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news you can trust I **TUESDAY 04 SEPTEMBER 2018 I vol. 15, no 132 I N300

Sell

Foreign Exchange

$-N 357.00 360.50 Market Spot ($/N) £-N 462.50 468.50 I&E FX Window 362.78 €-N 411.50 418.50 CBN Official Rate 306.15

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3M 6M -0.84 0.22 10.41 13.32

Currency Futures ($/N)

fgn bonds

Treasury Bills 0.00

10 Y 0.00

20 Y 0.19

14.97

15.13

15.26

5Y

NGUS OCT. NGUS JAN. NGUS JUL. 30, 2019 24, 2019 31, 2018 0.00 363.05

0.00 363.50

0.00 364.40

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How hammer came down on MTN and 4 banks over FX infractions – Emefiele GE drops Lagos-Kano MTN fulfilled all CBN conditions – sources

ONYINYE NWACHUKWU, Abuja; DIPO OLADEHINDE, Lagos

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he Central Bank of Nigeria (CBN), arrived at the decision to punish MTN Nigeria and four banks for FX infractions after a pain-staking investigation spanning a period

... Analysts blame fear of long term profitability MIKE OCHONMA

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here are very strong indications that the commencement of work following the concession agreement signed this year between the Federal Government and General Electric (GE), the preferred concessionaire for the rehabilitation of the 1,800 kilometer Lagos-Kano narrow gauge rail line may be delayed as the US conglomerate

Continues on page 35

China to provide $60bn in financial support to Africa ... pledges debt relief …Buhari urges China to ease Visa access for Nigerians

Continues on page 35

DIPO OLADEHINDE, & Tony Ailemen, Abuja

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hina will provide $60 billion in financial support to Africa, President Xi Jinping said on Monday at the Continues on page 35

Hadiza Bala Usman, managing director, Nigerian Ports Authority (NPA), at an interactive session, during her visit to BusinessDay head office (The Brook) in Lagos, yesterday.

Pic by Olawale Amoo

Buhari ignores 85 bills passed by National Assembly CALEB OJEWALE

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he administration of President Muhammadu Buhari has in the last three years, failed to take definitive action on 85 bills passed by

rail concession project lead role to Transnet

... Agric bills not spared despite government’s ‘commitment to the sector’ ... Double taxation bills for agreements with Sweden, South Korea, also stuck the national assembly, neither assenting nor vetoing these

legislations.

This represents billions of

naira in taxpayers’ funds, exContinues on page 35

EFInA launches US$2m Fintech Challenge fund to enhance Financial Inclusion in Nigeria ENDURANCE OKAFOR

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nhancing Financial Innovation & Access (EFInA) took the occasion of the recent visit of the British Prime Minister, Theresa May, to Nigeria Continues on page 2

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CPC calls for comments from passengers stranded by cancelled Air France flight 104 from Paris to Lagos

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n response to several public complaints and media reports that Nigerian passengers were neglected and mistreated in Paris en route Lagos, the Consumer Protection Council (the Council) opened an investigation.

The airline involved is Air France and the date of occurrence was July 18, 2018.

Air France has in response to interrogatories and requests from the Council provided material cooperation, and information including that: Air France Flight AF I04, operated with Air Belgium, from CDG (Charles De Gaulle, Paris) to LOS (Murtala Muhammed International Airport, Lagos) with scheduled departure for 1430hrs and estimated arrival time at LOS of 1830hrs was initially delayed.

Cancellation ultimately occurred at 1415hrs because of damage to the aircraft during boarding.

There were 207 passengers on the scheduled flight; 23 business class passengers and 184 economy passengers.

At the time of cancellation, there were limited re-routing solutions for the following reasons, according to Air France: There were limited flights still departing from other locations in Europe to Lagos the same day and at the time and point the cancellation occurred.

There were potential visa issues with transiting passengers through other European countries that have transit visa requirements/restrictions.

There were limited available seats on other carriers as the travel period

is considered a busy travel season.

Air France represents that it did all it could did to ensure passengers were able to fly to Lagos, the same day or the next, on partner and non-partner airlines, considering visa restrictions.

Accordingly, passengers continued or concluded their flights to Lagos in a fragmented but organized manner: Some passengers were re-routed to Lagos via London with Virgin Atlantic Airways, on the same day or the next day, subject to seat availability on that airline.

A significant number of passengers were re-routed through Amsterdam and transferred to KLM the next day, July 19 2018. Others were re-routed through Johannesburg, Nairobi and Casablanca on both July 18, and July 19, 2018.

Air France’s flight on the next day, July 19, 2018 could only accommodate 65 passengers and same were transferred to that flight accordingly.

The last ten of the stranded passengers were lifted by Air France on its Paris to Lagos flight (AF 104), on July 20, 2018.

Air France represents that it made credible efforts to secure visas for passengers who did not have any to facilitate entry into Paris for hotel accommodation. However, the efforts were largely unsuccessful as the French authorities declined.

The 134 passengers who had visas were transported at approximately 1730hrs to different hotels where the airline had secured reservations.

•Continues online at www.businessdayonline.com

Why Buhari declined assent to 2018, Electoral Act Amendment – Ita Enang Tony Ailemen, Abuja

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resident Muhammadu Buhari, on Monday in Abuja, advanced reasons why he is again compelled to withhold assent to the 2018 Electoral Act Amendment Bill.

In a statement signed by the Senior Special Assistant to the President on National Assembly Matter( Senate) Ita Enang, the President stated that he was declining assent to the Electoral Amendment Bill “due to some drafting issues that remain unaddressed following the prior revisions to the Bill.’’

With the latest rejection of the Bill, it is obvious that the Independent National Electoral Commission, INEC will now have to rely on the 2010 Electoral Act as (Amended) to conduct the 2019 general election.

By implication and following the current face-off between the National Assembly and the Executive, it is obvious that the Act may not be ready anymore for the 2019 elections, as INEC had earlier stated that “the Act will be irrelevant unless it comes into force, six months before the general election expected to hold in February, 2019.

The Chairman of INEC, Mahmoud Yakubu had noted the cumbersome nature of Nigeria procurement process and other sundry issues that may derail the use of the Act unless it comes into force, as least six months to the election.

In the letter addressed to the Senate President and the Speaker of House of Representatives, the President further said he has declined “Assent to the Electoral (Amendment) Bill, 2018.”

“Iprayforleave,thatinviewofpublic

interest, the fact of the National Assembly vacation, the imperative to avoid speculation and misinformation, that I give just a few of the rationale” “Mr. President invites the Senate and House of Representatives to address these issues as quickly as possible so that he may grant President Assent to the Electoral Amendment Bill.

He listed the issues to include “a cross referencing error in the proposed amendment to Section 18 of the Bill. The appropriate amendment is to substitute the existing sub-section (2) with the proposed subsection (1A), while the proposed sub-section (1B) is the new sub-section (2A)’’ ‘’The proposed amendment to include a new Section 87 (14) which stipulates a specific period within which political party primaries are required to be held has the unintended consequence of leaving INEC with only 9 days to collate and compile lists of candidates and political parties as well manage the primaries of 91 political parties for the various elections.

“This is because the Electoral Amendment Bill does not amend sections 31, 34 and 85 which stipulates times for the submission of lists of candidates, publication of lists of candidates and notice of convention, congresses for nominating candidates for elections.’’

For clarity, Buhari provided some details of the provisions referenced.

Clause 87 (14)” The dates for the primaries shall not be earlier than 120 days and not later than 90 days before the date of elections to the offices.

•Continues online at www.businessdayonline.com

Tuesday 04 September 2018

L-R: Alderman Charles Bowman, Lord Mayor of the City of London; Paul Arkwright, British High Commissioner; Laure Beaufils, British Deputy High Commissioner; Bunmi Lawson, board director, EFInA, and Segun Akerele, EFInA board chair, at the FinTec Roundtable discussion on Financial Inclusion.

EFInA launches US$2m Fintech Challenge fund...

Continued from page 1

to introduce a new challenge fund focusing on financial technology (Fintech) companies to enhance the uptake and usage of financial services by the low income population in Nigeria.

At a business networking event hosted by the British High Commissioner to Nigeria, Paul Arkwright, on Wednesday, 29 August 2018, EFInA’s Board Chair, Segun Akerele, introduced EFInA as a financial sector development organisation that promotes financial inclusion in Nigeria. The company’s mission is to make the financial sector work better for the poor. He explained further that EFInA is funded by the UK’s Department for International Development (DFID) and the Bill and Melinda Gates Foundation. DFID is a United Kingdom government department responsible for administering overseas aid.

In launching the fund Bunmi Lawson, a board member of EFInA, said: “Following our recent request for information at our

Fintech Outreach Forum, it gives me great pleasure to announce the launch of a new $2 million fund for start-up and growth stage Fintech firms looking to increase access to financial products and services for the poor as well as reduce the rate of financial exclusion in the country”.

Lawson categorically stated that “The aim of the fund is to stimulate and catalyze the financial technology delivery channels provided by the Fintechs.

The fund, to be known as “The Fintech Challenge Fund”, will be used to pilot and support the development of innovative financial products services through the use of digital technology. In addition, the new fund will support projects that help strengthen financial resilience in Nigeria by aligning innovation and modern technology with the needs of the target audience.

“As we see changes happening faster and faster in our environment, we have to anticipate and step up our pace as well”.

There is immense opportunity

in this market and our aim is to see to it that Nigerians are well placed to take advantage of these new opportunities and in the process reduce poverty and boost our GDP”.

In concluding, she stated that the grants will cover a range of between US$50,000.00 (Fifty Thousand US Dollars) up to US$200,000.00 (Two Hundred Thousand US Dollars) for the “Fintech Challenge 1 Grant” and a range of between US$200,000.00 (Two Hundred Thousand US Dollars) to S500,000.00 (Five Hundred Thousand US Dollars) for the Fintech Challenge 2 Grant”.

She said that more information about the grants will be made available to prospective applicants at the formal Request for Proposal event to be held by the company in the near future.

The event was held at the FMDQ Exchange Place in Victoria Island and it was attended by the British Prime Minister and various UK Government officials and a high level delegation of UK-based CEOs and their Nigerian counterparts.

NOVA Merchant Bank appoints Anya Duroha as Acting MD/CEO

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O VA M e rc h a n t Bank Limited has announced the appointment of Anya Duroha as the Acting Managing Director/Chief Executive Officer of the Bank.

The appointment, which is subject to approval of the Central Bank of Nigeria, became effective on August 30th 2018.

Prior to the appointment of Mr Duroha as the Acting Managing Director / Chief Executive Officer of the Bank of NOVA Merchant Bank Limited, he was the Executive Director, Wholesale Bank, responsible for development and management of the Bank’s corporate banking relationships.

Speaking on the new appointment, the delighted Chairman of the Bank, Phillips Oduoza in a memo to all staff said: “Duroha’s appointment marks the start of an exciting

growth phase in the Bank’s business, following the go live of its Intellect Digital Core (IDC) banking platform as the Bank begins to leverage the benefits of its investment to deliver innovative solutions for its customers.”

Prior to joining the Bank as a pioneer staff, he was the Head, Business Banking at StanbicIBTC, where he was responsible for Commercial Banking and SME businesses in Nigeria.

In that role, he had the responsibility for both relationship and portfolio management. In this capacity, he designed and implemented interventions and strategies that ensured the rapid growth and profitability of the business.

He started his banking career in banking operations in Citibank and has 25 years banking experience spanning

across many areas of banking.

He was the Head Corporate Banking, United Bank for Africa Plc; Head Corporate Banking, Diamond Bank Plc and Head of Business Development (Designate), Diamond Bank, United Kingdom.

In all these roles, he has managed portfolios in various sectors including manufacturing, agriculture, construction, oil and gas, infrastructure, aviation, power, maritime, telecommunications, FMCG and structured trade finance.

Duroha holds a M.Sc. in Banking and Finance from the University of Benin and a B.Eng. in Civil Engineering from the University of Nigeria, Nsukka. He is an alumnus of Wharton Business School, University of Pennsylvania and Lagos Business School.

The appointment of Anya Duroha follows the exit of Chinedu Ikwudinma.

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4 BUSINESS DAY NEWS Nigeria needs strong institutions for national transformation -NIM JEREMIAH MBATA

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n its campaign for a re-engineered leadership for national transformation, the Nigerian Institute of Management (NIM) has canvassed a paradigm shift from the present reliance on ‘strong men’ mentality to building strong institutions.

Supporting several calls for building of strong institutions to drive the economic growth and also ensure that the nation’s democracy survives, NIM president Olukunle Iyanda told BusinessDay recently that “strong institutions are immortal and more enduring. They are less susceptible to manipulation and corruption. Being inanimate, they do not have personal ambitions that can lead to decisions that are motivated by base human characteristics as self-serving and self-aggrandizement” NIM president who was speaking on the institute’s forthcoming annual conference entitled ‘Re-engineering leadership for national transformation’ said Nigeria must therefore strive to build strong institutions that have helped many other nations to emerge within a short pe-

riod from poverty and backwardness to affluence and development.

Iyanda said countries like Turkey, Japan, Singapore, Malaysia and China have transformed from underdeveloped to developed nations as a result of their appropriate structural organisation and determined leadership. “These countries have reengineered both their leadership and mind-set and re-orientated the citizenry and their ways of doing things. They are now success stories, models for other nations to replicate,” he stated.

The two conference holding in Kano between September 17 and 18 this year is a flagship of the institute and it provides a platform to address key burning management issue that is considered of national importance with a view to arriving at a solution that are made available to all key stakeholders in the country.

Speaking further on the takeaways to be expected from the conference, Iyanda opined that the institute will continue its efforts of improving management practices both at the micro corporate level as well as at the macro governmental level.

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Travelex, CBN, EFCC partner on best practices for BDCS Too late Ms May, China ate the lunch HOPE MOSES-ASHIKE

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s part of efforts towards ensuring transparency in the foreign exchange market, Travelex Nigeria Limited, a subsidiary of Travelex UK, in collaboration with the Central Bank of Nigeria (CBN) and the Economic & Financial Crimes Commission (EFCC) has concluded plans to engage the Bureau De Change (BDCs) on international best practices.

The engagement, which is a national seminar on best practices in the BDC segment of the foreign exchange market in Nigeria, is scheduled for September 6-7, 2018 in Lagos.

The seminar will highlight a major cooperation between Travelex, the CBN, and key financial services regulatory authorities in the country.

Key presenters at the seminar are the Deputy Governor on Financial System Stability Directorate of CBN; the Chairman Economic & Financial Crimes Commission; DG Nigeria Financial Intelligence Unit (NFIU); Managing Director/CEO Nigeria Inter-Bank Settlement System (NIBSS) as well as the President of

ABCON alongside experts and technical personnel from Travelex UK. According to a statement signed by Anthony Enwereji, general manager, Travelex Nigeria, some of the topics to be discussed include: ‘BDCs and antimoney laundering laws and regulations’; ‘Detection and prevention of illicit financial flows in election year’; ‘International best practice in BDCs operations: How BDCs work in order climes’; ‘Standard reporting guidelines on BDC returns’; ‘Application of IT in facilitating BDC operations’, and ‘Practical effects of CBN policies on BDC operations’.

“The core objective of the seminar is to harmonise the practices and procedures in the nation’s BDC subsector by bringing them in line with international best practices,” the statement said.

“In addition, the seminar is slated in the countdown to the general election in Nigeria to help BDCs guard against facilitating illicit financial flows associated with the season of campaign financing. African countries lose more than $50 billion annually through illicit financial flows,” it stated.

Continued from back page China continues to lead as the prime investor in African energy and mineral resources. China has replaced the US as the principle market for Saudi Arabian, Sudanese and Iranian petroleum and it will soon replace the US as the principle market for several other countries’ petroleum products. Today China is the world’s biggest manufacturer and exporter, dominating even the US market, while playing the role of financial life line as it holds over $1.3 trillion in US Treasury notes.

The rise and rise of China has unsettled the American government under Trump that some are postulating an emerging cold war between the two as the US continues to contain Chinese trade and even contemplate military actions. Such is the growing shadow of China in international politics that as soon as Theresa May departed from Nigeria, President Buhari headed to China for the Forum on China-African Cooperation. It was also a similar scenario earlier in the year when President Buhari was invited to Washington to meet with Donald Trump after Nigeria had successfully signed a $2 billion currency swap with China.

Everything points in the direction of a new wave of scramble

for Africa by the new power blocs of the East and the West. Only this time, the East is no longer Russia, but the true Orient - China. Also, it is no longer about brushfire or proxy wars in Third World countries and the militaryindustrial complex. Right now, it is about markets, capital and trade. In this new game that is mainly of arcane international business strategy and more of political economy than military imperialism, Britain seems to be the weakest actor. Its empire did wax in the 19th, but ultimately waned in the 20th, Century. In the 21st Century, British empire has remained but a historical relic. Whatever was left of this relic seems to have been dissipated with Brexit. So, the new round of post-colonial dance by Theresa May in Africa will likely achieve nothing. The reason is simply that China has embedded itself into African affairs in ways that have transformed international economic relations that were hitherto defined

by Western, especially British, imperialism in the case of Nigeria. It is doubtful that Theresa May’s latest round of visits to former colonies can undo the impending disaster of Brexit or sniff the Chinese burrowers out of the underground tunnels of Nigeria.

Welcome, Pax Sinica!

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FG signs MoU with Volkswagen to grow automotive hub in Nigeria HARRISON EDEH, Abuja

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he federal government has signed a memorandum of Understanding, (MoU),with the Volkswagen Group which is aimed at developing an automotive hub in the country.

Nigeria’s Minister of Industry, Trade and Investment, Okey Enelamah, signed on behalf of the federal government, while the Head of the Sub-Saharan Region of Volkswagen, Thomas Schaefer signed on behalf of the Group.

A statement issued by the Ministry of Industry Trade and Investment on Monday said,”In the MoU, Volkswagen undertakes to implement a phased approach in relation to the assembly of vehicles, initially from assembly kits with the long-term view of establishing Nigeria as an automotive hub on the West Coast of Africa.”

The statement noted that the this will include establishing a training academy in conjunction with the German Gov-

ernment, which will train the initial employees. The academy will also provide broader technical training in automotive skills. It is also intended that a comprehensive Volkswagen vehicle and service network is developed in the country subject to commercial viability.

In turn the Nigerian Government undertakes to finalise the approval of the Nigerian Automotive Policy, currently under consideration. This includes the gradual transition from the importation of used cars to the manufacture and distribution of new passenger vehicles.

The Government has committed to providing a conducive legislative environment that will encourage the manufacturing of motor vehicles in Nigeria.

Okey Enelamah, who signed on behalf of his government, said: “The MoU is a major step in our walk towards the development of a robust automotive industry to achieve its potential contribution to the continuous economic development of the country.”

“We believe in the strategic and catalytic role of the automotive industry in the diversification of the Nigerian economy and we remain committed to encouraging and partnering with relevant stakeholders, especially investors and friends of Nigeria.” ”We will meet our commitments and look forward to welcoming other Original Equipment Manufacturers (OEMs) interested in working with us to increase local production, local procurement, and exports,” added Enelamah.

The Director General of the National Automotive Design and Development Council (NADDC), Jelani Aliyu, said: “As Africa’s largest economy and most populous country, Nigeria offers not only a significant domestic market, but also the opportunity of a gateway to the West African market. We are pleased by the progress we have made in our engagement with Volkswagen, and excited to be partnering with a strong stakeholder with a full understanding of the huge potential Nigeria represents.”

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Tuesday 04 September 2018

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Nigeria: Playing with the health of our leaders

MAZI SAM OHUABUNWA OFR sam@starteamconsult.com

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believe that I am not alone in feeling distressed about the situation of healthcare in Nigeria. Everywhere you look, the problems stare you on the face. In the public health care space, you face poor infrastructure, old or inoperative equipment and generally poor attitude. Even skill and competency levels are often suspect. If you have taken a seriously ill patient to our public health facilities - be they primary, secondary or tertiary institutions, you will have known that many more people are healed by faith in Nigeria than by medical care.

If you go to the private healthcare institutions, may be infrastructure and equipment may be better but attitude and skills are subject to national averages. Additionally, in all cases, affordability remains a key limiting factor. Since managed care and health insurance are still in their infancy or rather has remained in a state of stultified growth, most Nigerians have to deposit cash before they can be attended to or admitted in hospitals. If you have no cash, then chances are that you will depend

STRATEGY & POLICY

MA JOHNSON Johnson is a marine project management consultant and Chartered Engineer. He is a Fellow of the Institute of Marine Engineering, Science and Technology, UK.

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f there is one important factor that draws a line between civilization and barbarism, it is the rule of law. This article draws heavily on the editorial published in the BusinessDay newspaper on August 28, 2018, with the headline “Dear PMB, the rule of law is sacrosanct in democracy.” Affirmative, the rule of law is sacred in a democracy. This is so because democracy is complex and it is the supremacy of the rule of law that allows citizens to enjoy the dividends of democracy. It is the failure of successive governments to give pre-eminence to the rule of law that is responsible for pathetic national security challenges we face today. This writer does not think that Mr President is unaware that the rule

on faith.

Then, there is a large grey market that spreads from the mallam trying to sell you “burantasi” at the filling station, to the unlicensed “doctor” hanging a stethoscope and trying to diagnose “staphylococcal” infections to the illiterate medicine dealer who is mixing you a concoction of black & red capsules and yellow tabs from his illegal and ramshackle kiosk for the treatment of malaria and typhoid, pretending to be a “chemist”.

Meanwhile on certain TV and radio stations you are daily assaulted by all kinds of herbalists who claim to heal everything from HIV/AIDS to prostate cancer. Many are deceived and are despatched to early grave in a largely unregulated or poorly regulated healthcare environment.

Meanwhile the licensed healthcare professionals are busy squabbling and fighting for tuff and freebees while quacks are taking over the market and causing mayhem. All over the world focus has shifted to preventive and patient care, necessitating an enhanced professional specialization and inter-disciplinary collaboration amongst healthcare professionals.

Unfortunately in Nigeria, this global development seems to be opposed or resisted by some professional groups, thereby denying the patient of the benefits, leading to preventable mortalities and morbidities.

We then end up with one of the most miserable health statistics in the world in Infant mortality, maternal maternity, under-5 mortality; HIV/ AIDS prevalence rate and

‘

If the health of our President is not enough motivation to take the bull by the horn to create one centre of medical excellence, then what would?

’

life expectancy malaria and seasonal cerebrospinal meningitis are still ravaging us and we remain one of the world’s last bastion for poliomyelitis, yellow fever, Lassa fever and Dengue fever .It must however be admitted that some improvements have occurred over some time but only in spurts. During the days of Prof Olikoye Ransome Kuti as health minister, he refocused the nation on primary health care and certain statistics improved. President Obasanjo seemed determined to equip our tertiary institutions and he engaged one of his friends that dumped sophisticated equipment in hospitals that were not ready to receive them, leaving some of the equipment in crates up till very recently. Following the embarrassing handling of the illness of President Umaru Yardua, Professor Osotimehin, then health minister empanelled a

committee of experts of which yours sincerely was one of them to propose four centres of medical excellence that would compare with the best in the world and which would help to reduce medical tourism by Nigerians to Europe, America, China, India, Egypt, and Dubai, and help remove the shame from Nigeria. The committee went to work with much enthusiasm and grit but that effort seemed to have ended with the death of Yardua and the removal of Osotimehin as minister of health. Another spurt occurred when President Goodluck Jonathan set up the SURE-P committee and mandated it to focus on primary healthcare with emphasis on maternal and childcare. So much happened in that season- building of new health centres, rehabilitation and refurbishing of old ones, supply of essential medicines to health centres across the nation, distribution of ambulances, employment, training and deployment of nurses and midwives to several health centres.

But all that seem also to have ended with the end of Jonathan’s tenure, because I do not get to hear much in this direction.

