nature of most classes of ABS is such that investors can buy these securities with confidence that the timing of payments (interests and pr incipal) w ill occur as expected.

Thursday 03 May 2018

C002D5556

BUSINESS DAY

19

Intervention in Arik, Aero is to add value, not destroy – AMCON … says 90% of N181b non-performing loans are from aviation sector Stories by IFEOMA OKEKE

A

hmed Kuru, managing director of Asset Management Corporation of Nigeria, AMCON, has said the organisation’s intervention in Arik Air and Aero Contractors were intended to be value adding and not destroy the airlines.

Speaking at the 6th Nigeria Transport Day Newspaper Awards and Lecture on Thursday April 26, in Lagos on “AMCON’s intervention in Transport and Allied Sector; Achievements, Challenges and Prospects,” Kuru noted that the Corporation has adopted a similar approach to the revitalization of Peugeot Automobile of Nigeria (PAN), which is back to operation and assembling vehicles for the road transport sector.

He observed that towards achieving their mandate, it purchased non-performing loans of about N181 billion from various

banks, adding that over 90percent of this was in the aviation sector.

He explained that: “AMCON’s intervention through the instrumentality of Receiver Management was first to stabilize the operations of the airlines, put them in a position to generate positive cash flow, then resolve their debt situation through either the owners paying the debts or the sale of the companies/underlining assets”.

Kuru explained further that at the point of intervening in Arik, the company was witnessing high spate of flight cancellations of up to 40percent, on-time performance (OTP), which measures the promptness of schedule flights had fallen to as low as 15per cent while staff, including pilots were owed salaries, in some cases for up to six months.

In his words: “Staff morale was therefore understandably low.

Several service providers including fuel marketers, maintenance and spare part companies were withdrawing services or were

unwilling to extend credits. There were indeed significant concerns at various governmental cycles for safety and the possible impact of the collapse of the company on the economy.

“We are glad to report that this position has been largely arrested.

Cancellations are down to 4percent, OTP is over 60percent, all owed salaries of current staff are fully paid, suppliers are now being paid

Rwand Air begins four times weekly Abuja/Kigali flight …New service offers connections to global route network

E

ast African carrier, Rwand Air has flagged off its Abuja/ Kigali flights offering passengers from Nigeria’s political capital opportunity to connect to its global route network.

This is in addition to the daily Lagos /Kigali flight separately operated by the carrier.

The four weekly service according to Ibiyemi Odusi, its Country Manager, will now provide opportunity for government officials, members of the diplomatic corp and other players in the public and private sector to connect flight from Abuja directly to other routes on the airline’s network.

Speaking at the inaugural flight in Abuja on Friday, April 27, 2018, Odusi said the new flight is positioned to allow Nigerians have more travel options from the nation’s political capital to destinations flown by Rwand Air. Odusi said Nigerian passengers will benefit from the route network flown by Rwand Air from Abuja.

She said with right product pricing , scheduling planning and other unique selling points at the disposal of Rwand Air, it intends to grow traffic on the route to about 80 per cent Load Factor in the next six months.

Odusi said since about 2012 when Rwand Air started operations in Nigeria, it continues to consolidate from its hub in Kigali to Dubai, Johannesburg, Nairobi, Entebbe, Dar es Salaam, Accra, London, Brussels and other routes on its network.

She said the Abuja / Kigali four weekly flights will open vistas of opportunity for passengers who want to connect to many parts of the world by leveraging on the carrier’s on time performance, IOSA safety record, international certification, excellent in-flight entertainment, customer service, competitive fares and other comparative advantages.

She also thanked Hadi Sirika, the Minister of States for Aviation, the Nigerian Civil Aviation Authority (NCAA) Federal Airports Authority of Nigeria (FAAN) and other top government officials for making the day’s inaugural flight a success.

Also speaking, Stanislas Kamanzi, Rwanda’s High Commissioner to Nigeria said the extension of flight service between Abuja and Kigali will boost trade relations between the two countries.

He said the Abuja / Kigali service will now provide seamless travel window for diplomats and government officials, investors and private sector players who want to explore

opportunities for trade, commerce and other bilateral activities.

Kamanzi lauded aviation and diplomatic authorities for granting the right permits and approvals that has led to the consolidation of flights between the two countries.

Also speaking at the event, International Terminal Manager, Federal Airports Authority of Nigeria (FAAN), Abuja Airport, Hajara Musa assured that the authority will assist Rwand Air in every area that will make its operations smooth.

She said FAAN would continue to provide the necessary facilities that will make the airline have seamless services out of Abuja Airport as it continues to do for all airlines.

She said FAAN is poised to ensure the partnership with Rwand Air is a win – win for travellers.

Sam Masaba, the pilot in command of the Boeing 737- 700 aircraft said he was excited to fly Rwand Air passengers into Abuja from Kigali.He described Abuja as home to him, having flown for two Nigerian carriers.

as at when due. This of course has come at a cost to AMCON and not without the unparalleled support of the Central Bank of Nigeria and local banks.”

He added that at Aero, AMCON succeeded in ensuring that the airline remains a going concern.

Kuru stressed that with the strengthening of Aero management, the Corporation has seen a refocus on the strengths and capabilities of

the airline.

The Maintenance Repair and Overhaul (MRO) licence has been made active. The airline in February succeeded in completing a c-check on a Boeing 737; a huge feat with a potential for savings in foreign exchange demands by local airlines, he said.

Kuru pointed out that their intervention in the sector has ensured that Nigerians are offered choices with an enhanced positive competition leading to improved service offering for the flying public.

He stated that as a major policy drive of this government, AMCON were able to save over 3,000 direct jobs, and hundreds of indirect jobs in the airline industry.

Kuru maintained that the new management in Arik had to take bold decisions to downsize its operations, especially cutting down all the long haul flights, due to the losses being sustained on those operations, and the lack of equity capital to absorb the losses.

Imo State commends Dana Air for Owerri–Abuja flights …as airline Sponsors homecoming reception of Big Brother Naija 2018 Winner

T

he Imo state Governor, Rochas Okorocha has commended Dana Air for introducing Owerri Abuja –Owerri flights.

The Governor made the commendations On Tuesday, after the airline’s inaugural flight from the Sam Mbakwe International Airport Owerri, landed at the Nnamdi Azikiwe International Airport, Abuja.

The Governor who was represented by Ikenna Eme, his Special Adviser, said Dana Air commencing Owerri to Abuja flights and back has brought needed succour to the good people of Imo state who have had to pay more for less on the route.’’

“Today we have witnessed development and expansion. We are happy that Dana Air is living up to expectations. The flight was smooth and on-time and this is what we have been asking for on this route. Our people have been paying too much for less on this route and we thank Dana Air for this development. ‘’It is the desire of our visionary Governor, Rochas Okorocha, His Excellency, to make Imo state a hub in the south east and our partnership with Dana Air has increased traffic to our state, because of their convenient fares, quality service and most of all, our people are time-conscious and Dana Air is a time-conscious airline.’’

Also speaking on the introduction of flights from Owerri to Abuja, Obi Mbanuo, the Accountable Manager of Dana Air, said, providing a smart alternative for the good people of Imo state and contributing positively to the economy and development of Imo state, has always been our desire and the crux of our existing partnership with the Imo state government; and we are committed to linking Owerri to other parts of Nigeria, as the commercial nerve centre of the south east.

“Our flights from Owerri to Abuja on Mondays to Fridays will operate at 12.33pm and Abuja to Owerri is at 2.16pm. On Sundays Owerri to Abuja is at 5.31pm and Abuja to Owerri is 12.06pm.’’

Meanwhile, Dana Air has been unveiled as the official airline of the homecoming reception organized by the Imo state government, for Miracle Igbokwe, the 2018 winner of the Big Brother Naija Reality show, who is from the state and coincidentally, a pilot. He will also be unveiled as Education Ambassador of the state.

As official airline, Dana Air will fly the winner, his family, friends and fellow house mates to Imo state for the reception scheduled for 3rd and 4th of May, at Imo International Convention Centre, Owerri Imo state.

Tuesday 01 May 2018

C002D5556

BUSINESS DAY

29

Innovation

Apps

Fin-Tech

Start-up

Gadgets

Ecommerce

IOTs

Broadband Infrastructure

Bank IT Security

21 Digital transformation puts data privacy, regulation at risk BUSINESS DAY

Thursday 03 May 2018

FRANK ELEANYA

T

he digital transformation that has seen most companies design new strategies aimed at providing innovations that are more attuned to changing customer expectations, may also be creating complications in terms of data privacy and new regulation.

The 15 Global Fraud Survey conducted by Ernst & Young (EY) with theme, “Integrity in the Spotlight : the Future of compliance” has found that open and connected business models are likely to result in increased exposure to cyber threats and ransomware.

“Increased global connectivity means that anyone with access to company data, anywhere in the world, can exploit weaknesses in data security.

Companies’ critical digital and physical assets are therefore at greater risk of theft, damage and manipulation by insiders than ever

before,” Andrew Gordon, Global leader, Fraud Investigation & Dispute Services, EY, said.

The recent Cambridge Analytica data breach that hit over 80 million Facebook users globally underscores the not-so-bright effect of digital transformation. As technological innovations grow on the back of big data provided

by millions of internet users across the world, cyber criminals are also perfecting their digital skills to take advantage of the every vulnerability.

Fo l l ow i ng t h e Ca m bridge Analytica breach, thirty-four major technology companies like Facebook, Microsoft, HP, ARM, Cisco and Oracle signed a new Cybersecurity Tech

WhatsApp CEO quits over clash with Facebook on privacy rules FRANK ELEANYA

J

an Koum, the cofounder chief executive officer of WhatsApp, the Facebookow ne d messaging app has called it quits with the company after disagreements over privacy and encryption rules.

According to reports, Koum is unhappy over plans by Facebook’s attempts to revise the privacy rules of WhatsApp, use its personal data and weaken its encryption.

“It is time for me to m o v e o n ,” Ko u m w h o sold WhatsApp to Facebook for more than $19 billion in 2014, wrote on his Facebook profile. “I’m leaving at a time when people are using WhatsApp in more ways than I could have imagined. The team is stronger than ever and it will continue to do amazing things.”

According to a report by the Washington Post, Koum’s departure was necessitated by ten-

sions with Facebook over WhatsApp’s end-to-end encryption, which ensure that messages cannot be intercepted and read by anyone outside of the conversation, including

by WhatsApp or Facebook.

Effor ts by Facebook make it easier for businesses to use WhatsApp tools has the executives at var iance as b elie ve that the results would only weak some of the encryption.

Mark Zuckerberg, founder and CEO of Facebook has since commented on Koum’s Facebook post about his departure.

“Jan: I will miss working so closely with you.

I’m grateful for ever ything you have done to help connect the world, and for everything you have taught me, including about encryption a n d i t s ab i l i t y t o t a ke power from centralised systems and put it back in people’s hands. Those values will always be at

Accord, pledging to help protect cyber attacks as well as not encourage governments launch them against innocent citizens and businesses.

“In the last two years, cyber attacks have been widespread and have included a global ransomware campaign that impacted over 45 countries,” the EY survey sent

to BusinessDay, stated. “It is therefore not surprising that 37 percent of our respondents see cyber attacks as one of the greatest risks to their business.”

The respondents interviewed by the EY survey include 2,550 executives from 55 countries and territories.

Nevertheless, EY expects that advances in technology, particularly in artificial intelligence, machine learning and automation will also play major roles in transforming legal and compliance functions.

Companies can also look towards adopting forensic data analytics (FDA) to enhance risk mitigation and improve business transparency.

Citing a recent Global FDA sur vey, EY said it demonstrated a strong recognition by respondents of FDS’s effectiveness in managing various risks including corruption, financial statement fraud, data protection and data privacy compliance, and cyber security.

“A growing digital foot-

print alters the traditional risk landscape for individual companies and entire industry sectors. Out-ofdate risk assessments and antiquated policies, procedures and controls can result in companies missing opportunities to help employees comply with company policy. Worse yet, such gaps can be exploited by rogue employees intent on fraud, data theft or other illegal acts. It is important that the effectiveness and efficiency of compliance is improved. Failing to do so exposes the company to regulatory and law enforcement scrutiny,” the survey noted.

Technologies that can transform legal and compliance functions include artificial intelligence, machine learning and automation.

“It will be interesting to see if companies with a reputation for integrity give more confidence to consumers and therefore make their customers less likely to request deletion of their personal data,” Gordon said.

5G holds more potential even as Nigeria struggles to achieve 4G CALEB OJEWALE the heart of WhatsApp,” Zuckerberg wrote.

Since it acquired WhatsApp, Facebook has faced pressures to turn the free encrypted messaging platform with over 1.5 billion monthly users into a revenue stream.

That pressure be came evident in 2016 when W hat s Ap p a n n o u n c e d it would begin sharing some user data including phone numbers, with Fa c e b o o k . T h a t m o v e brought it some negative public backlash one of which was European regulators’ $122 million fine and order on Facebook to cease collecting data from WhatsApp users.

Koum is reported to have been heavily critical of advertising inside the app. He once vowed to keep them out of the messaging app. This may no longer be possible with him. Facebook which has rolled out display ads in the Messenger inbox, is likely to turn its attention to WhatsApp.

N

igeria is known to often “come late to any party” where substantial progress, especially in technology is being made.

However, developments in 5G and its prospects for developing countries like Nigeria suggest this time around, the right (and best) of efforts must be made to create the required enabling environment.

At the International Telecommunications Union (ITU) regional forum on new technologies in 2016, some of the ways 5G could impact developing countries were highlighted, including; * Smart Transportation Systems: According to the World Health Organisation (WHO), 90% of the world’s fatalities on the roads occur in low- and middle-income countries, even though these countries have approximately half of the world’s vehicles. * E-health: Remote surgery will reduce the latency to enable remotely assisted surgery.

Specialists are not available in many hospitals and could join a local surgeon remotely

to perform procedures which require expert skills (5G’s latency will be around one millisecond -unperceivable to a human and about 50 times faster than 4G). * Smart Learning: 5G will enter the classroom and bring new ways of learning to students. Augmented Reality, Virtual Reality and Virtual Presence will mean that students will be immersed in a more visual and interactive learning experience where students and teachers may not necessarily be in the same location. * Water Management and Agriculture: 5G will also bring a solution for smart water management and smart agriculture systems in developing countries. Such as sensors with wireless connectivity for crop fields can help optimize growing and minimize use of water and fertilizers through more targeted application.

Despite the potentials of 5G, the fact that is seen as ‘high tech’ could perhaps be adduced for why no known efforts are being made for its actualisation in Nigeria. However, Ericsson has stated in its ‘Guide to capturing the 5G industry digitalization business potential’, that 12–36 percent is the potential additional

Team: Frank Eleanya, frank.eleanya@businessdayonline.com; Caleb Ojewale, caleb.ojewale@businessdayonline.com

revenue gain for operators, depending on their role in the value chain (network developer, service enabler or service creator), from the 5G-enabled industry digitalization market opportunities by 2026. Going by this, it is evident operators stand to make more money if 5G is deployed in Nigeria, possibly even beyond the 36 percent mark, considering the vast underserved market in the country.

To delve deeper into the 5G business potential, Ericsson says it analyzed more than 400 industry digitalization use cases across 10 vertical markets. From these, over 200 use cases were identified where 5G is expected to play a major role.

Operators have the potential to address a revenue opportunity of USD 204–619 billion by 2026, in addition to the forecast telecom service revenues of USD 1.7 trillion in 2026. This money is of course a global estimate, but Nigerian operators stand to benefit from it, if they are able to deploy resources to serve the Nigerian market.

What remains to be seen, is how much policy making will be done to provide the needed support.

22

BUSINESS DAY

Luxury

Malls

Companies

Deals

C002D5556

Thursday 03 May 2018

Spending Trends

Six innovative designers to watch at Lagos Leather Fair tomorrow STEPHEN ONYEKWELU

T

he leather value chain is receiving new attention due to its revenue earning potential and six innovative leather designers have demonstrated undertanding of the industry at the emerging designers competition.

Emerging Designers Competition was open to all Nigerians who have been in operation within the leather space for no more than 18 months. There were 37 applicants from all over the country and 15 semifinalists were selected through a virtual team of industry experts.

Once completed, the final six with the top rankings were selected by another team of judges.

The finalists are Lamide Onyenobia of LÁMÍDÉ SAMUEL, a leather bag designer that incorporates traditional artistic inspiration with urban interest; Daniel Momoh of Oyani Signature, an innovative fashion accessory brand that integrates the concepts of multifunctionality and technology to produce everyday accessories and Titilola Bello of Dlgent Handmade, a start-up fashion accessories brand that is focused on the production of

handmade leather bags and goods for men and women.

Each of these six emerging designers will be given a complementary booth at the Lagos Leather Fair Friday May 4 and will also receive cash gift as well as an opportunity to be mentored by an experienced leather designer in their chosen field. They will also be formally presented at the opening event of the fair on.

Others are Barakat Alabi of Ara’s Handmade Designs, a jewelry brand that creatively infuses leather into their productions; Tamara Claudius of Hue by Tamara, a passion-driven hand made leather goods brand and Oge Onuoha of

Magrellos re-launches brand to target millinials, families, working class STEPHEN ONYEKWELU

M

agrellos, one of Nigeria’s Quick Service Restaurant (QSR) brands has relaunched, positioning to capture younger generation as well as families and the working class, who find the brand appealing.

Margaret Ohwofa, the Managing Director/Chief Executive Magrellos Foods announced this rebranding drive at the unveiling of the restaurant’s head office at Ogudu GRA, in Ojota, Lagos last week.

Ohwofa said the re-launch and rebranding will spread to Magrellos outlets in Magodo, Surulere, Festac Town and Ikorodu Town. She also

disclosed that Magrellos will soon open a new outlet in Lagos Island.

Beyond the presence of the QSR brand in Lagos, the brand will soon delight customers outside Lagos with its delicious meals and excellent services with its spread to other parts of Nigeria and to the rest of the world. “We have plans to make the Magrellos brand go beyond Nigeria to Africa, we will make it an international brand” Ohwofa said.

Present at the brief ceremony were Simeon Ohwofa; chairman of the group and Nigeria’s former Ambassador to Sierra Leone; Godson Echiejile, Chairman of Addide group of stores; Ade Odunuga, former permanent secretary for Housing, Lagos State; Tunji Odulami, Managing Director, Titan Insurance Brokers and Newsguru Columnist, Francis Ewherido, family, friends and Tope Tapere, the vicar of St. Andrews Anglican Church, Ogudu.

The ownership composition of Magrellos is fully Nigerian and the food company was established in 2006 with office based at 169, Ogudu road, Ikeja. The business offers wide variety of meals, pasteries and confectionery, varieties of bread and ice cream production units.

Oof!, a footwear design brand.

The leather industry in Nigeria in recent years has been identified as a potential second earner of foreign exchange after Oil and Gas, having an annual income of N24.50 billion and contributing an estimate of 85billion annually to Nigeria’s Gross Domestic Product (GDP). With a capacity to create over 700,000 direct and indirect jobs as well as be recognised globally as major player in the industry, more awareness is being generated.

In a bid to change the narrative within an industry with so much untapped potential, Femi Olayebi, the Chief Creative Director of Femi-

Handbags in 2017 established the Lagos Leather Fair, drawing attention to the immense possibilities within the industry by providing a platform for players along the leather value chain to promote other leather designers like herself, highlight the challenges and discuss sustainable solutions. Key players including designers, tanners, and suppliers of machinery, retailers and government officials debated and addressed various issues faced; one of them being sustaining the industry.

In spite of the many challenges within the industry, a good number of young people have developed an interest in leather are becoming more and more interested in the production process from concept to the finished product. Following the observation, the Lagos Leather Fair decided to organise a competition this year to give up-and-coming leather designers an opportunity to showcase their talent, and consequently assist them to launch their brands. “We believe that giving the emerging designers a platform to showcase their talent will encourage others to develop an interest and hone their skills in the leather industry because if they don’t, this potential gold mine will simply

remain untapped” Olayebi said.

The leather industry received a big boost in 2014 as the value of exports of footwear, gaiters and the like reached $62.9 million within the year, data collated by Cobalt International Services and released by the Nigerian Export Promotion Council (NEPC) show.

According to the data, export values of the leather commodities were $14.9 million and $17.7 million in the first and second quarters of 2014, respectively.

Similarly, the values of exports of these commodities totalled $14.5 million in the third quarter and $15.8 million in the last quarter of 2014.

Also, export value of lead, a key solid mineral, amounted to $46.7 million in the whole of 2014. In the first quarter, export value of the mineral totalled $14.7 million but reduced to $11.1 million in the second quarter of the same year.

Nigeria exports leather to the 15 countries of the Economic Community of West African States such as Togo, Mali, Niger, Gambia, Burkina Faso and Liberia, among others.

Skins, hides and leather from Nigeria are also bought in large quantity by Italy, Spain and many European countries.

Global retail update Shock deal in Europe ainsbury’s and Walmart’s Asda confirmed they are to merge to create Britain’s biggest supermarket group by market share, surpassing current leader Tesco.

Nestlé in Chile The Swiss food giant has opened a US$ 120 million pet food factory in the Chilean city of Teno, which will produce food for dogs and cats to meet the growing demand in Latin America. The factory is said to have one of the highest standards of quality and food safety.

Store expansions Lithuania’s Maxima Group, which recently purchased Polish chain Stokrotka, plans to add 100 new outlets in Poland. In Russia, retailer O’Key is set to expand (paywall) its discount format Da! The company recorded annual sales revenues of EUR 2.32 billion.

Price hikes and talent search Amazon has increased the price for its membership by 20%. The decision might deliver more than US$ 1 billion in extra revenue this year. Meanwhile, Walmart is on the hunt for digital experts in California and wants to hire 150 tech workers for its research hub.

Colgate disappoints The world’s largest toothpaste said that first-quarter sales were below its expectations as demand in emerging markets was muted.

S

Organic growth slowed, even as the company spent more on advertising and invested in price to spur demand for its products.

Enhancing freshness in Asia While Alibaba boss Jack Ma visits Israel to meet with the prime minister and to get honoured by Tel Aviv University, its logistics affiliate Cainiao plans to open 100 fresh food warehouses around China to help connect rural agricultural products with online shoppers.

Logistics investment JD.com, China’s second-largest e-commerce company, has bought a stake in China Logistics Property Holdings through a subsidiary.

Proceeds from the sale will be used for the development of logistics

park projects and as general working capital.

Mounting pressure Christoph Wiese, the former chairman of South Africa’s Steinhoff International has filed a US$ 4.8 billion lawsuit against his former employer. This comes after the troubled retail conglomerate agreed to end a bitter dispute by selling half of German furniture chain Poco.

Positive outlook Botswana supermarket chain Choppies has reason to rejoice. Its half-year profits rose 19%, buoyed by an improved performance at its South African stores. The budget retailer expects that the growth will continue in the second half of the year.

Thursday 03 May 2018

C002D5556

BUSINESS DAY

23

LG Electronics donates AC units, mosquito nets to Adeoyo maternity teaching hospital CHINWE AGBEZE

A

s part of its Corporate Social Responsibility (CSR) activities, LG Electronics, a global leader in Consumer Electronics and Heating, Ventilation and Air conditioning, has donated some units of All New Gencool Inverter air Conditioners, Jet Cool air conditioners as well as treated Mosquito nets to the Adeoyo Maternity Teaching Hospital in Ibadan.

This donation was made when the brand paid a courtesy call to the hospital recently.

LG Electronics said they have continued to receive accolades from Nigerian consumers over the years, for having their interest at heart in the development of cutting-edge products.