That’s why President Muhammadu Buhari came to power and soon became sick and could not find any health institution good enough to deal with his matter and has had to travel abroad a couple of times, some for extended periods, to seek healthcare. Things became extremely embarrassing when the wife and daughter of the President complained openly that the state house clinic which was supposed to be the best specialist outfit in Nigeria lacked

the most basic of facilities, drugs and medical consumables. And that is despite all the huge annual budget provisions for the state house clinic.

If things can be this bad in Aso Rock that forced the outburst from the president’s family, do we have to show any surprise if I tell you that there is lack of critical equipment or essential drugs in the general hospital in my town- Arochukwu? Many people have died prematurely because they could not access proper care in Arochukwu and before they could get to Umuahia through the long and neglected Arochukwu road, they would have run out of ‘vital gas’ (thank God, the contract for the road rehabilitation has recently been awarded by the FGN).

Just recently, PMB had to undertake another 10- day medical vacation to the UK and I felt sorry for Nigeria. Three years is long enough time to fix one hospital in Nigeria to take care of our President. If the health of our President is not enough motivation to take the bull by the horn to create one centre of medical excellence, then what would?

President Yardua was sick while in office, and rather than invest in providing a properly equipped and resourced centre that would care for him and others, we preferred to play politics with the health of one of the best men that this country ever produced. Now another opportunity has been offered us by nature, and it looks to me that we seem poised to miss this too! I am pained.

Send reactions to: comment@businessdayonline.com

Rule of law is sacred in a civilized society of law is sacred in a democracy.

Unfortunately, when important national issues are brought to the “altar of politics”, anything goes. As usual, Nigerians and the entire international community got the shock they never expected after Mr President’s declaration that the rule of law is subject to national security and national interest. The ricocheting effect of the declaration has stimulated debates among civil right activists, media, academia and prospective investors interested in the good of the Nigerian society. Without the rule of law, which investor will come and buy into the remaining 95 percent of the total cost of the planned national carrier- Nigeria Air? Your guess is as good as that of this writer.

If Aristotle and Plato were present on Sunday August 26, 2018, at the Nigerian Bar Association Annual General Conference, Abuja, where Mr President delivered his homily, these Greek philosophers would have been disappointed. Why, you may ask? These Greeks would have been saddened that the helmsman of the most populous black nation in the world has not come to terms with the fact that in a democracy, the rule of law is supreme to the rule of men.

In fact, Plato was so passionate about the rule of law that he theorized in his book titled “Laws” that “Where the law is subject to some

authority and has none of its own, the collapse of the state in my view, is not far off; but if law is the master of the government and the government is its slave, then the situation is full of promise and men enjoy all the blessings that the gods shower on a state.”

On the part of Aristotle, he professed in his book “The Politics” that: “He who asks law to rule is asking God and intelligence and others to rule; while he who asks for the rule of a human being is bringing in a wild beast, for human passions are like a wild beast and strong feelings lead astray rulers and the very best of men.” So, can any nation choose to live outside the rule of law? Negative, except those nations under authoritarian rule. Without the rule of law, the judiciary would not be independent, there will be no judicial control over the police, while those related to individuals opposed to the government are likely to be guilty of association.

The major cause of insecurity in the country is the inability of those that have been in governments for several years to rule by the law. The wisdom required to rule is contained in all relevant statutes of the country.

So, when Festus Keyamo, a Senior Advocate of Nigeria, who doubles as official spokesperson of Mr President’s 2019 re-election bid drew the attention of the public in his Twitter account to one judgment of the Supreme Court of

Nigeria as the authority for the homily delivered by Mr President vis-à-vis national security, this writer laughed.

Why? The official spokesperson’s justification is akin to using one verse in the Holy Bible (Book of the Law) out of 31,102 verses to persuade an unbeliever to seek first the Kingdom of God and His righteousness. May heavens deliver Nigeria from the vices of men in the corridor of power at this critical moment of nationhood.

So who determines national security and national interest? In any civilized society, both are products of the rule of law. National interests are the country’s goals and ambitions whether economic, military, and cultural amongst others, which the country will use available resources to secure and fulfill. National interest deals with the welfare of the nation and preservation of its national lifestyle. Such interests will include but not limited to defence of our territorial integrity, the preservation of independence and sovereignty, utilizing resources of the country in the most efficient manner and welfare of citizens. All these are covered in relevant sections of the 1999 Constitution of Nigeria. That is why it is often said that the rule of law determines national interests, not vice versa. And without Nigerians there is no Nigeria. What then constitute national security? National security is the protection of the interest and

values of a nation against threats.

With profound respect, this writer feels that our political leaders should be pitied because most of them are products of illegitimate military regimes of the past. As products of authoritarian regimes, most of our political leaders always monopolize the definitions of national security and national interest along with their political and bureaucratic supporters. It is for this reason that those in authority identify what factors constitute threat to them according to their conception of security. And thereafter, perceive national security as being conterminous with “regime security.” Instead of looking at national security largely to cover security of the nation and its citizens as a whole, it is narrowed down to the interests and survival of that particular regime.

A time traveller visiting Nigeria after forty years of his or her first visit would have seen today that the disregard for the rule of law has brought the country on her knees to the level of insecurity, economic adversity, executive lawlessness, gross human right abuse, and rampant corruption.

If the war against all these internal security challenges were to be won, it would require strict adherence to the rule of law, not the rule of rulers.

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[#StopTheKillings] Nigerian doctors still see gold abroad RAFIQ RAJI “Dr Raji is chief economist at Macroafricaintel. He was previously an Africa Economist at Standard Chartered Bank, London, UK. (Twitter: @ DrRafiqRaji)”

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n a recent encounter with a Nigerian doctor, as one recovered from the inevitable failures of the human body that tend to occur from time to time, it emerged the owner of the soothing voice that aided one’s convalescence was unhappy. Not with her patient, a challenging case no less, but with her career in her country of birth. And she is one of the fortunate ones. As a doctor in a private hospital in a highbrow area of Lagos, she was relatively well-paid. And judging from what one garnered from those long hours of forced idleness, there is a lot that gets by the hospital’s way in terms of cases.

Imagine the irony: whereas the individual hopes to suffer little afflictions, if at all, the doctor’s joy comes from a case worth his

or her time. The more complicated, the better. Still, a doctor’s experience, even in the best teaching hospital in the country, pales in comparison to that of lesser professionals in Europe and elsewhere. Money is also a huge motivating factor. Still, whether in the United Kingdom or the United States, the experience does not always turn out as dreamed. Racism is usually a problem. And career mistakes are punished severely. Nonetheless, those with some training in these climes beforehand are able to easily bank on a coping mechanism honed during their grinding student days.

Whereas other professionals, in financial services, law, and so on, could easily keep abreast of developments in their sectors, whether they are in their country or abroad, the peculiarities of the medical profession and rapid technological advances in the sector mean practitioners not adept in the most advanced and recent practices would find themselves no more than quacks over time. Ironically, being initially trained in Nigeria allows for mastery in the old-school ways of medicine that tend to come in handy in

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More than 60 percent of registered Nigerian doctors practice abroad.

Most of the remainder who grudgingly ply their trade locally plan to cross the seas at the slightest opportunity

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chiller climes where practitioners have become “spoilt” with various technological aids. And in fact, the continent is wealthier by the experience garnered by its medical professionals abroad, who

whence accomplished often give back in the form of free surgeries and so on.

But how many Nigerian doctors actually seek greener pastures abroad? More than 60 percent of registered Nigerian doctors practice abroad. Most of the remainder who grudgingly ply their trade locally plan to cross the seas at the slightest opportunity. And despite the backlash against migrants in Europe and elsewhere, doctors and other advanced professionals are actively courted. Not entirely.

The UK put a cap on the migration of skilled non-EU workers recently. Short of medical staff, the government has reversed itself. Now, migrant doctors with firm offers from UK hospitals do not have to worry about getting a visa: they will get placed. No doubt music to the ears of many expectant Nigerian doctors.

The exodus comes at great costs for the country, though.

There is 1 (one) doctor for about 4,000 Nigerians at the moment.

With more doctors heading abroad, that statistic would only get worse by the day. And were the situation ideal, quality healthcare is out of the reach of those that need it the most.

The privileged, who can afford healthcare anywhere in the world, are ironically the ones with the means to avail themselves of the local best. To be fair, the authorities are not insensitive to the problem. A compulsory health insurance scheme for Nigerians in paid employment means almost anyone with a job would be able to afford basic and secondary medical care. Of course, it is another matter if the ailment is more advanced and require extensive, sustained care; and perhaps more abroad.

A newly instituted patients’ bill of rights also means that any Nigerian, of any means, would not be subject to the gross abuse that many poor patients, who also tend to be ignorant of their rights, get subjected to with impunity.

What would prevail in practice is another matter, though. During one’s recent forced interaction with the medical universe, each stage of treatment was presaged by a business executive brandishing a point-of-sale terminal: swipe your card, get treated.

Quality medical care in Nigeria remains exclusive.

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Economic growth is overrated, Nigeria deserves more

MICHAEL FAMOROTI Michael Famoroti is Chief Economist at Vetiva Capital Management. You can contact him onm.famoroti@ vetiva.com.

“Yet the gross national product does not allow for the health of our children, the quality of their education or the joy of their play.

It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country, it measures everything in short, except that which makes life worthwhile. And it can tell us everything about America except why we are proud that we are Americans.” – Sen. Robert F. Kennedy ou neither have to look at the strength of Nigerian marriages nor the patriotism of our youth to find what GDP (Gross Domestic Product) does not capture and

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yet, 50 years after this speech by the aspiring United States president, economic growth remains the most important number for a country. Never mind the poverty rate, literacy rate, and even life expectancy, GDP growth trumps all; for better or worse, the fate of nations and governments rise and fall on this single statistic. Yet, our obsession with GDP is puzzling as we ought to know better. So often, we see its flaws. The consistency of GDP growth numbers in a country as diverse as state-led China has moved from joke to parody, and the United States, perhaps the most prolific perpetrator of the “growth is good” maxim, still has millions of people living in poverty.

What does Nigeria want?

Sustainable development and a general rise in living standards.

If so, she should remember that economic growth guarantees neither. GDP measures commercial activity, not economic or social value; it counts nuclear output as positive, for example.

Moreover, it does not even capture all commercial activity in a country as it excludes the informal sector. In Nigeria, with an informal economy estimated to be at least half the size of the formal one, this exclusion erodes the usefulness of official economic growth estimates. Worse, efforts to increase our GDP

could actually reduce welfare if they hurt the informal sector.

It is not only the informal sector left out of GDP calculations.

Any activity that has an economic or social value without money being exchanged suffers the same fate. Again, this exclusion is worse in Nigeria where services that would be paid for in more developed markets are provided free of charge by friends and family— think of grandparents catering for a child’s early childhood education or relatives coming together to prepare the food for a small traditional wedding ceremony.

All these activities contribute to improved welfare but are missing from GDP statistics.

Perhaps the cardinal crime of GDP is that it treats everyone the same. An extra naira to a billionaire is considered equivalent to an extra naira to someone below the poverty line. As a result, GDP is utterly oblivious to inequality and two countries can enjoy the same economic growth rate but experience different qualities of growth. And we have justifiable reasons to care about inequality.

Not only are we concerned about how the people near the bottom of the pile are faring (arguably more than those at the top), recent research suggests that welfare is relative,i.e. my perceived quality of life is significantly dependent on how others are doing—the wider the gap between us, the

worse off I feel.

But the costs of economic growth are not just psychological; rather they are pervasive, and our refusal to acknowledge them has often caused suffering.

Nigeria ignored the environmental cost of oil production until parts of the Niger Delta became an inhabitable swamp that bred militants, and the western world gorged on robust GDP growth through the mid-2000s, ignoring the fact that it was fuelled by speculative finance and the growth of worthless and harmful financial products. And then it blew up in all our faces.

The criticism of GDP is endless. It only partially accounts for changes in the quality of goods and services,and it is subject to multiple revisions, even in the most sophisticated countries.

But in defence of GDP, it is probably still the most comprehensive and reliable way of measuring welfare. The issue isn’t the indicator itself, but the economic and political obsession with it, and our blasé refusal to adopt complementary measures. The mythification and supremacy of GDP forces us to forget that it is a man-made measure, one vulnerable to our specifications. That’s why a country’s GDP can double within a day (when it is rebased) or decline by 25% in one year without anyone realising, as was the case of Macau in 2015.

And all of this is not just of academic interest. As I mentioned earlier, economic growth is a singular target of many nations, and most of our societies and economies are organised in pursuit of achieving the fastest growth possible. But even when we attain economic growth, we don’t get what we care about: better living standards, equal opportunities for all, and a sustainable future.

The fundamental issue with GDP—and what makes it so attractive—is how standardised and objective it is. But we can’t place a naira value on everything that matters, and we shouldn’t try to anyway. Nigeria ought to use GDP as part of a broader package of welfare indicators: happiness surveys, GINI coefficients of inequality, and select measures of sustainability and inclusiveness, like metrics of gender equality, for example. And even then, we must accept the reality that not everything that counts can be measured and remember that not everything that can be measured counts.

• The views expressed in this article are personal to the author and may not reflect the opinion of Vetiva Capital Management Limited or any of its affiliates Send reactions to: comment@businessdayonline.com

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Editorial

Tuesday 04 September 2018

Forum on China Africa Cooperation (FOCAC): Towards better trade relations

PUBLISHER/CEO

Frank Aigbogun EDITOR Anthony Osae-Brown DEPUTY EDITORS John Osadolor, Abuja Bill Okonedo NEWS EDITOR Patrick Atuanya

EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, DIGITAL SERVICES Oghenevwoke Ighure ADVERT MANAGER Adeola Ajewole FINANCE MANAGER Emeka Ifeanyi MANAGER, CONFERENCES & EVENTS Obiora Onyeaso 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

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ozens of African leaders have, once more, gathered in China for the triennial Forum on China African Cooperation (FOCAC) holding through September 3 and 4th 2018.

This year’s edition themed: China and Africa: Toward an Even Stronger Community with a Shared Future through Win-Win” is coming at a time China is even more desperate to strengthen relations with as many regions and countries as possible to soften the impact of the debilitating trade war initiated by Donald Trump, the erratic president of the United States, on it The forum, which started in 2000, is in its fifteenth year, and has seen trade, investment and political cooperation between Africa and China rise to unprecedented levels.

When the forum began in 2000, trade volume between China and Africa was a mere $10 billion. However, the volume has greatly increased over the last fifteen years and has reached $300 billion in 2015, according to China’s Ministry of Commerce. Similarly, China’s investments in Africa are witnessing unprec-

edented growth and, according to the Chinese Premier, will rise to some $100 billion dollars by 2020.

For African countries, the intercourse with China has been a huge blessing. Over the last eighteen years, China has poured huge resources into large scale infrastructure projects in most part of Africa. It has financed and built rail projects, roads, airports, stadiums and other capital intensive projects – projects for which either Western and particularly American companies lack the requisite risk appetite for or charge prohibitive and exorbitant prices for.

Although the Chinese buys mainly commodities from Africa, recently Chinese companies are beginning to diversify their interests into other sectors such as telecoms where they are the leading suppliers of phones and equipments to Africa. Crucially also, Chinese companies are now helping African countries to expand their manufacturing base.

There is no doubt that China currently benefits more than Africa from the trade relations and cooperation. Its main imports from Africa – commodity – don’t command particularly high prices and are easily obtainable from

other sources. Despite that, the trade is hugely beneficial to Africa because they have one more market for their commodities and have access to another market for less expensive imported goods and services on which they depend for their survival.

Besides, the huge construction works undertaken by Chinese companies and their diversification into manufacturing in Africa have created millions of badly needed jobs in Africa.

However, African countries must step up their game to benefit maximally from the trade and cooperation with China. At the last FOCAC held in Johannesburg, South Africa, in 2015, President Xi announced at the conclusion of the forum that he and African leaders have reached consensus on lifting China-Africa relations to a comprehensive strategic cooperative partnership.

One concrete way African countries can benefit maximally and be taken seriously in the international arena is to begin to eschew aid, gifts and trivial assistance and push for more trade and cooperation on equal terms.

It was a dent on the reputation of the continent that China had to build and donate the headquarters of the African Union in Addis

Ababa, Ethiopia. If African countries were so naive to think it was a free gift, they got the shockers of their lives when it was discovered recently that China, which also paid for and built the computer network at the AU headquarters, inserted a backdoor that allowed it to transfer data. The hack was only discovered in 2017, a good five years after, when technicians noticed that between midnight and 2am every night, there was a peak in data usage even though the building was empty. It was later discovered AU’s confidential data were being copied on to servers in Shanghai. Of course, they couldn’t complain loudly because the headquarters and everything in it was gifted to them

by China.

We commend the expanding trade and investments between China and Africa as a concrete manifestation of South-south cooperation – an initiative that unites developing countries in their efforts to pursue selfreliance and development. However, we urge Nigeria and other African countries to up their game, diversify their economies and position their economies to benefit maximally from the expanding trade with China rather than being known exclusively as sources of cheap commodities.

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Tuesday 04 September 2018

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Collaboration among film makers, funding identified as key to growing Africa’s film industry … 2018 AMVCA full of glamour Stories by Daniel Obi Media Business Editor

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o llab o rati o n s among African film makers and investments in film productions by companies and organisations in the continent have been identified as successful drivers of pushing African perception agenda to the next level.

The two factors were central discussions among artistes and other players in African film productions at the 2018 African Magic Viewers’ Choice Award, AMVCA event held last weekend in Lagos which saw 120 nominations from Ghana, Kenya, Malawi, Nigeria and South Africa battle in 27 categories.

Principally, the award is an annual recognition of outstanding achievement in television and film. The winners are voted by the general public. The inaugural AMVCA ceremony was held in Lagos, on 9 March 2013.

The award organised by MultiChoice in collaboration with other sponsors is part of the African quest to strengthen African narrative which has been skewed by the Western powerful media. In the last 25 years, Africans have woken up to this reality to re-tell the stories especially through films but in this journey, they are hampered by sponsorships.

Discussing with BusinessDay at the glamorous event, Chy Nwakanma who won the best TV series award ‘This is it’ identified

collaboration in film making among African film makers as key to growing African movie industry. According to her, films should not just be about Nigeria, Kenya or any other country but a fuse of cultures across Africa.

“If Africa as a whole can come together and tell its stories together and bring different ideas from different cultures, I believe we will be powerful. Such films will attract wider audience in the continent and overseas”, she said.

After winning Best Trail Blazer award at the show, Bisola Aiyeola who participated in Big Brother Naija edition of 2017 also emphasised that it is important many film houses come together to work as one to produce films for Africa. “Collaboration is the new competition as it will help to deepen the industry and bring the needed funds/investment for the industry. Collaboration will also help the industry to deviate from the clichés of drama and go into other areas such as Action and Animation which are still fresh. We should not see each other as competitors but collaborators”.

Bisola said she has been in film acting journey since 2006 before making it to BBN house.

Desmond Elliot, a popular face on Nollywood and who is now a member of the Lagos State Assembly told BusinessDay that the entertainment industry is slightly growing but not as much as expected. “For it to grow there must be government presence. Government

needs to create the platform for it to grow. It is not about shooting the films but about growing the industry and government needs to help the industry to enter into treaties with other worlds and making sure there are partnerships across countries and regions.”

Tora, a broadcaster who is part of MNET, said African Magic Viewers’ Choice Award is really about pushing the African agenda . “It is about putting Africa in a positive light. MultiChoice has been committed to celebrating characters in this initiative. With the industry and the recognition the African narrative will continue to go forward.

Kolade Morakinyo, a film composer and sound designer who won award as best sound editor said the award is a stamp of validation that what film makers are doing in the industry is towards the right direction and he believes that sound in Nollywood will always get better.

African movie can only get better. Recently boundaries are being pulled down in film making in Africa.

AMVCA is an encouragement on what we are doing.

Mark Maina, a Kenyan who won award for best picture editor for the film ‘18 Hours’ said producing film in Africa is hampered by lack of funding. “But I believe that if the film makers deepen their narrative in the scripts, it will attract investors to take the risk in funding the film making”.

Ngozi Obasi won the Costume Designer award. Talk-

Phoebi Ruguru (Middle) overall best movie winner with ‘18 Hours’ film flanged by friends

ing on how Nollywood has improved the costume industry, Ngozi co-winner, James Bessinone said the detail of Africa is in its culture. “Costume has been with us and selling it to global world will really grow the industry. He said winning award is determination and dedication.

He reiterated lack of sponsorship as bane of film industry in Africa. He said abroad, there are structures that help film industry but in Africa finance is a major issue.

As expected, the crème de la crème of the African film, TV and entertainment industry turned out on the famous AMVCA show, which was hosted by the duo of IK Osakioduwa and Minnie Dlamini and started with an electrifying performance by the critically acclaimed Niger-Delta dance troupe, Seki.

Other performances of the night include renditions by famous singer-producer Cobhams Asuquo, and Nigerian opera singer, Omo Bello who performed together with her orchestra.

Nigerian rapper Falz also thrilled on the night, even as he won the ‘Best Supporting Actor in a Drama’ award.

Another highlight of the night was when renowned Nigerian cinematographer Tunde Kelani was presented with the Industry Merit award, a decision that was well received by the audience as evidenced by a prolonged standing ovation.

Wangi Mba-Uzoukwu, Channel Director, Africa Magic said: “We are delighted to once again celebrate outstanding achievements in the African film and television industry on the platform of the AMVCAs. Some other winners include Best Lighting Designer Movie/TV Series won by Tatu – Akpe Ododoru, Tunde Akinniyi; Best Cinematography Movies/TV series went to Okafor’s Law – Yinka Edward; Best Documentary went to The Flesh Business – Dennis Wanjohi; Best Indigenous Language Movie or TV Series – Hausa went to Mansoor – Ali Nuhu; Best Indigenous Language Movies or TV Series – Igbo went to Bound – Lilian Afegbai; Best Indigenous Language Movies or TV Series – Yoruba was won by Etiko Onigedu – Femi Adebayo; Best Overall Movie was clinched by ‘18 Hours’ film by Phoebe Ruguru.

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High IQ is necessary, but not sufficient for success – Mitchell Elegbe

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he Group Managing Director of Interswitch Group, Mitchell Elegbe, has said that although having a high intelligence quotient (IQ) is necessary, IQ alone is not enough to make headway in life.

Elegbe stated that emotional intelligence has become a necessity in today’s world, explaining that many people are getting more interested in the ‘softer’ skills.

He was speaking on ‘Emotional Intelligence and Leadership Responsibility of Youths’ during the Masterclass of the 81 finalists of the InterswitchSPAK National Science Competition held in Lagos recently.

He said: “Emotional Quotient or Emotional Intelligence is very necessary in today’s world. What this means is that your high scores and academic brilliance might have gotten you this far but you need a lot more than that to be successful in life. The reason is that Nigeria continues to churn out highly intelligent people every day, but the only thing that will stand some one out in life is that extra quality. This is where emotional strength, which includes attitude, good character and so on, come into play.”

He admonished the students not to set expectations that are too high for them-

selves, explaining that when people fail to meet set expectations, dissatisfaction was inevitable.

He said: “If you come from a poor home, you are in a better position to see problems that need to be solved because those challenges are always around you. So, my advice is just be focused and be the best you can be.”

Other speakers at the event include: Yinka Sanni, MD / CEO Stanbic IBTC Holdings Plc, who noted that most of the wealthiest Nigerians made most of their money right here in the country. He said: “I hope you students will accept this challenge to generate ideas that will help the country solve real problems to improve lives. This country has real problems and social innovation starts with you seeing a specific problem and finding a solution to it.”

Eloho Omame, MD Endeavor Nigeria, challenged the students to start businesses that will grow and have high impact by providing employment

Oracle Agency augments nationwide operations with N300m investments

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n its quest to continue to play foremost role in the experiential marketing industry Oracle Experience, an experiential marketing company in sub-Saharan Africa, said it has made a N300 million investments in human capacity development and new equipment.