According to the brand, the donated items are expected to meet the needs of the health institution in their mission to provide people in the community with excellent healthcare services.

While welcoming the LG Electronics team to the hospital, Adeyanju Olusoji, chief

medical director, Adeoyo Maternity Teaching Hospital, praised the team that shortlisted the hospital as a beneficiary of the donation for a job well-done.

“Adeoyo hospital prides itself as one of the best in Ibadan when it comes to healthcare delivery service which is evident in the number of patients that visits the hospital on a daily basis,” he said.

Hari Elluru, head of corporate marketing, LG Electronics West Africa Operations who led the delegation said the brand has remained competitive while improving sustainability.

“We have enabled investment and innovation required to deploy new technologies and to safely and responsibly develop progressive products, ’’ Elluru said.

“We belief that the air conditioning units as well as the other items we are donating today will improve the service delivery in the hospital and provide the enabling environment for the medical personnel.”

Oni Lawrence, who responded on behalf of the management of Adeoyo Maternity Teaching Hospital, expressed gratitude to LG

LG Electronics through this act of kindness has shown itself to be a brand that truly believes in the health sector.

We are indeed very proud to be associated with the brand.

Let me assure you that all the items donated here today

will be put to good use.”

According to Jad Atwi, regional branch manager in Ibadan who represented Fouani Nigeria Limited at the occasion, the visit is part of LG Electronics’ CSR activities aimed at reaching out to health institutions in the country.

Atwi said, ‘‘It is my firm belief that the items we are donating today will go a long way to empower this health facility as well as the people of this community in their quest to enjoy sound health by empowering the hospital staff to do their jobs more efficiently.”

Over the years, LG Electronics has pursued its CSR initiatives vigorously. Recent CSR initiatives include the donation of some of air conditioning units and treated mosquito nets to Braithwaite Memorial Specialist Hospital in Port Harcourt, Kuje general hospital, Abuja and Murtala Mohammed Specialist Hospital Kano.

No doubt the initiative is worthy of emulation and other organizations in the country can follow suit by contributing their quota to their host communities and the general well-being of humanity.

ment since then?

I have not taken any treatment. The doctor advised me to be using crutches to avoid total breakdown of the hip since I don’t have the money for the surgery. I also have to use the crutches each time I want to go out to reduce the pain on my leg.

I have had this issue for long and I usually take Renaf Plus and other painrelieving drugs prescribed by my doctors. I take the drugs once in two days just to calm the pain and it lasts for a week, after which the pain would come up again.

If that happens, I rush and get the drugs.

How have you been coping since you noticed this in 2015?

I had to stop teaching Music in schools. I only teach a student Music at home on Saturdays and I’m paid N15, 000 a month.

I used that money to support myself. My family are poor and could barely feed themselves let alone help with my medical bill. I still support them with the little I make.

I cannot go far with the crutches. Sometimes, I have to trek from my house to the junction to catch a bus and that usually gives me a tough time. I discovered that each time I walk the bones at my hip rub against each other and that gives me serious pains at the hip.

Each time I’m walking, the hip generates pain. The best thing I was told is to do the surgery.

This hip problem has caused me so much pain.

It’s hard for anyone to know what I’m going through but whenever I’m alone, I cry so much praying that God will raise men to help me do this surgery.

L-R: Adeyanju Olusoji, chief medical officer, Adeoyo Maternity Teaching Hospital; Agbonyin T.A, director of maintenance, Oyo State Hospital Management Board; Oni Lawrence, representative of Chairman of Oyo State Hospital Management Board; Hari Elluru, corporate marketing manager, LG Electronics West Africa operations; and Jad Atwi, regional branch manager, Fouani Nigeria Ltd, during LG Electronics CSR donation to Adeoyo Maternity teaching hospital Yemetu, Ibadan.

Electronics for deeming it fit to stop by at the hospital to make the donations.

“We are proud to be the recipients of these items which will go a long way to help address some of the challenges we face here. We appreciate

LG Electronics’ generosity and goodwill to our hospital. This for us clearly demonstrates the company’s commitment to the health sector,’’ said Lawrence. ‘‘By donating these innovative electronic products,

Living under poverty line How Nigerians are struggling to survive

If you want to contact the writer of this story call: +234(0) 803 889 1567, +234(0) 8155184838 chinwe.agbeze@businessdayonline.com Name: Godwin Adanon State of Origin: Lagos State Age: 26 years Dependents: None Occupation: Teacher I used to teach Music at Christabel Nursery and Primary School, Oshodi. I also taught Music in College Best Secondary School but I quit teaching in schools in 2015 when I started experiencing a severe hip pain.

I have had issues with my left leg for a long time but sometime in 2015, I discovered that each time I stood up to teach, the pain at the hip was always severe.

What did you do when you noticed the severe pain?

I went to General Hospital, Isolo, for diagnosis. I was referred to Ikeja General Hospital for X-ray. After the X-ray, I was told I need-

ed a surgery. The doctor said my entire hip has gone and must be replaced.

The bill I was given was huge so I went to my pastor for prayers. One of the leaders in my church raised N50, 000 for me and another leader from another church raised N50, 000, making it N100, 000. Since then (February 2016) till now, no more money has been raised.

What is the cost implication?

The bill I was given by the Lagos State University Teaching Hospital (LASUTH) on the September 30, 2016, was N823, 000 for the hip replacement, but recently, I went back to the hospital and was told I needed about N1.4million which will cover the surgery, admission bill, drugs, and blood.

Have you taken any treat-

Analysts: Chinwe Agbeze, Stephen Onyekwelu, David Ibemere, Graphics: Fifen Famous

24

BUSINESS DAY

Harvard Business Review

Thursday 03 May 2018

Global Business Perspectives CONNEC TING

THE

WORLD

ONE

BUSINESS

AT

A

TIME

Hegemonic designs in the Middle East clash EHSAN AHRARI

A

LEXANDRIA, Va. — Western media is preoccupied by limited airstrikes from the United States, Britain and France in the Damascus area, in response to a chemical attack, as well as Russia’s “hybrid warfare” strategy against the West.

But President Vladimir Putin’s own fixation with his country’s emergence as a major player in the Middle East and its implications for regional stability do not receive ample attention. Russia is striving to increase its sphere of influence in the Middle East while President Donald Trump, by pursuing his transactional foreign policy, is unwittingly presiding over the demise of traditional U.S. strategic dominance in the Middle East and beyond.

Putin, by studying Trump’s foreign policy actions, is poised to take full advantage of strategic ineptitude. Iran and Turkey are playing a crucial role in strengthening Putin’s hand in this intricate power game. The Iran, Russia and Turkey nexus has the potential to become a potent entity, except that it also suffers from problems related to clashing strategic perspectives and internal contractions. These contradictions could be dangerous for the alliance’s survival.

Turkey’s chief reason to join this nexus is to destroy the prospects of rise of a Kurdish state in its neighborhood. The Kurdish population, estimated to be 35 million, lives in portions of Iran, Turkey, Iraq and Syria. In the post-Saddam era, the chances of the emergence of an independent Kurdistan have escalated.

However, none of the aforementioned countries support independence. Turkey became vocal on this issue during the Obama presidency. President Recep Tayyip Erdoğan understood the real Kurdish strategic objectives in becoming a proxy of America’s

A handout picture provided by Turkish Presidential Press Office shows Russian President Vladimir Putin, left, and his Turkish counterpart Recep Tayyip Erdogan chatting before a press conference in the new presidential palace in Ankara, Turkey, on December 1, 2014. (CREDIT: Turkish Presidential Press Office)

military action against the Islamic State group in Iraq and Syria, but told the United States that his government would do everything to crush the Kurdish forces.

Erdoğan eventually determined that the United States was either ignoring Turkey’s strategic concerns or insisting on using the “Kurdish card” in its proxy wars against IS and Syria. This issue steadily promoted dissension between Ankara and Washington.

When Trump became president, he continued Obama’s policy of using Kurdish forces as America’s proxy for weakening and ousting Bashar Assad, and eradicating IS from Syria and Iraq.

Erdoan also deeply resented the fact that the United States and NATO allies did not side with the Turkish government in condemnation of the failed military coup in July 2016. His government was suspicious of the West’s sympathies with the forces involved in the coup. Then, when Erdoğan blamed the exiled Turkish cleric Fethullah Gülen as the main instigator of the coup and demanded deportation, the United States refused to oblige him without seeing proof of Gülen’s

alleged involvement.

The United States has envisioned Turkey’s growing pursuit of a highly independent foreign policy as a precursor to its emergence as a defiant ally. Erdoğan represents a new Turkey, which wants to be recognized by the West as a major Muslim ally. But he also used the aborted military coup as an excuse for bolstering his authoritarian rule inside his country. That development strained his already troubled relations with the West.

Erdoğan’s preference for autocratic rule and his chokehold on all democratic forces inside his country have convinced the U.S. strategic community that Turkey may be in the process of re-examining its long-standing membership in NATO. Such a conclusion may be premature, but Turkey under Erdoğan has emerged as an assertive power, with its own priorities regarding the modalities of regional distribution of power. In the pursuit of those priorities, Turkey envisions itself emerging as the center with neighboring Arab and Kurdish forces playing a subservient role.

Iran, another regional power, has been driven by various strategic objectives, including religious interests in its dealings with Turkey and Russia. Iran is motivated to secure a permanent foothold in Syria, from where it can influence the stability of Syria and Lebanon as well as monitor the dynamics of the Palestinian-Israeli conflict.

There have also been suggestions that Iran intends to secure an “arc of influence across Iraq and Syria that would end at the Mediterranean Sea.” This alleged objective would also serve Iran’s desire for independence from the political struggle between the Shiites and Sunnis inside Lebanon.

Thus, Iran and its proxy Shiite militias and the Hezbollah of Lebanon have made a major investment of human lives and hard cash to ensure Assad’s survival. Any potential ouster of Assad is likely to create an unfriendly strategic environment for Iran. Syria is not only a predominantly Sunni state, but also a place where the remaining IS forces and a number of other Sunni Islamists are very much alive and well. By fighting to preserve the Assad regime, Iran is extending the legacy of Hafez Assad, Bashar’s father and a notorious tormentor of Syria’s Sunni Islamists, thereby ensuring its own presence in that country.

But Iran’s activities have only intensified Shiite-Sunni sectarian strife in the Middle East and South Asia.

Iran’s support of Bashar Assad is part of its larger strategic objectives of defeating Saudi Arabia’s escalating hopes to compete with Iran in the Persian Gulf and the Levant.

For Putin, Russia’s continued presence in Syria is crucial, but not his support of Assad. Putin would be willing to accept any succeeding regime in Syria as long as Russia’s presence in

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

Syria remains intact. On this issue, Iran and Russia strongly disagree. Iran also disagrees with Turkey’s insistence on Assad’s ouster. However, by watching the Assad regime successfully weaken the Islamist and IS forces with the help of Iran and Russia, Erdoğan has demonstrated a palpable flexibility regarding Assad’s tenure in office. Even so, Iran and Turkey remain united in their opposition to any prospects of the emergence of an independent Kurdistan.

The most significant uniting force for Iran, Turkey and Russia is their resolve to safeguard their respective regional strategic interests. For Russia, an additional and overriding motivating factor is to be recognized once again as a superpower.

An ongoing tug of war between Trump’s White House and America’s security state provides Putin with an outlet to exploit. As adamant as Trump has remained about imposing transactional costs on all global actors, he has remained receptive about engaging Putin.

It is impossible to predict whether the Iran-Turkey-Russia nexus will provide these countries with any long-term advantages in the Levant and the Middle East. These regions are becoming hard to manage by foreign powers, and Putin remains a player who has not yet come to grips with the Middle East’s lack of response to any great power’s desire to dominate. Hegemony in the Middle East may well become an artifact of a bygone era. There may not be any winner.

(Ehsan Ahrari is adjunct research professor at the Strategic Studies Institute of the U.S. Army War College, in Carlisle, Pennsylvania, and the CEO of Strategic Paradigms, an Alexandria, VA-based foreign and defense policy consultancy.)

C002D5556

Thursday 03 May 2018

BUSINESS DAY

25

LegalBusiness BD Business Law Industry Report Practice Intelligence Partnerships

A critique of the land use charge law of Lagos state 2018

O

n Monday, February 5, 2018, a new legislation on land charge, the Land Use Charge Law 2018 (the “new Land Use Charge Law”), was passed and became effective in Lagos State. The new Land Use Charge Law came into effect following the assent given to the Land Use Charge Bill 2017 (the “Bill”) by His Excellency, Akinwumi Ambode, Executive Governor of Lagos State.

The Lagos State House of Assembly (the “Lagos Assembly”) had earlier on January 29, 2018, passed the Bill for “a law to provide for the consolidation of property and land-based charges and make provisions for the levying and collection of land use charge in Lagos State and for connected purposes” following which the Governor assented to the Bill, as indicated above.

The new Land Use Charge Law repealed the Land Use Charge Law 2001, Land Rates Law, and the Neighborhood Improvement Charge Law but provides that anything done under the repealed laws which was in force before the commencement of the new Land Use Charge Law, shall continue to exist or be in force as if done under the new Land Use Charge Law. Rationale for the new Land Use Charge Law The long title of the new Land Use Charge Law provides the rationale for the law. It states that the law provides for the consolidation of all property and

land based charges and the levying and collection of land use charge (“LUC”) in Lagos State.

We however note that the consolidation of land related taxes in Lagos State is not peculiar to the new Land Use Charge Law, as this idea was first introduced under the repealed Land Use Charge Law 2001. As a matter of fact, among the objectives of the repealed 2001 Law were the consolidation and simplification of the payment of property taxes in Lagos State and the generation of additional revenue for the State. It will therefore appear that the 2001 Law should have been amended to address the gaps and inadequacies identified therein (rates unreflective of current economic realities; unclear definition of affected properties; and lack of an outof-court settlement mechanism to resolve disputes arising from tax assessment), rather than enacting the new Land Use Charge Law. We now proceed to highlight some of the key provisions in the new Land Use Charge Law. General/Key Provisions COLLECTING AUTHORITIES – The new Land Use Charge Law designates each Local Government Area (“LGA”) in Lagos State as the Collecting Authority for LUC, and further empowers the LGAs as the only body having authority to levy and collect Tenement Rates. As a Collecting Authority, each LGA Continues on page 26

Digital Disruption of the Workplace – Legal Issues in Artificial Intelligence, Robotics and Automated Systems in Nigeria CHUKS OKORIEKWE Continued from last week Although it is factual that introducing AIRAS, could leads to profit enhancement, government could be at the receiving end vide less tax revenue from employee taxes and other personnel related payments like Industrial Training Fund (ITF) contributions, etc. On the flip side, arguably, increased profits means increased companies income tax liability and payments to the Revenue. It is however noteworthy that this could be moderated by astute companies tax planning efforts.

Considering the long term nature of capital investments in AIRAS, what would be the tax treatment of adoption of this innovation in businesses in Nigeria? Essentially, these would be subject to capital allowances and investment allowance (the latter as a form of incentive) under section 31(1), Second Schedule and section 32 Companies Income Tax Act (CITA), Cap. C21 LFN, 2004 It is worth noting that AIRAS will not totally make humans irrelevant, but may create new categories of jobs – for example of managing the related systems. Repair, maintenance, evaluation and integration personnel would still be required. Personnel related costs are entirely deductible in the year they are incurred unlike capital allowances for capital expenditure, typically claimable over a five year period.

These issues might appear revolutionary, notwithstanding it behoves the Federal Government (FG) to have regulations in place to protect workers without stiffening innovation whilst considering their tax implications.

For instance, in the Oil and Gas industry, the Department of Petroleum Resources (DPR)’s Guidelines on the Release of Staff in the Oil and Gas Industry, 2015 (DPR Guidelines) makes it mandatory for upstream employers to seek the Minister of Petroleum’s approval (consent) through the DPR before disengagement of a

Nigerian staff (Guideline 5.3). According to the DPR Guidelines, disengagement include: dismissal, retirement (whether voluntary or forced), termination, redundancy, release on medical grounds, resignation, death, and abandonment of duty post.

Could this operate as ‘compulsory retention’ of employees where employers no longer need them due to deployment of digital resources, more so given established rule that willing servants cannot be forced on unwilling masters?

The Supreme Court in Chukwumah v. Shell Petroleum Development Company of Nigeria Limited [1993] 4 NWLR (Pt. 289) 512 upholding the principle of master/servant relationship in employment contract held that: “It is well established principle … that ordinarily, a master is entitled to dismiss his servant from his employment for good or bad reasons or for no reason at all. Consistent with this principle, is also the law that the court will not impose an employee on an employer.”

Reflective of the circumstances and need for “future proofing”, perhaps the DPR and stakeholders must begin to recognise potential redefinition of work competences for AIRAS. This could be as a form of career shift, rather than a downsizing option

given Nigeria’s growing population and the need to sustain Nigerian content in the industry in the face of rising adoption of AIRAS. Conclusion The society is dynamic and continues to evolve with emerging trend and technology. Laws enacted decades ago would not be apposite to regulate today’s world of AIRAS. Famous author, Prof. Chinua Achebe once said “Eneke the bird says that since men have learned to shoot without missing, he has learned to fly without perching”. It is therefore prescient for the FG to put in place, regulations and mechanisms by issuing guidelines on AIRAS usage to ensure that their downside effects are minimised and Nigeria is strategically positioned to leverage the inherent opportunities in AIRAS for national development.

Chuks Okoriekwe is a commercial lawyer and practices with LeLaw Barristers & Solicitors.

SBL Vice Chair, Seni Adio, SAN offers tips on innovative lawyering at Asaba law week Excerpts from Keynote address delivered by the Vice Chair of the NBA Section on Business Law (SBL), Seni Adio, SAN at the 2018 Law Week of the Nigerian Bar Association, Asaba Branch on Tuesday, April 17, 2018.

Continued from last week

O

ther benefits of technology include the following: a. Document Retention and Control: Being able to retain and control the production of documents for as long as required without having to worry about the degradation of same. This is a very significant benefit especially with respect to public documents, that is, court documents. b. Development of Forms and Templates: This is particularly helpful to courts and legal practitioners and reduces the need to always reinvent the wheel. In the case of a legal practitioner for example and based on my personal experience, lawyers in a firm could have a shared drive where final versions of documents are saved with standardized descriptions of such documents. Thus, the next time a lawyer needs to file a Motion For Summary Judgment or No Case Submission in a particular type of

L​ -R: Seni Adio, SAN​. V ​ ice Chair, NBA Section on Business Law; P ​ rofessor Adedeji Adekunle, SAN, Director-General, Nigerian Institute of Advanced Legal Studies; and Peter Mrakpor, Honourable Attorney General of Delta State​during the ​2018 Law Week of the Nigerian Bar Association, Asaba Branch, on Innovative Lawyering & Justice Delivery in the 21st Century, held at the NBA Asaba Bar Centre.

case he/she can search the data base for a template, which would contain, amongst other things, the legal standards; and locus classicus cases; etc.

Before I come to my final issue, which is specialization, there are certain other matters that do not necessarily fit into any particular buckets

but are very important and worth mentioning based on discussions with both senior and young lawyers and, importantly, even members of the community at large whom we serve.

They are as follows: i. Emergency Judges on Weekends (Practice Directions will provide lim-

ited circumstances for recourse perhaps through the Judge’s Registrar); ii. Publication of Judgments on Court’s Websites; iii. Court referred mediation services, such as ADR-MultiDoor; and iv. Exemplary welfare of Judges and Judicial Officers.

5. Specialization I cannot over-state the importance of specialization in the context of innovation and justice delivery. With all due respect to all of us in this room, if a stranger were to ask you for your area of specialization, what would you say?

And when you respond, would your response be completely accurate? The reality is that most practitioners are general practitioners.

However, the practice of law has become GLOBAL AND BORDERLESS. Globalization of law practice is beyond my remit today, so I will pull back to specialization in the domestic

context.

Specialization is part and parcel of justice delivery because as Legal Practitioners, we have a duty to our clients to provide the best possible service that we can at all times. Indeed, I foresee the day that it would be tantamount to legal malpractice to take a brief in an area where a lawyer, no matter your seniority at the Bar, has little or no experience. That would not be justice delivery. Put another way, to do that would be to do grave injustice to a client.

To illustrate, you could be a highly experienced and skilled counsel in litigating complex commercial cases.

However, the day you are briefed in a criminal matter, it would be wise to introspect as to whether you have the requisite subject matter experience for that case. That does not mean that must decline the case. You may have a colleague in chambers who has the Continues on page 26

26

BUSINESS DAY

C002D5556

GREYMATTER

PERSPECTIVE An assessment of the implementation of Nigeria’s economic recovery and growth plan

A critique of the land use charge law of Lagos state 2018 T

GEORGE ETOMI & PARTNERS

Continued from page 25

is also allowed to delegate to the State Government, by a written agreement, its functions with respect to the assessment of privately owned houses or tenement for the purpose of levying and collecting such rates. An LGA is defined in the new Land Use Charge Law to include a Local Council Development Area (LCDA).

EXEMPTED PROPERTIES – The Law also provides that LUC shall be payable in respect of all properties in the State except those exempted under Section 12 of the Law. The exemption granted is applicable to some categories of properties including any property (1) owned and occupied by a religious body and used exclusively as a place of worship or religious education; (2) used as a public cemetery or burial ground; (3) used as a registered educational institution certified by the Commissioner for Finance to be non-profit making; (4) which is the palace of a recognized Oba and Chief in Lagos State; as well as (5) specifically exempted by the Executive Governor by a notice published in the State Official Gazette.

FORFEITURE OF EXEMPTION – Where any exempted property is leased out to private entities for the purpose of generating revenue, the relevant property shall forfeit its exemption status and thus become liable to pay LUC. Forfeiture of exemption status also arises where (1) the use of a property changes to one that does not qualify for exemption; (2) a property owner changes its use to one that does not qualify for exemption; and (3) the property of a religious body is registered in the name of an individual or corporate body different from the corporate name of the religious body.

GRANT OF PARTIAL RELIEFS – Besides the grant of exemption, the Commissioner for Finance is empowered under the new Land Use Charge Law to, by a notice published in the State Official Gazette, grant partial relief for a property (1) that is occupied by a non-profit making organization; (2) used solely for community games, sports, athletics, or recreation for the benefit of the general public; and (3) used for a charitable or benevolent purpose for the benefit of the general public and owned by a non-profit making organization.

ISSUANCE OF DEMAND NOTICE, PAYMENT CONDITIONS & DISCOUNTS – Under the new Land Use Charge Law, the Commissioner for Finance is also entrusted with the responsibility for issuing in each Financial Year, a Land Use Charge Demand Notice (“Demand Notice”) with respect to every chargeable property that has been assessed in accordance with the provisions of the Law. The delivery of the Demand Notice shall be to the owner or occupier, either of whom may also request for same at any Land Use Charge Office or via electronic platform either by themselves or through an authorized agent of the connected property.

Where there is no owner or occupier or authorized agent to take delivery of the Demand Notice, then same shall be pasted on the property and such pasting shall be deemed sufficient delivery of the Demand Notice.

A person liable to pay the amount stated on the Demand Notice shall make the payment at one of the des-

ignated banks specified therein within thirty (30) days after the date of delivery of the Demand Notice. The new Land Use Charge Law empowers the Commissioner for Finance to reduce the LUC payable by way of discounts.

However, only a payment made within fifteen (15) days of the receipt of a Demand Notice shall qualify for this discount and the amount of the discount to be given shall be as specified in the Demand Notice. Furthermore, to enjoy the discount, a qualified payer shall make a written application to the Commissioner for Finance requesting for it. In our opinion, the requirement for a written application to enjoy the discount is unnecessary. We hold the considered view that discount should automatically apply once the condition indicated in the law (within 15 days of receipt of the relevant Demand Notice) has been complied with.