Other areas the agency has made investment in are regional operation upgrade, new Technovation drive and the establishment of what is known as Consumers Engagement Centre (CEC), which is an intelligence gathering and sharing Portal unit.

In a statement, the experiential marketing agency put part of the N300 million on Mobile solutions technology, lights, effects, rigging, sound , Light-Emitting Diode (LED screens and the CEC portal.

According to the agency, the investment in Mobile solutions using geo tagging system will make Nigeria operations becomes easy to monitor realtime.

On the nimbleness of the technology, Felix King, chief executive officer of the

agency said the application will help to authenticate field operations. With the system, we are able to verify field activities from our base station in Lagos. He further said that “the mobile solutions will help client increase field productivity and speed to market. With the system , it is easy for our client to measure productivity, POP compliance and shelf health, standardization, enforce adherence , yet flexible . The technology enables field force to capture data at source and field force activities visible in real-time”.

The App is developed by South African top agency.

For the regional operations, the agency creates additional functional operational hubs across the country to solve logistics challenges face by agencies on outstations activations, and to further bring experiences to consumers and create value for clients.

“With 7 regional operations, we have now increased regional operations to 12 functional local area operations” he said.

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Tuesday 04 September 2018

BRANDING Life Progress Booster – Brand’s way of pushing Igbo’s entrepreneurial culture industry

DANIEL OBI

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brand or business that cares for and brings about a good life for its consumers by building loyalty and garnering unflinching support through worthy empathy today surely plans for a desirable and rewarding future.

Such relationship becomes more interesting and successful if the consumer’s economic base is enhanced through the brand’s well designed innovative programmes and activities that resonate with the consumers.

The above aptly describes the relationship between Life Continental Lager Beer, a brand from the stable of Nigerian Breweries Plc, and its consumers across South East and South south states of Abia, Anambra, Enugu, Ebonyi, Imo, Delta and Rivers. A few of Life Beer innovative programmes perfectly designed to tickle consumers across the seven states listed above include the HiLife Fest and Life Progress Booster initiatives.

For four consecutive years, the brand has consistently executed these unique programmes in a bid to improve bonding with consumers, improve their economic base and boost business and economic well-being of the areas in general and ultimately the individual consumers and beneficiaries’ businesses.

Life Continental Beer HiLife Fest is about the promotion of highlife music, a genre specially loved and enjoyed in the South East and environs. This aligns with the brand’s desire to promote the cultural heritage of the Igbo people across the South east and beyond. The initiative

designed to promote Highlife music and cultural dances has been on since 2016 and the brand is committed to achieving a lot more.

“Hi-Life Fest is our way of paying homage to the cultural heritage of the Igbo people through Highlife music”, said Brand Portfolio Manager, Mainstream Lager and Stout Brands, Emmanuel Agu, adding that the brand understands the relevance of these classic tunes to the people here and we delight in bringing a full package music festival to our esteemed consumers through its unique experience.

Closely aligned, is the Life Continental Beer’s “Progress Booster” initiative. This programme, according to available records, has stood the test of time, recording outstanding success for four years. It is designed to support the people of the South-east, who have great and innovative business ideas to encourage the entrepreneurial spirit of the Igbo people.

The difference between the Life Continental Initiatives and other brand promotions activities is the fact that while majority of the promotions are sales inducements gimmicks, the Life Progress Booster’s primary concern is to cater for the consumers and ensure they succeed in their businesses. It is not tied to purchases or sales as condition for participation.

Life Continental Beer understands that the passion to succeed is the driving spirit of the Igbo people and the brand is part of that story of progress. Life Progress Booster promotion is a celebration of the essential Igbo spirit of industry, will to succeed, enterprise and passion in the world of business.

This project is, no doubt, a reinforcement of the heritage embedded in the Life

L-R: Ferdinand Ozoani, chief Technologist, Enugu State University, Enugu; Emmanuel Agu, portfolio manager, Mainstream Lager and Stout Brands, NB Plc; Martins Ezigbo, CEO, Four Seasons Bar and Restaurants, Onitsha; Michael Ndubuisi, A member of Customary Court Enugu; Rexanthony Anieke, asst. brand manager, Life Continental Lager Beer, NB Plc., at the media unveil of Life Progress Booster 2018 in Enugu.

Continental Lager Beer, its essence, connection and affinity with the people and heritage of South East.

In line with the brand’s growing tradition of availing its consumers’ economic empowerment, “Progress Booster” season four was unveiled last week in Enugu, precisely on August 26, 2018.

Speaking at the unveiling, the Brand Portfolio Manager, Mainstream Lager and Stout Brands, explained that like its previous editions, a consumer and interested participant needs to have a simple, viable, not necessarily outlandish business idea that he desires to take to the next level of success.

“Progress Booster is a programme with the sole aim of supporting the people of the South-East, who have innovative business ideas to encourage the entrepreneurial spirit of the people. We are excited by the success of

NIMN president challenges new members to demonstrate honesty in marketing

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resident of National Institute of Marketing of Nigeria, NIMN, has inducted new members in the body with Tony Agenmonmen, president of the institute challenging them to demonstrate honesty in marketing functions.

Recognising marketing as soul of any business, Agenmonmen who was represented at the induction by Femi Kolapo, the second vice president of the institute said

if marketing functions are carried out creditably and professionally, it can lift organisations and nations to greater positions.

He reminded them that marketing is the driver of world economies, promoting development, value.

In his presentation, Peter Oriavwote, who is vice chairman of Health and Managed Care Association of Nigeria told the new NIMN members derivable from mem-

bership of such professional body.

He listed the gains to include networking opportunities, career development, eligibility for discounts and seminars and annual conferences.

Oriavwote advised the members of NIMN to avoid any behaviour or activity that could bring the institute into disrepute. “Define your brand, maintain it and soar like the Eagle”

the previous three editions.

We are also ready to support another set of entrepreneurs, who will qualify through the business pitch this year, and we look forward to empowering other innovative business men and women”, Agu said.

While noting that “Life Progress Booster” is a platform for budding businessmen and women to present their proposals and transform their ideas to reality, Agu said that Progress Booster was initiated to raise more entrepreneurs and self-dependent individuals in South-east Nigeria.

A total of 25 entrepreneurs received cheques of N300, 000 each to grow their respective businesses during the Life Progress Booster event held in Enugu on Sunday evening. The beneficiaries drawn from the applicants interviewed and selected from Ebonyi and Enugu States included

11 women and 14 men. They were presented with the cheques by representatives of Nigerian Breweries Plc on Sunday, August 26, 2018 at the BLD Arena, Enugu, Enugu State.

Some of winners, including Okafor Victor expressed his gratitude to the Nigerian Breweries for the initiative “I am so happy for this gesture.

It is least expected especially from a Beer company.

I don’t believe companies give money without telling you to participate in a buy and win promotion. This is a total surprise. No collateral, no interest, and no refund…

I am so happy. Thank you.”

In her own remarks, Ify Nwamba Oguelina said “I am so happy; a friend whose uncle participated in the 2017 edition encouraged me to apply for the grant. I defended my business idea. Here I am with a Cheque of N300, 000 with no strings attached.

Thank you Life Beer.”

Some winners of past edition and their proposals include Eusebius Owusi (Cold Room Business Expansion); Stella Okechukwu (Hair Dressing Salon Establishment) and Felicia Emeh (Canteen Expansion). Others are Augustine Okoli (Household & Furniture Welder); Tuvia Kings Enterprises (Creative Fashion Designer and Prints); and Anyachukwu Donatus (Food Condiments Processing).

Stella, a hairdresser, who won in the 2016 edition and has been a stylist in Onitsha for almost 6 years for lack of fund, said she has been able to open her own shop and now operates independently thanks to the Progress Booster fund.

Like Stella, another beneficiary, Donatus was full of appreciation to Life Continental Beer and Nigerian Breweries Plc. He confirmed he has deployed the fund to positively impact on his food condiments business.

“We injected the money into the business for expansion as we had, hitherto, found it difficult to widen the scope of operation before the winning provided a Booster”.

Unlike the previous editions, no radio show is involved. Interested participants only need to pick and fill the entry forms. Shortlisted candidates will proceed to pitch their existing business that needs more funding to a team of three experts and beneficiaries will win a grant the catchment zone Life Continental Lager Beer is a beer from the stables of Nigerian Breweries Plc made from the choicest grains, hops and the purest of waters. It is brewed to give that rich, crisp distinctive taste and well-rounded aroma in true quality fashion of the master brewers.

GEM re-states support for ICT industry

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CT has been identified globally as one of the fastest growing industry. A number of statistics attest to the fact that the industry will continue to grow in the foreseeable future and will continue to be a major employer of labor. In recognition of this, GEM put up a “Call For Proposal” to support Innovation hubs which are known to act as market enablers, providing the necessary support and

facilitation needed to spark and accelerate innovative ideas and business models.

The Project, according to GEM aims to disburse up to US$500,000 support to 6 MSMEs (each) across the 6 geopolitical zones.

“The Call For Proposal closed in May 28, 2017, when two MSMEs from the South West and North Central emerged as winners having successfully met the eligibility criteria and demanded conditions.

Funds has been disbursed to them based on agreed signed terms of the Grant memo”, GEM said. In order to ensure adequate coverage of all geo-political zones of the country another Call for Proposal was advertised, entries are currently being marked and processed for subsequent support. It is expected that at least 2,000 direct jobs, and income will be created through this support by end of 2018, GEM further said.

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ADB pushes for strategic partnership, investment in Africa at the Netherlands Modestus Anaesoronye

At a meeting with Sigrid A.M. Kaag, minister for Foreign Trade and Development Cooperation, in the Hague,

on 29 August, Adesina spoke about investing in Africa and commended the Netherlands for its support, which has extended to legal systems, water, food and nutrition, and gender. He also congratulated the government for its

L-R: Kevin Moore, FCSI director, Chartered Institute for Securities & Investment (CISI) U.K; Uche Olowu, FCIB, president/chairman of Council, Chartered Institute Of Bankers Of Nigeria (CIBN); Simon Culhane, FCSI chief executive, CISI U.K; Seye Awojobi , FCIB, registrar/CEO, CIBN, at the agreement signing ceremony between CIBN and CISI U.K. in London.

Development Policy, which emphasizes global fragility, gender and climate.

“Africa is growing economically. Foreign direct investment is on the increase.

This is due to political stability and improved governance.

Africa is open and ready to do business,” Adesina said.

Kaag said the adoption of renewable energy by a growing number of African countries was a key element to reducing fragility of countries and to fighting climate change and said this aligned closely with her government’s policy.

“I am happy to see where we can work together on gender, fragility, and conflict prevention in countries in Africa”, the Minister said.

Making a similar point, Peter van Mierlo, chief executive officer of the Netherlands Development Finance Company (FMO), called for greater harmonization between the work of FMO and the Bank in the area of energy, agriculture and institutional investment.

President Adesina met with him and other officials, the same day.

“A benefit for Africa is that it can skip development cycles that often developed

Experts see pension assets growing faster with stronger economy, more employments

countries had to go through”, Mierlo said.

Commercial banks are withdrawing from trade finance and as such FMO and African Development Bank would be able to work jointly in boosting trade financing, Mierlo said. Currently, joint projects between FMO and the Bank are estimated at US$ 55 million.

Addressing a High-level Roundtable with Dutch Business Leaders, hosted at Netherlands Enterprise Agency (RVO), on 29 August, Adesina presented the Africa Investment Forum (AIF), the Bank’s innovative marketplace scheduled for 7-9 November in Johannesburg, South Africa. The AIF will bring together project sponsors, lenders, fund managers and investors, to attract investment and capital for development, projects in Africa.

“Our role is to mobilise capital for Africa. We have done this through the High 5 Agenda. In the energy sector, the African Development Bank is investing US$12 billion over the next 5 years, with the goal of leveraging US$4050 billion. The Bank will also be investing US$ 24 billion,

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xperts in the economy says the nation’s pension fund assets will grow faster and bigger when the economy activity increases with new employment opportunities.

The experts were reacting a 21 percent (year-on-year) rise in pension assets fund as a result of economic recovery from recession.

According to the recently released National Bureau of Statistics (NBS) pension assets report, the assets fund rose by 21 percent to N8.23 trillion in the second quarter (Q2) of 2018 from N6.84 trillion in Q2 2017 Johnson Chukwu, a chief executive officer at Cowry Asset Management Limited said ,“The growth of the fund is tied to the health of the

economy. If the economy recovers fully and more employment opportunities created or employment levels improve and as long as the contributions keeps growing, then you should expect an increase in the asset growth rate because more companies will employ and more contributions will be made.”

Also from the NBS report, the number of workers registered under the pension scheme increased by 7.2 percent to 8.14 million in Q2 2018 from 7.59 million in Q2 2017 Pension funds’ assets are assets bought with the contributions to a pension plan for the exclusive purpose of financing pension plan benefits.

Nigeria, which is Africa’s biggest producer of crude oil, went into recession for the first time in 25 years in the first quarter of 2016 as the oil

price slump began to bite and violence by militants in the Niger Delta worsened the situation but the country came out of recession last year as the oil prices recovered Unemployment, however, is still high. It hit 18.8 per cent in Q3 of last year, according to NBS According to Financial Times (FT), an English-language international daily newspaper, Nigeria launched a national contributory pension scheme after its 2004 Pension Reform Act. Companies with three employees or more are required to participate, with worker and employer both putting in 7.5 per cent of the employee’s salary. In 2014, the total contribution was raised to 18 per cent, of which employers contribute 10 per cent.

But despite the increase in

assets fund, the biggest challenge faced by the National Pension Commission (PenCom) is to increase enrolment levels.

“The low rate is blamed on the large number of people working informally, primarily as labourers or subsistence farmers. Tackling pension provision for such workers is, says Wale Okunrinboye, head of investment research at Sigma Pensions said to FT in an interview In order to address the low enrolment levels, PenCom in April announced plans to launch a “micro pension” scheme, under which people not covered by the main scheme will be able to make whatever contribution they can as often as they can – even daily. Its target is for 30 per cent of workers to have pension savings by 2024.

over ten years, in agriculture to implement its Feed Africa Strategy,” Adesina said, Susan Shannon, Vice President for Government Relations, Policy & International Organisations for Shell, who was present at the meeting, said the move towards cleaner and renewable energy in African countries had resulted in a higher level of engagement by the oil giant on the continent.

“Shell can work with the African Development Bank to expand access to energy in Africa”, Shannon said.

On 30 August in Wageningen, at the Sustainable Development Goal Conference, Adesina repeated the Bank’s call to end hunger on the continent.

“What Africa does with agriculture will determine the future of food in the world”, he said. “The greatest agenda we have is how to unlock Africa’s agricultural potential. If Africa can get the right technology to raise productivity, transform its savannahs, turn agriculture into a business and address the issue of nutrition.

Africa can feed itself in 10 years and contribute to feeding the world in the years to come.”

Aimart Realtors offers investment opportunities in real estate Hope Moses-Ashike

BUNMI BAILEY

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Global games market to generate $180bn revenue in 2021

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

frican Development Bank has taken the case for expanded partnerships and investments in Africa to the Netherlands. On a three-day visit last week, Akinwumi Adesina, president of the African Development Bank met with government officials and private and public sector business leaders and affirmed the accord between the Bank and the Dutch government’s development agendas and foreign policy.

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n what seems to be cheering news for millions of Nigerians who seek to own and live in their own homes, Aimart Realtors, a fast growing property company with head quarters in Lagos, is offering investment opportunities in real estate across the country.

Martins Iluyomade, managing director, at a recent press conference, called on Nigerians to take advantage of their various family-oriented packages and invest in worry free homes.

Speaking further, Iluyomade disclosed that parts of the benefits of investing with Aimart Realtors include easy payment option, transport processes for paper work, quick appreciation of property value, deed of assignment, prompt allocation of property, provision for easy inspection of property, constant and credible informa-

tion, fantastic layout, easy access to major highways as well as beautiful landscaping.

“Aside these benefits, our key features include serene environment, potable drinking water, proper drainage, central and dedicated electricity, kiddies park and playground, excellent road network and provision of sports facilities.

Currently, we are offering a variety of property options to individuals and corporate organisations with flexible payment plan to enable everyone become house owners and investors,” he said.

Shedding more light, the executive director of Aimart Realtors, Bukola Iluyomade, stated that the company’s vision is to be a one-stop solution in global real estate business.

“We are equally poised to provide precise, accurate and affordable real estate services that guarantee human dignity, wealth creation and preservation for our esteemed customers.

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COMPANIES & MARKETS Global games market to generate $180bn revenue in 2021 Jonathan Aderoju

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ewzoo has recently celebrated its five years of esports research, after recently publishing consumer-centric esports predictions for 2021.

The company has made yet another business prediction for the year 2021.

According to Newzoo research esports will help gaming grow into a bigger industry than traditional professional sports.

Gaming as a whole including esports is already on track to become a bigger industry than traditional professional sports.

It is also projected that the global games market will generate revenues of $180 billion by 2021, and esports will be a major driver of this, with many brands investing in esports to appeal to younger demographics.

As more companies begin to get involved and consumers spend more time watching esports content outside of the competitions themselves, esports will generate much growth within the global games industry.

According to the research various U.S. media conglomerates such as Disney, Comcast, and AT&T are already looking into content rights for esports.

As these companies look to entice younger consumers, they will become even more active in the scene.

It is expected that these

companies will not only feature esports on their linear media platforms as seen with the over watch League on Disney XD but also on non-linear livestreaming platforms, such as Disney’s upcoming streaming service. It also has been projected that by 2021 the term esports will start to disappear.

As games continue to develop, the audience and ultimately the industry at large will grow, too.

Also, as the differences between individual esports games will increase, and the use of the term “esports” will decrease.

Also the highest earning team will generate over $10 million in gross revenue.

Teams are at the center of the esports industry and are the main driver of fan engagement.

Their attractiveness to sponsors as well as the recent trend of increased revenue sharing

L-R: Kingsley Okafor, area sales manager, NB Plc; Okwari Anne E, grant beneficiary; Rexanthony Anieke, assistant brand manager, Life Continental Lager Beer, NB Plc, and Hilary Oboh, regional trade marketing manager, NB Plc, presenting grant to beneficiary at the Life Progress Booster 2018 in Enugu.

Center4Tech discovers technology talents among Nigerian youths Modestus Anaesoronye

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he 2018 Edition of Young Inventors Technology Expo held in Lagos weekend was the peak of a talent discovery among Nigerian youths, which according to observers has given a hope that Nigerian could compete with the rest of the world if the opportunity is created for young people to express their selves.

The event with the theme ‘The Role of Young People in the Development of Technology in Africa’ organised

by Center for technology (Center4Tech) held at the Naval Dockyard in Victoria Island, Lagos brought together young people of primary and secondary school age, who displayed talents in different aspects of technology.

Young Inventors Tech

between leagues and game publishers will ultimately lead to increased revenue growth.

What’s more, if teams can further grow their fan bases and merchandising offerings, revenues will increase even more.

In the coming years, it is expected that the team that generates the most revenue from sponsorships, media rights, and merchandise to gross over $10 million.

Expo is a yearly event that started in 2016. The Expo is a one-day event designed to bring together pupils and students of primary and secondary schools across the country to showcase and exhibit their tech projects, solutions and invention while wining prizes and scholarships in different categories.

The aim is to support Nigerian children to innovate by catching them young, while grooming them to become the next generation of Inventors who will startup invention and technologybased companies thereby creating jobs for themselves and others, and ultimately reducing poverty and unemployment in our country and our continent.

The Tech Expo is the climax of a one month training. ingenuity.

Mike Mbon, co-founder, Center for technology (Center4Tech) said the vision to institute this was born out

of the desire to provide opportunity and platform to the youth to acquire knowledge while going through a comprehensive training by experts, and also to ensure that the youngsters put their long vacation to gainful activities.

He said it has been discovered that technology experts across the world started learning at young age, so it has become imperative that for Nigeria to grow technology we have to build found from childhood.

He expressed gratitude to all stakeholders that have contributed to the success of this event for the past three years and encouraged them to continue to identify with this laudable project.

This laudable programme which has been running for over 3years now has continued to gain relevance and recognition across the technology stakeholders, the government and corporation organizations.

NIPOST launches ‘DAS’ to tackle address verification challenge in e-commerce industry MICHEAL ANI

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he Nigerian Postal Service (NIPOST) has launched a Digital Addressing System (DAS) to ensure effective customer identity verification as well as facilitate activities in E-commerce industry.

Speaking at the launching ceremony that took place in Lagos, Adebisi Adegbuyi, Postmaster General of the Federation, said the organisation was mindful of the importance of ‘address verification’ in the quest for national development, hence the need to carry out the project, as it would help to revolutionize the way business of courier and e-commerce are conducted and solve the problem of insecurity in the country.

“The government has seen the need for a proper address verification system and has come up with a design that will ensure that we know where everybody lives,” “The service is capable of assisting the country in the fight against terrorism because terrorists are not spirits, they live somewhere”, he said.

So, if we know where they live by virtue of the technology we are going to deplore, it simply means we know where you are and you cannot cause us any harm.’’ Adegbuyi said.

According to him, NIPOST is partnering with critical other agencies like Nigeria Identity Management Commission (NIMC), Federal Road Safety Commission (FRSC), Nigerian Communications Commis-

sion (NCC) and banks, on the project in ensuring that crimes committed under anonymity becomes thing in the past.

On his part, Adebayo Shittu, Minister of Communications said ‘the DAS is a game changer not just to the E-commerce industry alone but to the country at large and will help in the repositioning of NIPOST as a top revenue generating and impactful government agency within the next two years.

“I can say confidently that with the multifaceted reforms that we are bringing on board, NIPOST would be number one leading government agency with the most impactful influence on every Nigerian.

“As of today, those in the forefront of bringing large money into Federal Government’s coffers are the Customs, FIRS, NNPC and a few others, but that will change in the next two years,”Shittu said.

The E-commerce has been in focus of the Universal Postal Union (UPU) working groups for many years. The World Custom Organisation has also not relented in her drive to ensure that new modalities are established to cope with the emerging trends. However, there are many barriers to the growth of cross-border e-commerce, such as complexity of the postal product offering, lack of adequate infrastructure support, and out-dated and inefficient postal–customs–transport processes, the security challenges, high cost of doing business, lack of collaboration between stakeholders.

Total E&P boosts local economy with soap factory in A/Ibom ANIEFIOK UDONQUAK, Uyo

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s par t of effor ts to boost the local economy, Total E &P, an oil producing company has laid the foundation stone of a N40 million soap factory in Ekpene Ukim, Uruan local government area of Akwa Ibom State.

The groundbreaking event which attracted top government officials, oil company executives and members of the traditional institution is an initiative of the business and enterprise development unit of company.

Francois Le-Cocq, deputy managing director, Port Harcourt district of the company said the project was not part of any Memorandum of Understanding (MoU) adding that it is the belief of the company that the factory would go a long way to engineer further development of the local economy in a sustainable

manner.

Le Co-cocq said the business and enterprise development unit of the company has the mandate to identity, nurture and grow business in the local communities outside contract driven activities in the oil and gas industry.

“Our belief is that by engaging our people in these activities, they will grow and be able to sustain themselves beyond oil and gas,’’ he said.

Represented by Marcel Ukwu, senior advisor, community development, the deputy managing director described soap as an everyday utility item used by every household which is required on a daily basis adding that the factory when completed would create 48 direct jobs and more than 100 indirect employment opportunities.

“We will continue to work towards the creation and support for small and medium sized self sustaining opportu-

nities in our local communities as they are the bedrock for future growth,’’ he said.

He urged all to be involved in the project to enable it realise its potentials that would be of mutual benefit to the people.