VALUE OF LAND USE CHARGE – Essentially, the new Land Use Charge Law prescribes the mode of calculating the LUC due on a property.

Accordingly, the annual amount of LUC payable on any property shall be arrived at by multiplying the Market Value of the property by the applicable Relief Rate and Annual Charge Rate, using the prescribed formulae stated in the new Land Use Charge Law and more particularly described in the Schedule thereto. To create a seamless process, the Commissioner for Finance is empowered to make regulations, subject to the Regulation Approval Law of Lagos State, providing for self-billing and electronic payment of the LUC by property owners.

Changes and New Developments CHARGEABLE PROPERTY The definition of chargeable property has been extended to include (1) a building; (2) any improvement on land; (3) a parcel of land, whether or not reclaimed, waterlogged or otherwise; (4) a parcel of land and any building or improvement, a wharf or pier; and (5) a leasehold of up to ten years.

• COMPUTATION OF LAND USE CHARGE PAYABLE ON PROPERTIES LUC is now calculated based on the commercial or market value of a property. Valuation is also now to be assessed by professional estate valuers appointed by the Commissioner for Finance which shall be subject to review at least once every five (5) years.

Thursday 03 May 2018

than ten (10) years. Besides, for leases spanning ten (10) years or above, liability to pay the relevant LUC resides solely on the occupier. The definition of an occupier has now also been reviewed to include persons unlawfully in actual occupation of a property. In our opinion, whilst the obligation to pay LUC now extended to an occupier holding a lease of ten (10) years and above is understandable, the provision imposing payment obligation on either the owner or occupier of a property on a lease arrangement of less than ten years is a cause for concern. This provision will likely work against tenants under short-term lease arrangements, as it is highly probable that landlords will shift the responsibility of paying LUC to tenants/occupiers of their properties, particularly in view of the exorbitant rates of LUC. • CHARGEABLE RATES The rate to be applied in computing LUC payable on a property has increased significantly under the new Land Use Charge Law. For an ownersolely-occupied residential property, the rate is now fixed at 0.076% of the chargeable value of the property as against 0.0394% applicable under the repealed 2001 Law. For a residential property without the owner in residence or a commercial property, the rate is now fixed at 0.76% of the chargeable property as against 0.394% previously applicable. Also for an industrial property, the new rate is 0.256% of the chargeable value of the property as against 0.132% previously applicable.

Given the current economic realities, we are of the considered view that the new Land Use Charge Law should have focused on addressing the issue of LUC avoidance with a view to capturing properties which otherwise were not assessed to LUC, rather than increase the rates of LUC. This is particularly because based on the information credited to officials of the Lagos State Government, LUC was reportedly paid on only about three hundred thousand (300,000) properties out of an estimated two million (2,000,000) eligible properties in Lagos State as at December 2017. Thus, the expected revenue drive would have been achieved if the old rates were maintained and all eligible properties duly assessed.

This is an abridged version. The full article can be read on the author’s website

• PERSONS LIABLE TO PAY LAND USE CHARGE

The Grey Matter Concept is an initiative of the law firm, Banwo & Ighodalo

Under the new Land Use Charge Law, the obligation to pay LUC no longer rests solely on the owner of a taxable property as was the case under the repealed 2001 Law. The responsibility to pay LUC has now been placed on either the owner or occupier of a property on a lease arrangement of less

DISCLAIMER: This article is only intended to provide general information on the subject matter and does not by itself create a client/attorney relationship between readers and our Law Firm. Specialist legal advice should be sought about the readers’ specific circumstances when they arise.

he Economic Recovery and Growth Plan (the “Plan”) is a comprehensive medium-term plan for the years 2017 – 2020, which was propounded by the administration of President Muhammadu Buhari. The implementation of the Plan began following Nigeria’s slump into a recession in 2016, with the country experiencing a record low Gross Domestic Product (GDP) growth rate of -2.36 per cent in the third quarter of 2016, according to Nigeria’s National Bureau of Statistics (NBS). The Plan was designed to lift the nation out of the threshold of the recession and position the country for sustainable economic growth, diversification of industries and global competitiveness.

The Plan has three broad strategic objectives that will help achieve its vision of inclusive growth. They are: 1. Restoration of economic growth 2. Investment in our people 3. Building a globally competitive economy.

In addition, the Plan also provided key execution priorities for the implementation of its objectives and ideologies. The key execution points are: 1. Stabilizing the macroeconomic environment 2. Achieving agriculture and food security 3. Ensuring energy sufficiency (power and petroleum products) 4. Improving transportation infrastructure 5. Driving industrialization focusing on Small and Medium Scale Enterprises.

This Focus Report examines government’s implementation of the Plan thus far, in line with the stated execution points.

1. STABILIZING THE MACROECONOMIC ENVIRONMENT In formulating the Plan, the Federal Government took into consideration the factors that led to the deterioration of the economy in 2016 and created a document aimed at preventing the recurrence of the economic slump. The regularization of the macro-economic elements of the economy such as the inflation rate, Gross Domestic Product (GDP), employment rate etc. was therefore identified as a pre-requisite for sustainable economic growth in the country.

The Plan for instance aims to increase Nigeria’s GDP by stabilizing the economy through the alignment of monetary and fiscal policies; the acceleration of non-oil generating revenue; drastically cutting expenditure and; through private selected public enterprises/ assets. In order to achieve these objectives, the Plan enumerated two polices, namely: i. The Fiscal Policy ii. The Monetary Policy i. The Fiscal Policy: Fiscal challenges affecting public finances at the federal, state and local government levels served as a major catalyst for the 2016 recession which

the country experienced. Some of the policy objectives include the following points listed below: • Improve overall Federal Government revenues by increasing revenues from oil production and targeting non-oil revenue sources (This would be discussed in detail below) • Increase the tax base by raising the VAT rate for luxury items from 5 to 15 per cent from 2018, while improving CIT and VAT compliance to raise 350 billion annually.

• Increase tax to GDP ratio from the current 6 per cent to 15 per cent during the period.

• Improve the budget preparation and execution process, focusing on increasing allocation to capital projects and improving the quality of capital spending, with a view to attaining a

ratio of Capital Expenditure (CAPEX) to total budget of 30-35 per cent.

• Re-balance the portfolio of domestic to foreign debt from 84:16 to 60:40 and make arrangements to pay off hidden Federal Government debt.

Below is an overview of how the current administration has fared in the achievement of the objectives listed above: • Increase tax base through VAT: The Federal Government has announced its intention to increase the tax on luxury goods in order to generate more revenue for the nation, however it is yet to implement this policy or identify the goods and services that would be included in this tax bracket. The proposed increase in tax should be a welcome policy as Nigeria’s 5% VAT tax is one of the lowest rates in the world.

Comparatively Ghana has a VAT rate of 15%, Egypt 10%, Mauritius 15%, Morocco 20%, Namibia 15%, South Africa 14%, Tanzania 18% and Zimbabwe 15%. Across the continent, developed countries such as France, United Kingdom, Romania and Ukraine have VAT rates of 20%. Furthermore, an increment in VAT should not have an impact on the less privileged as basic food items and other necessities will be exempted from this tax.

• Increase tax to GDP ratio from the current 6 per cent to 15 per cent during the period: Most countries in the world tend to rely on taxation as a source of sustainable revenue mainly because taxes are more predictable than other sources of revenue in the economy. The tax to GDP ratio weighs the amount of tax collection to the nominal GDP and at 6.1%, Nigeria has one the lowest tax to GDP ratios in the world. There are several contributing factors to the abysmally low tax rate in Nigeria such as the lack of expansion of tax net, poor compliance to tax regulations, bureaucratic tax procedures and disregard of transparency and accountability from the government. The most obvious solution to this problem of low taxation rate is an increase in taxes, however without established efficient structures for the proper collation and collection of these funds, the nation will not reap the full benefits of any tax policy.

To be continued next week

Thursday 03 May 2018

C002D5556

BUSINESS DAY

27

LEGALPERSONALITY

ADRPERSPECTIVE

Eminent legal personality striding across boardrooms

Mediation: When business has no business in court

A

Continued from last week

E

nvisioning corporate governance as a prerequisite for institution building that makes an organisation noteworthy, the Nigerian Bar Association (NBA) President, A.B. Mahmoud, SAN last year appointed KPMG to undertake a review of the financial processes, management and reporting of the body. The KPMG report presented at the National Executive Council (NEC) meeting held in Ilorin on March 01, 2018, revealed the total absence of governance structure and inefficiencies.

For a man who’s widely considered an epitome of professionalism and doggedness, his wealth of experience is also backed by the need to acquire requisite knowledge. Paul has raised the bar of excellence in this regards many times over. The latest of this being the award of Corporate Governance Rating System (CGHRS) “Rating Certificate” by the board of the Nigerian Stock Exchange and the Convention on Business Integrity. In the context of leadership, this recognition among other things is a testament to his leadership prowess. Interestingly, Paul’s experience from the boardroom and corporate governance positions him as a man with the cognate knowledge, experience and willpower to carry out the needed reforms in any organization.

One may be tempted to ask how the learned silk has managed to hold these positions alongside his professional practice, which has equally been very successful. Usoro says it is due to the determination to make a difference.

“For me, making a lasting difference has been a major factor in my craft and endeavours. Every day presents an opportunity to impact positively, to lead and show directions when the opportunity is presented and of course to play vital roles in achieving set objectives.”

Laying emphasis on the corporate leadership of the titan, the Commissioner for Justice and Attorney General of Borno State, Kaka Shehu Lawan described Paul Usoro, SAN at the State’s Law Week celebration held in February 2018, as a household name in the Nigerian legal profession. “We are privileged to have the Learned Silk share his experience and exemplary leadership qualities,” he said.

Kehinde Buraimoh Esq is one out of many to have worked with the consummate and thoroughbred boardroom guru. He attests to his high standards, which he considers the bedrock of Usoro’s endeavours.

“In whatever Paul does, you can be rest assured that he strives for excellent results. For the legal practice, he’s very passionate, diligent and committed to high standards.

CHUKA UROKO

Paul Usoro

He carries the same drive with him to his business meetings and dealings. For him, mediocrity doesn’t cut it; only excellent results, nothing else,” he enthused.

This position is buttressed by Usoro while addressing journalists at a recent gathering. He noted that a young professional seeking to excel must commit to his work totally, paying quality attention to his assignments.

“I advise young lawyers and professionals in general to pay attention to the quality of their work.

That man who pays attention to the fine details of his assignment and turns out top quality work will never run short of briefs and new assignments. There’s no short-cut to success. When you’re diligent and attentive, it’s normal that success follows suit.”

Usoro’s leadership skill reverberates beyond the private sector.

In 2011, former President, Goodluck Jonathan required the best hands to lead the Nigerian Bulk Electricity Trading Plc which was a new government agency. He found one in Usoro who also became the pioneer Chairman of the agency’s Board’s Audit Committee.

In 2012, Usoro was appointed by the Minister of Communications Technology into a select Ministerial Committee for the review of Nigeria’s ICT Policy and he played a key role in that Committee’s work, which final work product was approved by the Federal Executive Council.

For many young lawyers who look up to their seniors, there are several lessons to learn from Usoro.

Usoro epitomizes leadership best served; a man who though is soft tempered yet reputed for his hardhitting excellence.

Oyinlola Adeleke Esq summed up a lot of young lawyers’ perception of Usoro.

“You can’t miss the Paul Usoro name as far as the legal profession is concerned in Nigeria today. A lot of us are inspired by his success. What he also does to everyone’s amazement is his strides across boardrooms alongside a very successful practice. Only a man totally committed to excellence can do that. Paul Usoro is an icon of excellence,” she declared.

lternative Dispute Resolution (ADR) which includes arbitration, mediation and conciliation is an increasingly growing practice in Nigeria that helps to resolve disputes in contracts and other business relationships faster than the regular court process.

In all of these, mediation stands out as an amiable, amicable, accelerated, appropriate or preferred alternative that has the capacity to not only create a win-win situation for disputing parties, but also preserve their relationship as landlord and tenant, business owner and customer, corporate body and client.

Businesses need time and money because they are typically concerned with growth and earnings. Anything that can impede this, by denying them of the needed time and money, should be discouraged.

Experts point out, however, that litigation in itself is not a bad process because there will always be disputes that need to be litigated, but resolving commercial disputes in an adversarial, expensive and long drawn manner makes the process most ineffective and anti-business.

For this reason, business has no business to be in court which explains why legal experts and business leaders who gathered for the third edition of the Oakwell Partners annual mediation conference in Lagos recently insisted that mediation which ensures amicable, timely and almost zero-cost resolution of disputes should be encouraged by disputants.

Ordinarily, nobody, not the least business, likes to go to court. Not only is it expensive and time consuming, but it often leads to frustrating results and damaged relationships. For business, there is no need to waste time in court, when the dispute can be negotiated and resolved in a manner that preserves the business relationship.

“Why be embroiled in court in a process that damages relationships, where only one side wins, when there is a process that supports

business in terms of timeliness and ensures win-win solutions to old or bitter fights and also ensures a mutually beneficial outcome?” queried Osarieme Ezekiel, managing partner at Oakwell in her opening speech at the conference.

Ezekiel pointed out that, as a Commercial law firm, they understood the value of time when it comes to commercial transactions, noting that sometimes, otherwise profitable transactions that started with so much promise, are derailed due to mismanagement of disputes.

She surmised that mediation remained the best way of resolving a dispute that still preserved the intended business objectives and Justice Opeyemi Oke, the Lagos State Chief Judge, affirmed. Oke stressed that “where dispute arises between parties to a business, mediation is a more viable option to resolve such dispute because it helps to maintain relationships often destroyed in adversarial proceedings and focuses the parties on their real interests”.

But, in spite of its highpoints and elevated ideals, mediation also faces some challenges coming mainly from the professions, chiefly lawyers, who remain the single detrimental force to this court mandated scheme.

Anthony Gross, the guest speaker at the conference, wondered why lawyers believed that one brief ’s instruction fee with an annual refresher for a case to take 10 years through the courts at the end of which the lawyer/client relationship is invariably soured, if not strained, is a better business model for them than proposing, espousing and assisting honorably in one day’s mediation that settles, leaving them with enough time and opportunity to take on 9-year 11 months worth of extra work.

On the strength of that, Justice Oke charged lawyers to embrace mediation without fear of loss of income earned from adversarial proceedings. She explained that mediation was a better option for dispute resolution in every respect

unless the parties were aiming at the determination of a constitutional question that could only be resolved by a competent court of law.

Her advice was also based on the understanding that mediation has capacity to reduce cost implications, hostility and antagonism just as it guarantees privacy and, more importantly, preserves good business and personal relationships.

“In fact, where dispute arises between parties to a business, mediation is a more viable option to resolve such dispute because it helps to maintain relationships often destroyed in adversarial proceedings and focuses the parties on their real interests”, the chief judge emphasized.

She recalled that “the use of mediation as an ADR mechanism in Nigeria dates back to pre-colonial times when Nigerian traditional societies used mediation as a tool for preserving cultural norms and values; it prevented disputes from festering, maintained peace and preserved traditional values. Even the courts have alluded to the cultural beginnings of mediation in Nigerian tradition”.

Between the disputing parties stands the mediator whose role is so critical that it can make or mar mediation process. Gross advises that, for a good outcome, a mediator must assure the parties of his competence, experience and guarantee that he is a safe pair of hands.

“It is the middle way that the mediator must work on tirelessly to explore, prod, provoke and encourage the parties to come out of their corners and see the other’s point of view. They must compromise their own position and meet their opponent in the middle and to say yes.

“The mediator will rebuild the trust that has been lost. He or she will set the scene of a safe environment, build rapport between the parties, explore and investigate the roots of the conflict by selective non-judgmental and non-assuming questions. He or she will explore the deeper meanings behind conflict language”, he advised further.

SBL Vice Chair, Seni Adio, SAN offers tips on innovative lawyering Continued from page 25 requisite skill and substantive knowledge in which case you make him or her a member of the defence team.

Likewise, you could engage another lawyer as co-counsel, as often happens even amongst the largest international law firms.

Even technology has a role to play in the area of specialization. This includes, having the required resources such as electronic case law reports; journals, periodicals; and other resources. Technology also helps to keep abreast of the latest decisions of appellate courts and new precedents. To give two examples: I subscribe, as I am sure most of you do to at least one electronic law reporting service. I receive daily alerts of appellate decisions and I must confess I don’t read all of them, but occasionally I will see one that piques my attention and I will read it. I believe the most recent one that piqued my interest is a case entitled: BRILA ENERGY LTD v. FRN (CA) (ratio is that a court may dispense with a certificate of authentication as provided under Section 84(4) of the Evidence Act when a computer generated document is tendered in evidence, where

a person with personal knowledge of the proper functioning of the computer testifies as such – moreover, such a person need not be a computer expert, so long as he is familiar with the computer from which the document was printed). b. LAW360 – a LexisNexis Company: I receive daily alerts from this service in areas of interest, such as White-Collar Crime Defence, Products Liability, International Arbitration, and Consumer Protection.

Essentially, what I am stating is that it

behoves all of us to engage in continuing legal education (CLE). And, we don’t need to travel to get the information – we can get them on-line. That is part of the ingenuity of lawyering in the 21st Century.

In closing, I have to admit that even what I have spent the past 20 minutes or thereabout presenting is borderline archaic – there is another phenomenon that we lawyers and our justice system have to deal with -- ARTIFICIAL INTELLIGENCE – Scary, Isn’t it?

Seni is a Senior Advocate of Nigeria (SAN), as well as an Attorney-at-Law in the State of New York and Commonwealth of Massachusetts in the United States of America. Notably, before returning to Nigeria Seni practiced law at the international law firm, MINTZ LEVIN, in Boston, Massachusetts, where he achieved the remarkable feat of becoming a Litigation Partner.

While in the United States, he counseled multinational publicly-held conglomerates and private companies on various matters, including but not limited to, Fiduciary Law and Corporate Governance; Securities Laws; Legislative and Regulatory Matters before the U.S. Congress; Real Estate Valuation and Tax Abatement; Immigration; Intellectual Property Law; Internet Technology and Security; Insurance and Coverage Disputes; and Business Torts (including Unfair Trade Practices, Commercial Libel and Breach of Contract).

Since returning to practice in Nigeria, Mr. Adio has complemented his business litigation background with extensive expertise in Admiralty (Maritime), Energy (Oil and Gas), Telecommunications, and Capital Markets transactions and counseling. He is also duly registered with the Nigerian Securities and Exchange Commission (SEC) as a Capital Markets Solicitor.

The Learned Senior Advocate of Nigeria (SAN) currently leads the Nigeria Bar Association – Section on Business Law (NBA-SBL), NASSBER collaboration with the National Assembly, Nigerian Economic Summit Group (NESG), the U.S. Department for International Development – Enhancing Nigeria Advocacy for a Better Business Environment (DFID-ENABLE).

28

BUSINESS DAY

Thursday 03 May 2018

C002D5556

INDUSTRYFILE

NBA-SBL marks World Intellectual Property Day in Kaduna Inaugurates SBL CLUB in ABU, Zaria

F

ollowing a successful inauguration of the ‘SBL CLUB’ at the Ahmadu Bello University (ABU), Zaria on Wednesday April 25, 2018, the Council of the Nigerian Bar Association Section On Business Law (NBA-SBL), led by its Intellectual Property (IP) Committee moved to Kaduna to mark this year’s World Intellectual Property Day with a Seminar.

The event hosted by the NBA-SBL Intellectual Property Committee, saw the gathering of eminent and celebrated IP minds at the seminar, which had two sessions with highly topical themes - ‘Securing Nigeria’s Future Through Innovation and Creativity’, and ‘Powering Change: Women in Innovation and Creativity’.

Speaking at the event, the Chairman of the IP Committee, Afam Nwokedi in his welcome address, called on stakeholders to join in the very useful and imperative discussions needed to draw a road map for actualizing the formulation of an IP policy in Nigeria. He noted that as IP was an essential ingredient in any form of development that Nigeria would seek, it was necessary to get it right from the beginning.

Nwokedi advocated for Foreign Direct Investments (FDIs) in the intellectual space to encourage diversity of thoughts and cross-pollination of ideas.

He said “the expectations on Nigeria to meet up with what is considered as international best practices in the field of IP must not overshadow our national interest and quest to join the comity of developed nations.”

In her remarks, the first lady of Kaduna State Mrs. Asia Ahmad El Rufai called for sustainable sensitization of the general public on the challenges, expectations and benefits of a proactive IP regime and the revamping and remodeling of our educational curriculum. She advised on the need to think out of the box in formulating policies, which according to her should take into consideration the areas of our strength and our peculiarities. She called for the teaching of sciences in local languages to solve the mother tongue language barrier issues.

Afam Nwokedi, Chairman, NBA-SBL Intellectual Property Committee

Chairman, NBA Section on Business Law unveiling the ‘SBL CLUB’ Banner during the inauguration of the club in Ahmadu Bello Uni, Zaria

Upholding this position, the Chairman of the NBASBL, Mr. Olumide Akpata, informed participants that the NBA-SBL had undertaken the task of developing capacity and growth in the legal profession through its various committees.

“To this end” he said, “The SBL is partnering with relevant institutions to formulate curriculums. The process of knowledge acquisition being continuous, the Section will churn out more thought-provoking platforms to assist in the drive for knowledge acquisition, not only amongst qualified lawyers, but potential law graduates.”

According to him, It is in line of these objectives that the SBL has commenced the setting up of SBL Clubs in

universities in Nigeria.

“Ahmadu Bello University (ABU) Zaria is the second beneficiary of the initiative, other will follows shortly,” the NBA-SBL Chairman said, stating further that there was need to train lawyers to understand the dynamics of modern developmental requirements, otherwise such expertise will be sourced offshore.

The Attorney General of Kaduna State, Umma Hikima thanked the NBA-SBL and its IP Committee for choosing Kaduna State as a seat of celebration for this year’s World Intellectual Property Organisation (WIPO) - induced celebration. She said that Kaduna state was working assiduously towards placing the state in the forefront of benefiting from the implementations of the various treaty obligations that Nigeria has entered into in the IP space.

The keynote speakers listed out the challenges bedeviling Nigeria’s IP landscape and proffered solutions to address them.

Dr. U. B. Bindir advocated for the restructuring of our educational curriculum, the inculcation of research and development as a veritable instrument for development and the creation of IP investment funds to assist inventors, innovators and creatives.

Using scientific analysis, Dr. Bindir was of the opinion that at Nigeria’s current developmental state, the full actualisation of the vision 2020 target was impracticable. He compared the

PHOTOFILE

trajectory of the lower quarter of the list of the top 20 world economies and said it was practically unrealistic for Nigeria to achieve the target of been on the eminent list within a space of less than 2 years. He said there was need for us to readjust our expectations and be pragmatic in our ways.

The panelists which included, Dr. Musa Waziri of University of Abuja, Nima Salman, the former Registrar of Patents, Designs and Trademarks, Chiaka Okoye, the Special Advisor to the Minister of Trade and Investment and Dr. Zainab Haruna of ABU. Dr. Waziri and Mrs. Salman called on the government to play an active role in the development of intellectual property knowledge and practice through various funding initiatives. Mrs. Salman was of the view that the level of resources allocated to the IP sectors in general reflected the lack of recognition of the inherent potentials of the sector to the national economy. While Dr. Haruna and Okoye were of the view that the potentials of “women” to the development of the national economy cannot be overstated.

Mrs. El-Rufai, in her earlier remarks had called for a viable public and private partnership in the IP space, especially in the area of balancing gender involvement.

The Nigerian Bar association Section on Business Law (NBA-SBL) has been widely applauded for its innovative and qualitative programs introduced in the course of prosecuting its core mandate, which is to raise the standard of commercial law practice in Nigeria.

The ‘SBL Club’ initiative is expected to turn the tide and guarantee a great future for the NBA and the Legal Profession in Nigeria.

It is in this light that the Section’s Merger, Acquisition and Corporate Reorganisation Committee holds a one-day seminar Today May 3rd, 2018 at the Four Points By Sheraton. The event themed ‘Recurring Issues in Mergers & Acquisitions in Nigeria’, will attempt a general overview of the M&A space in Nigeria; discuss current developments in mergers; acquisition structures and regulatory challenges.

Powering Change: JEE celebrates women in innovation and creativity Jackson, Etti & Edu (JEE) joined stakeholders around the world to commemorate the 2018 World IP Day on April 26th with a seminar themed, “Powering Change: Women in innovation and Creativity.”

Special presentations of the ‘She Innovates Awards were made to four female recipients by JEE Senior Partner, Lookman Durosinmi-Etti.The awardees were Omobola Johnson, former Minister for Communication and Technology & Partner Tlcom Capital, Mo Abudu, CEO EbonyLife TV, Bolanle Austen- Peters Founder, Terra Kulture and Dr Ola Brown CEO Flying Doctors of Nigeria.

In giving out the awards, Durosinmi-Etti thanked each recipient for their contributions and devotion to improving our world, through their creative ideas and innovative spirit.

Ayotunde Owoigbe, Chair, Capital Market Solicitors Association (CMSA) & Partner at Paul Usoro, SAN honoured by the NigeBanwo & Ighodalo (midle) Flanked by the B&I Team at the CMSA Annual Business rian Bar Association (NBA) Ikot Ekpene Luncheon. branch.

Babatunde Irukera, DG, CPC (middle) in a chat with Bill Macleod (left), immediate past Chairman of the Antitrust Section of the American Bar Association (ABA)

BUSINESS DAY

Thursday 03 May 2018

29

GARDEN CITY BUSINESS DIGEST Walter Ollor Foundation to build Silicon City at Rivers-Akwa Ibom boundary •Outsourcing to propel construction backbone IGNATIUS CHUKWU

A

new city that would operate smart and create value on a regular basis, the Silicon City, is about to emerge at the vast empty land between Rivers and Akwa Ibom states. It is expected to sit across the Imo River and could have a tunnel below the river connecting the two states or sections of the new city. It would boast of a population of over 500,000.

The design has already been unveiled at a quiet event in the heart of the Garden City before top thinkers and government leaders.

The entire city is to revolve around knowledge which would be driven by a tertiary institution to be called Ollor University. The university is to have a slant, probably to push in the area of clean environment and renewable energy. Discipline is to be the hallmark of the new city as technology is to decide how residents behave.

The entire concept is from the brain of Walter Ollor, a professor of Banking & Finance and founder of the Walter Ollor Foundation..

Explaining the Silicon City concept at the design unveiling at the Novotel Hotel in Port Harcourt last week, Ollor said silicon connotes something that keeps adding value; something not static in value. He said the city would constantly create and add value.

Walter Ollor Foundation is Port Harcourt-based nonprofit organization whose vision is mainstreaming education for sustainable development. The foundation hosted a stakeholders’ consultative forum on the development of a Silicon City. The event was organized by Wider Perspectives Limited, a management consulting firm. It was noted by the stakeholders that the

Silicon City project is the first of its kind being developed in Nigeria.

According to the organizers, the stakeholders’ forum was convened to evolve a long term strategy to drive a new thinking towards development. Kalada Apiafi, the Managing Director of Wider Perspectives, in his welcome address, called this innovative perspective “a journey of transformational change”.

He outlined the various benefits which would include wealth and job creation, opportunities for tourism, revenue to government, and above all, a smart city.

Apiafi emphasized on the concept of waste to wealth, frowning at water bottles that fill up the drains in most cities. He also regretted that most Nigerians do not show care for the next person.

The forum explored a development model with three drivers namely: Open Sourcing, Tri-Sector Partnerships, and Leadership for Energy and Environment Development, as opined by the chairman, Board of Trustees- Walter Ollor Foundation. In his keynote address, the royal father (His Royal Majesty) said; “The future has become uncertain such that the only way to predict the future is to create it”.

He said the Silicon City approach offers the vehicle for implementing the desired transformation and socioeconomic development which would ensure that the environment, people, and businesses were catered for in the Niger Delta Region, supporting the efforts towards the United Nations Environment Programme (UNEP) time line for the clean-up of Ogoni area expected to rewrite the narrative of the Niger Delta Region.

Ollor, who chairs the education committee at Elano Investments Limited for the educational development of the Eleme people of Rivers State, explained the

Walter Ollor, chairman, Ollor Foundation

rationale for using education as a tool to drive the Silicon City, revealing that over 1.5m candidates who qualify for admission into tertiary institutions every year do not get the chance. “The stampede is so much and few years ago, the Nigerian Senate floated an idea (a bad one at that) by asking the universities to admit those who passed in previous years before considering the ones for the current year. This would mean keeping people waiting for over three years for others to go in first.”

On environment, the professor said in 1992, the UN Environment Summit in Brazil emphasized the link between environment and energy. “Nigeria must begin that transition from fossil to renewable energy and that is the focus to be pursued in the Silicon City.” He said Nigerians must begin to take the issue of global warming more serious.

He mentioned food security, clean industry, physical security, etc as the pillars of the upcoming Silicon City concept. “Energy is the foundation of any city and would

be the foundation of the Silicon City. If we must save the earth, we must address energy. Renewable energy is to replace soiled economy.

This is needed there.’

Ollor explained how the city would work; saying outsourcing strategy would be adopted whereby investors would take up projects. A bank would act as the financial backbone of the entire project. The bank would warehouse the fund for the projects. Mass transit system of transportation would operate in the new city and reduce pollution and traffic chaos from cars. He said energy conservation would be important there.

Answering questions, the founder said soot that is now a menace in Rivers State especially Port Harcourt is man-made, caused by practices such as burning cows at abattoirs and cars oozing with smoke. Some other contributors fingered illegal refining and burning of vessels laden with illegal crude oil by security agencies.

On attitudes of Nigerians that cause chaos in cities, Ollor said technology would

task people and condition people to comply, not excessive policing. He said: “There will be sustainable agric practices; gardens on top of buildings, tunnels under water, etc. There would be need for value-orientation, models to follow, and programmes on catch-themyoung behaviours. He said young people would correct their parents when they go wrong in issues of sanitation, environment, and other modern habits.

Ollor gave more tips, saying other names for a Silicon City could be Safe City or Green City. He said it was not just a Smart city, adding that sanitation and energy were very critical for the city, and that there would be mechanism from waste to wealth system. “The idea of a silicon city is welcome in Nigeria.”

A Ghanaian-American scientist, Thomas Mensah (PhD), said many other African countries were pursuing the silicon city concept.

Mensah, a renowned force in the field of Nanotechnology and Co-founder of Fibre Optics, who was a panelist on ‘Open Sourcing’ at the forum, encouraged the participants to debunk the African thinking and language, “no go work”. He urged the participants to embrace this innovation as the rest of world is already playing in this space.

Mensah is the International Consultant to the Foundation on the development of this city. During the luncheon address, he buttressed the opportunities available in pursuing this alternative perspective to development. He is developing similar cities in Ghana and South Africa. He wowed the stakeholders with a wrist watch from nanotech which responds to the body of the person wearing it. It puts on lights, changes channels on television, etc. It enables one to control his environment.

The Akwa Ibom State

Governor, Emmanuel Udom, represented by the Commissioner of Information, Charles Udoh, stated the various efforts of his administration towards actualizing the development of a Silicon Valley in Nigeria and their willingness to support this initiative in order to drive this innovation that would improve the lives of the people in the region as well as change the outlook on development in Nigeria.

The Rivers State Ministry of Education represented by Osigbo Reginald assured of the readiness of the Nyesom Wike administration to support the new city with roads and other infrastructural facilities.

In her contributions, Olaniyan Gbemisola, who represented the Minister of Education, applauded the Silicon City dream, saying she felt like coming over to Port Harcourt to help drive the vision especially because it would be driven by knowledge and education. She said the idea of using a university to drive the city was very apt and urged all stakeholders to help in the realization of the novel project in Nigeria.

Some of the organizations that participated in Open Sourcing, Tri-Sector Partnerships and Leadership for Energy and Environment Development panel discussions included Sterling Bank represented by Onyinye Jude-Emeanua. She assured of the ability of the bank to effectively serve as financial lead. Ofoma and Ofoma Associates was represented by Gab Ofoma. Technical advisers were led by Basil Udotai of Du-Duboch Nigeria. The renowned architect, Duboye Graham-Douglas, designed the city.

Stakeholders left agreeing that the Walter Ollor Foundation is set to drive the development of this Silicon City. They called on all Nigerians to make this dream to come true.

Must husbands still beat wives in this era?

Port Harcourt by Boat With IGNATIUS CHUKWU

S

ergeant John Kala (not real name) had no other duty outside his police job

than to pummel his wife.

He did it until death did them part last three weeks in Port Harcourt when he died. Ibe Odoh from Enugu so beat up and attacked his wife until he decided to go and finish her at a native doctor’s home one fateful day; and fell into a ditch and later died.

Most pers ons think wife-beating is a thing of the past. They may not know that most men are still ‘Mike Tyson’ when it comes to husband and wife disputes. Disagreements

will never end but should wife-battering continue?

Women organizations in Port Harcourt have intensified advocacy against violence to women and have even presented a charter of demand to the Rivers State government demanding, among other things, the domestication of the Violence Against Women Act. Of more impact, however, is their decision to float a defence team of women lawyers led by Cordelia Eke, the chairperson of the African Women Lawyers

Association (AWLA), to take up, pro-bono, the defence of women and girls abused by men. Another group led by NNEW is helping women to fight poverty and violence in Rivers markets. The double empowerment is expected to give the women a stronger voice, at home and in the home. They believe that a woman with economic powers would not tolerate injustice and battering in the hands of a man, right?

Wrong!

Sergeant Kala was not the breadwinner in his

home until he died. He gave birth to children outside the home and brought them to add burden to his loyal wife. The wife was the bread winner, in fact, the garri-winner. She was on the road every day to buy garri and resell. The sergeant played about. He would come back home to eat free food and beat his wife free. One day, the wife, now nursing a one week old baby, said, no, you must give us food. He supplied her with beating until she fell down naked.

He continued with belt until neighbours intervened.

He later provoked a man in his office and soon, he died of strange illnesses.

He died the same way Odoh in Enugu died looking for what would kill his wife.

Today, Odoh’s wife is enjoying her daughter who married a rich medical doctor. This is how Kala’s wife would one day enjoy her children. The bullies died, the sullies (victims) lived. Kala’s wife was the economic powerhouse but she still submitted.

30

BUSINESS DAY

C002D5556

Thursday 03 May 2018

Live @ the Stock exchange Prices for Securities Traded as of Wednesday 02 May 2018 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. 326,886.08 11.30 0.89 169 4,901,932 UNITED BANK FOR AFRICA PLC 400,133.23 11.70 1.30 270 52,331,731 866,543.23 27.60 0.55 381 30,065,965 ZENITH INTERNATIONAL BANK PLC 820 87,299,628 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 441,512.10 12.30 -1.60 409 9,723,411 409 9,723,411 1,229 97,023,039

BUILDING MATERIALS DANGOTE CEMENT PLC 4,224,341.79 247.90 0.77 117 8,578,264 LAFARGE AFRICA PLC. 364,283.99 42.00 - 61 343,216 178 8,921,480 178 8,921,480

EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY LTD 450,160.09 765.00 - 14 32,106 14 32,106 14 32,106 1,421 105,976,625 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 3 138,809 73,928.03 77.50 - 12 45,910 OKOMU OIL PALM PLC. PRESCO PLC 70,000.00 70.00 1.01 13 217,503 28 402,222 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 2,400.00 0.80 3.90 8 322,200 8 322,200 36 724,422

DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 1,456.01 0.55 - 10 54,175 214.03 0.55 - 7 165,732 JOHN HOLT PLC. S C O A NIG. PLC. 2,111.93 3.25 - 2 422 68,288.62 1.68 -1.18 108 8,197,183 TRANSNATIONAL CORPORATION OF NIGERIA PLC U A C N PLC. 49,414.24 17.15 -0.29 50 286,877 177 8,704,389 177 8,704,389

BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 37,026.00 28.05 - 68 263,726 165.00 6.60 - 0 0 ROADS NIG PLC. 68 263,726 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT CO. LIMITED 6,392.05 2.46 - 7 32,507 7 32,507 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 2,000.00 100.00 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 11,300.89 45.20 - 0 0 26,682.70 10.00 - 1 100 UPDC REAL ESTATE INVESTMENT TRUST 1 100 76 296,333

AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 1,574.98 0.33 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 18,947.38 2.42 2.11 13 196,722 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 225,609.43 103.00 - 49 129,409 INTERNATIONAL BREWERIES PLC. 445,265.65 51.80 - 10 21,900 NIGERIAN BREW. PLC. 1,031,600.36 129.00 -0.69 154 1,399,254 226 1,747,285 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 60,250.00 12.05 -9.40 279 9,781,478 DANGOTE SUGAR REFINERY PLC 240,000.00 20.00 -2.44 118 3,444,104 FLOUR MILLS NIG. PLC. 141,463.10 34.50 - 126 693,077 HONEYWELL FLOUR MILL PLC 21,649.44 2.73 - 30 337,811 MULTI-TREX INTEGRATED FOODS PLC 1,489.00 0.40 - 0 0 N NIG. FLOUR MILLS PLC. 1,220.67 6.85 - 0 0 NASCON ALLIED INDUSTRIES PLC 53,651.13 20.25 - 22 46,556 UNION DICON SALT PLC. 3,676.41 13.45 - 0 0 575 14,303,026 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 24,698.36 13.15 -4.71 63 608,519 NESTLE NIGERIA PLC. 1,244,470.32 1,570.00 -1.81 137 244,465 200 852,984 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 1 390 VITAFOAM NIG PLC. 3,377.28 3.24 - 21 344,232 22 344,622 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 89,335.73 22.50 - 30 57,793 UNILEVER NIGERIA PLC. 315,400.80 54.90 - 49 271,204 79 328,997 1,102 17,576,914

BANKING DIAMOND BANK PLC 47,710.40 2.06 1.98 132 7,050,747 ECOBANK TRANSNATIONAL INCORPORATED 368,825.98 20.10 - 43 185,098 FIDELITY BANK PLC 73,885.73 2.55 -1.96 275 24,050,919 GUARANTY TRUST BANK PLC. 1,322,931.51 44.95 -0.11 253 42,270,747 JAIZ BANK PLC 20,624.97 0.70 1.43 35 2,587,210 SKYE BANK PLC 11,798.26 0.85 1.19 83 13,232,240 STERLING BANK PLC. 46,928.38 1.63 1.24 64 1,046,381 UNION BANK NIG.PLC. 189,284.89 6.50 4.00 70 4,140,559 UNITY BANK PLC 12,273.80 1.05 5.00 22 1,170,265 WEMA BANK PLC. 35,488.51 0.92 9.52 41 1,613,469 1,018 97,347,635 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE COMPANY PLC 4,528.70 0.22 - 0 0 AIICO INSURANCE PLC. 5,128.35 0.74 2.78 43 973,313 AXAMANSARD INSURANCE PLC 24,675.00 2.35 - 9 95,785 CONSOLIDATED HALLMARK INSURANCE PLC 2,310.00 0.33 -2.94 11 920,500 CONTINENTAL REINSURANCE PLC 15,766.57 1.52 -2.56 16 540,827 CORNERSTONE INSURANCE COMPANY PLC. 5,155.33 0.35 - 1 100 EQUITY ASSURANCE PLC. 4,060.00 0.29 - 3 63,000 GOLDLINK INSURANCE PLC 2,411.47 0.53 - 0 0 GREAT NIGERIAN INSURANCE PLC 1,913.74 0.50 - 0 0 GUINEA INSURANCE PLC. 2,456.00 0.40 - 0 0 INTERNATIONAL ENERGY INSURANCE COMPANY PLC 590.68 0.46 - 0 0 LASACO ASSURANCE PLC. 2,709.67 0.37 2.78 10 416,579 LAW UNION AND ROCK INS. PLC. 3,351.14 0.78 - 3 67,250 LINKAGE ASSURANCE PLC 6,800.00 0.85 - 7 265,985 MUTUAL BENEFITS ASSURANCE PLC. 1,920.00 0.24 - 15 539,473 N.E.M INSURANCE CO (NIG) PLC. 14,785.41 2.80 - 11 275,000 NIGER INSURANCE CO. PLC. 2,244.45 0.29 -3.33 3 214,117 PRESTIGE ASSURANCE CO. PLC. 1,870.53 0.49 -3.92 8 699,239 REGENCY ALLIANCE INSURANCE COMPANY PLC 1,800.56 0.27 - 6 121,995 SOVEREIGN TRUST INSURANCE PLC 1,834.98 0.22 4.55 10 2,115,100 5,422.63 0.42 - 1 5,300 STANDARD ALLIANCE INSURANCE PLC. STANDARD TRUST ASSURANCE PLC 4,483.72 0.48 - 1 100 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 2 1,000 UNIVERSAL INSURANCE COMPANY PLC 8,000.00 0.50 - 0 0 VERITAS KAPITAL ASSURANCE PLC 4,160.00 0.30 3.45 2 120,000 WAPIC INSURANCE PLC 7,092.85 0.53 -3.64 31 910,297

193 8,344,960 MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 4,253.15 1.86 4.49 19 1,715,597 NPF MICROFINANCE BANK PLC 19 1,715,597 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 5,460.00 1.30 - 0 0 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 6,005.46 1.44 - 0 0 INFINITY TRUST MORTGAGE BANK PLC RESORT SAVINGS & LOANS PLC 5,664.87 0.50 - 0 0 2,949.22 3.02 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 0 0 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,420.00 4.21 0.24 59 554,018 CUSTODIAN AND ALLIED PLC 31,409.15 5.34 - 12 83,708 720.00 0.48 - 0 0 DEAP CAPITAL MANAGEMENT & TRUST PLC 51,090.99 2.58 4.45 166 17,320,794 FCMB GROUP PLC. NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 1,543.61 0.30 3.45 7 276,000 ROYAL EXCHANGE PLC. SIM CAPITAL ALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 497,448.55 49.50 - 37 177,210 STANBIC IBTC HOLDINGS PLC UNITED CAPITAL PLC 19,800.00 3.30 -0.30 84 1,902,338 365 20,314,068 1,595 127,722,260

HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 1,705.51 0.48 - 0 0 0 0 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 544.04 0.55 - 1 1,051 1 1,051 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 8,190.00 5.46 - 1 100 28,701.04 24.00 - 24 128,141 GLAXO SMITHKLINE CONSUMER NIG. PLC. MAY & BAKER NIGERIA PLC. 2,597.00 2.65 -1.85 25 409,547 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1,346.68 0.78 - 4 19,386 556.71 3.62 - 0 0 NIGERIA-GERMAN CHEMICALS PLC. PHARMA-DEKO PLC. 487.85 2.25 - 4 19,000 58 576,174 59 577,225

COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 781.44 0.22 4.76 4 138,000 4 138,000 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. 680.40 6.30 - 2 34,071 TRIPPLE GEE AND COMPANY PLC. 435.56 0.88 - 0 0 2 34,071 PROCESSING SYSTEMS CHAMS PLC 2,160.19 0.46 - 0 0 E-TRANZACT INTERNATIONAL PLC 19,950.00 4.75 - 2 600 2 600 8 172,671

BUILDING MATERIALS BERGER PAINTS PLC 2,724.34 9.40 - 25 37,584 CAP PLC 27,125.00 38.75 - 13 8,718 CEMENT CO. OF NORTH.NIG. PLC 25,699.06 20.45 - 34 234,700 FIRST ALUMINIUM NIGERIA PLC 1,034.08 0.49 - 0 0 MEYER PLC. 361.24 0.68 - 0 0 PAINTS AND COATINGS MANUFACTURES PLC 467.82 0.59 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,626.50 2.05 - 0 0 PREMIER PAINTS PLC. 1,279.20 10.40 - 0 0 72 281,002 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 2,474.66 2.81 - 5 54,149 5 54,149 PACKAGING/CONTAINERS BETA GLASS PLC. 39,622.78 79.25 - 5 10,907 GREIF NIGERIA PLC 388.02 9.10 - 1 9,900 6 20,807 83 355,958

CHEMICALS B.O.C. GASES PLC. 1,914.73 4.60 - 2 85,525 2 85,525 METALS ALUMINIUM EXTRUSION IND. PLC. 2,023.60 9.20 - 7 1,489 7 1,489 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 77.00 0.35 - 0 0 0 0 9 87,014

ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 3,006.10 0.48 4.17 43 2,300,383 43 2,300,383 INTEGRATED OIL AND GAS SERVICES OANDO PLC 113,747.42 9.15 - 182 3,799,765 182 3,799,765 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 69,053.99 191.50 9.55 167 471,551 CONOIL PLC 22,067.68 31.80 - 21 25,650 ETERNA PLC. 8,176.99 6.27 - 43 193,425 FORTE OIL PLC. 58,872.15 45.20 - 57 102,765 MRS OIL NIGERIA PLC. 7,200.58 28.35 - 6 21,111 TOTAL NIGERIA PLC. 75,441.75 222.20 - 24 21,143 318 835,645 543 6,935,793

ADVERTISING AFROMEDIA PLC 2,219.52 0.50 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 20,866.39 2.14 - 1 1,000 1 1,000 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 564.65 0.48 - 2 1,082 2 1,082 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 3,242.23 5.50 - 2 11,000 TRANS-NATIONWIDE EXPRESS PLC. 403.21 0.86 - 2 13,254 4 24,254 HOSPITALITY TANTALIZERS PLC 1,188.30 0.37 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,878.66 3.15 - 1 100 IKEJA HOTEL PLC 3,700.26 1.78 - 0 0 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 1 5,000 TRANSCORP HOTELS PLC 56,623.01 7.45 - 1 6,000 3 11,100 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 5,760.00 0.48 - 0 0

Thursday 03 May 2018

C002D5556

Live @ The Stock Exchange Stock market value rises by N13bn on increased bargain …Mobil leads 23 gainers against 15 losers Stories by Iheanyi Nwachukwu

N

igerian stock market gauge remained positive on We d n e s d ay May 2, 2018 as investors raised wagers on twentythree (23) companies against fifteen (15) that witnessed sell-off.

The value of listed equities on the local bourse increased by about N13 billion to N14.962trillion as against the preceding trading day level of N14.949 trillion.

Likewise, the Nigerian Stock Exchange (NSE) All Share Index (ASI), the benchmark indicators that tracks the performance of listed eq-

uities on the Nigerian bourse increased by 0.06percent 41,306.02 points against preceding trading day level of 41,268.01 points.

In 5,327 deals, stock traders exchanged 276,242,397 units valued at N6.890billion.

UBA Plc, GTBank Plc, Zenith Bank Plc, Fidelity Bank Plc, and FCMB Group Plc were actively traded stocks on the Bourse.

Mobil Oil Nigeria Plc led the gainers table after its share price increased from N174.8 to N191.5, up by N16.7 or 9.55percent.