In his remarks, Oman Esin, the commissioner for transport and petroleum resources thanked the company for establishing the factory in the state and reiterated the determination of the state government to support the growth of small and medium scale businesses.

The commissioner who described the project as life touching urged the company to ensure that international best practices are adopted in the factory to ensure a healthy and sustainable production and urged other oil companies operating in the state to emulate the example set by Total E&P by setting up more factories to address youth unemployment in the state.

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COMPANIES & MARKETS NISER tasks FG to give priority attention to rural electrification projects Akinremi Feyisipo, Ibadan.

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he Nigerian Institute of Social and Economic Research (NISER), Ibadan, has tasked the Federal Government to give more impetus to the rural electrification projects across the country to promote rural industrialization and curb rural-urban drift.

In a survey conducted across the six geo-political zones and the Federal Capital Territory (FCT) also called for differential tariff regimes between the rural and urban areas “to cushion the effects of electricity expenditure on non-food expenditures”.

A research fellow in the Institute’s Department of Agriculture and Food Policy, Femi Ogundele who presented the findings insisted on the need by the authorities to “exercise caution on the extent to which tariff on electricity can be increased as households do not adjust electricity expenditure

upward proportionately to increase in tariff.”

Presenting the findings of the national survey while delivering the monthly NISER Research Seminar lecture in Ibadan ,said “as such, drastic increase in tariff may not immediately generate the expected result in terms of raising the revenue of the distribution companies,”.

According to him, it is important that electricity supply should reach the minimum daily average of 10 hours considered as satisfactory by households before any tariff adjustment.

“The spatial analysis of electricity consumption across the country indicated three main sources: public, private and self generated with 95 per cent relying on public source except in the South East where about 40 per cent of the households depend on private source. Average daily supply was 7 hours and 4 days per week.

Spatial variation exist in billing mode with prepaid

system predominates in FCT and most urban cities while estimated billing was common in rural areas. Average monthly billing hovers around N3000 but contrary to expectation, households with estimated billing pay less than their prepaid counterparts. Expenditure analysts showed that total monthly expenditure on electricity accounted for about 10 per cent of the total monthly expenditure and 15 per cent of non-food expenditure which is higher for rural areas (26%).

The reliability of electricity from public source was put into question yet, 97 per cent of households will be willing to accommodate a tariff mark-up to the tune of 28 per cent provided daily supply can reach a minimum of 10 hours.”

In the lecture titled “Electricity Consumption and Households Welfare Effects in Nigeria”, Ogundele advocated massive procurement and deployment of Prepaid Meter to ensure equitable justice in electricity charges.

Business Event

L-R: Daniel Chimezie Okeke (Omereoha), APC chieftain and chairman/CEO Swiss Spirit Hotel Danag Port Harcourt, and Orji Uzor Kalu, former governor of Abia State/ APC Leader, South -East Zone, at the Flags Off 5KM NDDC Road in Ututu in Arochukwu LGA Abia State/Grand Reception in Honour of Orji Kalu by the Ututu Community.

Ecobank launches ‘Emerald Business’ Club

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cobank Nigeria has launched its ‘Emerald Business Club,’ an electronic platform aimed at offering convenience, accessible banking services especially to small and medium size enterprises, local corporates and various clients in the commercial sector. The initiative was launched in Lagos last week.

Charles Kie, the outgoing managing director, Ecobank Nigeria, explained that the new product was for its commercial clients as well as well as to support the SME sub sector, stating that the bank wants to bond with its customers, giving them access to markets, finance and development partners such as the Bank of Industry (BoI).

According to him, “We believe we have a responsibility in providing them with solutions that would help them take care of their businesses in an efficient and cost-effective ways. We made these solutions available to our customers to enable easy and

fast payment, to enable speed in connections for transactions between customers and their merchants. We are providing them with the framework in which they can also interact with us.”

He explained that “For this reason, we have resolved to expand our scope in our Commercial Banking Businesses and have designed a wide range of products specifically tailored to meet the needs of target customers largely local corporate, SMEs and Key Public Sector participants. We have also developed a number of initiatives to support trade business and lending to our target customers. We are willing to work with the peculiarities of each customer’s business so as to grow the economy. In the same vein, The Emerald Business Club is being proposed as an implementation platform for this Ecobank focus approach.”.

Kie maintained that “Our pan African Footprint has consistently provided a strong platform for us to support trade and business

growth across Africa. No other bank is better placed to serve you better than Ecobank. The bank is once again offering an amazing opportunity via the ‘Ecobank Emerald Business Club; our commercial bank customers who have been loyal now have an exciting time ahead of them.”

Rotimi Morohunfola, head, Commercial Banking, Ecobank Nigeria stated the need to make its customers have a competitive edge.

According to him, “We are launching this platform which we think is beneficial to our customers and of course would bring significant impact to their businesses. “For our commercial clients, we have set out an Emerald Club and the whole idea is to better bond with our customers, give them information about business opportunities across Africa. It would also provide access to markets, finance in partnership with Development Bank of Nigeria (DBN), BoI and Ikooba Technologies.”

L-R: Chigoziri Charles, regional administrator, enterprise business Unit, MTN Nigeria; Anthony Jesugbamila, MTN-Google training beneficiary; Bridget Enuma, pricing manager, enterprise business unit, MTN Nigeria, and Daniel Chinagozi, Google Digital skill trainer for haptics, at the MTN-Google Digital Marketing Training in Port Harcourt.

Young investors displaying their technology inventions at The 2018 Edition of Young Inventors Technology Expo organised

by Center for technology (Center4Tech) at the Naval Dockyard in Victoria Island

US Ambassador, Wigwe to speak at Financial Nigeria’s Colloquium DIPO OLADEHINDE

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.S. Ambassador to Nigeria, Stuart Symington, CEO of Access Bank Plc, Herbert Wigwe, and other top dignitaries are expected to be part of a colloquium organised by Financial Nigeria magazine.

The colloquium which is organised in celebration of Financial Nigeria magazine’s 10th anniversary will have a high panel discussion on the strategies for trade, fiscal sustainability,

human development and external relations under the theme “Nigeria’s Sustainable Development Agenda”.

“At the 10th anniversary of our publication, we want to advance the debate of the priority policy goals for achieving sustainable economic development in Nigeria,” said Jide Akintunde, founder and managing editor of the magazine.

Akintunde disclosed that the discussion was stifled amid growing evidence that the country’s development priority may be sub-optimal.

The colloquium scheduled to hold on Tuesday, September 11th, 2018 in Abuja will also have two keynote addresses which will be delivered by Muhammad Ali Pate, a global health expert and former Nigerian Minister of State for Health; and Arshad Rab, a renowned development thinker and CEO of the European Organisation for Sustainable Development.

“We now want to re-ignite the debate in a way that is positive for development in Nigeria,” Akintunde said.

Isoken Omo, executive chairman, Edo Development and Property Agency (EDPA), (right); Osaze Osemwingie-Ero, commissioner for ars, culture, tourism and diaspora, (3rd right); Anselm Ojezua, chairman, Edo State Chapter of All Progressives Congress (APC), (4th right); Osaro Idah, special adviser to Edo State Governor on Political Matters, (5th right), and other guests at the 27th series of the Edo National Association Worldwide (ENAW) Convention holding in Toronto, Canada

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Dana Air adds Boeing 737- 700 aircraft to fleet ...To commence ‘early bird’’ service from Abuja on 10th September Ifeoma Okeke

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s part its ongoing partnership with Asky, Dana Air has introduced a Boeing 737-700 aircraft with 118 seats to its fleet to operate its ‘early bird’ flights between Lagos and Abuja from 10th September, 2018.

The airline, in a statement by Kingsley Ezenwa, its media and communications manager, said “we are pleased to announce the commencement of our ‘early bird’ flights from Abuja to Lagos on 10th of September, 2018. The service will be operated using a Boeing 737-700 aircraft from our partners Asky.

“The introduction of the Boeing 737-700 aircraft is part of our ongoing partnership with Asky airlines and it will operate two daily flights from Abuja to Lagos at 7.02hours and 16.11hrs and a return service from Lagos to Abuja at 8.55hrs and 18.03hrs. ‘’Our guests can now rely on us for multiple flights between Lagos and Abuja, and can now visit Abuja or Lagos very early and return conveniently from both destinations to the warm embrace of their families.’’

Ezenwa said the early bird service was in response to the yearning of its esteemed guests who have continually requested for an efficient early morning flight option from Abuja to Lagos and the flights have been timed conveniently for its guests “We are glad to have been able

to review our service to meet the demands of our teeming guests and we are also excited to announce the addition of a Boeing 737-700 aircraft from our partners Asky to our fleet.

Our route and fleet expansion plan is still on course and we are committed to maintaining our operational efficiency by providing seamless and world-class services to at all times.’’

According to Ezenwa, the addition of the B737-700 aircraft to operate its newly- introduced flights between Abuja and Lagos shows the airline’s commitment to providing its guests more options, convenient timings and more comfort.

Dana Air is one Nigeria’s leading airlines with daily flights from Lagos to Abuja, Port Harcourt, Uyo and Owerri.

Aero increases fleet, expands operations Ifeoma Okeke

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igeria’s oldest airline, Aero Contractors has expanded operations with the delivery of more aircraft

in its fleet.

According to a statement from the airline, signed by its management, Aero Contractors has increased frequencies to Abuja from Port Harcourt, Sokoto, Asaba, Port Harcourt and Kano from Lagos.

The airline said with the increase in the number of aircraft, it has increased its flight schedule and that from September 17 2018, it would increase its Abuja-Port Harcourt-Abuja, which is now daily flight.

The airline also operates three daily flights on the Lagos-Abuja-Lagos route and Lagos-Port Harcourt flights from three times weekly to daily flights.

It has also increased its LagosKano flights, which presently is five times a week, by adding another flight on Sundays. As such, from the above date it would be operating six times weekly to Kano from Lagos.

From September 15, 2018, Aero will increase its flights from Lagos to

Asaba, which is presently six times weekly to daily flights.

The airline explained that it operates Lagos-Asaba-Abuja-Lagos flights six times a week but has added another flight on Saturdays, scheduled for Lagos-Asaba-Lagos only.

Aero operates daily Lagos-Warri flights and may in the nearest future add another frequency to fly twice a day for select days.

The newly expanded schedule is as follows: Abuja-Port HarcourtAbuja (daily flights); Lagos-Port Harcourt-Lagos (daily flights MonSun and twice daily Wednesday, Saturday, and Sun); Lagos-AbujaLagos (thrice daily weekdays and twice daily weekends); the introduction of Sunday flights on LagosKano-Lagos and the introduction of Saturday flights on Lagos-AsabaLagos.

Passengers can also know the airline’s flight update at www.flyaero. com for more information.

The airline said it was able to step up its operations because it has increased the number of aircraft in its fleet, so it now has two Boeing B737-500 series, Boeing B737-400 series (which would be rolled off Ccheck next week) and Bombardier Dash 8-300 series.

Aero has added the AW 139 Helicopter to its fleet. As such it now has AW 139 and AS 365 which are fully operational.

“We have expanded our schedule because we have additional aircraft and we are also expecting more.

When we deliver more aircraft, we will increase our destinations.

What we have done largely now is to increase our frequencies as we increased capacity,” Aero management said.

The company also said the rotary wing of the airline is currently doing well “because we have deployed our helicopters to service in the oil and gas activities and we hope to add more helicopters soon.”

Aero Contractors has experienced a resurgence within the last two years with the expansion of its maintenance facility, which enabled it to conduct C-checks on Boeing B737 classics after it was certified and given approval by the Nigerian Civil Aviation Authority (NCAA).

With the expansion of its maintenance facility and training of its personnel to be able to conduct c-check on Boeing B737 Classics, Aero started a revamp under the management of Captain Ado Sanusi, the company’s CEO.

How digital distraction can increase aeronautic revenue - PwC Jonathan Aderoju

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any airports continue to invest heavily in technology and terminal infrastructure upgrades.

But while this in most cases will have the desired effect and lead to happier customers, it can also be a capitalintensive exercise.

Not to mention the difficulty airports face in making experiences truly seamless in an industry that is heavily regulated.

Airports are becoming progressively privatised and need to grow both aeronautical and non-aeronautical revenue in a sustainable way.

There are no suggestions that airports should end investment in service innovation, but rather consider an alternative and less costly approach to the common view that airports need to offer a continuous experience in order to improve passenger satisfaction.

Aeronautical revenue is still an airport’s most significant revenue stream and on average makes up 56 percent of overall revenue.

However, aeronautical charges are generally regulated, meaning airports

can only drive this revenue stream through volume, such as encouraging more, larger aircraft to land, which can be difficult, given capacity constraints at both airports and airlines.

Airports are becoming heavily reliant on growing non-aeronautical revenue derived from the commercial dealings of the airport for example, car parking, retail and property which on average comprise 39.4 percent of its revenue stream.

According to a report by Airports Council International, a 1 percent increase in passenger satisfaction leads to a 1.5 percent lift in nonaeronautical revenue.

This therefore means that a happier passenger can actually drive this revenue stream and airport’s profitability.

According to the Economist Intelligence Unit, it has been found that 78 percent of passengers expressed a strong preference to spend less time there. However, airports, airlines and regulators will want travelers to spend as much time as possible at the airport for processing.

Whereas digital innovations can allow customers be processed quicker, it leads to extra free time inside the terminal.

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Samsung pushes for mobile market dominance with new Galaxy Note9 Stories by JUMOKE AKIYODE-LAWANSON

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amsung is said to be causing a shakeup in Nigeria’s mobile market, as it launched its newest flagship smartphone, the Galaxy Note9 with never before seen innovative features and aesthetically appealing modifications into the market on Friday August 31, 2018.

Powered by game changing technology set to revolutionise the functionalities of a phablet such as the state-of-the-art S Pen and a never before integrated intelligent camera, Samsung Galaxy Note9 packs a punch so strong, its relevance to the brand’s ever evolving consumers cannot be denied.

Speaking at the launch of the Note9, Jingak Chung, managing director, Samsung Electronics West Africa, said the Note9 has raised the bar for smartphones considerably as it has exceeded all expectations and Nigerians are about to experience a new level of performance and power they will not be able to do without.

“The Galaxy Note9 is a revolutionary smartphone that delivers the ultimate in performance; a new S Pen with connectivity for the first time ever; and Samsung’s most intelligent camera yet. These are just some of the features that will allow users to do so much more. An all day, longer lasting battery is just another reason why. Users can now

L-R: Olumide Ojo, director, Information technology & mobile (IM); Jingak Chung, managing director; Awomodu Olugbenga, marketing manager, all of Samsung Electronics West Africa and Bankole Wellington, Samsung ambassador/host during the launch of Samsung Galaxy Note9 into the Nigerian market at Samsung experience store, Ikeja City Mall, Lagos on the 31st of August 2018.

talk, message, play games and watch movies for as long as they desire. The Galaxy Note9 is bigger, better and so much stronger. For business or play, it’s a game changer,” Jingak said.

What stands the Galaxy Note9 head and shoulders above all other hand-held devices is the creativity, innovation and a burning desire to match and exceed consumer needs in the world of mobile technology.

While speaking on the functionality of the phone, Olumide Ojo, director, information technology & mobile (IM), Samsung Electronics West Africa, explained that a lot of thought had gone into the creation

of the Note9, a fascinating addition to the Galaxy family specifically crafted for the busy exec.

“The S Pen is just one of the ways we have modified our consumer’s user experience. From a classic portable and functional design to a sleek multifaceted power tool, the pen-like device now features a Bluetooth chip that allows the pen function aside of its natural form. With the S Pen, consumers can change slides during presentations, activate their cameras or skip songs on their playlists. The S Pen is truly a modern day magic wand,” Ojo said.

The Samsung Galaxy Note9

builds on Samsung’s industry-leading camera technologies with new capabilities that use intelligence to identify elements of a photo, such as scene and subject, and adapt accordingly. It can even detect flaws in images to ensure users capture those precious moments exactly how the intended.

With the Samsung Dex, users can effortlessly connect to a monitor with an easy to carry HDMI adaptor, which means they instantly have a big screen, a full-size keyboard and a mouse.

The 6.4-inch Super Amoled Infinity Display provides a truly im-

mersive multimedia experience as it is the largest edge-to-edge display ever seen on a note. The Samsung Galaxy Note9’s Infinity Display is complemented with stereo speakers, which are tuned by AKG, and have the ability to deliver Dolby Atmos® immersive sound for an audio adventure like no other.

The Galaxy Note 9 is available in Midnight Black, and Metallic Copper with matching S Pen, or Ocean Blue with a Yellow S Pen. To celebrate the launch in Nigeria, Samsung has stated that the first customers to purchase the Note9 will get a limited pre-order gifts valued at over NGN 50,000. This welcome pack includes a wireless charger for convenient, fast charging during those heavy-use days; a tripod for S-Pen selfies on which users can effortlessly set up their devices to capture a moment, while the S-Pen does the rest; and the ultra-convenient DeX HDMI cable.

In addition, customers will receive a Protective Dome Glass. Packed with innovative features and additional gifts, the Note9 is a device you will definitely want to get your hands on.

To purchase the device, customers can visit the network providers, MTN, Airtel, 9Mobile and Glo; Samsung Experience Stores, and select retail partners nationwide. Customers are encouraged to purchase their Galaxy Note 9 only in Nigeria and only from authorised dealers so they can enjoy a 24-month warranty.

PoS innovation summit to expand retail merchants’ possibilities

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igerian banks and electronic payment service providers are gearing up for the 3rd quarter edition of the Point of Sale (PoS) Innovation Summit, an event which drives innovation in the cashless payment sector.

This edition, with the theme “Expanding Retail Merchants’ Possibilities” will highlight the various opportunities available to retail merchants for payment processing in light of the various ingenious solutions being rolled-out almost on

a daily basis.

Global Accelerex Ltd, the organisers of the event revealed in a statement that the Committee of eBusiness Industry Heads (CeBIH) of all banks operating in the country, has thrown its weight behind this essential platform, as co-hosts.

Stanley Jacob, the newly-elected CeBIH Chairman has expressed delight at the opportunity to partner with Global Accelerex, a leading payment terminal service provider on this edition of the Summit.

“Global Accelerex has been

spearheading the move to improve service delivery in the PoS business sector and CeBIH is thrilled to be in this collaboration that provides an avenue where critical discussions are encouraged for the progress of our industry,” Jacob said.

The global financial sector has witnessed a great deal of disruption which has resulted in a total turnaround in how payments are made.

The Nigerian payment system has also evolved, and this has been accelerated by the introduction of a plethora of products and services

by payment solution service providers that facilitate payments in the most unconventional ways through QR Codes, PoS terminals, mobile phone numbers, social media platforms and Near Field Communication.

Commenting on the theme of the Summit, Tunde Ogungbade, Managing Director of Global Accelerex stated that the summit has proven to be an avenue for strategic deliberation that culminates into innovative e-payment products and believes that “this edition will

open a new phase of growth in the Nigerian e-payment sector with more comprehensive technology capabilities that will bring more value to merchants and improve the overall customer experience”.

Leading payment technology experts, Masood Sheik, Head, Business Development & Strategy, Primeauth, India and Tosin Eniolorunda, CEO, TeamApt have been confirmed as keynote speakers for the event scheduled to hold at the Wheatbaker, Ikoyi Lagos on September 19, 2018.

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BDTECH

E-mail: jumoke.akiyode@businessdayonline.com

NCC, Defence Academy to deploy technology for military capacity building Stories by JUMOKE AKIYODE-LAWANSON

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onscious of the realities that military battles no longer depend on weapons alone but on technology, the Nigerian Communications Commission (NCC) and the Nigerian Defence Academy (NDA) rose from talks at the weekend with a firm commitment to collaborate on boosting the NDA with high profile technology.

Umar Garbar Danbatta, the executive vice chairman (EVC) of NCC, who held talks with major general Adeniyi Oyebade, the Commandant, NDA, at the NCC Headquarters, Abuja told his guests from NDA including Academy Provost, Azubuike Nwankwo; Director of ICT, Air commodore A. S. Bulus; Dean of Military Science, F. N. Oguleka; Registrar, I. M. Jallo among others that his experience as a visiting Professor to the NDA shows that “The NDA University has the tradition of military precision and strict adherence to timelines on academic activities, but not

L- R : Azubuike Nwankwo, provost, Nigerian Defence Academy (NDA); Adeniyi Oyebade, commandant, Nigerian Defence Academy (NDA); Umar Garba Danbatta, executive vice chairman/CEO, Nigerian Communications Commission (NCC) during the courtesy visit to NCC Abuja recently.

exempted from checks and balances.”

Danbatta, a professor of telecommunications engineering told his guests that “intervening in boosting NDA technology infrastructure is to ensure the future of our country”, adding that NCC will also assist in boosting cybersecurity programs of the academy.

He said although NCC had deployed and built two computer laboratories and optic fibre links for the two campuses in Kaduna through the Commission’s Advance Digital Awareness Program for Tertiary Institutions (ADAPTI), Danbatta assured the visitors of NCC’s readiness to collaborate with the management to make

NDA a world class institution.

Earlier, the Commandant of NDA, Oyebade, told the NCC management led by Danbatta that the NDA which was founded in 1964 solely for military training has since 2007 metamorphosed into a degree awarding institution with several faculties where cadets are awarded degrees alongside their military train-

ings.

Indeed, the NDA now offers post graduate programs in several disciplines.

Oyebade admitted that the present and future military battles will depend on science and technology hence the need to hold talks with the NCC. Oyebade, himself an alumni of the NDA said although “the NCC has in the past given us very robust support in the development of our ICT infrastructure, which we highly appreciate, we still crave for more support, hence this visit - to fill the gaps in our infrastructure needs”.

The NDA shopping list for the NCC include: The need for a server managed wired line infrastructure; to build two additional Computer Based Testing (CBT) centers fitted with up to and not limited to 350 computers; the need for NCC to open its doors for collaboration in manpower training for academic and nonacademic staff of NDA; to boost the existing end user electronics center; and a robust back up power to support the infrastructure among others.

Roar Nigeria Hub hosts Facebook stakeholders roundtable

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he University of Nigeria Nsukka (UNN) went agog with activities as it recently, welcomed a team from the global giant Facebook. Ebele Okobi, the public policy director for Facebook Africa, led the team who visited Roar Nigeria Hub for a stakeholder’s roundtable.

The visitors were first received by Benjamin Ozumba, the vice chancellor of the university. After a brief tour of the Lion Laptop Assembly Plant and the Lion Science Park they were welcomed at Roar Nigeria Hub for the planned stakeholder roundtable hosted by Charles Emembolu, co-founder and director of Roar Nigeria.

The roundtable had the academia, private and government representatives drawn from across eight states of the South South and South East Nigeria including innovation hub, business leaders, academia, investors, technology community, members of the SSE Angel Network (SSEAN), and other national technology leaders were in attendance.

Discussions focused on policy issues, technology commercialisation, knowledge transfer, academic research, mentorship opportunities

and the engagement strategy for the technology giant.

Roar Nigeria is a private sector led incubator opened in 2016 as a collaboration with University of Nigeria and recently partnered Facebook under the NG Hub program to foster businesses that leverage deep technologies such as Artificial Intelligence, Blockchain, Virtual Reality, Drones, etc).

Ebele Okobi, in her remarks, appreciated the university management for its effort in creating an enabling environment for innovation to thrive in the academia and explained the purpose of the visit.

“We realise the critical role of policy in creating an environment that maximises the potential for technology to drive forward economic, social and academic advancement”, she said.

Okobi shared details of some of the partnerships Facebook had launched in Nigeria while stating that the visit was to explore better ways of partnering African institutions and organisations such as Roar Nigeria at the policy level.

The University of Nigeria boasts a lot of firsts in the technology and innovation space with the Lion

Laptops being assembled locally at UNN; the Roar Nigeria Hub, West Africa’s first full-fledged university embedded business and technology incubator and very recently the Lion Science Park. These novelty projects have been delivered under the remarkable leadership of Benjamin Chukwuma Ozumba, the vice chancellor and mostly working with a triple helix concept.

“I consider this engagement a milestone in our jour-

ney to bring academia to the forefront of technology and innovation advancement in Nigeria. The significance of this roundtable has been the ability to have top level policy makers and influencers from institutions such as Facebook, State Governments, Regional Businesses, Student Leaders, Chambers of Commerce, Investors and Universities discussing research, technology, innovation, commercialisation as tools for national develop-

L-R: Charles Emembolu, director Roar Nigeria Hub UNN; Ebele Okobi, Facebook Africa public policy director; Barbara Mbanefo, Facebook engineer and Chinwe Okoli, manager Roar Nigeria Hub at the Facebook stakeholder’s forum held in University of Nigeria Nsuka for South-East and South-South Nigeria recently.

ment. It helps us to reimagine Africa” Charles Emembolu who is also a director of the Lion Science Park said.

“In order to restore the dignity of man, we have to make the University of Nigeria the home of innovation in Africa. That is a journey we (UNN) embarked upon in 2014 and I am happy that global brands such as Facebook are taking note of these efforts” says Prof Benjamin Ozumba who was happy with the visit of the Facebook policy leadership and other stakeholders at UNN. The Lion Laptop assembly plant currently assembles affordable laptops and plans to increase local content to 35 percent starting from 2019. Also, the Lion Science Park (LSP), which inaugurated its board last month has attracted top companies to its stable. Mirai Denchi, a Japanese company, Huawei Authorised Information Network Academy (HAINA) and a host of other local companies are in different phases of residency at the Park.

LSP was recently registered by the International Association of Science Parks and Areas of Innovation (IASP) which the global body for science parks.

Facebook rolls out video on demand service globally

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ith the aim of giving people around the world a new way to discover great videos and interact with friends, content creators and other fans, Facebook has made its video-on-demand service, Facebook Watch available globally while also expanding its Ad Breaks program so that more partners can make money from their videos.

According to its management, taking Facebook Watch global also means new opportunities for creators and publishers around the world.

Facebook Watch enables users discover new videos spanning entertainment, sports, news and more in a personalized Watch feed, catch up with creators and publishers they love by keeping a watchlist, or a collection of recent videos from Pages they follow, save videos to watch later in Watch as well as participate in videos.

“Over time you’ll be able to find new video experiences in your Watch feed, like watch parties, premieres, and videos focused on audience participation — like the new trivia game show, Confetti. And we’ll make it easier to find live videos so you can discuss the big moments as they’re happening,” a statement from Facebook reads.

The service was launched in the US a year ago to give people a place on Facebook to find shows and video creators they love and to start conversations with friends, other fans, and even creators themselves. Over the past year, Facebook has made the experience more social by like making it easier for people to see which videos their friends have liked or shared, creating shows that have audience participation at their core, and opening Watch to videos from Pages.

“These updates have helped people discover and engage more deeply with videos they love — from Red Table Talk with Jada Pinkett Smith, to beauty mogul Huda Kattan’s behind-thescenes show Huda Boss, to live Major League Baseball games. Every month, more than 50 million people in the US come to watch videos for at least a minute in Watch — and total time spent watching videos in Watch has increased by 14 times since the start of 2018. We’re excited to bring Watch to everyone around the world and invite you to join in the action in our new video destination,” the statement adds.

BUSINESS DAY

Tuesday 04 September 2018

EDUCATION

Weekly insight on current and future trends in education

Primary/Secondary

Higher

21

Human Capital

Stakeholders see gender balance in education as pivotal to economic growth KELECHI EWUZIE

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o r r i e d by high level of gender imbalance in the nation’s education system, education experts have called for an improvement in girl child education to aid Nigeria in meeting her socio-economic potentials.

Kathy Matsui, vice chair, Goldman Sachs Japan, in a recent study said that educating more females can lead to a “growth premium” for countries by growing the country’s GDP and per capita income.

Matsui believed that increasing investment in female education could raise Nigeria’s GDP growth by as much as 0.2 percent.

Muhtar Bakare, an education expert observes that improving female education undoubtedly has many personal benefits for girls themselves. “The higher the level of a female’s education, the more likely she

is to marry older, bear her first child older. Educating girls also plays a positive role in breaking the poverty cycle, as the children of educated women experience better health, better education, and improved employment opportunities,” he said.

Research reveals that the benefits of enhanced female education go beyond the individual and her surrounding family and community.

According to UNESCO, girls’ education does not only bring the immediate benefit of empowering them, but also results to the best investment in a country’s development.

For some years now, governments, NGOs and private investors have been working throughout the country to get more girls into school.

Basic considerations such as access to female hygiene facilities and having female teachers present in the classroom are being addressed, and parents themselves are being educated to enable them understand the strong personal and community benefits that

A cross section of attendees at the 12th Edition Vision 2020 YERI Summer Camp Programme

come with providing adequate education for their daughters.

As female enrolment rates improve, and more and more girls enter schools across Nigeria, focus needs to turn to ensure girls are actually learning in schools, and

Shortfall of over 40,000 lecturers threatens productivity in public varsities -ASUU Akinremi Feyisipo, Ibadan.

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cademic Staff Union of Universities (ASUU) has hinted that Nigeria public Universities are short of not less than 40,000 lecturers.

The union however called on Federal Government to recruit academic staff in public federal institutions in order to safe overworked lecturer’s from untimely death.

In a release signed by Deji Omole, chairman, University of Ibadan Chapter of the Union, called for comprehensive medical check-up by various institutions to ascertain the health conditions of their staff noting that in

the struggle for survival, many lecturers who think they are well may have death threatening health conditions.

He disclosed that the health of their members are fast depreciating due to work overload occasioned by the failure of the federal government to employ more academics to cope with the number of students admitted.

He said that while academic staff continues to work in the most dehumanised conditions, the federal government has refused to pay them their academic allowances from 2011 to date.

Omole observed that due to poor working environment, job overload and non-approval of leave as and when due, the union

has lost some of its members to death across the nation in 2018.

The ASUU boss noted that due to work-related stress and the bad economic fortunes, lecturers hardly have time to attend to their health, and this creates health complications, which ultimately leads to incapacitation and sometimes death.

He further noted that the “federal government is not only determined to kill the lecturers with stress, but also determined to kill University of Ibadan in particular. This is being done by deliberately refusal to payroll newly recruited lecturers to replace dead or retired colleagues even when due processes were followed in the recruitment procedures”.

learning the skills that they will need to secure a sustainable future. The issue turns from enrolment rates to the quality of learning taking place. Delivering quality learning rests on having three important and interrelated elements in place namely:

Having enough teachers and ensuring those teachers are suitably trained is fundamental to improving the learning outcomes of Nigerian girls. Providing on-going professional development training for teachers to keep them highly motivated and

effective is also vital.

Analysts opine that availing girls with access to quality learning resources that promote engaged and effective learning aids the learning process while the provision of these resources themselves, is often enough to entice learners into the classroom.

They also said that embedding relevant and contextualised curricula that prepare learners for a 21st Century and globally orientated workforce help to guarantee future prosperity for female learners.

These suggestions are by no means a panacea for overcoming the challenges Nigeria faces in achieving gender parity in education.

However, with the personal and nation-wide incentives for ensuring our girls enjoy a meaningful and positive education, we need to focus on practical ways to make universal education for girls a reality. Getting girls into school is the first step, making sure they are learning while they are there is the next.

‘Varsities must specialise in certain courses to boost qualitative education’

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olarin GbadeboSmith, directorgeneral, Nigerian Institute of Social and Economic Research (NISER) has called for a system that allows universities to specialise in particular courses for efficient and qualitative education.

According to him, compelling all universities to run uniform system has been a major factor making Nigerian universities rigid to change.

He observes that the controlling power, which Federal Ministry of Education and National Universities Commission (NUC) have on Universities, has made the education in Nigeria unyielding to change.

According to him, “In Nigeria, the power of the Ministry of education and the NUC significantly affects the ability of universities to experiment, react or adapt to changes in demand by different sectors of the economy and the private sector

operators. Central control and the attempt to make all institutions conform to the guiding rules are the constraining factors. Conformity limits dynamism and allows influence of tradition and traditionalists to dominate.”

Speaking at a lecture organised by the Consortium for Advanced Research Training in Africa (CARTA) held at the College of Medicine, UCH titled “Broken Links in the Chain of Development: Higher Education in Nigeria and Africa, a Complexity Theory Perspective,” Gbadebo-Smith said Nigeria’s higher education system presently “seems inattentive to issues of context, national development, challenges of the 21stcentury including globalisation and digitisation While acknowledging that Higher Education is broken in Nigeria and needs proper fixing, GbadeboSmith tasked the federal government to build infra-

structure and increase lecturers’ remuneration in order to attract and retain the best system in the nation’s higher education.

Akinyinka Omigbodun, focal person, University of Ibadan CARTA, said African and Nigerian governments must invest in human capacity development in order to equip Africans with the ability to solve problems in the continent.

According to him, CARTA is “structured to fast-track the career development of the next generation of academics; build communities of fellows and mentors; reduce their isolation and provide them good environment for research.”

While declaring the lecture open, Idowu Olayinka, vice chancellor, University of Ibadan, who was represented by deputy vice chancellor (Administration), Kayode Adebowale called for the review of the national policy on education to reflect modern-day realities.

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EDUCATION

Tuesday 04 September 2018

INSIGHT

Recognition of bullying from Childhood

OYIN EGBEYEMI

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o matter how o l d a p e rson is, if they were bullied in school (even as far back as Primary School) they, as adults will very likely remember the name of their bully and some of the words and actions that this bully have used to “torment” them.

Whether we like to admit it or not, the effects of bullying as far back as early childhood affects people mentally and emotionally in one way or another; and if not addressed properly, could be detrimental to a person’s self esteem or even lead to other negative behavioural patterns such as substance abuse, depression or even violence.

Bullying is defined as unwanted aggressive behaviour that physically, verbally and emotionally inflicts pain and suffering on a person. It is a deliberate act and is repeated over a period of time by the same person at the same victim. Bullying comes in many forms and is prominent across generations. Adult and workplace bullying are not foreign concepts in our social and professional environments.

But like all things learned and acquired, it is best to recognise and address negative behaviours early, right from school age when children begin to form opinions of others and develop their characters.

Traditional forms of bullying include verbal, social and physical bullying.

People within the same environment as the bully and the bullied can witness these in person. Some, however, ignore them because it is “not their business”. Some are even of the opinion that a certain person deserves to be bullied. Others may actually not even be aware of the signs or the detrimen-

Teachers must help cure phobia for Mathematics among students, says expert KELECHI EWUZIE

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ernardo Recaman Santos, a Mathematics lecturer of the Universidad de los Andes, Bogota, Colombia, has called on Mathematics teachers to help their students cure their fright for the subject through exciting, simple and understandable teaching.

Santos, who majored in Recreational Mathematics and subscribes to the philosophy of teaching Mathematics through interactive learning, urged teachers to develop the skills of letting their students have new insights in solving problems on their own.

Speaking at the Abuja edition of the Cowbellpedia Academy, which was organised to commemorate the 20th anniversary of Cowbell and Mathematics, he explained his own teaching style to the teachers and students at the event saying “With my students, we discuss Mathematics. We talk about Mathematics and we solve Mathematics. Mathematics is fun as it can be used to relax and solve problems.

The beauty of Mathematics is amazing in different way.”

The Cowbellpedia Academy is primarily aimed at driving support and interest in Mathematics by exposing 500 students and 150

teachers across the country to various teaching and learning techniques in sustaining and managing academic feats especially in the subject. Here, Lagos, Port Harcourt and Abuja were chosen for the pilot scheme of the academy.

Karam Aloui, Mathematics teacher at the University of Spax, Tunisia, who doubles as a facilitator at the threeday session, said that critical thinking is the way to go in tackling Mathematics problems. He advised students not to box themselves into a corner by using a particular approach.

Aloui’s academic exploits centred on Analytical Numbers Theorem, Arithmetic Topics, Pure Mathematics, Numbers Theorem and Combinatorics.

Victor Owolabi, a teacher who participated at the Cowbellpedia Academy, said that the session offered him a perception, which he had never known in his seven years of teaching. “Critical thinking has helped me to realise that there is no Mathematics question that is not possible to solve.”

Okon Ojedo Joseph, another teacher from His Grace High School, Enugu State, described the programme as quite fulfilling and impactful.

He said that the facilitators took time to teach them the various topics in the learning processes.

tal effects these behaviours have on human beings and may either not detect them or bother to address them.

It is, however, extremely important to take note of the forms through which each of these traditional forms occur: Verbal bullying usually takes place in the form of teasing, unwarranted-forname-calling, taunting and threatening to cause harm.

Social bullying comes in the form of neglect, a child/group of children singling another child out of activities with their peers, discouraging other children from being friends with a child, spreading false rumours about another child and embarrassing another child in public.

Physical bullying, probably the most obvious, comes in the form of hitting, kicking, spitting, pushing, rude body language/hand gestures, tripping, taking or breaking another child’s belongings.

There is another form of bullying, which is gaining more and more attention globally. This is cyber-bul-

lying, which takes place over the Internet, largely via social media. As many children now have social media accounts, it is very possible to take bulling away from the physical environment to the digital environment.

Children (and even adults) are very conscious of their social footprint and status these days. In fact, they are almost obsessed with it.

Therefore any form of harm carried out on this space is equally as dangerous as the traditional forms of bullying. Unfortunately, this is an area which is more difficult to control due to the absence of physical restrictions over what a bully may say or do over the internet or even through chatrooms, whatsapp or text messages.

The truth is that it is very difficult for parents, teachers and other children to detect bullying, particularly, when it is well disguised.

However, there are some warning signs; through we can tell if a child is being bullied. These include: • Fear of going to school or attending a particular class

• Frequent loss of specific belongings • Physical injuries or unexplained bruises • Nervousness

• Smiling more • Laughing at other people’s jokes • Being kind • Involving everyone in activities

• Loss of confidence • Modesty • Withdrawal or distress • Poor academic performance • Eating disorders • Sleeping disorders • Torn books or clothes • Bullying others (including retaliation) • Suicidal thoughts and attempts Furthermore, in the school environment, anti-bullying behaviour should be encouraged amongst the children through practices such as: • Having a friendly expression on faces • Complimenting others

• Giving children equal opportunities to participate in activities Teachers, parents and even children should be sufficiently enlightened about all signs of bullying, so that they can be addressed early before such behaviour evolves into negative social behaviour (for the bullies) or lead to mental or psychological issues (for the bullied). Also, in general, we should really make a more conscious effort to become more aware of such behaviours in our environments and also the effect of our own behaviour on others around us.

Oyin Egbeyemi is an executive administrator at The Foreshore School, Ikoyi, Lagos.

Foundation gives scholarship to 17 students at UI Akinremi Feyisipo, Ibadan

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eventeen students of the University of Ibadan who are poor but intelligent, have won scholarships that will cover their studentship from 200-level till they graduate.

The students who are from 10 of the 13 faculties of the premier university received the award from the Olufemi Olaifa Memorial Foundation during the memorial lecture of late Otun Balogun Olufemi

Olaifa held at the Trenchard Hall of the Institution.

According to the Foundation’s coordinator, Omotayo Olaifa, the awards were given to indigent students with excellent academic grade which must not be less than Second Class Upper division. The scholarship covers tuition and accommodation.

According to him, it was unthinkable that brilliant Nigerian students who are gifted will be denied the right to education because of their poor social economic status.

Speaking at the event, the Dean of Students, A.T.P Ajuwape lauded the foundation for the scholarship to the indigent students urged more Nigerians to invest in education so as to increase access for brilliant but poor students.

Ajuwape noted that the poor economic conditions in Nigeria is increasing the numbers of students who are unable to pay their tuition and sustain themselves in the university saying this was not good for the future leaders of

L-R: Wilson Wu, managing director, Ogun Guangdong Free Trade Zone; Roqeebah Amure, Ridwan Ajose, both recipients of a three-year programme scholarship to Nontang Vocational University, China, as well as Mohammed Olagbaye, Asiwaju Igbesa and Ejila communities and Daniel Wen shortly after the presentation of a fully sponsored scholarship by investors at the free trade zone to the beneficiaries. Pic by Razaq Ayinla

the country to experience.

“It is pathetic now than before. We have more students are not able to pay fees. They cannot feed properly when in school and they come to you with all sorts of requests. I think what this foundation has done is to invest in excellence and keep the dreams of these brilliant students alive. Poverty should not cut the dreams of the gifted. Other philanthropists in Nigeria and abroad are enjoined to follow suit and assist the university.”

Ajuwape stressed.

The awardees includes: Ridwan Adebowale (Law); Boye Yisa (Law); Adeyemi Akinpelu (Sociology), Emmanuel Ogunbule (Vet. Medicine); Adesola Ridwan (Vet. Medicine); Medinat Oladele (Special Education); Israel Akomodesegbe (Agricultural Economics); Joshua Oribukola (Science and Technology Education); Temilorun Alademehin (Guidance and Counselling); Others are Tolulope Onakoya (Nursing) and Mayowa Adegbola (Civil Engineering) among others expressed happiness at the award and promised to continue to display excellence in their education saying they can now fully concentrate on studying since the financial troubles are over.

Tuesday 04 September 2018

C002D5556

BUSINESS DAY

23

Energy Report Oil & Gas

Power

Renewables

Environment

Like Nigeria, like Ghana state-owned refineries fail …Modular, Dangote refineries offer new models STEPHEN ONYEKWELU

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ecent tweets by one of BusinessDay’s energy reporters currently in Ghana for an oil and gas reporting fellowship programme on the state of Tema Oil Refinery (TOR) show West Africa’s top two oil producers and economies are derailing from making their oil sector sustainable and globally competitive because the refineries are state-owned.

Ghana, it was thought, will learn from Nigeria’s mistakes, this does not seem to be happening. It is time to make oil resources and revenue work for nations that produce them and viable models include modular refineries and private sector led investments such as has been proven feasible by Dangote’s refinery in Lagos, Nigeria, set to come on stream 2019 or 2020.

BusinessDay’s reporter’s tweet said this about TOR “The tank farm in the refinery has been converted to storage facilities for Bulk Distribution Companies (BDCs) who import petrol. I visited

the refinery today and I’m still trying to understand, who did this to Africa?”

Ghana produces oil from its jubilee fields but prefers to sell crude and import refined products. The reason: oil prices are high and it wants short-term profits. To keep the refinery workers quiet, they are paid all their allowances as at when due though they mostly do nothing.

Two refinery ownership and operational model look viable given track record of performance. Privately owner big and modular refineries present options worth examining because history shows enlightened self-interest as

expressed in private sector enterprises are competitive and profitable.

Refineries come in various sizes. The range from small topping and reforming refineries to sophisticated complex refineries, but perform three basic steps which are Separation (fractional distillation), Conversion (cracking and rearranging the molecules), and Treatment.

In Nigeria, Dangote’s refinery offers an example of a privately owned refinery, which is poised to demonstrate how sustainable and profitable privately owned refineries can be in Nigeria, a model that is strange Africa’s

top oil producer given many years of state owned and ran refineries.

Dangote Refinery currently under construction would save Nigeria $12 billion annual import substitution, create 4,000 direct jobs and crash prices of petroleum products.

Babajide Soyode, the Technical Consultant to Alhaji Aliko Dangote, said the project would add value to the economy as it would also create 145,000 indirect jobs.

Entrepreneurs look out for their interests and in the process, as Adams Smith, father of modern economics recognised, the invisible

hand guides them towards the common good and sustainability but state-owned business entities behave differently in Nigeria. They generally under produce and loss money.

Experts say while it is encouraging that the over 500,000 barrel per day (bpd) plant by Dangote will alleviate the national and regional shortages in petroleum products supply, it should be understood that the problems that crippled the older plants are still in place, and by the sheer size of the refinery, it may suffer the fate of the older ones if extensive reforms are not implemented. Modular refineries, however, offer some unique options that may be more suitable for emerging economies like Nigeria.

A modular refinery by definition is a prefabricated processing plant that has been constructed on skid mounted surfaces, with each structure containing a portion of the entire refining process plant connected together by interstitial piping to form an easily manageable process.

In a volatile nation like Nigeria, large scale refining

has some profound disadvantages that have over the years been proven by the non-functionality of plants and the heavy dependence on fuel import even after the plants were built.

This shows that unlike developed countries, economies like Nigeria have not evolved to managing large scale plants and maybe should look to smaller and flexible units. The key reason here is maintenance.

Large scale refineries are not easy to maintain and require a stringent quality control and jurisdictional system to ensure longevity.

Global standards stipulate that process equipment be opened cleaned and inspected at least every five years, and an on-stream mechanical integrity programme be implemented and documented. While some refineries in America built in the 1920s are still fully functional, Nigeria’s oldest refinery was built in 1965 and operates at less than 15 percent capacity.

The jurisdictional and industrial ethics are clearly absent and such levels of operation do not suit societies like Nigeria.

to their respective individual retirement savings account.

“As earlier communicated by the company, pay all other elements of the company end of service benefits guidelines which are, gratuity per company policy for employees, setting in allowance – 1.75MBS to all separated personnel, Notice pay – 1 MBS to all separated personnel Redundancy payment in line with company guidelines up to 60 years at 2MBS per year of service up to a maximum of 36 months must be paid.

A lump sum payment of N260, 000.00 per year of service for each of the separated security personnel.

The enhancements to separation payments listed above shall be applied to security personnel who have separated from MPN and calculated commencing from the date of their initial engagement as recognized by the judgment up to their respective dates of separation and paid to such security personnel.

The enhancements to separation payments listed above shall be applied to security personnel who have died in service, and calculated commencing from the date of their initial engagement as recognized by the judgment up to the respective dates on which their death occurred and will be paid to their designated beneficiaries or estates.

The minister urged all parties to work to quick validate the details of personnel who have died in service, and they should be paid applicable company death benefits in line with company policy as at the date of their death.

The 27 personnel (historical transfer) and 4 personnel (historical issues) should be paid appropriate separation benefits. The period from their exit to the date of this settlement shall be deemed unpaid leave of absence – but service period will apply for separation calculations, including plump – sum legacy payment.

FG says intimidation of ExxonMobil workers should stop OLUSOLA BELLO

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he Federal government has cautioned the ex-spy policemen protesting against their severance from Mobil Producing Unlimited (MPNU) that all acts of disruption, harassment, picketing and blockade of company facilities, playing loud music and intimidation of against the personnel of the company should be discontinued forthwith.

The protesters who went to Supreme Court to get judgment against the decision of the company to do away with their services are alleged have been offered some compensations which ranges between N17 to N 20 million.

But despite this, they are still insisting that their severance packages are too small and wanted it increased.

To press home their demands they have in the past seven weeks employed all manners of tactics to disrupt

the operations of the company including playing music and dancing at the entrance of the company’s Lagos headquarters office.

To stop these menace, the federal government through, Chris Ngige, minister of Labour and Productivity decided to give a directive in letter addressed to the managing director of ExxonMobil, Secretary General of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), representatives of security personnel and Femi Falana Chamber, the lawyer to the protesters, stating that they should stop all acts of intimidations within and around.

The minister stated in the letter titled: “Conclusions of the meeting held over the picketing at MPNU locations by former security personnel” “Further to the letter dated July 25, 2018 and the meeting held at the instance of the honourable minister of labour and employment, Chris Ngige, on August 27,

2018 with the management of Mobil Producing Nigeria Unlimited (MPN), the representatives of the Security Personnel and the leadership of PENGASSAN (represented by MPN Branch) on the above – stated issue, the meeting deliberated on the issue of the Separation of the Security of Labour and Employment directed as follows: a. That all acts of picketing, harassment, blockade of company facilities playing of loud music, defacing of company facilities or intimidation of personnel and all other acts connected to the above be discontinued immediately. The PENGASSAN and the leadership of the Security personnel should confirm within 48 hours of this meeting (by Wednesday, August 29, 2018) that this directive has been fully complied with, before further implementation of other terms of this agreement. b. That the separation of the security personnel be upheld

Olusola Bello, Team lead, Analysts: Isaac Anyaogu, Stephen Onyekwelu, Graphics: Joel Samson.