Dangote Cement Plc also rallied from N246 to N247.9, representing an increase of N1.9 or 0.77percent; PRESCO Plc also gained, from N69.3 to N70, up by 70kobo or

1.01percent; Union Bank of Nigeria Plc increased from N6.25 to N6.5, up by 25kobo or 4percent; while UBA Plc gained 15kobo, from N11.55 to N11.7, representing 1.30percent increase.

Nestle Nigeria Plc recorded the biggest dip, from N1, 599 to N1, 570, down by N29 or 1.81percent. Dangote Flourmills Plc declined from N13.3 to N12.05, down

by N1.25 or 9.40percent.

Nigerian Breweries Plc lost 90kobo or 0.69percent from N129.9 to N129. Cadbury Nigeria Plc was also down, from N13.8 to N13.15. The stock price lost 65kobo or 4.71percent; while Dangote Sugar Refinery Plc declined by 50kobo, from N20.5 to N20, down by 2.44percent.

NSE receives award for CSR in education

T

he Nigerian Stock Exchange (NSE) has received the 2018 award for “CSR in Education” from Lagos Chamber of Commerce & Industry (LCCI).

NSE emerged the winner of this award in recognition of its education support for Internally Displaced Persons in Borno State. In 2017, in response to the insurgency in the North-East, which saw a huge number of people become displaced, thus affecting the ability of children to effectively continue with their education, the National Council of the Nigerian Stock Exchange approved an education intervention fund, to assist Internally Displaced Persons in Borno State with access to basic education.

“The objective of the annual awards is to recognise, celebrate and promote pri-

vate and public institutions that have exhibited the core values of best business practices, growth through innovations, business sustainability and have positively impacted the society. This award is the outcome of a painstaking selection process from numerous entries received for this award category and backed by feedback from industry/market intelligence,” according Vincent Nwani, director of Advocacy and Research at LCCI. While commenting on the award, Oscar N. Onyema, Chief Executive Officer, NSE, expressed his appreciation for the recognition and noted that the Exchange is committed to promoting quality education as a tool for development.

“Our education intervention through the donation of Maisandari Alamderi

Model Nursery and Primary School in Borno State arose from our understanding that without urgent steps, the emergency the North East faces in terms of access to education will have serious implications for its future stability, and by inference that of Nigeria as well, with the human capital of upcoming generations being hugely compromised.

We are committed to contributing our quota in ensuring that the children of the displaced families are able to continue with their basic education”.

Through its education intervention initiative, NSE designed and financed the construction of blocks of classrooms, including the provision of furniture, fixtures, sanitary and potable water in the local community in Maiduguri.

L -R: Temitayo Ade-Peters, CSR Lead, The Nigerian Stock Exchange (NSE); Olumide Orojimi, head, corporate communications, NSE receiving the 2018 award for “CSR in Education” from, Asiwaju S. K. Onafowokan, OON, JP, past president, Lagos Chamber of Commerce & Industry (LCCI) during the 2018 LCCI Awards at the Oriental Hotel, Victoria Island, Lagos.

BUSINESS DAY

31

32

BUSINESS DAY

C002D5556

Thursday 03 May 2018

NEWS PSP operators to resume waste collection, as Visionscape manages infrastructure JOSHUA BASSEY

W

aste collection operators, otherwise known as Private Sector Participants (PSPs) in Lagos, are resuming the responsibility of domestic waste collection.

Against this back ground, Visionscape Sanitation Solutions, the municipal waste manager with which the Lagos State government signed a deal in 2017, now has the mandate of implementing waste management infrastructure development across the state, in addition to intervening in public waste collection to cover any service lapses that may occur.

The waste management agreement between Lagos State and Visionscape had excluded the PSP operators from involvement in domestic waste collection, thus leading to heaps of waste in different parts of the state, as Visionscape was seen lacking in capacity to cope with the over 13,000 tons of waste generated daily in Lagos.

In a meeting last weekend with the PSP operators, for-

mer governor, Bola Tinubu, had chided the state government, and advised that PSP operators be brought back.

Babatunde Durosinmi-Etti, commissioner for the environment, said on Wednesday, in Ikeja, that as part of this reform, the Lagos State Public Works Corporation would oversee drainage management across the state, while the Lagos State Environmental Sanitation Corps (LAGESC) and the Public Utilities Monitoring and Assurance Unit (PUMAU) would both focus on enforcement and monitoring.

According to DurosinmiEtti, LAGESC will handle enforcement of law against illegal dumping and fly-tipping, while PUMAU will track and control the payment of fees as well as supervise collection operations.

All this, according to the commissioner, is in the effort to rid the state of filth and heaps of waste that now adorn the streets, assuring that before heavy rains set in, the waste challenge would be total resolved.

Reps approve 25 years imprisonment for breach of new Explosive Act KEHINDE AKINTOLA, Abuja

N

igeria’s House of Representatives has approved 25 years imprisonment and above for anyone convicted for breach of the new Explosive Act. This was stipulate d in clause 26 of the newly adopted Bill for an Act to amend the Explosives Act, Cap. E18 Law of the Federation of Nigeria, 2004, relating to their regulations, penalties for defaulters, to make provision for importation, manufacture, distribution, storage, possession and use of firecrackers and explosives and re-enact the Explosive Act, 2017 to make comprehensive provisions for the use and control of explosives in Nigeria and for matters connected.

According to report adopted by the House, any person convicted of a contravention of or failure to comply with section 21(2) of the bill, is liable to imprisonment for a period not exceeding 25 years.

World Press Freedom Day: Edo charges journalists on ethics, independence … to revamp Observer, EBS

G

overnor of Edo State, Godwin Obaseki, has charged journalists to uphold the ethics of the journalism profession to deepen good governance and fasttrack the nation’s advancement.

Obaseki, who gave the charge on the occasion of the United Nation’s World Press Freedom Day, celebrated on May 3, each year, noted that “a free, uninhibited and independent press is a major pillar for the sustenance of democracy, good governance and economic advancement.”

He commended the display of courage by journalists who daily challenge oppressive governments, obnoxious policies and impunity by political actors, and explained “that the world’s history is replete with inspiring stories on the doggedness of journalists, who published objective reports in defense of truth, that changed the course of history for the better, even at great personal cost.

“In Nigeria, the struggle for independence from the colonial masters was led largely by journalists and sustained by their fiery articles. Media practitioners were in the forefront to oust the military from the country’s political space

and enthrone democratic governance with such values as; the Rule of Law, free and fair elections, accountability of the government to the people, independent judiciary, tolerance of opposition views and multi-party system, which we all enjoy today.”

He added, “The recent global outcry over the activities of human traffickers and modern slave masters by the horrifying report of the international media outfit, the Cable News Network (CNN), on illegal migration by Africans, exposed the frightening scale of the inhuman activity.”

According to Obaseki, “Media practitioners will do more to advance the quality of governance if they uphold the ethics of the profession, leverage on the power of the Freedom of Information (FOI) Act and strive for more independence in carrying out their task as the society’s watch- dog and members of the exalted forth estate of the realm of governance.”

He assured that his administration was set to commence the revamp of the state-owned media enterprises; Edo Broadcasting Service Radio and Television and the Observer Newspapers, to strengthen the

HOPE MOSES-ASHIKE

competency in the sector.

The BDC sector is confronted with many challenges such as multiple exchange rate, abnormal bank charges, Value Added Tax (VAT) and Commission on Turnover (COT), parallel market operators and illegal International Money Transfer Operators (IMTOs), porous international borders, complex documentation requirements and poor capacity/skills of operators.

The operators say the BDC business has been badly affected by “uncompetitive rate, as the CBN sells dollars to BDCs at higher rate compared to what it sells to commercial banks, yet both institutions target the same market segment and customers.”

media platforms for people in the state to express themselves and contribute to the development discourse.

“The United Nations General Assembly declared May 3 to be World Press Freedom Day to raise awareness of the importance of freedom of the press and remind governments of their duty to respect and uphold the right to freedom of expression enshrined under Article 19 of the 1948 Universal Declaration of Human Rights and marking the anniversary of the Windhoek Declaration, a statement of free press principles put together by African newspaper journalists in Windhoek in 1991,” the United Nations Educational, Scientific and Cultural Organisation (UNESCO) said.

The global body organises a series of activities to mark World Press Freedom Day, including “the conferment of the UNESCO/Guillermo Cano World Press Freedom Prize on a deserving individual, organisation or institution that has made an outstanding contribution to the defence and/or promotion of press freedom anywhere in the world, especially when this has been achieved in the face of danger.”

BDCs seek approval in principle for trading platform

B

L-R: Denys Gauer, French ambassador to Nigeria; Pascal Confavreux, counsellor to the French Presidency and Prime Minister’s Office; Marie Audouard, advisor to the French President, Emmanuel Macron; Laurent Polonceaux, Consul General of France in Lagos; Abdul Samad Rabiu, founder/executive chairman, BUA Group; Emmanuelle Boulestreau, head of regional economic department, French Embassy, and Nomaza Nongqunga-Coupez, member of the Presidential Council for Africa, when a delegation of the President of France, Emmanuel Macron, visited the BUA Group headquarters in Lagos, yesterday.

ureau De Change (BDC) operators are asking the Central Bank of Nigeria (CBN) to grant them approval in principle for their proposed trading platform.

This they believe will give the Association of Bureaux De Change Operators of Nigeria (ABCON) and its technical partners the boost needed to kick-start the project.

The BDCs also appeal to the CBN to issue letter of Consent to their proposed training institute.

This is going to be a boost to the current ABCON management commitment to capacity building of its members, which will boost

Nigeria/EU trade volume rose to 25.3bn in 2017 LAIDE AKINBOADE-ORIERE

H

ead of the European Union (EU) delegation to Nigeria and Economic Community of West African States (ECOWAS), Ketil Karlsen, on Wednesday, said Nigeria, EU trade increased from about €19.9 billion in 2016 to about €25.3 billion in 2017.

Karlsen said this in Abuja while briefing journalists on the activities of the EU in partnership with Nigeria on elections, security, anti-corruption, migration, investment and economic development in 2018, saying from 2015 - 2017 the EU had spent €144 million in humanitarian support in the northeast and had set aside €34 million in 2018.

He said the EU, since 1999, had supported Nigeria

with €100 million during election, and currently supporting Nigeria with €26.5 million for the 2019 election.

According to Karlsen, “And of course trade and investment is an integral part of our partnership. President Muhammadu Buhari has always stressed the importance of economic partnership, and EU remains a significant trading partner for Nigeria. Already, we are doing a lot together. And we are looking at how we can contribute to the longterm development of Nigeria through diversification and inclusive growths and key value chain.

“EU has been observing election in Nigeria since 1999. In the 2015 election, there were 30 recommendations. We are partnering with key stakeholders, and since

1999 we have supported key election issues with €100 million and currently we are supporting with €26.5 million. There is a full package of support for Nigeria in the running election. It is not for us to decide who should be Nigeria leaders, but we can partner with institutions.”

On humanitarian support to the Northeast, he said from 2015 to 2017 €144.4 million were given as humanitarian support, mainly in the Northeast.

“In 2018, we have set aside €34.5 million, all together we have set aside €275.5 million in our support, not only in humanitarian but also in our support for long-term development in that region.”

He said the EU had facilitated the safe return of 7,720 Nigerians over the last few months, and it scheduled

to facilitate the safe return of another 110 Nigerians on Thursday.

He said, “The EU remains a key development partner in Nigeria, EU is predominantly a political partner to Nigeria in total. In the last 10 years, we have committed about €1.5 billion in development to Nigeria. Only in 2017, we disbursed €200 million to Nigeria.”

He also decried the continued herdsmen/farmers clash in Nigeria, saying, “We have expressed our c onc ern ab ou t th e kil li n g s i n Ni g e r i a a n d w e want the perpetrators to be brought to book. Our hearts are sinking on the continued killings and it is a big concern to us in EU. We support Nigeria and ECOWAS on border control and control of small arms.”

Speaking at the official launch of www.naijabdcs.com, Aminu Gwadabe, president, ABCON, said, “We want the apex bank to make BDC transactions VAT and Commission on Turnover (COT) exempt, reduce BDCs licence renewal payments and also expand beyond scope of transactions.”

The Naijabdcs.com is a live rate engine room created by the ABCON to promote transparency and price discovery in the foreign exchange (forex) market.

Gwadabe said the CBN approval reaffirmed the regulator’s commitment to a transparent and viable forex market where stakeholders’ interests were protected.

Dangote announces new appointments for strategic growth sustenance

I

n order to strengthen the group’s executive management team and sustain its strategic business growth trajectory, Dangote Industries Limited has announced new appointments.

In the new organisational rejig, Olakunle Alake, erstwhile chief operating officer, is now the group managing director, and Adenike Fajemirokun, the group chief risk officer, has been elevated to the office of group executive director, president’s office, where she will take on new roles in addition to her schedule as the risk officer. She is the first ever female executive director in Dangote Group.

The management also announced the appointment of Austine Ometoruwa as Group Executive Director, Corporate Finance and Treasury.

Earlier the Board of Dangote Cement Plc, global, announced the appointment of

Cherie Blair and Mick Davies as Independent Non-Executive Directors.

President/chief executive, Dangote Group, Aliko Dangote, speaking on the new appointments, said, “It is exciting seeing a female occupy such a high position. We are gender sensitive and create equal opportunities for both male and female to get to the top.

“The new appointments are to strengthen the Group’s executive management team and to consolidate on its strategic business growth trajectory.”

Alake has been the Chief Operating Officer of Dangote Industries Limited since 2007.

He serves on the board of Dangote Sugar Refinery, NASCON Allied Industries, Dangote Cement and Dangote Flour Mills. Alake’s experience spans 34 years, which covers banking, management consultancy and manufacturing industries.

Thursday 03 May 2018

C002D5556

BUSINESS DAY

33

INSIGHT

How forward thinking organisations are narrowing the gender gap: The Interswitch Story ANTHONIA OBOKOH

W

omen account for onehalf of the potential talent base throughout the world and a nation’s competitiveness depends significantly on whether and how it educates and utilizes its female talent. Women have not been given prominent positions in some workplace but some corporate organisations are already bridging this divide.

According to the World Economic Forum’s Corporate Gender Gap Report 2010, some leading companies are failing to capitalise on the talents of women in the workforce. The study covers the world’s largest employers in 20 countries and benchmarks them against the gender equality policies that most companies should have in place but are, in fact, widely missing.

The findings of the report raised an alarm bell on International Women’s Day that the corporate world is not doing enough to achieve gender equality. While a certain set of companies in Scandinavia, the US and the UK are indeed leaders in integrating women, the idea that most corporations have become gender-balanced or womenfriendly could still be a myth.

“With this study, we are giving businesses a one-stop guide on what they need to do to close the corporate gender gap,” said Saadia Zahidi, coauthor of the report and head of the Forum’s Women Leaders and Gender Parity Programme.

“Women account for one-half of the potential talent base throughout the world and therefore, over time, a nation’s competitiveness depends significantly on whether and how it educates and utilizes its female talent,” said Professor Klaus Schwab, Founder and Executive Chairman of the Forum.

“The Global Gender Gap Index was introduced by the World Economic Forum in 2006 as a framework for capturing the magnitude and scope of gender-based disparities and tracking their progress. In The Corporate Gender Gap Report, we aim to shed light on the economic participation and opportunity gap,” he said.

The report is based on a survey of 600 heads of human resources at the world’s largest employers. The survey contained over 25 questions and assessed companies on representation of women within their establishments and the use of gender-equality practices such as measurement and target setting, work-life balance policies and mentorship and training. The survey also asked respondents to identify the biggest barriers to women’s leadership and their opinion on the probable effects of the economic downturn on women’s employment in their countries and industries.

In Nigeria, female employees tend to be concentrated in entry or middle level positions and remain scarce in senior management or board positions in most industries and organisations.

There are few women holding the CEOlevel position in the country. However, a more positive revelation is that almost all the companies claim to be setting specified targets, quotas or other affirmative policies to improve women’s

Chinyere Don-Okhuofu

Cherry Eromosele

Oremeyi Akah

Titilola Shogaolu

Tolulope Agiri

Chinomso Victoria Nwachukwu

participation in their structures.

However, a corporate organisation like Interswitch is already bridging that divide. Interswitch has a sizeable number of women in top management positions, from divisional CEO to chief human Capital officer and others.

As an Africa-focused integrated digital payments and commerce company, Interswitch facilitates the electronic circulation of money as well as the exchange of value between individuals and organisations on a timely and consistent basis.

Starting its operations in 2002 as a transaction switching and electronic payments processing company, it has built and managed payment infrastructure as well as deliver innovative payment products and transactional services throughout the African continent.

One of the women making things happen at Interswitch is Cherry Eromosele, the Group Chief Product & Marketing Officer. With over 20 years of proven, versatile, cross-industry experience, Eromosele has demonstrated exceptional leadership and functional capacity in a number of key African markets. Cherry’s track record cuts across FMCG (alcoholic beverages), Telecoms, Fast-moving Consumer Healthcare and Financial Technology.

She currently leads a very dynamic Product & Marketing Management team at Interswitch in Group Chief capacity, with the corporate mandate to deliver customer-led, digital product leadership and innovation. Eromosele provides strategic direction for endto-end product development, as well as customer value management and product marketing functions. She is also responsible for championing the Group’s brand management, corporate communications and corporate social responsibility functions to drive key business objectives across the entire Interswitch business portfolio.

Also, Chinyere Don-Okhuofu, Divisional CEO, Networks, Interswitch Group, is an accomplished business leader, with a background in finance and accounting, which progressively evolved into the sphere of payment solu-

tions and electronic banking. Chinyere is tasked with the responsibility of leading the group sales force and executing strategies aimed to deepen and broaden our Industry Vertical Markets business.

Chinyere is unwavering in her desire to get every organized business in markets where we operate to adopt solutions and services that digitize cash.

A Chartered Accountant with a first degree in Accounting and an alumnus of London Business School, Chinyere currently serves as Divisional Chief Executive Officer, Networks at Interswitch Limited, in which capacity she has oversight over the group’s entire sales teams, developing and executing strategies to deepen and broaden Interswitch’s clientele base, while providing leadership and inspiration to deepen customer intimacy.

Her professional career incorporates successive leadership roles that have transformed key projects across the organizations in which she has worked.

Prior to joining Interswitch, she was the Divisional Head of Branch Banking and Electronic Banking at Intercontinental Bank Plc. (now Access Bank), where she spent 17 years of her banking career in various business units.

Titilola Shogaolu, the Divisional CEO, IFIS, Interswitch Financial Inclusion Services is another woman doing great things at Interswitch. She was recently appointed the Divisional CEO, Interswitch Financial Inclusion Services Limited (IFIS) in April 2018.

She is tasked with the responsibility to deepen financial inclusion, empower and transform individuals (agents) to profitable entrepreneurs and make primarily financial services available to the un/underbanked across the country.

Shogaolu joined Interswitch 14 years ago and have worked in various capacities with responsibilities spanning functions within Operations, Product Management, Sales, Key Account Management and Project Management. She was appointed the Chief Payment & VAS Officer in 2012. In 2014, she became the Group Head Social Systems & Services, Industry Vertical Market, Interswitch Group. In this capacity, she led the sales

efforts to provide the company’s revenue collections, funds disbursement solutions and value-added services to clients in different sectors namely: Government, Power, Transport, Education, Utilities etc. She also managed the company’s clients & businesses in the South-East/South-South region with the team based in the Port Harcourt office during this time.

The Group Chief Human Resources Officer at Interswitch Tolulope Agiri is a woman who joined Interswitch as Group Chief Human Resources Officer. She assumed this role in March 2018 from the United Nations World Food Programme, where she was the Senior Strategic Regional Human Resources Business Partner overseeing Southern Africa, based in Johannesburg and covering a region comprised of 11 countries. Before joining the United Nations, Tolu was Director of Human Resources at Unilever Nigeria between 2010 to 2016, the high-point of a 14-year career spanning Learning & Development, Leadership Development and Business Partnership across multinational regions and in positions of increasing seniority within the multinational organization. Tolu has a first degree in Psychology from the Obafemi Awolowo University and a Masters’ degree in Industrial Relations & Personnel Management from the University of Lagos. She is a member of the Chartered Institute of Personnel Management of Nigeria (CIPMN). As Interswitch Group Human Resources Officer, Tolu is tasked with driving a people strategy that achieves a balance between the aspiration of staff and the strategy of the business.

Chinomso Victoria Nwachukwu, Group Financial Controller, Interswitch is the Group Financial Controller with oversight over the financial activities and operations of the parent company Interswitch Limited and its 7 subsidiary entities and 2 associates. She is a seasoned finance professional with 13+ years’ cumulative experience in various roles as; financial controller, experienced auditor and corporate finance analyst. She currently sits on

Ndifreke Nkose

the board of some of our subsidiary entities. She is a chartered accountant with the Institute of Chartered Accountants of Nigeria with a first degree in Biochemistry. She is an alumnus of PricewaterhouseCoopers Nigeria, where she spent 10 years working in the corporate finance unit of the firm as well as the assurance department as an experienced auditor.

Oremeyi Akah, Chief Core Operations Officer, Interswitch Group is a graduate of Electrical/Electronics Engineering from the University of Benin. Currently Chief Core Operations Officer at Interswitch, she leads a dedicated operations team closely interfacing with technology, product and implementation team to ensure that the gears and pulleys required to deliver on all our customer expectations and business promises are seamlessly functioning. Akah believes that Nigeria has a bright future and that the youth if well guided, are poised to lead our country into greatness. She is happily married to her best friend and they have 3 sons. Akah loves being honest about her God Connection. In her leisure, she likes studying the habits of whales, polar bears and reading history of the World War 2.

Furthermore, Ndifreke Nkose is the Group Head, Strategy and Professional Services in Interswitch. In this capacity, Ndifreke supports Interswitch Group in articulating where and how it will win within its markets, in implementing and in tracking realisation of its strategies. She has over 13 years’ experience in Strategy Formulation & Implementation, Performance Tracking, Monitoring and Evaluation (M& system implementation), Business Transformation, Project Management, Process Reviews and Redesign. She is adept at introducing and managing change/new ways of working and is focused on E people development.

Based on their identified potentials, Women’s leadership is more than important in today’s world, it’s imperative. Whether it’s the public or private sector, organizations that are led by inclusive leadership teams make better decisions that deliver better results. The qualities that are required to lead in the 21st century include the ability to connect, collaborate, empathize, and communicate all qualities that tend to be “female” in nature. Women in leadership roles position organizations in a way that makes them fit for the future.

To this end, with the Beijing Conference and the annual celebration of the International Women’s Day, there is more call for a more inclusive approach to managerial appointments in corporate organisation where more consideration would be given to women.

34 BUSINESS DAY NEWS

C002D5556

Banks’ profits surge the most since 2015 bad... CBN meets FX...

Continued from page 1

Wema Bank Plc, and United Bank for Africa (UBA) Plc. For the full year period ending 2016 the 10 banks saw their profits increase by 21 percent, while there was a 12.32 percent decline in profits in 2015 a period when the sudden drop in crude oil prices from above a $100 per barrel to near $40 forced banks with heavy exposure to the sector to write off loans that began to go bad.

The unprecedented growth at the bottom line (profit) means these lenders have surmounted some of the issues that undermined earnings in the crisis period as a gradual economic recovery helped bolster earnings since customers are paying back some the money borrowed.

Also, some lenders have taken a haircut in 2016 on Non-Performing Loans (NPLs), a proactive strategy that validated their risk management strategy.

Between2014and2015,thenumber of banks with NPL ratio in excess of the 5 percent threshold rose from 3 to 8. Furthermore, NPL in 3 of these banks exceeded 10 percent, while NPLs rose in 18 of the 22 buckets into which the CBN classified Deposit Money Bank (DMB) lending.