It also stated that as full and final settlement of the dispute between MPN and the separated security communicated under MPN’s 13 July 2018 letter to the 508 security personnel active as of the date of the letter shall be enhanced as follows: a) Payment of the equivalent of one month’s salary (before any adjustments), for the period of separation negotiations up to the end of August 2018 to be paid alongside the separation benefits; According to the letter the monthly salaries of the separated security personnel stated in the July 13, 2018 letter be increased by 10 percent for the purpose of calculating and paying their individual separation benefits under this settlement, without retroactive application; It stated that the Pension Transfer Payments for the separated security personnel be 50% cash payment of accrued pensions as part of their separation benefits, which the balance should be transferred

Email: energyreport@businessdayonline.com, Tel: +234-8023020011; +234-7037817378;

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Energy Report

Crowd-funding viable option for new oil sector projects – experts ISAAC ANYAOGU

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o curb a situation where the African extractive sector is at the mercy of foreign investors, experts say governments should rethink established funding mechanism and include other novel sources like crowd funding to finance new projects.

“In our part of the world, we may not have the ability to access the kind of funds at the disposal of international oil companies but in other countries people put money together in crowd funding programmes to finance projects in the mining sector. It is done in Vancouver, governments of African countries should be thinking along this line,” Benjamin Aryee, advisor, ministry of Lands and Natural Resources, Ghana, said at the African Regional Extractive Industries Knowledge (REIK) Hub established by the Natural Resource Governance Institute in partnership with German International Development Cooperation (GIZ) in Ghana on August 27.

Aryee said the Chinese and Indians pull resources to invest in important sectors

of their countries and even sub-national governments guarantee investment for its people. He said governments can start small but need to rethink funding mechanisms.

The cost of developing these oil fields has been a major impediment to African government’s ability to take control of their natural resources. Experts say it takes sometimes up to $100milion to develop a new field and multinational oil companies with access to cheap international funds have been known to dictate terms.

Crowdfunding was once merely a tool to raise charity

funds online but with its successful deployment in the real estate sector, the platform has grown so huge that it is now used to fund different projects from political campaigns to start-ups.

Reseach shows that crowd funding is now making inroads into the oil and gas sector as there are currently two crowdfunding platforms CrudeFunders and EnergyFunders in the United States, which are presenting opportunities for the investors.

CrudeFunders, developed by three Texas-based lawyers is aimed at transforming the traditional oil and gas invest-

ment into a more transparent Crowdfunding method using new technology aided by the passage of The Jumpstart Our Business Startups (JOBS Act) in 2012.

CrudeFunders offers investors an opportunity to invest in oil and gas projects with a minimum of $1000 as well as provide an effective platform for companies to raise project funds. They started with success after raising funds for the rework of an oil well in Ozona, Texas, for which they raised $950,000 from a collaborative effort of 30 investors and now they have raised investments for

projects worth over $2million.

EnergyFunders says it offers financial technology platform dedicated to disrupting the way people from all over the world invest directly into energy investments.

“With the massive changes in regulations, EnergyFunders is at a crossroads between securities laws, equity crowdfunding, and technology.

EnergyFunders provides investors with access to projects that were traditionally reserved to the wealthy or those with inside information. Its mission is to allow these everyday investors access to various types of energy investments.”

Experts say Nigeria and other African countries should start rethinking the process of funding and developing their critical sectors.

Chuks Nwani, a Nigerian energy lawyer agrees that funding mechanisms including crowd funding should be considered.

“Crowd funding makes wealth generated from the business circulate locally and create riches for the country,” said Nwani.

“However, until we start having minimal government interference with pricing mechanism no one will be willing to risks its hard earned

money,” Nwani said. This is the exact situation that crowdfunding is designed to establish.

Nwani further said that Nigeria should not also consider other sources. “We have over 9 trillion pension fund available for infrastructure investment that has low risk profile but till today 25 percent of the fund is being deployed to buy government treasury bill which is more secure.”

Juliet Twumasi, an energy lawyer and principal consultant at Anpjul Afriye &Co, based in Ghana said African governments can only grow their oil and gas sectors by first developing a national vision through critical engagement process with the people to agree on what oil incomes should be used for before even embarking on new developments.

Aryee said countries can realise the most benefit by adding value to their oil resources which will help them meet the needs of their people. “There are more than 3,000 products that can be produced by the extractives hence the focus of African governments should be research and development to get more value from their extractive sectors.”

Dangote refinery prods into Nigeria’s quest for self-sufficiency in petroleum products ROSELINE OKERE

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etween 2012 and 2017, the Department of Petroleum Resources (DPR) granted licenses to 37 private firms, including the 650,000 barrels per day (bpd) Dangote Refinery Plc, for the establishment of private refineries in the country.

However, six years after being granted licenses, 36 of the licensees are yet to record meaningful progress in terms of construction of their refineries. Among the licensed companies, which have capacity to produce 2.3 million bpd of crude oil, only the Dangote Refinery has reached an advanced stage in ensuring the completion of the refinery, albeit being one of the last to obtain refinery license.

Despite being one of the largest producers of crude oil in Africa in the last four decades, Nigeria has consistently struggled to keep its refineries functioning optimally without success.

The coming on stream of these licensed refineries is expected to turn Nigeria into an exporter of refined petroleum product. Unfortunately, apart from the 650,000 bpd Dangote Refinery, many other licenses have not moved beyond the initial level of obtaining permission to establish.

Some of these licenses have expired with no efforts from the holders to re-apply, which is an indication that the project may have been put to rest.

The inability of the other private refineries to make significant progress, has now put so much pressure on the Dangote Refinery to bail Nigeria out of the burden of importation of petroleum products.

Reliance on imports In spite of having a nameplate capacity of 445,000 barrels per day with refineries strategically located in various states around the country, Nigeria imports over 80 per cent of refined products to meet its current needs.

The West African giant is one of the largest consumers of petroleum products in Africa and accounts for over seven per cent of Africa’s refined products consumption, importing over one million tonnes of Premium Motor Spirit (PMS) every month.

For example, total crude processed by domestic refineries Warri Refining & Petrochemical Company (WRPC) for the month of March 2018 was 271,215 Metric Tonnes (MT) while Port Harcourt Refining Company Limited (PHRC) and Kaduna Refining & Petrochemical Company (KRPC) only processed intermediate 7,675MT and 12,675MT respectively.

For the month of March 2018, Nigeria’s three refiner-

ies produced 159,424 MT of finished petroleum products and 67,428 MT of intermediate products out of the 271,215 MT of crude processed at a combined capacity utilisation of 14.41 %, according to the Nigerian National Petroleum Corporation (NNPC)’s monthly financial report released recently.

Refining revolution Speaking on Nigeria’s refining revolution, Partner, Africa Oil and Gas Leader, PricewaterhouseCoopers, Pedro Omontuemhen, said the current supply gap in the country creates an opportunity not just for conventional refineries such as the Dangote refinery, but also for modular refineries which are set up primarily to meet domestic demand.

This, he said, provides the “bottom-up” supply into the fuels value chain. Another critical assumption is that the modular refineries’ yield will be limited to fuel oils and diesel as the lightest hydrocarbon produced.

Private refineries’ setback With 37 licenses already granted by the DPR to companies, including Dangote Refinery Plc, to establish private refineries in the country, the world is earnestly waiting for Nigeria to halt importation of petroleum products and become net exporter of Premium Motor Spirit (PMS) come 2019 or early 2020.

The private refineries,

which have capacity to refine over 2.3 million barrels per day, would not only make Nigeria a net exporter of petroleum products, but also make the country an importer of crude oil to meet local demand of the refineries, which is already more than the country’s daily crude oil production.

For example, Nigeria’s crude oil production, including condensate, was 1.97 million barrels per day (bpd) in July 2018, according to the Ministry of Petroleum Resources.

This is grossly inadequate to meet the total demand of the private refineries with total capacity of 2.3 mbpd and another demand of 445,000 bpd from the three Nigeria’s refineries.

Federal backup The Dangote refinery is so important to Nigeria’s selfsufficiency plans that the Minister of Petroleum Resources, Ibe Kachikwu avowed the Federal Government’s support to the completion of the refinery.

Kachikwu, during a recent tour of the refinery, commended Dangote for the project, while assuring of total support in promoting the success of the project.

“Government will support to indentify policies that will promote and attract investors to the refinery. I will tell my colleagues all over the world about Dangote refinery and the investment capacity”, he

said.

Kachikwu, however, commended the management for ways local communities were engaged and carried along.

He urged other companies to emulate the company.

Dangote refinery While other refineries are struggling to utilse their licenses, the Dangote Refinery has made significant progress to ensure that Nigeria attains self-sufficiency in petroleum products.

Five years ago, the Dangote Group, which focuses on the manufacturing of essential and value adding products that meets the needs of the African population, made a foray into the oil and gas industry. The decision was informed by the persistent shortage of petroleum products in Nigeria.

The Group is currently building the single largest Refinery, Petrochemical and Fertiliser Complex in Africa.

The project is sited in the Ibeju-Lekki Free Trade Zone (FTZ), Lagos State, Nigeria.

The refinery will have the capacity to refine 650,000 barrels of crude oil per day.

The Petrochemical Plant will produce 750,000 metric tonnes per year (MTPY) of Polypropylene.

The ultra-modern Dangote refinery, which has adopted world-class technology in its processes, is designed to meet domestic and international demand for fuel.

The project will create

thousands of jobs for Nigerians, and will save over $7.5 billion for the country annually, through import substitution.

It will also lead to the availability of petroleum products in the country as well as the development of ancillary industries.

European refineries are already fretting over the coming on stream of the Dangote Refinery.

“In Africa, the Dangote refinery is a huge story; one of the biggest refineries in the world being built in Nigeria, likely to supply most of or all of the Nigeria’s consumption,” Editorial Director, Strategic Oil Markets Development, S&P Global Platts, Andrew Bonnington, said.

According to the Executive Director, Dangote Group, Devakumar Edwin, the refinery project is ongoing and it is expected to help Nigeria achieve self-sufficiency.

Apart from meeting local demand of petroleum products, Edwin said the company is also going to explore the international market.

“Our primary focus is Nigeria, but we are also going to supply our products to Central and Western Africa countries. Our primary focus is Nigeria, to meet the entire local demand, but we have the capacity to export more than 50 per cent of what we produce, so the secondary focus will be on western Africa and central Africa,” he said.

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In association with

Reasons for real estate sector’s signs of rebound in Q2 ENDURANCE OKAFOR

Benefits of involving facilities managers in pre-construction stages

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igeria real estate sector seems to be turning the corner as the second quarter figures by the National Bureau of Statistics (NBS) show signs of rebound for the sector, although still in contraction mode.

Analyts consulted by BusinessDay linked the good but negative figures to recent infrastructural development and capital injection into the sector by domestic investors.

“There is a lot of spending on capital project, and the spending has spurred growth in the sector. Also I understand that some banks are actually lending to some developers at some reasonable rate,” Hakeem sodiq, CEO of Zama, a real estate advisory firm, said.

Meanwhile, the real estate sector reported Gross Domestic Product (GDP) growth of -3.88 percent in Q2 compared to the -9.40 percent rate recorded in the previous quarter, what is the 10th consecutive quarter in negative trajectory since the last quarter of 2016 figures available for the sector on NBS website showed on Monday, August 27, 2018.

The Q2 figures reported for the sector in the quarter under review is however 5.52 percent points better than the contraction reported for the sector in the first quarter.

Abiodun Akanbi, Head of Strategy at Infinity Trust Mortgage Bank, said “the contraction in the sector is now starting to slow down due to fresh capital injection this year.”

E f f o r t s by t h e g overnement and stakeholders at bridging the 17 million housing units deficit in the country may have started paying off, considering that there has been a lot of attention channeled to the sector this year.

The Nigeria Mortgage Refinancing Company (NMRC), a public limited company whose aim is to refinance mortgages with capital raised

Infrastructure Maintenance With TUNDE OBILEYE

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A block of apartments at Crimson Court

from the capital market, this year issued a Series 2 Bond which was at a lower cost compared to the initial issue in 2015, and industry experts say this means lower mortgage rate.

The federal government also disclosed plans to inject N500 billion naira ($1.4 billion) into the Federal Mortgage Bank of Nigeria (FMBN) over the next five years in an effort to spur home ownership that has failed to take off in Africa’s most populous nation.

Tokunbo Martins, Director of Banking Supervision at the Central Bank of Nigeria (CBN) disclosed that the government, through the apex bank, is working on a project that will see the start of a firm this year called Nigerian Mortgage Guarantee Company (NMGC), which will be owned by the government and private investors.

To this effect the government obtained a $25 million loan from the World Bank to run the company, pending equity investment by the owners, and analysts say this will make it easier for an average Nigerian to access a mortgage, considering that there will be a guarantor.

Meanwhile, in February 2018, there was also the

introduction of ‘My Own Home’ scheme which is targeted at providing improved access to housing finance to aspiring homeowners which was unveiled by stakeholders in the real estate sector and was domiciled with CBN. These initiatives are expected to, among other things, help spur growth in the sector and make home ownership easy and affordable to Nigerians.

A further break down of the NBS report for the sector in Q2 of 2018 showed that the -3.88 percent contraction figures reported in the quarter under review was the third lowest contraction rate of the real estate sector after the Q1 and Q2 numbers of 2017, as they reported -3.10 percent and -3.53 percent respectively.

Ayo Akinwumi, Head of Research at FSDH Merchant Bank, said the Q2 figures that seem like an improvement in the sector is not actually good for the country in real term.

“If the population of the country is increasing and the output is contradicting, it means it is getting worse.

Our population is growing so the need for the resources for housing should be increasing also but while there is increase in the population

rate and decline in their purchasing power, the housing deficit is will be increasing along with poverty rate,” Akinwunmi explained.

BusinessDay analysis of the real estate sector revealed that the contraction recorded for the first quarter of 2018 was so far the worst the property market has seen since BusinessDay started tracking it in Q1 of 2016.

The worst quarter contraction of the sector that follows after the Q1 2018 figures was in the Fourth quarter of 2017 when the real estate sector expanded by -9.27.

Although the rate was 0.13 percent points better than the 2018 Q1 figures.

“It is always going to be a laggard because the sector is capital intensive coupled with the fact that it also takes a lot of time to execute a project. Unlike in manufacturing where it can take about a week to produce and get the final products to the consumers, the real estate sector takes up to 18 months to build and finish up with a particular project.

“So, when the economy exits recession, the sector will still remain because of the capital intensive nature,” Akanbi told BusinessDay in a phone response.

tarting a new real estate development is a major project that requires different components to be handled by professionals such as architects, quantity surveyors, structural engineers, etc. However, one aspect that is usually ignored is the need to have a facilities manager involved from the outset.

Having the facilities manager sit in the pre-construction meetings forms part of a systematic process that includes design review, installation verification, proper system start-ups, functional performance tests, operations and maintenance training.

It also includes complete documentation of the installed systems. A facilities manager should be engaged very early in the design phase of any development as the operational phase is usually significantly longer and more cost-intensive.

This is because technology and desire for energy efficiency now play a major role in putting mechanical, lighting and control systems in place. These systems can cause some challenges for the facilities managers who manage the activities of the building operations after the installation.

Pre-construction meetings provide the opportunity to begin communicating and discussing problem solving mechanisms with the construction team, owner, architect, and other parties who may have design and construction concerns. By determining possible obstacles early on, the necessary changes can be effected on paper before the construction phase commences.

Since facilities managers are involved in the daily operations and maintenance of buildings, they have acquired the knowledge and experience to make useful contributions at the design stage that can inform the construction team of the building’s use and needs.

Throughout the pre-construction meetings, the facilities manager has the opportunity to add to the sustainability agenda by contributing to the appropriate design and equipment selection from the viewpoint of maintenance, cost of operations and safety. To complement the

performance requirements of the building, the construction team will have solutions regarding design considerations, materials to be used that will ensure costeffective building operation and maintenance.

It is important for facilities managers to have an understanding of the intricate part of the construction work in order to assist them in planning the operation and maintenance of the building façade after construction work is completed. It also provides facilities managers with an opportunity to accurately plan for the maintenance and preservation of the building throughout its lifecycle.

Facilities managers should conduct site visits during every construction phase and have substantial involvement during transition phases so they can identify issues early before they become ongoing problems later.

Moreover, facilities managers should review warranties and service contracts and be immediately involved in the start-up to ensure the building operations are running correctly.

Buildings can last a very long time if every aspect of its planning and construction is well planned.

It is better to design for efficiency and cost-effective operations and maintenance from the beginning by ensuring all stakeholders assess the environmental, operation and maintenance issues at the project design phase.

When planning for a new building or renovation of an existing building, a functional building that meets the needs of the end users should be the target. A successful construction project must include the input and expertise of architects, interior designers, engineers and construction professionals.

The missing expert is usually the facilities manager. Engaging the facilities manager from the beginning will result in reduced operational and maintenance costs and a more efficient use of the building over time.

Obileye is a UK-trained lawyer and CEO, Great Heights Property and Facilities Management Limited Email: Tundeobileye@greatheightslimited.com

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Why effective demand for housing is low at 10% of 17m deficit CHUKA UROKO

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n 2014, the World Bank estimated Nigeria’s housing deficit at 17million and this has been a subject of debate among experts many of whom disagree with the figure for reasons of fast-paced urbanization and population growth rate estimated at 2.6 percent per annum.

This deficit is not so much the problem as the low level of effective demand for what is available in the housing market. Experts say the level of effective demand for housing in Africa’s largest economy is just very low, not more than 10 percent of the controversial deficit.

The implication of this is that even if, by any yet-unknown magic, the country offsets its housing deficit by building about 200,000 units annual, only about 2million units will be bought at any given time by those who have the capacity (effective demand) to buy.

Some key reasons have been identified for the low level of effective demand in Nigeria.

Basically, not everyone who desires housing can afford it while most of those who can afford it do not have easy access.

This is the fundamental reason for the mismatch of demand and supply for different levels of customers—low, middle and high income earners.

It is argued that if demand for housing is not effective, it means there are some factors that are constraining not only demand, but also supply.

“Economic conditions leading to low purchasing power, and constrained access to land with valid title such as government bureaucracy and the ‘omo-onile’ factor can make

L-R: Ogundipe Fikayo, Co-founder/CEO, PropertyPro.ng; Gbolahan Lawal, Commissioner for Housing, Lagos State; Uzo Oshogwe, MD/CEO, Afriland Properties, and Mustapha Lucky, CEO, Kontz Engineering, at the AFRECA 2018 in Lagos recently.

demand ineffective,” explained Femi Akintunde, GMD, Alpha Mead Group, at Africa Real Estate Conference and Awards (AFRECA) 2018 held in Lagos recently.

This means that besides poverty which is a major reason for low effective demand level, there are other factors that incapacitate even the man with cash in making strong demand for housing. Akintunde added that government bureaucracy in processing land titles and building approval could also lead to increased time and cost of acquiring a house.

Effective demand level could also be low where there are low customer awareness and inadequate market data to guide buying decision; when there is lack of affordable mortgage facilities, leading to equity contribution, high interest rate and short tenure.

Inadequate supply of mortgageable properties, high rate of rural-urban migration due to poor state of infrastructure development in the rural areas

can also lead to low effective demand level.

On the supply side, state ownership of lands can make demand ineffective because this creates insecurity and crisis of confidence to mortgage lenders, meaning that a potential buyer cannot access the house or property he/she wants to buy.

Housing projects viability in Nigeria is generally low due to high cost of building materials and this also constraints housing demand, thereby denying access. There are also constraints of poor standard of quality infrastructure such as roads and power to support real estate development; land with valid title, and low quality, high cost of building materials.

“Absence of forfeiture laws discouraging banks from lending to developers; multiple taxation affecting the economic viability of real estate projects; poor quality of workmanship by local artisans, and poor maintenance culture in housing estates are also constraints

to housing supply”, Akintunde added.

To create social harmony and increase economic productivity, Nigeria, which prides itself as the largest economy in Africa and the continent’s most populous nation, needs to begin to build both sustainable and equitable housing.

This means that the country needs to embark on the development and implementation of housing guided by policies, programmes or initiatives designed to deliver safe, viable and affordable houses for individuals at a fair market value.

Demand for housing in the country is low because most of the people who need housing cannot afford what private estate developers put on the market. Therefore, the country needs to emphasise the development of equitable housing projects that provide diverse, quality, physically accessible, affordable choices for all classes of income earners.

Opportunity for homebuyers at Crimson Court as construction tops out

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n the tree-lined and historic Jericho GRA, a community that many top executives in Ibadan call home, opportunity is beckoning on homebuyers and investors as Diamante Casa draws the curtain on the construction of its Crimson Court residences.

Diamante Casa is a sister company of Structuracasa Nigeria, developers of Legacy Estates and Emerald Courts in Ibadan. It broke ground in 2016 for the development of Crimson Court, a fully serviced luxury enclave, offering security, serenity and satisfying convenience.

StructuraCasa is reputed for introducing into the Nigerian building industry a new building technology known as Aluma EasySet which has capacity to increase speed of construction by 50 percent while reducing cost of constructing the concrete carcass of the building by 20-29 percent.

The company and its foreign partners—Brand (providers of energy and infrastructure services)— explained at the product launch in Lagos that Aluma EasySet was an integrated forming and shoring system that could be used in virtually any application where reinforced concrete is the specified method of construction.

In constructing Crimson Court, Diamante Casa dedicated the highest standard of professionalism in workmanship.

The housing units are arranged in a terrace housestyle; each unit comes with four-bedrooms, all en-suite, modern kitchen fitted with Bosch appliances, two living rooms and outdoor terraces that gaze into the Ibadan horizon. There is also a flex maid’s room for each of the units.

Crimson Court is accessible to major businesses, academic and entertainment centres within the city, making the estate a top choice for home buyers and investors.

The estate provides buyers and investors with an air-tight gate entry, 24/7uniformed security guards, adequate parking space, good drainage, constant water supply, back-up power generator, landscaped green areas, swimming pool, gym facility and facility management services.

It also offers optional solar/inverter back-up power while home automation systems are also available for owners who desire to upgrade their unit. The developers assure buyers and investors that the units are selling fast and there are different convenient payment options including mortgage payment plans.

FIABCI in capacity building to deepen real estate professional practice

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etermined to deepen their real estate professional practice and align with global best practice, the International Real Estate Federation (FIABCI) is out to build the capacity of its members with relevant training that will qualify and launch them to the next level of their practice.

A global real estate organization with members in 65 countries including 100 professional associations, 65 academic institutions, and 3000 individual members, FIABCI believes strongly in the professional training and other capacity building modules for its members.

Its objective is to allow members to improve the quality and competitiveness of their

activities through sharing of knowledge, information and business opportunities at national and international level.

In alignment with this objective and as part of its contribution to the real estate professional practice in Nigeria, FIABCI-Nigeria chapter is putting together a two-day training programme to give her intending and existing members an opportunity to commence the process of earning the International Real Estate Consultant (FIREC) designation. FIREC foundation courses, Global I and II will be taught at the programme.

To underscore the importance attached to this training, Elizabeth Jane Mendenhall, the current President, National

Association of Realtors (NAR) – USA, will accompany William Endsley to have a first-hand experience in how successful real estate training courses are delivered given the receptive audience, experienced trainers and effective coordination. She will also be joined by some of the past presidents of the association.

The two eight-hour courses are the required first steps towards earning the FIREC designation. Global I presents an overview of economic, cultural and geographic issues impacting the practice of real estate in major countries and regions around the world. Global II builds on the issues impacting real estate practice around the world, including the importance of an exit strategy.

Gbenga Ismail, FIABCINigeria image maker, in a statement in Lagos at the weekend, explained that earning the prestigious FIREC designation admits participants into an elite class of international real estate industry leaders who transact business on a global basis.

Ismail assured that participating in the programme would earn the participant FIREC designation which would enable him to differentiate himself from his colleagues; gain a competitive advantage, advance his expertise and industry knowledge, increase his earning potential, enhance his skill, expand his business network, and effectively build his global business.

FIREC designation, according to him, is a FIABCI international programme known for its highest standard of excellence, which stands to differentiate its designate from other professionals. The high standard of this designation creates a distinction that is universally respected by customers, businesses and colleagues around the globe and prepares professionals for international business opportunities.

Bill Endsley, an international facilitator/trainer and an expert in international real estate and global economic issues, is expected at the programme to impart skills and knowledge on current real estate trends. Endsley is the president of World Citizen

Consulting and a member of FIABCI-USA. The programme is partly sponsored by a grant from IHC Global in conjunction with Leonard Reaume Memorial Foundation (REAUME Foundation).The sponsorship has enabled the Nigeria chapter to subsidize the fee for the programme.

GLOBAL I &II earns FIABCI members 16 points, while 10 credit points have been approved by the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) for members of FIABCI principal member, the Nigerian Institution of Estate Surveyors and Valuers (NIESV). Also, members of the chapter and the principal member of FIABCI will enjoy a further discount.

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BUSINESS DAY

Markets + Finance

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‘Providing proprietary research, commentary, analysis and financial news coverage unmatched in today’s market. Published weekly, Markets & Finance provides all the key intelligence you need.’

Wapic Insurance Plc: Gross premium income drives underwriting profit BALA AUGIE

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apic Insurance Plc. (NSE - Wapic; Bloomberg - WAPIC:NL) is a leading West African full line insurance company offering a diverse range of products and services covering life, general and special risk businesses. We were founded in 1958 and licensed to underwrite all classes of insurance, such as fire and special perils, goods-in-transit, all risk insurance etc.

Over the last half century, Wapic has garnered experience across Nigeria in risk management and underwriting, and assisting corporate entities and individuals with various classes of cover. Wapic operates two business lines; Wapic Life Assurance Limited which operates in Nigeria, and; a regional footprint in Ghana, Wapic Insurance (Ghana) Limited.

In order to bolster the company’s ongoing repositioning and restructuring initiatives, Wapic merged with Intercontinental Properties Limited; a development which has significantly enhanced Wapic’s underwriting capacity and placed it amongst the top five insurance companies in Nigeria.

Wapic seeks to be a truly diversified financial services institution that provides protection against all forms of insurable risks to all customer segments and become one of the top twenty financial services institutions in Nigeria by 2017.

Wapic has been listed on the Nigerian Stock Exchange since 1990.

Increase in patronage underpins premium income For the first six months through June 2018, Wapic Insurance grew gross premium written by 18.10 percent to N6.96 billion as against N5.59 billion the previous year.

The company adherence to strict underwriting principles, which attracted customers, and the lunch of market penetrating products are major drivers of revenue.

The insurance continues to leverage on its brand while bolstering efficiency of its risk selection process amid a tough and volatile macroeconomic environment.

“Our half year performance is a reflection of the company’s continued focus on its business strategies to deliver on all growth targets in a sustainable manner,” said Yinka Adekoya, Managing director of Wapic Insurance.

“We remain committed to the focused execution of all our growth strategies especially with respect to our priority products and the delivery of an enjoyable experience across board for all our customers,” said Adekoya.

Wapic Insurance’s reinsurance ceded reduced by 68.87 percent to N1.48 billion in the period under review from N1.81 billion the previous year; the reduction in reinsurance ceded gave impetus to net underwriting income that grew by 47.67 percent to N4.43 billion in the period under review from N3.0 billion the previous year.

Get premium income

Aigboje Aig-Imoukhuede - chairman, Wapic Insurance Plc

(GPI) increased by 19.0 percent to N5.49 billion in the period under review as against N4.57 billion as at June 2017.

Similarly, net premium income (NPI) rose by 43.50 percent to N3.96 billion in June 2018 from N2.76 billion the previous year, the second fastest growth in NPI among 20 firms tracked by Market and Finance.

Numbers from the Nigerian Stock Exchange (NSE) shows insurance companies in Africa’s largest economy are growing revenue despite the slow growth in the country’s Gross Domestic Product (GDP).

The cumulative gross premium written (GPW) and Net premium income (NPI) of 20 insurers that have released half year results increased by 15.10 percent and 17.82 percent to N119.83 billion and N82.34 billion from N103.15

billion and N69.87 billion as at June 2017.

Experts attribute the growth at the top line (revenue) to awareness among Nigerians about the importance of insurance and a young population that crave for consumer.

However, experts are skeptical about these firms replicating the same feat as there have been two consecutive drops in GDP. According to the latest report by NBS, GDP grew by 1.50 percent in the second quarter of 2018, but the increase is lower than 1.95 percent and 2.10 figure for first quarter (Q1) and last quarter of 2017 (Q4).

The 1.50 percent GDP figure is less than the 3 percent population growth figure, a worrisome scenario that validates the country misery index.

The fret among economists is that if the economy contracts for two additional quarters, then the country will slip into recession.

With a 4.0 percent contraction in the oil sector, and the underperformance of the manufacturing sector, insurers’ future revenue could nosedive, but they can weather the impending headwinds by embarking on organic and inorganic growth strategy.

Efficient underwriting Capacity amid rising claims Wapic Insurance’s underwriting profit surged by

BD MARKETS + FINANCE Analysts: BALA AUGIE

113.09 percent to N1.32 billion in June 2018 from N662.08 million as June 2017; the fastest growth among 20 firms tracked by Markets and Finance (M and F).

The company efficient underwriting capacity was driven by growth in premium income and enhanced efficiencies of its risk selection process in an environment fraught with mounting claims expenses.

Net Claims expenses were up 19.25 percent to N1.93 billion in the period under review from N1.62 billion the previous year while movement in outstanding claims soared by 101.70 percent to N1.12 billion in the period under review from N557.16 million as at June 2017.

However, claims expenses ratio was down to 48.95 percent in June 2018 from 56.17 percent the previous year; this means the firm has spent less on claims expenses in generating revenue.

Underwriting expenses increased by 41.60 percent to N1.16 billion in the period under review from N826.05 million the previous year as the firm spent money on expenses relating to advertisement, staff salaries in generating premium income.

However, underwriting expense ratio was flat at 30 percent in the period under review, which means the insurer spent N30 in generating every N100 in revenue.

While Wapic insurance’s total management expenses were up 16.93 perent to N2.41 billion in the period under review, the company is efficient in utilizing management expenses in generating revenue as operating expense ratio(Opex) fell to 60.85 percent in June 2018 from 74.95 percent the previous year.

Due to a 25 percent drop in investment income to N279 million as June 2018, the company’s net income dipped by 84.35 percent to N61.91 million in June 2018 from N395.69 million the previous year.

While insurers in the country are becoming more efficient as evidenced in a favorable combined ratio (CR), industry investment income

remains abysmally poor when compared to Deposit Money Banks (DMO).

Investment income, which comprise of income from bonds, Treasury bills, and real estate, are used by insurance firms across the globe to augment revenue and compensate for slim underwriting profit.

Data gathered by Markets and Finance shows 13 thirteen largest banks realized a combined N879.23 billion in income from treasury bills (Tbills) in 2017, this compares with the N53.15 billion investment income realized by 20 largest insurance companies.

Analysts say insurer’s investable funds are poor compared to bank as lenders make a lot of money from fixed deposit, adding that insurers will have to underpin their risk allocation strategy to bolster other income.

Asset quality reflects balance sheet growth The Company’s balance sheet shows sizable positive changes in total assets, net assets, and total liabilities as at June 2018, compared to the corresponding year June 2017.

Total assets increased by 16.81 percent to N33.41 billion in June 2018 from N28.61 billion the previous year.

The key driver of total asset includes a 7.79 percent increase in financial assets to N10.23 billion; 100.62 percent surge in reinsurance assets to N3.17 billion; and other receivable, and prepayment to N3.17 billion.

In terms of obligations, the company’s total liabities increased by 45.67 percent to N15.50 billion in June 2018 from N10.64 billion as at June 2017.

Liabilities key drivers entail trade payables which surged by 378.62 percent to N2.47 billion from N516.37 million and insurance contract liabilities which rose by 43.17 percent to N10.23 billion from N7.14 billion.

“We stay focus on deepening our retail penetration and share of wallet, improving operational efficiencies and consolidating our brand profile in order to achieve our growth target for the rest of the year,” said Adekoya.

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BUSINESS DAY

Tuesday 04 September 2018

INTERVIEW

NIMC urged to create mobile biometric centre to hasten enrolment Enrolling in the National Identification policy has become an albatross to many Nigerians, who see it as a step in the right direction. In this interview with Micheal Ani, Ronke Okeremi, MD/CEO, Arit of Africa, spoke on how the biometric system can be deployed to tackle crime, while urging the National Identity Management Commission (NIMC) to create additional mobile biometric centres to fast track national identity number enrolment. Excerpt:

How can the biometric identification system mitigate the threat of cybercrime? ost security systems validate an identity using something an individual possesses (e.g. a smartcard) or something an individual knows (e.g. a password). These are vulnerable to being lost, stolen, forgotten and shared. Biometrics validates an identity based on unique physical attributes belonging to an individual and do not have the vulnerabilities mentioned above.

With biometrics there is no need to carry keys or cards around and the administration effort required to manage passwords is eliminated.

A citizen biometric system provides a central system, which can be used for the authentication of citizens by government institutions.

This system prevents duplicate and false identities, thus preventing identity theft and fraud.

Security authorities such as the police can search for suspects by matching latent prints against the central system’s records. The system can also be used for border control, which benefits the security of the citizens. Biometric title deeds registration can also eliminate fraudulent deeds registration, thus ensuring the security of citizen’s properties.

ensures the quality of captured biometric and security of the biometric system. Operators involved in capturing biometrics must be trained correctly and biometric acquisition and authentication processes must be defined.

In any country, the credibility of the biometric system is also based on adherence to standards set by industry regulators. Examples are FAP30 requirements for the KYC of the telecommunications industry lately to ensure quality of fingerprints captured etc.

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The ability of the biometric systems to control physical access in a highly sensitive area is imperative. How can the system improve the Civil Service Commission with hundreds of employees?

Typical physical access control is card or PIN based. PINs require a person to know a PIN code. However, who actually entered the PIN cannot be determined. In the same manner, who actually presented a card for access cannot be determined. Like I said, PINs and cards are vulnerable to being lost, stolen, forgotten and shared.

Biometric access control uses a person’s physical attributes as a credential, which guarantees the identity of the person and is auditable. Biometrics eliminates the vulnerabilities associated with card and PIN access control. Biometric access control can also manage who accesses an area and the times that a person can access an area.

Critical factors for biometric access control are acceptance by users; easy enrolment, ease of use and the biometric devices must work

How long has Arit of Africa been in the biometric business, and has the firm deployed biometric for any large organisation to solve access challenge?

Arit of Africa has been in the security solutions space for quite a while. Biometrics is a line of business in our niche area of security.

We are partners to top security Original Equipment Manufacturers (OEMS) and have deployed to very large organisations, especially in the telecommunication and public sectors.

The outcome of any biometric solution deployed is always a function of the problem you are trying to solve hence there can be various outcomes depending on what the problem is. We always proffer the right solutions to meet the needs of the customer and in addition provide value add expert advisory services when required.

Ronke Okeremi

correctly.

outskirts and in the remote areas.

The NIMC is saddled with the biometric registration of Nigerians for proper identification. But not much has been achieved in terms of capturing citizens’ data. As an expert, what is the solution to this problem?

Firstly, the cause of the logjam must be identified. Operators who enrol citizens must be properly trained and biometric acquisition and authentication processes must be adequately defined. In the case where the logjam is identified as being due to few biometric registration centres then additional centres should be created. Mobile biometric enrolment kits can be used to provide biometric registration where it is required and is especially useful for enrolment in

How can you make a biometric system credible?

A biometric is a scientific measure of unique physical and behavioural characteristics belonging to an individual. A biometric system

A citizen biometric system provides a central system, which can be used for the authentication of the citizens by government institutions

typically consists of a front-end application and a backend system.

The front-end application performs biometric enrolment and authentication or identification. The backend system then processes and stores the biometrics.

An ideal biometric system is one with high performance in both authentication and identification modes. A good biometric system should be flexible enough to allow for changes in needs, conditions and expectations. A biometric system must balance the need for accuracy with the cost and effort of implementation and the perceived intrusiveness of the chosen biometric modality.

A biometric system is made credible by ensuring that quality biometric acquisition devices are utilised and by having software that

In what way can adequate biometric system fast track progress in Nigeria?

A citizen biometric system provides a central system, which can be used for the authentication of the citizens by government institutions.

Citizens can be biometrically enrolled on a central system and can be issued with identity documents and at a later stage with passports.

Biometrics lead to faster ID documents and passport turn-around times, reduced cases of duplicate identities and identity theft.

Ports of entry can benefit from quicker response to capture and verify a traveller’s identity. Security authorities such as the police can search for suspects by matching latent prints against the central system’s records. The system will also lead to improved border control, which should create a competitive economic environment to attract critical skills, enable growth, increase foreign direct investment and create jobs.

Tuesday 04 September 2018

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New leaders, move slower than you think you should

TALKING POINTS Broken Engagement 85%: In a report looking at the state of the global workforce, Gallup found that 85% of employees are disengaged from their work. + Baby Boomer Business Half: Workers from the U.S. baby boomer generation own almost half of privately held companies in the country. + Big Tech Rivals $500 billion: China’s public markets value the multinationals Alibaba and Tencent at roughly $500 billion each. + Beyond the Dot-Com Bubble $1.5 billion: PayPal, a worldwide online payments system that was founded during the dot-com boom, sold to eBay in 2002 for $1.5 billion. + It’s a Gig Economy Two-thirds: A survey from Deloitte reveals that almost two-thirds of millennial and Generation Z workers view side gigs as a way to supplement their full-time jobs.

Work in a family business? Create your own network

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hen you start a leadership role, there’s pressure to prove yourself by getting off to a quick start and delivering early wins. But if people sense that you’re making a change without thinking it through — or getting their input — you’re unlikely to be successful.

That’s why you need to slow down, especially in your interactions. When talking with new colleagues, repeat what you hear, both to confirm your understanding and to demonstrate that you’re listening. Ask the group reflective ques-

Business travel can ruin your health. Don’t let it

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skip out on exercise. Stay in a hotel with a gym (and use it), or do simple exercises in your room, such as pushups and squats.

You can also take walks in between meetings, or join colleagues outside for a walking meeting. The physical activity will help prevent weight gain and reduce stress.

(Adapted from “Just How Bad Is Business Travel for Your Health? Here’s the Data,” by Andrew Rundle.)

tions such as, “What just happened here?” and “What could we learn from that?” These questions force a pause, preventing a discussion from rushing to a decision. And don’t be afraid to use silence. Pausing before you speak gives you a chance to weigh alternatives and decide on the best way to respond. It also pushes others to wonder what’s going through your mind, which may cause them to think more creatively.

(Adapted from “Why New Leaders Should Be Wary of Quick Wins,” by Dan Ciampa.)

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e’re consuming more information than ever before — but retaining all that knowledge is another story. If you find yourself struggling to use what you read (or even just remember it), you probably aren’t learning productively. To be a more efficient learner, try three things. First, focus your reading on a single topic for several months. The deeper you go into a subject, the stronger a foundation you’ll have for learning about it in the future.

Second, regularly synthesize what you have learned. When you finish reading something, ask yourself, “What are the key take-aways here?” If you can’t explain an idea to yourself,

you probably didn’t learn it very well. And third, take occasional breaks from consuming new information.

Reflecting on what you’ve read in the past is an important part of processing it — and constantly taking in new information can interfere with that. Give yourself time to review, consider and apply what you’ve already read.

(Adapted from “Become a More Productive Learner,”

by Matt Plummer and Jo Wilson.)

Visit any of our designated branches nationwide for your following invisible trade transactions: School Fees Pilgrimage & Other Travel Allowances (PTA and BTA) Medical Allowances

or studying abroad?

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(Adapted from “Building Your Own Network When You’re Part of a Family Business,” by Josh Baron and Judy Lin Walsh.)

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t’s good to have friends at work, but those relationships can get complicated. If you’ve been promoted above your friends, and people who used to be peers are now your direct reports, you might feel unsure of how to act toward them. You can reduce any strain on your friendships by being open and honest. Talk to your friends about the stresses and responsibilities of the new position. You may think that what you’re dealing with is obvious, but that’s probably not the case. Explain the tensions you feel between valuing your friends and, for example, having to evaluate them or assign them work. Discuss how to strike a balance, whether it’s avoiding work-

We have you covered through CBN’s special intervention for specified retail invisible transactions.

Are you travelling abroad for vacation

hen you work in a family business, you may assume that you’ll inherit the family network. You might be handed a few contacts, but you still have to be proactive in building your own olodex. Form connections with both peers and people from your parents’ or even your grandparents’ generation. Having contacts from a variety of backgrounds and experience levels will help you get many points of view.

Think about which relationships with existing business partners can be transitioned across generations.

Maintaining those long-standing ties is important, but it won’t happen on its own. You should also have two or three close advisers, people you trust to give you feedback and advice. They don’t have to be people your age; sometimes older colleagues can give you the same perspective that your parents would, for example — without the emotional baggage. And don’t be afraid to use your family brand. If your last name can open doors, take advantage of those opportunities.

Don’t let a promotion hurt your work friendships

Do you retain enough of what you read?

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

www.firstbanknigeria.com

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Tips & Talking Points

Harvard Business Review

raveling for work is bad for your health, especially if you do it often.

Research shows that business travel can increase your risk of weight gain, anxiety, depression, alcohol dependence and poor sleep. So if you travel for work regularly, make sure you know how to establish healthy habits on the road. Try to eat low-calorie meals whenever possible, even if your culinary options are limited. You might be tempted to reward yourself after a long day, but resist the urge to order the steak and fries or a late-night cocktail.

Those choices will take a toll over time. And don’t

BUSINESS DAY

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@firstbanknigeria

+FirstBankNigeria

related topics when you’re socializing or agreeing to keep each other in the loop (when you can) about what’s going on. You don’t have to lose your friends when you’re promoted — but you do need to be careful in how you interact.

(Adapted from “Why Work Friendships Go Awry, and How to Prevent It,” by Art Markman.)

Politics & Policy

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BUSINESS DAY

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Tuesday 04 September 2018

I would restructure Nigeria in six months, says Atiku … Regrets not taking over Lagos in 2003 INIOBONG IWOK

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ormer Vice-President of Nigeria, Atiku Abubakar, has said that he would restructure the country within six months of assuming office if elected the president in 2019.

Atiku stated this yesterday while addressing People’s Democratic Party (PDP) leaders in Lagos State at the party’s secretariat along Adekunle Fajuyi way, Ikeja, during a consultation visit to the state. He that his immediate priority would be to restructure the country and make the presidential position less attractive, while equally devolving power to other regions.

He urged the party delegates to vote him as the party’s presidential candidate in the forthcoming PDP Presidential primary.

“I would restructure the country within the six months when I assume office. I would make the centre less attractive and I would devolve power to regions,” he said.

According to him, “This is one of the most important elections we have faced in the country; because the future of our children and grandchildren would be decided in this election, if you make the mistake of voting for the wrong person you would have yourselves to blame and the future of your children”.

Atiku

Atiku further said that the PDP would have easily won Lagos State in the 2003 general election, but he deliberately left the state because of plea by the then governor of the state and presently the leader of the national leader of the ruling All Progressives Congress (APC), Bola Ahmed Tinubu, in whom he had a close relationship.

“When we came to power in1999, the entire South-western states was under the control of the Alliance for Democracy (AD), and when we were approaching 2003; I told my boss give me the authority to take over the Southwest which I did, except Lagos. By history, me and Bola Tinubu have come a long way;

we were in PDM and other groups together, when this was going on Tinubu said I should leave Lagos for him.

“I could easily have taken Lagos but today we have lost the Southwestern states to the party called APC. My brothers, I want you to forgive me for leaving Lagos out of that arrangement. If I have another opportunity Lagos would go and I know what I did to preserve Lagos.

“So my brothers and sisters, I want to appeal to you to give me the chance to return; so that I can correct that mistake that brought us to where we are today.”

Speaking further, Atiku, accused the Muhammadu Buhari adminis-

PDP insists on zoning ahead of next year’s general elections ANIEFIOK UDONQUAK, Uyo

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he People’s Democratic Party (PDP) Akwa Ibom State chapter says its decision to insist on adherence to zoning is to reduce political tension and unwarranted expenditure during the 2019 general election.

The party says the ongoing purchase of nomination forms by members of the party has given an indication of respect to the zoning arrangement. , the publicity secretary of the party said this in Uyo, the state capital, that the widespread sensitisation on zoning has readjusted the mindset of politicians in the state to avoid undue conflicts.

The party spokesman said such peaceful move runs in contrast with other political parties that are currently chanting war songs, with the threat to win through violence.

He said as a party determined to win the support of the people through hardwork and convincing proof of competence, the PDP has instead of threat and intimidation held stakeholders’ meetings in the 329 wards across the state and carried out sensitisation in the 10

federal constituencies.

Ememobong said the PDP is currently running about five radio and programmes, using such platforms to sensitise and give seed funds to aid small and medium scale business owners, in addition to training in various trades and vocations.

“It’s difficult for a person who is benefiting from you not to insist you stay. We are interacting with young professionals, market people, we are carrying out door to door campaigns; we are praying; the governor before declaring went first to God, this government has been made a part of the church.

We have done that part that man needed to do. That is why the campaign slogan of the governor for 2019 is ‘Only God’”, he said.

“People come into politics without preparing that the answer can either be yes or no, that’s why we keep asking those not favoured by zoning to avoid spending money, some aspirants do not even know how to interact with the electorates. That is why we keep sensitising our members to avoid this,” he said.

While expressing confidence that the PDP has worked harder than any other political party in

the state and therefore, stands a huge chance of sweeping the polls, the party spokesperson reassured those who recently defected from the APC to the party of equal opportunity to thrive.

“When people leave the PDP it’s defection, when the return it’s home coming. So when people come back home it’s easy to locate their rooms”, he further said, adding:”PDP secretariat has been a beehive of activities within this past weeks, lots of people have indicated interest and actually purchased the forms, our forms are the most reasonable in the political market. For women, it’s just the expression of interest the nomination form is free, only the incumbent has purchased form for governorship” According to him, “PDP is the only political party in this country to attain the age of 20, it was created as a platform where everyone, irrespective of religious or any affiliation can thrive. In the past 20 years, we have provided the fertile ground for democracy to thrive, I’m sure that if the type of party we have at the centre today had been for the past 20 years, there wouldn’t have been democracy.

That’s our greatest achievement.”

tration of mismanaging the affairs of the country, lamenting the worsening insecurity and poor state of the economy since it assumed office.

“And we have the worst economy since 1999. This government met GDP at 7 percent and when they came they crash it to recession, and we are still trying to recover; they have made life difficult for us. I have never seen the country so insecure as it is today. In the north, I can’t go to farm; there would be food scarcity after the raining season,” he said.

Atiku recently re-joined the People’s Democratic Party (PDP), a party he was a founding member, but left in 2013 to join a bloc of alliances which formed the ruling All Progressives Congress (APC). He subsequently contested the APC presidential ticket in 2014, but was defeated by the incumbent President Buhari.

Responding on behalf of the party, the secretary of PDP in the state, Muiz Dosunmu, said that delegates from Lagos State are well aligned with the objectives of Atiku.