The period that profit dipped was when non-performing loans (NPLs) were rising, according to Wale Okunrinboye, analyst at Sigma Pensions Limited.

“High yield environment boosted bank’s interest income. Yields were between 22 percent and 18 percent at some point in 2017,” said Okunrinboye.

The gross domestic product of Africa’s largest oil producer expanded for three straight quarters last year after a 1.6 percent contraction in 2016, with year-on-year growth reaching 1.9 percent in the final three months of 2017.

Apart from an increase in crude prices, the introduction of a new foreign-exchange system that ended a crippling shortage of dollars helped attract more investment flows into the country, while improving liquidity for the nation’s lenders.

Drilling down the numbers of some banks shows First Bank Holdings Plc’s profit surged by 226.10 percent to N40.01 billion as at December 2017, an upswing when compared to an 81.97 percent slump in the 2015 crisis period.

First Bank made N288.59 billion interest income on short term government securities as at December 2017, which is 61.40 percent of total gross earnings.

Stanbic IBTC Holdings Plc’s, Zenith Bank Plc, and Guaranty Trust

Bank Plc saw profit grow by 69.63 percent, 37.23 percent, and 28.86 percent in the period under review.

Zenith Bank’s profit in 5 years sums up to N604.29 billion, the largest in the industry, based on data gathered by BusinessDay. This is followed closely by GTBank, with N590.90 billion in cumulative profit for five years as the lender is the most efficient among its peers given its cost curtailment strategy.

Investors and analysts are more concerned about the ability of banks replicating the growth momentum this year as falling yields on treasury bills since August 2017 could be challenging for the industry.

Yields on treasury bills now hovers between 11 percent and 13 percent while bond yields that were between 16 and 17 percent last year now hovers around 12 percent and 13 percent.

For instance, analysts at Fitch a global ratings agency in a recent report said they expect Banks’ profit to take a hit in 2018 on the back of the decision of federal government to cut back on the issuance of treasury bills in 2018.

“We expect falling T-bill yields and lower issuance to put pressure on Nigerian banks’ profitability in 2018. The CBN’s latest issuance schedule shows N1.1 trillion (USD3.6 billion) of rollovers in the first quarter of 2018 against N1.3 trillion of maturing bills,” said Fitch.

Volatility in foreign-exchange related gains, limited scope for cost efficiencies and rising political risks before elections are other challenges that could cloud industry outlook.

tional risk.

“Rather than squabbling over this pie, why not bake a bigger pie?

What signal does this decision by legislators send to investors? It simply says, Nigeria cannot keep its word,” Victor Eromosele, a former chief financial officer of NLNG said.

Nigeria needs to monetise its gas and the NLNG has proven to be the best vehicle to do so but it is deliberating putting up barriers.

Oil majors with access to gas acreages have no financial incentive to develop them because it does not make economic sense due to limited returns in domestic market sale, this leaves these assets stranded.

Independents have motivation

N360.51k on Monday at the investors and exporters window, data from FMDQ said.

The apex Bank offered the sum of $100 million to authorized dealers in the wholesale segment of the market. The Small and Medium Scale Enterprises (SMEs) segment received the sum of $55 million while the sum of $55 million was apportioned to invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA).

A statement from the Bank’s Acting Director, Corporate Communications Department, Isaac Okorafor, confirmed the figures and reiterated CBN’s capacity to continue to sustain the foreign exchange intervention.

Okorafor urged Deposit Money Banks to continue to honour requests from customers with genuine needs, noting that the Bank will continue to sustain liquidity in the foreign exchange market.

Meanwhile, the nation’s currency continued on Wednesday, May 2, 2018 to maintain its stability in the FOREX market, exchanging at an average of N362/$1 in the BDC segment of the market.

How FG tardiness led to US ban on Nigeria’s...

Continued from page 1

the fish being produced locally are smoked and exported to the US, Canada and Europe.

“As of March 1, 2018, Nigeria has been ineligible to export Siluriformes fish and fish products to the United States due to deficiencies found during the initial stage of the equivalence process,” said Maria Machuca, public affairs specialist, Food Safety and Inspection Service (FSIS), USDA in an email response to BusinessDay questions.

“Specifically, Nigeria failed to fully address information requested in the Self Reporting Tool (SRT) before the due date. The SRT is a questionnaire that FSIS uses to help assess whether a country’s food safety inspection system is equivalent,” Machuca said.

She stated that the FSIS is willing to work with the country, if Nigeria is also willing to pursue the process that is deemed equivalent, saying until that is achieved, fish products from Nigeria will not be eligible for export into the United State.

The country has recorded tremendous growth in its fish production as output increased from less than 500,000MT in 2011 to 1.1 million MT in 2016, data from the Federal Ministry of Agriculture states.

Key stakeholders who spoke with BusinessDay said the sector growth will be halted owing to the recent ban by the US government, adding that if not quickly addressed, the diversification drive of the country will also be hampered.

L-R: Okechukwu Aguoru, area head of brands, British American Tobacco (BAT), West Africa; Abimbola Okoya, area head, corporate affairs, BAT West Africa; Oshiomha Irumhekha, senior HR business partner, commercial, BAT West Africa; Chris McAllister, managing director, BAT West Africa, and Soboma Ajumogobia, vice president, Lagos Chamber of Commerce and Industry (LCCI), during the presentation of the ‘Non-oil Export Award’ to BATN at the 2018 LCCI Commerce and Industry Awards in Lagos.

Pic by Pius Okeosisi

Nigeria’s loss is Egypt’s gain, as investors shun Africa...

Continued from page 1

Continued from page 4

but lack acreages and Nigeria does not have separate licensing round for gas blocks.

The domestic market is not even attractive either. The gas pricing template is every investor’s favourite nightmare. Local gas producers say prices are low and uncompetitive but industries buying in Lagos say it is too exorbitant.

“It is also important that we develop a business friendly environment that will help gas investments to thrive,” says Sipasi, a partner at Aelex law firm.

Nigeria arrived at this impasse because it compels industries to buy gas at $7.20 per standard cubic feet while legacy power plants can buy at $3:30. Industries pay promptly to

fulfil their contractual obligations but power plants owe because DisCos collect poorly.

Yet gas producers are forced to sell to power plants on the basis of national security and allocated domestic gas supply obligations which they must meet to keep their license.

To further compound their woes, local gas producers lose almost 20 percent of their market invoice due to exchange rate volatility. Their gas contracts are in US dollars but they are paid in naira at Central Bank exchange rate of N305 to a dollar. Forty percent of their income was wiped out in 2016 when the dollar exchanged for N510.

Worse still, Nigeria lacks critical infrastructure to move gas around the country. Statutory charges involved in moving gas do not in-

Thursday 03 May 2018

centivise producers.

Investments required to drive them stalls on absence of a viable fiscal law that encourages investment and tardiness in enacting a reformative petroleum industry bill.

“In framing gas fiscal term, Nigeria would need to decide if it wants to grow revenues or develop the domestic market,” Austin Avuru, the CEO of Seplat said at the Association of International Petroleum Negotiators (AIPN) conference in February.

These factors are helping cede the gas market on the continent to Egypt.

In remarks made at the EUEgypt Sustainable Energy Forum in Cairo, Canete said that Egypt has the potential to become an energy hub, adding that the EU “is keen to support Egypt with sharing of experience, financial and technical

“Our attitude in Nigeria is always lackadaisical. When we are asked to do things we neglect them. If we had done what we were supposed to do, our smoked fish would not have been ban in the first place by the US,” Tayo Akingbolagun, national president, Catfish Farmers Association of Nigeria (CFAN) told BusinessDay. “It is a huge loss on our part because a lot of infrastructure has been put in place to increase local production of fish in the country.

A lot of investments are at stake and this would lead to job losses and would affect fish contribution to the Gross Domestic Product (GDP).

“Our profit margins will shrink because we generate it from mainly from our export sales. A fish we sell for about N1,000 here is being sold for $14 in America,” Akingbolagun said.

Data from the National Bureau of Statistics shows that the country’s fish sector grew 4.05 percent in the fourth quarter in 2017, snapping two straight quarters of contraction. But the growth is expected to halt in the first quarter of the year.

As a result, catfish farmers have started counting their losses as their profit margins are fast declining owing to cancellation of future contracts to supply to African diaspora in US and Canada.

Richard Agetu cofounder Richsi Nigeria Limited, makers of Ejazuki smoked fish, who exports smoked fish to Europe and the US said: “We recently got an order of 50kg of smoked fish from Canada but our courier company that helps us in delivery across the globe told us they can no longer deliver the smoked fish to the US and Canada because it has been banned.”

“This is not good for us as money we would have made from that business deal has been cancelled,” Agetu said.

He called on the Federal Government to quickly attend to the requirement requested by the US government to allow farmers carry out their businesses without fear of rejection.

Reacting to BusinessDay questions on the recent ban, Muazu Mohammed, director of fisheries, Federal Ministry of Agriculture and Rural Development (FAMARD) said the ban by the US government on the importation of all kinds of catfishes is temporary pending when certain certifications and quality standards are met.

•Continues online at www.businessdayonline.com assistance, and with the mobilisation of international finance.”

The discovery and development of the offshore Zohr field, estimated to hold 30Tcf of gas is oiling the relationship. Zohr is being developed

by Italy’s oil and gas major ENI, Shell and BP also have a stakes in the project.

Through this deal, Egypt could get a long-term, viable gas customer benefit from technology transfer and financing by European partners of the upstream and downstream oil and gas sector. It will also accelerate its renewable energy ambitions.

For Europe, it will lead to increase of its security of energy supplies via diversification of sources, and shore up huge declines in European onshore gas production, as the Dutch Groningen gas field is facing a complete shutdown by 2030.

Thursday 03 May 2018

C002D5556

OHCSF, AIG partner to shop for leaders in PPP

O

ffice of the Head of the Civil Service of the Federation (OHCSF) and Africa Initiative for Governance (AIG) embarked on a joint campaign from April 9 to 11, 2018 to sign on leaders of Nigeria’s private sector as partners in the execution of a high-impact Nigerian Civil Service Transformation Strategy supported by the Presidency.

Winifred Oyo-Ita, head of the Civil Service of the Federation, led the OHCSF, while Aigboje Aig-Imoukhuede, founder/chairman of AIG, led the AIG team.

The private sector leaders included Aliko Dangote, president, Dangote Group; Jim Ovia, chairman, Zenith Bank; Adesola Adeduntan, CEO, First Bank ; Osagie Okunbor, managing director, Shell Petroleum Development Company Nigeria Limited; Herbert Wigwe, CEO, Access Bank ; Kunle Elebute, national senior partner, KPMG Nigeria; Uyi Akpata, country senior partner PricewaterhouseCoopers (PwC) Nigeria; Segun Ogunsanya, managing director, Airtel Networks; Leo Stan Ekeh, chairman, Zinox Group, and Wale Tinubu, CEO, Oando plc.

The Federal Executive Council of Nigeria (FEC) had, in July 2017, approved a revolutionary three-year Strategy and Implementation Plan for the transformation of the Nigerian Federal Civil Service into an Efficient, Productive, Incorruptible and Citizen-centred (EPIC) body.

The approved Plan was the

result of a partnership between OHCSF and AIG under which AIG funded the engagement of a global management consulting firm, to facilitate the development of a Prioritised 2017- 2020 Federal Civil Service Strategy and Implementation Plan (FCSSIP).

The 2017-2020 FCSSIP was developed from the 2017-2019 Strategic Plan of the OHCSF which was internally designed by the Federal Civil Service.

This would be the first time that Civil Servants themselves would develop an in-house Civil Service transformation strategy that is totally “home grown”.

The uniqueness of this Plan lies, amongst other innovations, in the inclusion of notable private sector leaders and organisations – “Private Sector Champions” – who will infuse entrepreneurial thinking, skills, accountability and resources into the Project, thereby promoting and ensuring its success.

Speaking on the road show, Oyo-Ita said, “Working with AIG, we developed a robust Strategy and Implementation Plan for the evolution of the Nigerian Civil Service into a high-performing entity with improved public service delivery to Nigerians – the first time the Service is initiating a reform by itself.

“We are now about to implement this bold Plan and have come to mobilise private sector leaders as partners in the effort to build a transformational Civil Service that does great things for Nigeria”.

35 NEWS

BUSINESS DAY

I can’t support failure - Obasanjo

I

t has come to the attention of Chief Olusegun Obasanjo that some elements in the Muhammadu Buhari camp and or support group are desperate to secure a second term, fair or foul. In this desperation, everything is fair, including telling libellous lies against persons and institutions, instead of addressing the fundamental issues of statecraft and economic management.

In the last 24 hours the internet has been bombarded with deliberate falsehoods aimed at hoodwinking the unsuspecting Nigerians to believe that Obasanjo has now supported Buhari for his second term because of some perceived Buhari’s ‘superlative’ performance in his encounter with Trump during his visit to the White House in Washington DC. In another breath, these blackmailers insinuated that Chief Obasanjo met with some Nigeria Labour Congress leaders in his house

in Abuja on Workers’ Day. What a pathetic fallacy! Chief Obasanjo never met any Labour man or woman on May 1, 2018 to make any supposed volte face to support Buhari.

Furthermore, neither was Chief Obasanjo in Abuja on that date nor does he own a house in Abuja. Any time he visits Abuja, he usually stays in a Guest House or hotel.

For the record, Obasanjo has not and cannot endorse failure. His position remains as stated in his January 23rd, 2018 statement on the state of the nation. Chief Obasanjo sympathises with the plight of those campaigners and supporters of Buhari. He doesn’t believe dishing out fake news that can only be believed by imbeciles will turn black into white.

Nigerians know that Chief Obasanjo has only spoken the truth about widening poverty, alienation and social disunity and near disintegration of the country through Buhari’s incompetence. Obasanjo will continue to exercise his right to free speech and no amount

of hate speech will assuage Nigerians who are in need of a brand new leadership. The mediocre performance of Buhari cannot be described by anybody as ‘superlative’ even by morons not the least President Obasanjo.

From the Buhari/Trump meeting, Chief Obasanjo only saw through three points: One, the US will continue to reduce purchase of crude oil from Nigeria and there is nothing Nigeria under Buhari can do about; two, the US will export agricultural products to Nigeria and Buhari’s government will encourage that; and three – all the killings taking place in Nigeria by herdsmen are being done by expatriates trained by Gadaffi and no Nigerian is to blame and Buhari cannot do anything to stop it.

For whatever the meeting was worth, President Buhari again bungled another opportunity to self-redeem. No wonder President Trump ordered him in a rather condescending manner to go back home and stop the killings going on in Nigeria! We hope now Buhari

will heed Trump’s advice, which hopefully will be considered non-abusive.

Therefore, Chief Obasanjo is more convinced in his statement of January 23rd and will not change his position. No lies, fake news dished out by these desperate and unintelligent supporters is worth believing and these misinformation cartel and social media tigers will do more damage to the flint reputation of their principal.

Chief Obasanjo un derstands that the internet has good and bad uses. Those abusing the media should desist from t h i s ba r ba r i c a c t a s i t will only expose them to greater ridicule at the end of the day.

Obasanjo will continue to speak out. He will continue to issue patriotic statements under his signature or cause them to be issued on his behalf under the signature of his media representative, Mr. Kehinde Adeyemi.

Again, IGP shuns Senate OWEDE AGBAJILEKE, Abuja

F

or the second time in a week, the InspectorGeneral of Police, Ibrahim Idris, on Wednesday failed to appear before the Senate over the alleged inhuman treatment meted out to Dino Melaye, a senator, as well as killings across the country.

Although the deputy Inspector-General of Police, Joshak Habila, waited at the office of the special assistant to the President on National Assembly Matters (Senate), Ita Enang, to represent his boss, lawmakers refused him entry into the chamber, insisting that Idris must appear personally.

In his submission, chairman, Senate Committee on Police Affairs, Abu Ibrahim, disclosed that he made several attempts to reach the IGP but to no avail.

In his contribution, deputy Senate majority leader, Bala Ibn N’Allah, suggested that a delegation led by the Senate president, Bukola Saraki, should visit President Muhammadu Buhari to register their displeasure on the non-appearance of the police boss before the upper legislative chamber.

He described his absence as an affront on the legislature. The development is likely to escalate the rift between the Senate President, Bukola Saraki and President Muhammadu Buhari. It would be recalled that the IGP had last

week asked Habila to represent him at the Senate, while he accompanied Buhari to Bauchi State on a two-day official visit.

Lawmakers, however, rejected the police boss’ representative.

Speaking on the development, Saraki mandated the Senate Majority Leader, Ahmad Lawan and Abu Ibrahim to engage with the Executive on the matter and report back on one week.

While urging for calm, the Senate president expressed concern that the police boss is setting a bad precedent for his successors.

His words: “I want us to approach this matter because being the upper chamber at times like this, we must show maturity statesmanship. I don’t think anybody who is being around enough to observe the practice of our democracy, knows that this action cannot be right. We are not a Senate in committee, we are a Senate in plenary.

“Under constitutional powers requires the IG to come and give a report on an incident involving a colleague and more importantly, on the incessant killings that happen in the country. And he felt that he would not come but want to delegate a junior to come to appear before us.

“In my own recollection, I don’t think that any IG has ever refused to appear before the Senate since we have been practising democracy.”

L-R: Zebulon Agomuo, editor, BDSunday; Adeola Ajewole, advert manager, BusinessDay, receiving Business Newspaper of the year award on behalf of BusinessDay from Babatunde Paul Ruwase, president, Lagos Chamber of Commerce and Industry (LCCI), at the LCCI 2018 Commerce and Industry Awards in Lagos .

PicbyPiusOkeosisi

National Assembly to lay 2018 budget report next week … may jerk up oil benchmark price to $55 per barrel KEHINDE AKINTOLA & OWEDE AGBAJILEKE, Abuja

B

oth leaderships of the Senate and House of Representatives are finalising discussions on the 2018 budget, BusinessDay gathered authoritatively on Wednesday.

This comes as there are strong indications that the National Assembly may jerk up the oil benchmark price from the initial $45 per barrel proposed by the Executive to $55.

Sources privy to the activities of the Senate and House Joint Committees on Appropriation told one of our correspondents that all legislative

work on the 2018 budget has been concluded and transmitted to the leadership of the National Assembly for final approval before laying to both legislative chambers next week.

Information gathered from the office of Femi Gbajabiamila, House Leader showed that the budget would be laid next week.

A member of the House Committee on Appropriation, noted that the final parameters on the budget including the oil benchmark which may be jerked up to $55 from the initial $45 as proposed by the

Executive, will be determined by the leadership of both chambers.

This, he attributed, to the high price of crude oil in the international market.

Brent crude oil, against which Nigeria’s crude oil is priced, rose above $75.50 per barrel on May 2 to peak at $75.58, the highest in almost 4 years.

The lawmaker, who spoke on grounds of anonymity, added that the discussions between the Executive and Legislature after the submission of the 2018 budget estimates would also be put into consideration in the final report.

Confirming the devel-

opment, another member of the Senate Appropriations Committee, Aliyu Sabi Abdullahi, assured that the N8.612trillion 2018 budget estimates would be laid by next week.

He disclosed this at a press conference in Abuja on Wednesday.

Abdullahi, who doubles as the chairman, Senate Committee on Media and Public Affairs, pointed out that the work of the committee is almost concluded.

“The budget is almost concluded. All things being equal, the report from the appropriation committee would be laid next week,” he said.

Thursday 03 May 2018

BUSINESS DAY

A1

A2 BUSINESS DAY NEWS

C002D5556

WHO says 7m people die yearly from exposure to air pollution ANTHONIA OBOKOH

T

he World Health Organisation (WHO) Wednesday released a report indicating that over 7 million people die every year due to outdoor and household air pollution.

Air pollution levels remain dangerously high in many parts of the world, the organisation says, as nine out of 10 people breathe in air containing high levels of pollutants.

These deaths are as a result of exposure to fine particles in polluted air that penetrate deep into the lungs and cardiovascular system, causing diseases including stroke, heart disease, lung cancer, chronic obstructive pulmonary diseases and respiratory infections, including pneumonia.

Pollution contributes to death when fine particles of soot, dust and other materials found in polluted air enter the lungs and cardiovascular system. In most cases, air pollution is a contributory factor and not the primary cause of death, WHO says.

Air pollution is increasingly recognised as a key risk factor for non-communicable diseases (NCDs), the biggest cause

of death worldwide causing an estimated one-quarter 24 percent of all adult deaths from heart disease.

Twenty-five percent of deaths are due to heart disease and stroke, 43 percent of deaths due to chronic obstructive pulmonary disease and 29 percent of deaths due to lung cancer are linked to breathing poor quality air.

TedrosAdhanomGhebreyesus, director-general of WHO, says air pollution threatens us all, but the poorest and most marginalised people bear the brunt of the burden.

“It is unacceptable that over 3 billion people – most of them women and children are still breathing deadly smoke every day from using polluting stoves and fuels in their homes. If we don’t take urgent action on air pollution, we will never come close to achieving sustainable development,” Ghebreyesus says.

The report reveals further that ambient air pollution alone caused some 4.2 million deaths in 2016, while household air pollution from cooking with polluting fuels and technologies caused an estimated 3.8 million deaths in the same period.

“More than 90 percent of air pollution-related deaths occur

in low- and middle-income countries, mainly in Asia and Africa, followed by low- and middle-income countries of the Eastern Mediterranean region, Europe and the Americas,” the report notes.

Maria Neira, director of the department of Public Health, Social and Environmental Determinants of Health, at WHO, says many of the world’s megacities exceed WHO’s guideline levelsforairqualitybymorethan five times, representing a major risk to people’s health.

“We are seeing an acceleration of political interest in this global public health challenge.

The increase in cities recording air pollution data reflects a commitment to air quality assessmentand monitoring.Most of this increase has occurred in high-income countries, but we hope to see a similar scale-up of monitoring efforts worldwide,” Neira states.

WHO states that air pollution does not recognise borders. Improving air quality demands sustained and coordinated government action at all levels. Countries need to work together on solutions for sustainable transport, more efficient and renewable energy production and use and waste management.

Thursday 03 May 2018

First Bank chairman mentors Edo youths on entrepreneurship

C

hairman, First Bank of Nigeria, Ibukun Awosika, has charged youths in Edo State to take advantage of funding opportunities, especially lowinterest credit facilities, to grow their businesses and contribute to the development drive of the state government.

Awosika, who was a guest speaker at a two-day workshop for entrepreneurs and small and medium enterprises (SMEs) in the state, said the Bank of Industry (BoI) presented a good window of opportunity for entrepreneurs to grow their businesses to scale.

According to Awosika, “Young entrepreneurs should take advantage of credit fa-

cilities offered by the BoI. The funding from BoI is at a price that no commercial bank can offer small businesses and start-ups.”

She said, “Youths don’t have an excuse not to be able to start-up small businesses in a country of almost 200 million people. All that is required is a platform through which people can be aware of an entrepreneur’s product or service.”

Commissioner for Women Affairs and Social Development, Edo State, Magdalene Ohenhen, urged participants to take advantage of the opportunity created by Governor Godwin Obaseki to groom themselves and grow their busi-

nesses, adding, “As the state has continued to create opportunities for youths to make wealth, I urge them to remain focused and dream big as the governor is determined to assist youths achieve that dream.”

Senior special assistant to the governor on job creation and skills development/head, EdoJobs, Ukinebo Dare, said the workshop was organised for budding entrepreneurs, noting, “The collaboration between the state government through EdoJobs and First Bank of Nigeria is long term, which would facilitate the creation of job opportunities for youths in Edo State, in line with Governor Obaseki’s promise to create 200,000 jobs.”

Edo assures workers of timely completion of Labour House, industrial harmony

E

do State governor, Godwin Obaseki, has assured workers in the state that the constructionoftheLabourHouse Complexwouldbeinrecordtime.

Obaseki gave the assurance at the foundation laying ceremony for the proposed Edo State Labour House Complex in Ikpoba Hill, Benin City, noting, “the state governmentwillworkcloselywith workers to ensure that we do not record strikes in the state.”

He said the state would work toensurethattheedificewascompleted by meeting its obligations, stressing, “This beautiful edifice

would be completed in record time. If there is delay in completing the building, the contractor should be held accountable.”

He commended the foresight of his predecessor, Adams Oshiomhole for the steps taken to ensure the state chapter of the Nigerian Labour Congress (NLC) got a befitting complex, adding, “I am here today to execute what Comrade Oshiomhole started.”

The governor noted that Oshiomhole allocated the land for the project, completed the building design and came up with a plan to source fund for the project.

“Itwashisvisionthat,sincethe state has produced great labour leaders for the union in the past, it would only be befitting to have a beautiful edifice to serve as the Labour House,” he said.

Chairman, Edo State council of the NLC, Emmanuel Ademokuo, commended the Obaseki-ledadministrationforhisworker-friendly policies, which had improved workers’ productivity.

Ademokuo thanked the former governor for taking the step to ensure that Labour as a body in thestate,hadabefittingbuildingto call its own.

Thursday 03 May 2018

FT

C002D5556

BUSINESS DAY

FINANCIAL TIMES Facebook appeals to developers after privacy changes

A3

TSB chief to give up bonus over IT failure Page A5

Page A4

World Business Newspaper

Putin looks at mending fences with west to revive Russia’s economy Aide Alexei Kudrin considered for lead role in easing tension and restoring growth KATHRIN HILLE

P

resident Vladimir Putin is contemplating an effort to repair relations with the west as sanctions and growing international conflict obstruct attempts to reinvigorate Russia’s stagnant economy.

Ahead of his inauguration next week for another six-year term as president, Mr Putin was considering appointing former finance minister Alexei Kudrin to a heavyweight post in charge of economic strategy and outreach to Europe and the US, said people briefed on the plans.

Mr Kudrin is one of Mr Putin’s oldest political associates and a senior economic adviser, and such an appointment could be read in western capitals as a signal of compromise from the Russian president in the face of conflict with the west on all fronts.

“The most likely scenario is that Kudrin gets a post in the presidential administration,” said a Russian government official. “His title could be something like: the president’s representative for international economic co-operation.”

Mr Kudrin wrote an economic policy strategy for Mr Putin’s next term in which he urged decisive structural reforms, from raising the retirement age to reorganising Russia’s government and judicial system.

Mr Kudrin has repeatedly said that unless Russia makes its political system more democratic and ends its confrontation with Europe and the US, it will not be able to achieve such radical changes.

“If Kudrin joined the administration or government, it would indicate that

they have agreed on a certain agenda of change, including in foreign policy, because without change in foreign policy, reforms are simply impossible in Russia,” said Yevgeny Gontmakher, a political and economic analyst who works with a civil society organisation set up by Mr Kudrin.

“It would be a powerful message, because Kudrin is the only one in the top echelons with whom they will talk in the west and towards whom there is a certain trust.”

Mr Putin won triumphant confirmation as president, with 76.7 per cent of the vote in the March election. He pledged large-scale spending increases on healthcare, education and infrastructure — promises welcomed by the public as the Russian economy remains sluggish after two years of recession.

But analysts have warned that Mr Putin might struggle to deliver. “The new political cycle will unfold under the pressure of three unfavourable factors: continuing economic stagnation, international isolation of Russia, and the need for preservation of the regime after 2024,” wrote Kirill Rogov, an independent political and economic analyst, in an analysis of Mr Putin’s next term.

Indeed, Mr Putin’s administration has been embattled ever since the March election. It has been fighting western accusations over the poisoning of former Soviet double agent Sergei Skripal in the UK with a military-grade nerve agent, and over Moscow’s support for President Bashar al-Assad of Syria, even after his latest alleged chemical weapons attack on civilians.

US-led western forces embarrassed Mr Putin when they carried out missile strikes on Syrian army targets despite stern Russian warnings of retaliation.

Apple results allay Wall Street fears demand for iPhones is waning Profit and sales surge vindicates strategy of selling handsets for $1,000 apiece TIM BRADSHAW

W

all Street reckoned the game was up for smartphone companies.

After 10 years of incredible growth since the iPhone debuted, investors were fretting that Apple had dropped the ball, as suppliers including TSMC last month warned of flagging demand for high-end handsets.

Customers are taking longer to upgrade their devices, commentators say, and even supposed growth markets such as China and India are slowing down.

The world’s most valuable company saw tens of billions of dollars wiped from its market capitalisation in just a few days in late April over fears that Apple’s decision to launch the $1,000 iPhone X had come at just the wrong

moment.

Tim Cook, Apple’s chief executive, sees the smartphone game a little differently. “I think that it’s one of those things where, like, a team wins the Super Bowl. Maybe you want them to win by a few more points,” he said, addressing investors, “but it’s a Super Bowl winner . . . I could not be prouder of the product.”

Apple’s second-quarter scorecard proved the point: iPhone unit sales of 52m were up only 3 per cent by volume but the product’s revenues jumped 14 per cent, as the iPhone X drove its average selling price up by $73 compared with a year ago, to $728.

From its launch in November through until the end of March, the iPhone X has consistently outsold its cheaper siblings, the iPhones 8 and 8 Continues on page A4

Alexei Kudrin: putting him in charge of international outreach might be read by the west as a sign of compromise by the Kremlin © Getty

Eurozone growth hits slowest pace in 18 months Disappointing data raise concerns about the region’s longer-term prospects CLAIRE JONES

T

he eurozone’s economic expansion has decelerated to its slowest pace in 18 months, raising concerns about the impact of trade tension, a stronger currency and capacity constraints on the region’s longer-term prospects.

Data for the first quarter of this year released on Wednesday, confirmed fears of a slowdown in the single currency area after a stronger than expected 2017.

The economy of the single currency area grew by 0.4 per cent between the end of last year and the opening three months of 2018, according to Eurostat, the European Commission’s statistics bureau. That was down from 0.7 per cent for the final quarter of 2017.

The last time the region’s growth was this slow was in the summer of 2016.

“Temporary factors, including unseasonably cold weather, striking workers, short-term bottle-

necks and even an outbreak of the flu, appear to have weighed on gross domestic product growth in the first quarter,” said Stephen Brown, European economist at Capital Economics, a research outfit. “But there is no denying that underlying growth has slowed as last year’s boost from net trade has faded.”

He added: “Given the high level of consumer confidence, we suspect that consumption will pick up in the second quarter and help to push growth back to around 0.5 per cent or 0.6 per cent.”

A fall in confidence indicators and weak data on German exports and industrial production had alerted economists to the possibility of weaker growth in the opening quarter of 2018.

While there is no breakdown yet from Eurostat on what caused the slowdown, other data suggest poorer exports figures were behind the fall.

The question facing policymakers now is whether the slowdown

will prove temporary, or if it marks the start of a more pronounced downturn in the region’s economic performance.

Data for the start of the second quarter have so far been mixed.

Polls of German businesses have indicated that some companies in the eurozone’s largest and most powerful economy are becoming concerned about the impact of trade tension between the US and China — as well as the UK’s planned exit from the EU — on the global economy. Germany has served as the region’s economic powerhouse due to its strong export performance.

A closely watched survey of purchasing managers on Wednesday indicated activity had slowed further in April. The final eurozone manufacturing PMI for April was 56.2. While that is above the crucial 50 level that marks an expansion in activity and the historical average, it is a sharp fall from the level of more than 60 recorded at the start of the year.

Eurozone growth hits slowest pace in 18 months Disappointing data raise concerns about the region’s longer-term prospects CLAIRE JONES

T

he eurozone’s economic expansion has decelerated to its slowest pace in 18 months, raising concerns about the impact of trade tension, a stronger currency and capacity constraints on the region’s longer-term prospects.

Data for the first quarter of this year released on Wednesday, confirmed fears of a slowdown in the single currency area after a stronger than expected 2017.

The economy of the single currency area grew by 0.4 per cent between the end of last year and the opening three months of 2018, according to Eurostat, the European Commission’s statistics bureau. That was down from 0.7 per cent for the final quarter of 2017. The last time the region’s growth was this slow was

in the summer of 2016.

“Temporary factors, including unseasonably cold weather, striking workers, short-term bottlenecks and even an outbreak of the flu, appear to have weighed on gross domestic product growth in the first quarter,” said Stephen Brown, European economist at Capital Economics, a research outfit. “But there is no denying that underlying growth has slowed as last year’s boost from net trade has faded.”

He added: “Given the high level of consumer confidence, we suspect that consumption will pick up in the second quarter and help to push growth back to around 0.5 per cent or 0.6 per cent.”

A fall in confidence indicators and weak data on German exports and industrial production had alerted economists to the possibility of

weaker growth in the opening quarter of 2018. While there is no breakdown yet from Eurostat on what caused the slowdown, other data suggest poorer exports figures were behind the fall.

The question facing policymakers now is whether the slowdown will prove temporary, or if it marks the start of a more pronounced downturn in the region’s economic performance.

Data for the start of the second quarter have so far been mixed. Polls of German businesses have indicated that some companies in the eurozone’s largest and most powerful economy are becoming concerned about the impact of trade tension between the US and China — as well as the UK’s planned exit from the EU — on the global economy. Germany has served as the region’s economic powerhouse due to its strong export performance.

A4

BUSINESS DAY

C002D5556

Thursday 03 May 2018

NATIONAL

FT

Trump sends top trade posse for Beijing talks Four key points behind Washington’s push to ensure US is not a ‘victim’ of China SHAWN DONNAN

D

onald Trump is sending the Magnificent Seven of US trade policy to Beijing this week for talks to stave off a trade war between the world’s two largest economies.

But hanging over the discussions involving three cabinet members,

three senior advisers and an ambassador with Chinese officials is a question that is hard to answer: what does the Trump administration want from China?

“Our list of things that are troubling [in China] is very long,” Robert Lighthizer, the US trade representative, said on Tuesday as he prepared to board a plane.

Here are four things to keep in

mind as Mr Trump’s team heads to China. None of them bodes well for a quick deal.

1. The Trump administration believes it is in an existential economic battle with China Addressing a US Chamber of Commerce conference on Tuesday, Mr Lighthizer pointed to the Chinese economic model of state capitalism as a direct challenge

to the US economy. The current backbone of Beijing’s industrial policy, Xi Jinping’s Made in China 2025 initiative to lead the world in 10 separate industries, represents a threat to the future of the US economy and the employment prospects of “our children”, he argued.

“It is not my objective to change the Chinese system,” Mr Lighthizer

Exit of Xerox CEO clears one hurdle for group’s sale to Fuji

Apple results allay Wall Street fears...

Continued from page A3 Plus. “This is the first cycle we’ve ever had where the top-of-the-line iPhone model has also been the most popular,” Mr Cook said. “We are very bullish on Apple’s future.”

Apple’s results — and Mr Cook’s confidence — took the market by surprise.

Walt Piecyk, analyst at BTIG Research, upgraded his forecasts based on Apple’s guidance that revenues for the quarter ending in June would increase by as much as 18 per cent, year on year. “We estimate that Apple’s new guidance implies that it will sell more than 40m iPhones in the June quarter, contradicting the concerns highlighted by our peers in recent weeks,” he said in a note late on Tuesday.

At the same time as reporting a 25 per cent jump in net profits, Apple also announced a $100bn share buyback scheme and increased its dividend by 16 per cent, adding up to an extra $13bn in payouts a year.

However, analysts believe it was its forecast of continued iPhone growth that drove Apple’s stock up by 4 per cent in after-hours on Tuesday.

“The majority of the share price movement was that they didn’t guide down” on the outlook for third-quarter revenues, said Gene Munster, a longserving Apple analyst who is also a tech investor at Loup Ventures. “There is credit to be given for the most popular phone being the most expensive phone.”

The new iPhone’s pull is most obvious in China, where Apple sold fewer phones than a year ago but still made more money, according to Ben Bajarin, analyst at Creative Strategies.

Overall, Apple saw revenue increase 21 per cent in greater China, which includes Hong Kong and Taiwan. The iPhone X was the top-selling smartphone in the country, Apple said, followed by two other iPhone models.

Far from being the liability that many analysts expected it to be, the high price of the iPhone X insulated Apple from the smartphone slowdown that has afflicted Chinese rivals such as Oppo and Vivo.

“If they did not have the iPhone X they would have seen much more pain than they did,” said Mr Bajarin.

But he believes this was more the result of good fortune than Apple’s design.

“I don’t know how anyone could have seen that coming,” he said of the market slowdown. “People were caught off-guard, especially in China.”

Even if the iPhone X sold better than Wall Street’s worst fears, it still was not a “runaway success”, said Wayne Lam, analyst at IHS. Its popularity now could also be storing up trouble for Apple. “If you have a $1,000 phone, consumers could hold on to it for longer to justify the cost,” he said. “Then you are just pushing out the refresh cycle. That may ultimately come back to haunt Apple.”

said. “But I have to be in a position where the United States can deal with it, where the United States isn’t the victim of it.”

In a departure from past administrations, the US president and his aides also publicly say that allowing China to join the World Trade Organization in 2001 was a big mistake and that they are doing their best to address the consequences.

Part of settlement with activist shareholders who fought to block the $6.1bn deal

ERIC PLATT

J

Zuckerberg

Facebook appeals to developers after privacy changes Zuckerberg admits to mistakes at F8 conference but says press on and ‘build good things’ HANNAH KUCHLER

M

ark Zuckerberg arrived on stage after a video flashed Facebook’s worst headlines: “Facebook undermines American democracy”; “Facebook faces an FTC investigation”; “Shooting broadcast on Facebook Live”.

The voiceover boomed into the dark hall where thousands of developers had gathered at Facebook’s annual F8 developers conference.

“This last year was hard. We saw what happens when things went wrong. And learned how important it is to get it right.”

The dark video was a dramatic change from the kaleidoscopic graphics and mellow music that introduced the Facebook chief executive just a year earlier.

“This has been an intense year,” he said. “I can’t believe we’re only four months in.”

Many in the audience have had a tough year too. When Facebook rushed to improve privacy after a massive data leak to Cambridge Analytica was reported in March, it stopped reviewing new apps and updates, embarked on an investigation of thousands of apps and made several changes to restrict how much data third-party developers can access from the sprawling social network.

Mr Zuckerberg tried to strike a balance between delivering a clear message to politicians, regulators and media that he was holding himself responsible for the mistakes, and appealing to the technologists in the room as fellow “builders” pressing on with an ambitious and altruistic project to connect the world. He portrayed the company’s move into online dating — sending shares across the dating app industry plunging — was portrayed as

its latest effort to enable“the most meaningful connection of all”.

“I know the vast majority of you are focused on building good things,” he said. “We need to take these steps to make sure everyone on [the] platform [is] focused on building good things.”

The developers cheered when Mr Zuckerberg announced Facebook would restart the app review process, helping them get stalled projects back on track. But many remain concerned that changes made in the wake of the Cambridge Analytica scandal could have a greater impact on their businesses than Facebook’s: the social network reported stellar earnings and revenue last week, sending the stock soaring.

One software engineer from YouCaring.com, a fundraising platform, said she had problems integrating her site with Facebook since the changes were implemented. She feared one of the changes could make it harder for people to encourage friends to donate money.

“It definitely feels like they created the event to defend the platform against allegations and the security issues that have plagued Facebook,” she said.

Randall Bennett, the founder of Vidpresso, which partners with Facebook to create livestreaming videos, said his new product designed to help consumers to livestream and sell items through Facebook’s Messenger platform was delayed for weeks by the halt in approving apps.

“They paused the app review on March 23 and our launch date was March 24. We actually had some people on the platform as beta testers and it suddenly didn’t work,” he said.

But he understood why Face-

book had to make the decision. “We would have done the same thing.

They sort of were in this mode: throw everything off the table and then figure it out,” he said. “This is their chance to reset. It’s the best excuse Facebook has to lockdown the platform, start over and reset expectations with developers.”

The vast majority of Facebook’s privacy changes had already been announced, with many rushed out before Mr Zuckerberg testified before congress last month.

But he did make one change that will prove more significant for advertisers than developers: Facebook will allow users to clear their history of activity on other websites and apps — in the same way users can delete their browser history — and even enable them to opt out of the social network tracking people around the web and in other apps.

Zach Greenberger, chief executive of AdMixt, a social marketing company, said he was going to write to his advertising customers to warn them of a change that could affect their ability to target ads.

“Who wouldn’t do that? Who is not going to clear out their data?

Though your ads will get more annoying and not as relevant,” he said.

Debra Aho Williamson, an analyst at eMarketer, the research company, said advertisers would be concerned. “If many users decide to clear the history of their interactions with websites and apps off of Facebook, that will eliminate additional data that advertisers have access to,” she said. “It could also limit their ability to measure the effectiveness of their advertising.”

Mr Zuckerberg was followed by executive after executive from every part of the business, all with same message: Facebook is on a mission to change.

eff Jacobson has agreed to step down as chief executive of Xerox after the US printer and copier maker reached a deal with two of its largest shareholders who fought to block its $6.1bn sale to Japan’s Fujifilm.

Xerox said it had reached an understanding with billionaire investor Darwin Deason to resolve the bitter legal fight he had waged against the company’s board and the deal it had agreed with Fujifilm.

On Friday, New York State Supreme Court judge Barry Ostrager halted the transaction on the view the board and Mr Jacobson were “hopelessly conflicted”.He also agreed to let Mr Deason run a proxy contest to replace the board.

Xerox also struck a deal on Tuesday night with activist investor Carl Icahn, and said both Mr Icahn and Mr Deason would end their proxy fight against the US company.

Claims that Fuji aided and abetted alleged breaches of duty by Xerox were not resolved in the settlement and will likely be used as leverage against the Japanese company in revising the transaction terms or the joint venture agreement, which Mr Icahn and Mr Deason said was far too restrictive towards Xerox.

Fuji had been accused of helping Mr Jacobson complete the transaction because it left Fuji in control and would have thwarted Mr Icahn.

In a statement on Wednesday, Fuji said it had “serious concerns” about the settlement and plans to file its objections to court. The Japanese group also decided to appeal a ruling on Friday that blocked the transaction with Xerox.

“We also believe that the Xerox new board of directors has an obligation to comply with the agreements which were unanimously approved on January 30, 2018 and signed by both companies on January 31, 2018,” the company said.

Judge Ostrager is expected to sign the agreement on Wednesday. The deal will be voided if the court does not approve it by Thursday.

Xerox said it would name John Visentin, a former executive at IBM and Hewlett-Packard, as its new chief executive and appoint six new directors to its board, including Keith Cozza, Nicholas Graziano, Scott Letier, Jay Firestone, Randolph Read and Mr Visentin. Mr Cozza, the chief executive of Icahn Enterprises, will become chairman of the board.

Current board members Robert Keegan, Charles Prince, Ann Reese, William Curt Hunter, Sara Martinez Tucker and Stephen Rusckowski will resign as part of the agreement. Mr Jacobson will also lose his seat on the board.

“This agreement will help ensure that Xerox and its employees will be able to continue to focus on serving customers and building on the company’s financial and operational performance,” the current board said in a statement.

Thursday 03 May 2018

C002D5556

BUSINESS DAY

A5

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

TSB chief to give up bonus over IT failure High street bank’s bosses criticised in two-hour grilling by MPs NICHOLAS MEGAW

T

he chief executive of TSB will give up a multimillion pound bonus because of the failure of its planned IT migration, which left hundreds of thousands of customers unable to access their bank accounts for more than a week.

Speaking to MPs on the UK Treasury select committee on Wednesday, TSB chairman Richard Meddings said chief executive Paul Pester “will not be taking his bonus for this integration . . . and I think that’s wholly appropriate”.

Mr Pester received £2m in payments directly related to the IT project in 2016, but the bank had deferred a decision on whether he should receive a 2017 award, and the remainder of a payment from 2015, until after the project was completed.

The move of 1.3bn customer records was designed to cut the last of TSB’s ties to its former

owner Lloyds Banking Group, but it turned into a disaster last week as the company’s new platform proved unable to deal with the volume of customers trying to access it.

The bank has pledged to spend tens of millions of pounds in waived fees and higher interest payments in an effort to “apologise” to customers and prevent an exodus of accounts.

Mr Pester told MPs that customers were now able to log into its online and mobile banking services with normal success rates, but said the bank was still working to fix some of its systems. He declined to give a date for when the company would be able to fully address all of the problems.

His apologies failed to impress MPs, however. Committee chair Nicky Morgan said Mr Pester was a “staggering example of a chief executive who seems unwilling to acknowledge the scale of the problem”.

Tech stocks lifted by Apple as Fed rate guidance looms Dollar index hits high for the year, Treasury yields little changed MICHAEL HUNTER AND STEPHEN

W

hat you need to know • US Federal Reserve rate call sets cautious tone to trade • Apple earnings lift techs, led by suppliers • Nasdaq outperforms with 0.2% gain • Treasury yields steady in wake of ADP private sector jobs data • Dollar index touches 2018 high • Pound picks up after construction sector data beat forecasts “A hawkish statement from the Fed will pile pressure on the two-year [Treasury] yield,” says Joe Bailey at JC Rathbone Associates.

“The Fed itself currently forecasts a total of three hikes for 2018, the first of which was enacted in March. With unemployment at just 4.1 per cent, and a consensus that it will drop to 4 per cent on Friday along with non-farm payrolls at 185,000, some economists are predicting a more hawkish year with four hikes.”

Hot topics A rally for technology stocks is following Apple’s forecast-beating quarterly earnings with wider sentiment likely to be defined by the Federal Reserve’s May policy meeting later in the session.

On Wall Street, the S&P 500 is down 0.2 per cent, although the tech sector is up 0.4 per cent. The Nasdaq Composite is outperforming as it gains 0.2 per cent.

Apple shares are up more than 4 per cent after it announced a 30 per cent jump in earnings per share, a $100bn share buyback plan and increased dividends.

European tech stocks, including Apple’s suppliers, are setting the pace as the region’s equities rally. AMS, which supplies iPhone components, is up 7.2 per cent while STMicroelectronics is more than 5 per cent higher.

The Stoxx tech index is rising by more than 1 per cent.

Apple suppliers also rallied in Asia, standing out in a lacklustre wider ses-

sion there.

In the run-up to the Fed’s announcement, the dollar index is up a further 0.2 per cent at 92.62, after earlier touching 92.66, its highest point of the year. .

The ADP report on US private sector hiring slightly exceeded expectations albeit registering the slowest rate of gains since November, leaving Treasury yields largely unmoved ahead of the more significant non-farm payrolls data on Friday.

“With other indicators also suggesting that labour market conditions have held up well in April, the ADP data provide further reason to expect a stronger gain in overall non-farm payrolls when the official data are released on Friday,” said Andrew Hunter at Capital Economics.

The yield on the US 10-year Treasury note remains near 3 per cent, 1 basis point lower on the session at 2.97 per cent. It started the year at 2.42 per cent and crossed the 3 per cent mark for the first time in four years last week as investors sold the debt.

The more policy-sensitive two-year Treasury is yielding 2.51 per cent, little changed on the day, but it was at 1.92 per cent at the beginning of January.

There was relatively little impact from the US Treasury’s outline of the schedule for its quarterly primary debt auctions.

The Treasury is set to borrow an additional $33.9bn from investors to accommodate the government’s rising borrowing needs, with the increase in debt issuance front-loaded on shortdated securities.

Equities London’s FTSE 100 is up 0.4 per cent while Frankfurt’s Xetra Dax gains 1.7 per cent and the Europe-wide Stoxx 600 adds 0.7 per cent after Tuesday’s market holiday on the continent.

The Topix in Tokyo slipped 0.2 per cent, Hong Kong’s Hang Seng fell 0.3 per cent but in mainland China the CSI 300 index of major Shanghai and Shenzhen stocks edged 0.2 per cent higher.

TSB chief executive Paul Pester © PA

WeWork bond loses appeal days after debut Debt sold by office-sharing company has been trading poorly after strong initial demand ALEXANDRA SCAGGS

A

growing number of people are joining the trendy coworking spaces that WeWork leases and operates, but its appeal to the US high-yield bond market is rapidly fading.

The US company, which attracted a $4.4bn investment from SoftBank in 2017 that valued it at $20bn, last week surprised some investors by making its debut in the debt market through selling a larger than expected $702m sevenyear bond.

However, in its first five days of trading, the price of WeWork’s debt has fallen as low as 95.25 cents on the dollar. Analysts said that was an unusually poor performance for a newly issued high-yield note, especially one with a 7.875 per cent coupon that is higher than all but 15 per cent of the market’s benchmark ICE BofAML US High Yield index.

By comparison, bonds that were issued last year by Tesla, the cash-burning electric car maker that is also promising to disrupt

an industry, traded above 97 cents per dollar for two months after their sale.

Despite WeWork’s coupon payment most bond investors who spoke to the Financial Times about the deal were hesitant to buy into a company whose core business involves signing long-term leases on office space and charging members by the month to rent it.

If an economic downturn left it with long-term leases but lacking short-term tenants, the company’s “asset-light” model could leave creditors without many assets to recover in the event of a default.

“It feels like some kind of venture capital deal with debt,” said Adam Cohen, founder of Covenant Review, an independent credit ratings firm. “This doesn’t look anything like your normal bond deal. Frankly it’s unclear when the yield on this business becomes cash-flow neutral, forget positive.”

In a sign of the division the WeWork sale stirred in the high-yield market, the major rating agencies offered an unusually wide range of

opinion on the company’s creditworthiness.

Moody’s was the most pessimistic, rating the notes at Caa1, which meant it considered them “subject to very high credit risk”.

The rating reflects concerns about competition and WeWork’s ability to maintain the pace of its current expansion, given its plans to move into new continents, it said.

By contrast, Fitch rated it four levels higher than that, at double B minus, while S&P Global Ratings rated the bonds one notch below at B plus.

Fitch said its rating included assumptions that WeWork would maintain “high double-digit revenue growth” by increasing its number of desks, keep an average occupancy of 80 per cent in its workspaces and reduce net capital expense per desk between 15 and 19 per cent. It also noted the potential for a future IPO from the company.

According to Informa, only one other bond issue has received that set of ratings since 2000.

US groups warned of credit hit from US-China trade war S&P highlights risks of Trump’s $150bn tariffs to likes of Tesla and Peabody DON WEINLAND

U

S companies are the biggest losers in Donald Trump’s trade war with China, rating agency S&P Global has warned, with the likes of Tesla, Texas Instruments and Peabody Energy facing greater credit risks than Chinese peers after the exchange of fire between the world’s two largest economies.

The US president threatened to impose tariffs on almost $150bn of Chinese imports in late March and early April, in a move many fear could lead to a tit-for-tat trade battle between the countries.

While the US tariffs would hit everything from vinyl records to aircraft parts, China has answered with higher taxes for US exports ranging from cranberries to durum wheat and yellow soyabeans.

Mr Trump’s trade policy experts will arrive in Beijing this week hop-

ing to back the two world powers out of the deepening dispute as the full implications become clearer.

One such, S&P has warned, is that US-listed industrial, energy and financial groups have seen a greater impact from the tariffs than Chinese companies.

In the week following Trump’s initial tariff move, about 65 per cent of US publicly traded companies experienced an increase in their probability of default over the next year, S&P said in a report on Wednesday. About 58 per cent of Chinese stocks saw the same risk of default increase. The median change in probability of default at US companies was 13 per cent but just 3 per cent for Chinese groups.

“Considering the complexity of international supply chains, many market participants are on edge that new tariffs might have damaging unintended consequences,”

S&P said.

The calculation does not indicate that US groups are expected to default due to the tariffs but it has shown that the impact on credit profiles for the US companies has been greater than on Chinese peers.

At some large US-listed groups, the change in the probability of default risk over a one-week period soared in the wake of the tariffs.

That measure on default probability at electric-car maker Tesla, for example, jumped nearly 200 per cent during the week. About 17 per cent of the company’s revenues comes from China, the report said.

The change in the same metric at coal company Peabody Energy was 427 per cent.

“In situations like these there are always unintended consequences and disruptions to the supply chain,” said Raymond Yeung, senior economist at ANZ in Hong Kong

A6

BUSINESS DAY

Thursday 03 May 2018

d

Thursday 03 May 2018

C002D5556

A7 NEWS

BUSINESS DAY

‘Investment in indigenous brands Investments in agric face You are capable of changing saves huge foreign reserves’ security threats - analysts Nigeria for good, RCM tells voters KELECHI EWUZIE

A

ny plan by government to grow local industries, especially fashion startups to contribute to national development, can only succeed with the right investment in indigenous enterprises, industry operators say.

They observe that with the right policy in place by government to support local businesses, Nigeria garment/fashion industry has the revenue-generating potential to grow the economy and stem the tide of foreign exchange spent by patronising foreign designers.

Ayomide Amosu Dabiri, a team lead from Call Her Classic, organiser of the maiden Bridal Fashion Week event while speaking at a press conference in Lagos, said the three-day event commencing May 4, was responding to the growing demand and patronage for indigenous brands with regards to bridal fashion.

The event will feature a curated list of pan-African bridal designers for the daily runway shows and brands at the BFW Bridal Boutique. The boutique will house a collection of vendors retailing bridal (and wedding) items as well as private rooms for consultations with designers and bridal stylists.

Dabiri said the Bridal Fashion Week represented a platform that aimed to promote Africa’s

finest brands as well as facilitate an environment for commerce, adding that it would present first of its kind experience for brides and grooms-to-be, bridal stylists and other key stakeholders, under one roof in Lagos.

According to Dabiri, “This shift in the narrative is welcomed as it supports local business and their revenue-generating potential, and as such, it should be encouraged.”

She said other activities lined up for the event would also feature one-on-one consultation with favourite local and international designers, Masterclasses by leading bridal industry experts.

Highlights of the programmes will include daily installations by Andrea Iyamah, Mai Atafo, April

by Kunbi; Runway shows featuring designers from Africa, UK, and USA. These include Mazelle, Otumemine, Patrick Ayanski, Yinka Alli (UK), Alonuko (UK), David Tiale (SA), Kimono Kollection, Brides by None (USA), MagneticElegance,ValerieDavid,Toju Foyeh, Hudayya, Ese Azenabor (US), and Kosibah (UK).

Other activities lined-up for the Fashion Week include the Bridal Boutique featuring exhibitors, pop-up stores retailing bridal fashion items. The exhibitors include Bridals by Ivy, Buwie Fabrics, CLAN, Fuxion Trends, Donna Tyler Jewelry, Duke and Dexter, Perfect Occasion Bridals, Love Tims, Patrick Ayanski, Honey and Cherish.

ANTHONIA OBOKOH

N

igeria’s agricultural investments face renewed threats due to the current security challenges and killings caused by activities of insurgents and armed herdsmen.

Analysts say the deteriorating security situation in Nigeria is alreadyhavingsomeimpactsonagricultural investments, especially in the northern parts of Nigeria knownforagricultureproduction.

“Agricultural investments will be affected. I remember the likes of Transcom Group saying that they have closed down investmentstoagriculture,becausetheir area of investments have been adversely affected by the crisis fromthenorthernstates,”Johnson Chukwu, CEO of Lagos-based financial advisory firm, Cowry AssetsManagementLimited,said on phone.

“So, I think for agriculture and agro-allied industries, the impact is going to be quite obvious. So, you will see a lot of people shying awayfrominvestinginthoseareas because of the level of insecurity,” Chukwu said On April 30, President MuhammaduBuharihadabilaterally meeting with President Donald Trump of the United States of America,andsecurityrankedhigh on the agenda.

Organisations such as the

InternationalFundforAgricultural Development (IFAD) have urged the Federal Government to end the menace of continuing insecurity across parts of Nigeria in a bid to safeguard Nigeria’s billions of naira in agricultural investments.

According to the National Bureau of Statistics (NBS), foreign investment to the agric sector in 2017 was $195.7 billion.

AnalysisoftheNBSdatashows an increase of 769.8 percent in 2017 from $22.5 billion in 2016.

“TheIFADisconcernedabout insecurityinNigeria,especiallybecause it endangers agric production and investment. The threat to agric investment could put on hold planned investment in agroallied industries from international investors,” Emmanuel Igba, state programme co-ordinator, IFAD, said.

The northern part of Nigeria, where the killings are mostly affected, forms the bulk of agricultural inputs and this is affecting some agro industries in the country.

Ayodeji Ebo, managing director of Lagos-based financial advisory, Afrinvest, said, “We all heard about the issue of tomato factories shutting down because of lack of inputs. This may be attributed to low production of goods and services. So, it will not encourage more investments in the agricultural space.”

T

he Red Card Movement Nigeria (RCM) has given reasons why it is calling on eligible Nigerians who have not registered to vote in the crucial 2019 elections to do so.

The movement says it is taking a stand because Nigerians are capable of changing Nigeria for good. Most importantly, Nigerians can achieve this without firing a shot or engaging in a violent revolution.

The weapon they can use to achieve this, the RCM stated, is their Permanent Voters Card (PVC). This was one of the major fallouts as the movement concludes plans for its regional roll out beginning with North Central in Jos, Plateau State.

It would be recalled that the RCM was officially unveiled at an event held in Abuja, the federal capital. The movement states that there should be no room for apathy on the part of eligible citizens because it leads to poor registration and preparedness toward participation in elections.

The RCM, which started on January 4, 2018, is the brainchild of several coconveners from the six geopolitical zones of the country including former minister of education and co-convener of the Bring Back Our Girls

movement, Oby Ezekwesili, and other credible Nigerians.

Speaking at the unveiling, Ezekwesili pointed out that the effect of the cyclical truncation of democracy in Nigeria since the termination of the First Republic in 1966, was that key institutions, systems, principles and ethos that underpin democratic practice had remained extremely underdeveloped.

One of such key institutions is dynamic, strong, inclusive and accountable political parties that can articulate sound policy positions and inspire confidence that they – political parties -are capable of governing effectively when voted in by the electorate.

Another co-convener, Ibilola Amao, said Nigerians had been bearing the brunt of bad leadership stoically. She said since the fourth republic began in 1999, the so-called “democracy dividend” had remained as elusive as ever with no commensurate improvement in the standard of living or quality of life of citizens, hence the need to place our politicians and their parties under serious public scrutiny.

From readily available and verifiable data, both the past and present crop of politicians has roundly failed Nigerians.

Politics & Policy

A8

BUSINESS DAY

C002D5556

Either Nigeria restructures or it breaks up, says Anyaoku …Suggests division of the country into eight federating units INIOBONG IWOK

F

ormer Secretary G eneral of the Commonwealth, Emeka Anyaoku, has said that there was the urgent need for the country to be restructured along federating units or the political leaders must be ready for its imminent break up.

Anyaoku, who was speaking yesterday as guest speaker at the 10th Senator Abraham Adesanya memorial symposium, at the Shell Hall Onikan, Lagos, with the theme: ‘Leadership and the Future of Nigeria’, noted that the country as presently constituted could not realise its potentials or develop because it was defective in structure, while advocating for the return to the 1963 and 1956 constitutions.

Anyaoku, who was also the country’s former foreign affairs minister, suggested the division of the country into eight federating units, from the present six, while midwest and middle belt region should be created to join the present state six.

He stressed that several of the states in the country were no longer viable and was unnecessary, adding that they should be converted to administrative zones, whose number would be determine when.

He said if implemented

L-R: Former vice-president and Peoples Democratic Party presidential hopeful Atiku Abubakar; former president Olusegun Obasanjo and former head of state and chairman of the occasion, Abdulsalami Abubakar, at a symposium marking the 10th anniversary of late Abraham Adesanya, at the Muson Centre in Lagos on Wednesday.

the propose restructure would reduce cost of governance, facilitate economy productivity and make the regions be self-reliance and bring a sense of unity, ones among the citizenry.

“Nigeria as presently constituted with its federal structure cannot develop or realise it potentials, it must revert to the 1963, 1956 constitution. We must restructure the country into eight federating units comprising the present six geo-political zones; while the mid-west and middle belt regions should be created,” he said. “ The present states

structure which is not viable should be retained but turned into administrative zones. The number would be determined when this unit is created, additional zones would be created to take care of marginalisation agitations when it arises.

“This model would reduce governance by over 80percent and would facilitate economic growth, and bring about a shift from the present structure of depending on sharing of revenue allocation and bring about a sense of national unity,” Anyaoku posited.

Also speaking at the sym-

posium, President-General of Ohanaeze Ndi-Igbo, John Nwodo, warned that the patience of Nigerians was being taken for granted by the political leaders, stressing that only restructuring of the country along federating units could guarantee good governance and accountability in the country.

Nwodo added that successive administrations had failed Nigerians, because the country was poorly structured, while warning that the country was in a danger of imminent break up if it was not restructured in view of its current challenges.

Buhari has saved over $16bn as foreign reserve - Senator Ibrahim MIKE ABANG, Calabar

C

hair man of the Board of Trustees (BOT) of the ruling All Progressives Congress (APC), Senator Abu Ibrahim, has said that President Muhammadu Buhari has been able to save a huge sum of over $16 billion dollars as foreign reserve within three years in office despite dwindling oil prices.

Ibrahim said this at the commissioning of the National committee of Buhari Support Groups, (NCBSG) Cross River State chapter at State Housing Estate, Calabar, while unveiling the office for use ahead of the 2019 presidential election.

According to the BoT chairman, the President has done well, with the economy improving by the day, his social investment programme are on course, prices of oil

is picking up, a lot of infrastructure are being provided, like roads, railway, and power supply throughout the country.

“We are on the part of economic recovery, a lot of looted funds are being recovered by the Anti-Graft

agencies, this government is performing very, very well and we are determined to do more for Nigerians in the years to come,” he said.

In a welcome address by the state coordinator of NCBSG, Patrick Ene, he disclosed that President

Former president Olusegun Obasanjo (left), former minister of state for defence and daughter of late Abraham Adesanya, Modupe Adelaja (centre) and former vice-president and Peoples Democratic Party presidential hopeful Atiku Abubakar, at a symposium marking the 10th anniversary of late Sen. Abraham Adesanya, at the Muson Centre in Lagos on Wednesday.

Muhammadu Buhari has been most gracious to the people of the state through numerous appointments as over 20 appointments have been given to the state by the administration.

“I therefore, make bold to say that Cross River State has never had it so good in the history of federal governance; we the people of the state therefore, endorse Mr. President to re-contest for 2019,” Ene said.

Clement Ebri, a former governor of Cross River State discountenanced the rumour that the President was against the Nigerian youths, saying that Buhari is solidly behind the Nigerian youths as witnessed in his social investment programmes.

“Buhari is youth-friendly and will continue to work for the interest of the Nigerians both at home and in the Diaspora,” Ebri said.

Thursday 03 May 2018

Every Nigerian has right to enjoy constitutional rights – NBA BENJAMIN AGESAN, Makurdi

T

he Chairman, Nigerian Bar Association, Makurdi Branch, Emmanuel Agbakor has urged citizens to uphold the constitutional rights of other Nigerians, especially, inmates at various security prisons across the country, emphasising that they are all citizens of Nigeria and therefore, entitled to the enjoyment of inalienable Fundamental Human Rights like every other citizen.

Agbakor, who stated this during a visit to the Makurdi Medium Security Prison as part of activities marking this year’s Law Week event of the Nigerian Bar Association, Makurdi Branch, also restated the association’s commitment to the promotion of the rights of Nigerian citizens in line with the cardinal objectives of the NBA. According to him, they were at the Prison Yard to among other things, contribute towards ameliorating challenges facing the establishment which he

said include acute shortage or near absence of facilities which makes it difficult for the service to operate according to acceptable standards, especially the sitting area of inmates who at one point or the other have to meet with their lawyers or loved ones.

The chairman noted with utmost disappointment the failure of many Nigerians including those charged with the responsibility of protecting the Fundamental Rights of others, pointing out the reticent attitude of the Federal Government on killings in Benue State in particular, and Nigeria in general and called for a change.

Receiving the items, which included tables and chairs, the Deputy Controller of Prisons, Fatai Aderibigbe commended the Makurdi Branch of the NBA for the donations which he said would, in no small measure, ease the difficulties faced by the establishment and promised to use the facilities only for the purpose they are meant.

Ortom commends civil society organisations over efforts against killings in Benue BENJAMIN AGESAN, Makurdi

T

he Governor of Benue State, Samuel Ortom has commended the Civil Society Organisations (CSOs) in Benue State for their tireless efforts made since the beginning of the herdsmen onslaught in the state.

Ortom made the commendation at the Ibrahim Badamasi Babangida Square in Makurdi, the state capital, while addressing protesters.

The governor, who described the CSOs as the major organisation that has frowned at the killings, said the CSOs who took over Benue People’s House and the State House of Assembly with protest to show how they are seriously behind the state government on Anti-open Grazing Prohibition and Ranches Establishment Law and to ensure that the voice of the people are heard everywhere.

Ortom called on other meaningful organisations

Samuel Ortom

to copy what these CSOs are doing not only in protesting but also in providing for the brothers/sisters in the IDPs camps.

Speaking earlier, a member of the CSOs, Dave Ogbole, a cleric, condemned the killings and promised on behalf of the CSOs to remain behind Governor Ortom and ensure that anti-open grazing prohibition and ranches establishment law has come to stay.

Ogbole called on the governor to rehearse with the commissioner for justice to issue the CSOs a memorandum that will empower them to take the case to a higher authority.

BUSINESS DAY

C002D5556

NEWS YOU CAN TRUST I THURSDAY 03 MAY 2018

Fact Check

A gateway to growth SALEH DUNOMA Saleh Dunoma is the Managing Director FAAN & President, ACI Africa Executive Board

T

o harness their potential as gateways to growth, African airports must develop infrastructure, modernise processes, innovate and diversify revenue sources. No government today can, on its own, muster the funds required for the infrastructure, technology and human capacity development.

Collaboration and cooperation with the private sector as well as with regional and international bodies like the Airports Council International (ACI) and International Civil Aviation Organisation (ICAO), however, can turn our airports into engines of growth. The role of aviation as a catalyst for sustainable socio-economic and human development can’t be overlooked. In Africa, the sector provides 6.8 million jobs (direct and indirect) and currently generates $72.5 billion in GDP. For over a week, the Federal Airports Authority Nigeria (FAAN) hosted over 300 international and regional aviation experts in Lagos under the aegis of ACI Africa. Delegates at the conference all agreed that our airports must move from being public service providers to efficiently managed commercial enterprises.

The transformation of African airports is long overdue. Passenger traffic in this region of the world grew by 5.9% between 2016 and 2017, the third after Europe and Asia-Pacific regions. Though income

from aeronautical revenues (per passenger) was among the highest in the world, airports in the region generated the least overall per passenger in 2016. In the same period, African airports’ non-aeronautical revenues were the lowest : just over 20% compared to the world average of 39%.

African airports lag the world when it comes to generating revenues from retail concessions, car parking, property and real estate, car rental and food and beverages.

According to the World Economic Forum’s 2017 Travel & Tourism Competitiveness Index (TTCI), a benchmark that measures development of the Travel & Tourism sector in 136 economies, travel and tourism in sub-Saharan African economies remain mostly untapped despite sustained economic growth. Travel cost, connectivity and airport infrastructure are the biggest barriers.

With higher business potentials than mature travel and tourism destinations, African airports must explore ways to transform their business models to meet the challenges of upgrading infrastructure and capacity, improving services and transforming customer experience.

In other regions, a more commercial focus, spurred either by change of ownership or business models, has seen airports discard their perception as mere utilities. Infrastructure upgrade: more commercial space, better designed buildings, improved retail planning have helped airports around the world to diversify their revenues.

In addition to increasing aeronautical and terminal capacity of airports, the best managers of airports in the world run them as businesses and pay at-

tention to partnerships, operational efficiency, customer service and optimal capital expenditure.

To make this transformation happen, a change of mindset is necessary. Technology, business innovations

ment in African airports has played a critical role in improving services and increasing revenues. At the Murtala Mohammed International Airport, a multistorey car park was built by an investor in 2017.

Deliberations at the

The construction of new terminals at all five airports is expected to expand passenger handling capacity to 15 million a year. Already, the executive order to remove bureaucratic bottlenecks and constraints to doing business in Nigeria has eased the experience of travellers at our airports

and human capacity development are also critical variables.

Transforming Nigeria’s airports Faced with financial pressures and budget constraints, more African governments are granting concessions to the private sector to build new airports, and invest in or take over the management of existing ones.

Private sector invest-

conference reiterated the role of private sector partnership in the transformation process.

Such partnerships are critical to the goals of the roadmap for the sector which was approved in 2016.

So far, we have attained international safet y cer tifications for the international airports at Lagos and Abuja – the objective is to certify our five inter-

national airports.

The construction of new terminals at all five airports is expected to expand passenger handling capacity to 15 million a year. Already, the executive order to remove bureaucratic bottlenecks and constraints to doing business in Nigeria has eased the experience of travellers at our airports.

Last year, Niger ia signed the agreement to become one of the ACI global training centres, to further advance the goal of human capacity development in FAAN and in Africa. The first training after the agreement was conducted in December 2017 where Nigeria received participants from other African countries.

To better aid our understanding of passengers’ views and their needs, FAAN signed up to ACI’s Airport Service Quality (ASQ) programme, the world-renowned and globally established benchmarking programme measuring passengers’ satisfaction.

ASQ which measures passengers’ reactions to access, check-in, se-

curity, finding way, airport facilities and environment ranks airports around the world based on their performance.

Being ranked alongside our peers in the industry will keep us up to date with service standards throughout the world.

Getting feedback from thousands of passengers who pass through our busiest airports daily will help us focus our priority, assist the process of changing mindsets, determine the technology to deploy as well as define our approach to service delivery.

Cu s t o m e r s’ n e e d s and expectations drive change. With a better understanding of what customers consider important, FAAN can work on the capacities, processes, procedures and policies to develop and deliver better service to customers.

Wi t h f e e d b a c k o n passenger satisfaction, we can determine whether or not to innovate or adopt existing technologies to improve efficiency and profitability.

Backed by the Presidential Enabling Business Environment Council (PEBEC), FAAN is committed to infrastructural development and the implementation of policies aimed at facilitating the growth and sustainability of our airports.

Overall, it was a delight to host the 59th ACI Africa Board and Committees meetings & regional conference and exhibition here in Lagos. In addition to the honour of hosting the conference, it was an opportunity to showcase recent achievements in the sector and our openness to investments.

It also demonstrated yet again the commitment of ACI to develop human capacity, improve standards in areas such as safety, security and service.

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Ghana Office: Business Day Ghana Ltd; ABC Junction, near Guinness Ghana Limited, Achimota – Accra, Ghana.

Tel: +233243226596: email: mail@businessdayonline.com Advert Hotline: 08116759801, 08082496194. Subscriptions 01-2950687, 07045792677. Newsroom: 08022238495 Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.