“Lagos PDP is set to follow a leader who knows the trenches.

Your Excellency Atiku Abubakar knows the pathway and we are ready to follow you.”

A former minister and chieftain of the PDP from Lagos State, Abimbola Ogunkelu, announcing who was representing the leader of the

party in the State, Olabode George said that Atiku towers above all the other aspirants, and has the capacity to lead the opposition party to victory in the 2019 presidential election.

“The PDP in Lagos State believes in Atiku and the large turn out here today is an open testament that Lagos PDP is for Atiku. We are for you here (in Lagos) and we strongly believe in your capacity to lead our great party to victory,” Ogunkelu said.

Speaking in the same vein, the only member of the PDP in Lagos State House of Assembly, Hon. Dipo Olorunrinu, said that Lagos PDP stands united with Atiku on his presidential bid.

“Lagos PDP is here today (Monday) and we are speaking with one voice that we shall stand with you on this journey. All my leaders have openly endorsed Your Excellency (Atiku) and the matter is already determined”, Olorunrinu said.

Atiku, was at the state party secretariat in company of Director General of his presidential campaign organisation, Otunba Gbenga Daniel.

Other dignitaries on Atiku’s delegation to the Lagos PDP secretariat meeting included Senator Abdul Ningi and former ministers, Dubem Onyia and Godsday Orubebe.

2019: Ezikpe advises politicians to respect Abia charter of equity UDOKA AGWU, Umuahia

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nagha Ezikpe, one of the surviving founding fathers of Abia State, and the Chairman, Abia State Advisory Council, has called on politicians in the state to respect the Abia Charter of Equity.

Ezikpe, who gave the advice while speaking during the 27th anniversary of the state’s creation at the International Conference Centre Umuahia, noted that the document would guarantee peace and stability in the state.

He disclosed that the founding fathers of the state in their wisdom agreed to enshrine in the Abia Charter of Equity, power rotation among the major political blocs in the state to ensure peace and stability.

Ezikpe who hinted that he was the Secretary of the stakeholders forum that formulated the charter added that it was their agreement also that the state House of Assembly would finally legislate on the document and pass it into law.

He expressed delight that in the spirit of the charter of equity, political power had rotated round all three senatorial districts in the state with Abia North taking the first shot from 1999 to 2007 with former Governor Orji Uzor Kalu, followed by Abia Central 2007 to 2015 with Theodore Orji,

and Abia South which is currently being represented by Governor Okezie Ikpeazu since 2015.

“I therefore, appeal to politicians to allow Abia South complete its own turn of second term already enjoyed by other zones in the spirit of Abia Charter of Equality.

“Any attempt to truncate the power rotation arrangement could create ill feelings and ultimately affect the prevailing peace in Abia polity.” said the elder statesman.

The Abia Advisory Council helmsman urged all political parties in the state to respect the zoning arrangement which he noted had eliminated mutual suspicion among the zones.

Governor Okezie Ikpeazu while speaking during the occasion paid glowing tribute to the founding fathers of the state for their resilience and spirited efforts that culminated into the creation of the state.

He noted with delight that Abia had made some significant progress since its creation by the successive administrations in the state.

Ikpeazu promised to consolidate on the various gains recorded by his predecessors to take Abia to greater heights.

The Abia Chief Executive said that he had continued to enjoy the support of major stakeholders as well as the masses from all zones ever since he came on board.

Tuesday 04 September 2018

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NEWS UBA’s Leo launched on WhatsApp

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an-African Financial Institution, United Bank for Africa (UBA) has announced the commencement of its chat bank ‘Leo’ on the WhatsApp platform.

With Leo on WhatsApp, customers who are users and lovers of the app can now can perform basic banking services including checking their balances on the go, transferring funds, paying bills, among other services.

The Group Managing Director/Chief Executive Officer, UBA, Kennedy Uzoka, who expressed excitement about the development remarked that the bank is continuously working in line with customers’ demand to ensure that banking services are made convenient and without stress.

He said, “This only goes to show that our resolve in continuing to deploy innovative solutions that place customers first, using cutting edge technology for their collective satisfaction and excellent banking experience is important to us.

This recognition will further

spur us to do more in meeting the needs of our customers with unrivalled services.”

“Our recent launch of Leo in 13 other African countries is evidence that UBA has on its agenda, the objective of digital creativity especially in service for our trusted customer base across the African continent.”

Also speaking on the new service, the Group Head of UBA’s Online Banking, Austine Abolusoro, stated “United Bank for Africa is a technology-driven institution with vast knowledge in the business that we do and Leo, being a tested dependable and intelligent personality, will replicate on WhatsApp, the success it has experienced on the Facebook Messenger platform. It is a solution that is from the customer’s standpoint, easy to use by anyone regardless of your demography.” “Leo is ready and waiting to help with any form of banking services,” continued Abolusoro.

WhatsApp has been in existence for over 9 years, reaching more than 1.5 billion people in over 180 countries. The premium private chat plat-

form has assured that there will be no spam messages as the development is to enable businesses serve their customers with useful and helpful information.

LEO is already present in over 14 African subsidiaries, including Nigeria, available in three languages, and has now been rolled out to customers on WhatsApp. To use this service on WhatsApp, customers must add the LEO Whatsapp number: +234 903 000 2455 to their phone contacts, then search for UBA ChatBanking on WhatsApp to start enjoying the added convenience and ease of transacting with Leo on WhatsApp. UBA is one of Africa’s leading banks with operations in 20 African countries and in London and New York, with presence in Paris. Adjudged to be at the forefront of innovation and convenient banking, UBA is one of the first financial services institutions on the continent to deploy Finacle 10x, a new information technology platform that boosts its services and electronic banking channels.

‘Nigerian music industry is on a global eye’ ONYEMA CHINEDUM

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rrespective of the various challenges Nigerian musicians, especially up-coming artistes are facing, an Abuja-based music icon says Nigerian music industry is on a global eye.

Rose Ohiammah Jacob, popularly known as Rose Strings, has hit the nail on the head by using music to create a non-governmental organisation (NGO), and she is into the food industry as well.

Rose hails from Ibillalache, Oju Local Government Area of Benue State, a graduate of accountancy from the University of Jos, and the first daughter among seven children in the family of Ohiammah.

According to Rose, the music industry in Nigeria is now in a global eye, becoming one of the best in the continent. “Though, the challenge is high, the competition gets tougher as everyone is working towards ex-

celling and selling their own brand. It takes a lot of capital to hit the market in terms of promotion, but with great consistency and hard work success is inevitable,” she said in a telephone interview with BusinessDay. The Abuja-based musician, in her fourteenth in the industry, grew up seeing herself a singer, as she grew up in a music family. Although, she started her music career in church, she said she would remain in church and continue in church.

At age four, she was in the children choir when she represented her church way back in Sokoto State. Professionally, she launched her first album, titled “Desire” in 2006, and now in her fourteenth year in the music industry.

Asked what is her motivation, she said, “I call it grace; God has been so faithful to me. The journey isn’t a very easy one, but grace and favour have been my support. God has backed

me up despite all the challenges I meet across my way.

“That is why it is good to do whatever you are doing with right motive, if not one would be frustrated; I take music as service to the Lord, gratitude is my watchword.”

Speaking further about her understanding of the sector, she said, “Music is life and life is music. Music on its own is a spirit; it lifts one up. It depends on the situation; you can use music to support the less privileged through concert, and then using proceeds from album sales to support them.

“We are working hard on gospel songs, as the day goes by seeking for means and ways to get better.”

On the flip side, she advised up-coming artistes to always do what was right and keep their works up by adding value to the society through doing songs inspired by God, and be a blessing to mankind and praise to their maker.

FG ’ll strengthen Navy to defend strategic off-shore oil installations- Defence Minister

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he Minster of Defence, Mansur Dan-Ali, has said the Federal Government would continue to strengthen the Nigerian Navy to defend her strategic off-shore oil installations.

Dan-Ali gave the assurance on Monday in Lagos while inaugurating 16 patrol vessels, which would be deployed to patrol and police key oil installations within the nation’s maritime domain.

The minister said that activities of sea robbers had

exposed Nigeria to be challenged by multi-faceted threats from continental and maritime fronts.

He added that criminalities like piracy, sea robbery and attack on strategic oil installations had complicated the nation’s maritime security environment.

Dan-Ali gave assurance that the Federal Government would rise up to curbing these criminalities capable of affecting the overall wellbeing of the nation. ‘‘For a littoral state with huge dependence on her

offshore resources, maritime security is vital to the nation’s wellbeing. Against this background of threats, the entire nation will invariably be at a risky situation if we do not insist on a motivated and virile navy like ours,’’ he said.

Speaking, the Chief of Naval Staff (CNS), ViceAdm. Ibok-Ete Ibas, said that navy, as the primary element of the nation’s maritime power, had the challenging task of safeguarding the country’s maritime interests.

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STRATEGYBRIEFING IDEAS THAT POWER HIGH PERFORMANCE

Strategy: Formulation, implemention and execution

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BRIAN REUBEN

alue is captured at the market place not at strategy meetings. The problem with several organisations aside from lack of a culture that promotes innovation is implemtation and execution of strategy already crafted. Like you know strategy itself is fundamentally about choices. After the decision on exactly how to play comes the question of how to implement and then execute the strategy.

There are three fundamental questions executives in a business unit cannot delegate: Who should be the customers that define our target market?

What value proposition differentiates our offering from those of our competitors?

What capabilities will give us the advantage in delivering that value proposition?

These are the choices that defines a business strategy and should

drive the decisions of the management team, functions and staff everyday.

But beyond formulation is implementation. Implementing a strategy involves all the decisions and activities required to turn the strategy into reality.

The first step in strategy implementation is a clear definition of the capabilities required by the organization. The executives must clearly identify the competence they require to executive the choices they have made. This helps them determine whose help they must enlist and how to motivate them.

This is where you look yourselves on the face and ask, ‘gentlemen, what are we really capable of and what capacity do we need to possess to make sense of the choice we have made?’

The next step is a clear definition of the advantage the organization has or needs to create. Understand that every competitive advantage lies within the value chain. Now the

value chain is a collection of all the activities an organization performs to design, produce, market, deliver and support its products. Therefore the leaders will have to look through the value chain to determine where they have or can create an advantage to support the strategy they have choosen to pursue. The advantage can be an exclusive license, a government policy, access to information, access to better raw materials etc.

The third important step is a clear identification of the organisation’s business or service portfolio. That means the collection of the products and/or services provided by the organization. Your products and services should be an expression of your business strategy hence the need to identify and analyse them to be sure they are in alignment with the chosen strategy.

So if the organization has the capabilities, advantage and business portfolio it wants, its strategy is implemented. If it has the custom-

ers, value proposition and skills it has choosen to have, its strategy is fully implemented.

However, no strategy can truly be fully implemented because the assumptions upon which a strategy is based are all in a constant state of change. Remaining relevant and competitive therefore depends on the ability of the leaders to evolve their strategies.

But then there is a difference between strategy implantation and execution. Strategy execution are the decisions and actions you take to translate your implemented strategy into a commercial success.

As an example, let’s say MTN chooses to begin the provision of

financial services. When they create a platform to provide financial services they have implemented the strategy. But then they still need to set goals, craft a purpose driven mission statement, establish the right incentives and other such things that are necessary to get results within the context of the executed strategy. This is called execution.

The difference between strategy implementation and execution is not about thinking and doing or planning and acting. You have to do all of that whether you are implementing or executing. But success comes not just from implementing a strategy but by executing the strategy.

Brian is an author, advisor to business leaders, keynote speaker and an entrepreneur. He has trained and advised senior executives at renowned organizations including Africa Reinsurance Corporation, UAC, United Securities Limited, BusinessDay among others.

Brian is the Director of BusinessDay Training and sits on the board of a number of organizations in Africa.

This Page Is Open For Sponsorship, for details call 0708 234 5251.

Tuesday 04 September 2018

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NEWS How hammer came down on MTN and 4 banks...

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of over 30 months, Governor Godwin Emefiele of the CBN told

BusinessDay Monday.

Speaking to BusinessDay from China, the Governor said he wanted to clear the air because the matter of the offences committed by the entities concerned were very weighty and had attracted global attention.

He, however, seized the opportunity of the interview to assure both local and foreign investors “that there was no need for anyone to express worries as the CBN will continue to honor all certificate of capital importation, CCIs that are issued in Nigeria to support their investment.”

He cautioned that “it is absolutely necessary that investors must ensure that they abide by the extant laws and FX regulations governing the operations of banking business in Nigeria.”

According to him, the total amount to be repatriated by both the banks and MTN stands at $8.14bn, and once received, the CBN will credit the company with the naira equivalent at the exchange rate at which the transactions were consummated.

“It is important to stress”, he said,“that the CBN examiners had been investigating three charges of infractions against the four banks and MTN, particularly the manner of funding the equity investment into MTN and the subsequent capital repatriation that resulted thereafter.”

The governor explained, “the investigation was in two parts, the first allegation started about two and

a half years ago, when examiners began to investigate; 1) The method of payment for shares by local shareholders in MTN International, which is the sole owner of MTN Nigeria.

2) Whether the banks breached the extant regulations requiring banks to issue CCIs within 24 hours of receipt of funds inflowed into Nigeria.

“On the 1st charge regarding investment by local shareholders, the CBN examiners discovered that the local investors in MTN, purchased FX from the Nigerian foreign exchange market, repatriated the funds and these funds formed part of the total funds inflowed

by MTN totaling $402m between 2001 and 2003. By the extant regulation, only funds inflowed into Nigeria qualify for the issuance of CCI. “However, examiners observed that the extant FX regulations at the time of investment allowed Nigerians to purchase shares with foreign currency. So, whereas you would say that the investment of the local shareholders should be voided because the funds came from within Nigeria and were round tripped, you can also say that it is allowed because Nigerians were allowed to invest in foreign currency assets. So we reasoned that since this transaction happened over 10 years ago and the company was doing well, we should grant them a waiver.

“On the Second offence regarding the CCIs, the regulation provides that banks must issue CCIs for inflowed funds within 24 hours. The examiners reported that the banks failed to issue some of the CCIs within 24

hours; which is sanctionable. Again the CBN decided to overlook this offence given that these transactions took place over 10 years ago.

Emefiele said “It was based on these facts that the CBN wrote the letter dated February 22, 2017 granting MTN the permission to continue paying dividends on the CCIs. So when our Directors were summoned by the Senate to provide the CBN perspective, they told the Senate that the CBN had pardoned the offences and based on this, the Senate towed the same line with the CBN and cleared MTN and the banks of the issues.

“Now the third offence, which is actually the crux of the matter in dispute now relates to the unauthorized conversion of a loan of $399 million to preference shares by the MTN and the banks and thereafter the repatriation of the sum of $8.1 billion without CBN final approval.

“The facts from the last examination which commenced in March 2018”,he said, “is that, at the inception of the company, the shareholders inflowed the sum of $402million and reported that $343million was equity and $59 million as loan. The examiners later discovered that in its 2007 audited accounts, MTN’s auditors reported that the investment of $402million was stated as $2.99million in equity and $399m as loan, a statement that is in conflict with their earlier disclosure and on the basis of which CCIs had long been issued to the company. Soon after, the company, through its bankers approached the CBN for the conversion of the loan of $399million to Preference shares.

•Continues online at www.businessdayonline.com

GE drops Lagos-Kano rail concession project...

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has stepped down from its lead-

ership role in the concession deal.

Investigation reveals that the decision of GE to drop its leadership role of the consortium and its decision to operate from behind the scene may not be unconnected in the first instance to the vague nature of the transaction details, the projects perceived unprofitability upon completion in the long term, coupled with recent on-going strategic decisions of GE to overhaul its operations globally for profitability.

Initiated by General Electric, the world’s premier digital industrial company, the consortium is comprised of SinoHydro, a leading infrastructure construction services corporation, Transnet, a leader in transportation and logistics infrastructure management and APM Terminals, a global port, terminal and intermodal inland services provider.

When contacted, Yewande Thorpe, Head of Communications, GE Nigeria in an electronic mail response sent to BusinessDay said, “The International Consortium made up of Transnet, SinoHydro, APM Terminals and GE, is actively engaged in negotiations with the Federal Ministry of Transportation to finalize the terms of the agreement to proceed with the interim phase of the concession of Nigeria’s narrow gauge railway network between Lagos and Kano.

Once negotiations are completed, execution will commence. We remain committed to working with the

opening of a major China-Africa summit.

Buhari ignores 85 bills passed by National...

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pended by the legislature over

. but the president, and his handlers appear to have a different perspective.

The latest addition to the list of bills declined assent by the president is the Petroleum Industry Governance Bill (PIGB), which for 17 years in the making, was anticipated by industry watchers to bring some sanity into the petroleum industry.

Stakeholders tell BusinessDay that the frosty relationship between the National Assembly and the Presidency appears to be taking precedence over the need to get the economy working, and signing legislations into law to make the country more attractive to investors.

Just like the PIGB, if the 85 bills yet to be attended to by the Buhari administration are not signed before the end of this tenure, all the work done on them so far would have been

wasted, and the next government will have to start afresh on the bills.

BusinessDay investigations show that from 2015 till date, 228 bills have been passed by the Senate, comprising Senatebills,concurrencebills,andconstitutional alteration bills. The House of Representatives and Senate have jointly passed 152 of these bills, but 55 percent have been awaiting assent by the president, some for over two years.

The Buhari administration has till date, assented to only 61 bills, representing 40 percent of bills passed, while he has declined assent to five bills, and vetoed one. The tally was only recently increased to 61, when Yemi Osinbajo as acting President, gave assent to three bills, increasing the total number of bills with assent from the presidency from the previous 58 bills.

President Buhari rather than attend to the bills lying on his desk, instead called last Thursday, for the quick passage of Gender and Equal Opportunity

Bill,whichisbeforetheNationalAssembly and implementation of 35 percent affirmative action by all political parties.

While the Gender and Equal Opportunity Bill is of importance, investigations show it has been stuck at Committee level since 2016, whereas other bills covering health, education, social welfare, and the economy in general which have already been passed by the National Assembly, are yet to get the president’s attention.

Bills that also sought to provide legal backing to agreements signed with Sweden and South Korea, for Nigerian interests to avoid double taxation have also not been attended to by the presidency.

These are Avoidance of Double Taxation Between the Federal Republic of Nigeria and the Kingdom of Sweden Bill, 2017; Avoidance of Double Taxation Between the Federal Republic of Nigeria and the Republic of South Korea Bill, 2017.

•Continues online at www.businessdayonline.com

•Continues online at www.businessdayonline.com

China to provide $60bn in financial support to...

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L-R: Ike Adinde, administrator, Digital Bridge Institute (DBI); Susan Teltcher, head, human capacity building division, International Telecommunications Union (ITU), and Vladimir Raduvonic of Diplo Foundation, Serbia, at the just-ended ITU Regional Human Capacity Building Workshop in Abuja.

Federal Government of Nigeria to revamp and revitalize the country’s rail system.”

But in a telephone chat with BusinessDay on Monday, Fidet Okhiria, managing director and chief executive of the Nigerian Railway Corporation (NRC) who spoke from China as part of President Muhammadu Buhari’s federal government delegation to the country stated that GE is still part of the consortium, but only relinquished its leadership role to Transnet of South Africa.

It would be recalled that about five months ago in Washington, the United States capital, the Federal Government and General Electric (GE) APM Terminals, Transnet and other consortia signed a $45million agreement to carry out rehabilitation work on the interim phase of the 1,800 kilometer Lagos-Kano narrow-gauge railway concession contract which includes light remedial civil and track repair works on the narrow gauge rail line.

Fielding questions from our reporter on when the US conglomerate would mobilise equipment, men and materials to site in May this year, one of the top executives who had earlier stated that GE will deploy to site last June stated that before any concrete move will be made, there are a number of what he called ‘condition precedents’ that must be adhered to by both the Federal Government and GE.

The package includes $20 billion of credit lines; $15 billion of grants, interest-free loans and concessional loans; $10 billion for a special fund; and $5 billion to support imports from Africa.

The support will be provided in the form of government assistance as well as investment and financing by financial institutions and companies, Xi said in a speech carried live on state television.

China will also expand its imports from Africa, especially for nonresources products, and will facilitate African financial institutions’ bond issuances in China, Xi added.

Speaking to the Forum on ChinaAfrica Cooperation on Monday in Beijing, Xi defended the global program to develop roads, railways, ports, pipelines and other trade links.

China planned to exempt some African countries from interest-free loans due by the end of the year, Xi said, adding that the relief would be granted to unspecified poor and heavily indebted countries.

“We will fully honor the promises we have made to our African brothers,” Xi told the gathering. Among those present were South African President Cyril Ramaphosa, Ethiopian Prime Minister Abiy Ahmed, Djibouti President Ismail Omar Guelleh and Egyptian President Abdel-Fattah El-Sisi.

In recent months, Beijing has faced criticism about its debt practices from countries ranging from Australia to India, with even some Chinese academics airing doubts at home.

Malaysian Prime Minister Mahathir Mohamad warned against “a new version of colonialism” during a visit to Beijing last month after suspending a $20 billion Chinese-built rail project.

While Beijing-backed investment has provided African governments much-needed infrastructure without the West’s political and

fiscal demands, it has also generated complaints about China’s preference for loans and reluctance to use local labor. Such concerns have grown as Xi extended his Belt and Road plan across much of the globe and tied it to his ambition of completing his country’s return to great power status.

Africa received $12 billion of Chinese lending in 2015, compared with just over $100 million in 2000, according data from the ChinaAfrica Research Initiative. Ongoing Chinese-backed investments range from Ivory Coast power plants to a Rwandan airport to a railway in Kenya.

Africa includes some of China’s largest suppliers of oil and other commodities, and the tiny nation of Djibouti hosts its first overseas military base. Total trade between China and the continent’s nations rose 14 percent last year to $170 billion, according to Chinese data.

In his speech, Xi promised to continue what he called a “five-no” approach for African nations, including not altering developmental paths, not interfering in their affairs, not imposing China’s will, not attaching “strings” to financial assistance, and not seeking political gain.

At a business event ahead of the summit, Xi said China had “full respect for Africa’s own will” and wasn’t interested in forming an “exclusive club.”

“China’s cooperation with Africa is clearly targeted at the major bottlenecks to development,” he added.

“Resources for our cooperation are not to be spent on any vanity projects, but in places where they count the most.”

Nigeria’s President Muhammadu Buhari is attending the forum ith a retinue of aides and Ministers.

President Buhari made strong case for easier access to Chinese Visa for Nigerian students and Businessmen, to ease movement between China and West Africa.

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FINANCIAL TIMES JD.com chief returns to China after release from US custody

US-China trade war prompts rethink on supply chains

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World Business Newspaper

Argentine currency crisis spreads to politics

President Macri’s hopes of re-election in 2019 have taken a knock with peso’s slide BENEDICT MANDER

I

t was only 10 months ago that Argentina’s president Mauricio Macri was riding high. After a surprisingly strong performance by his centre-right coalition in midterm elections, many believed he was set up for an easy win in presidential elections next year.

That optimism began to fade after a currency crisis erupted in late April. Last week, after two days of market panic wiped 15 per cent off the peso’s value it disappeared altogether, exposing divisions in the ruling Cambiemos coalition and pushing Mr Macri towards drastic action to remake his government and its economic plan.

“It may be that the peso is finally overshooting,” said Alejandro Catterberg, a director at Poliarquía, a pollster. “But even if we are at the bottom of the foreign exchange crisis, I am not sure that we have reached the bottom of the political crisis.”

The peso’s latest plunge was triggered by Mr Macri’s call on Wednesday for the IMF to speed up payments of a $50bn bailout package agreed in June.

Over the weekend, the president was hunkered at his residence in Olivos, preparing what local media reported would be a cull of ministers, including senior figures, and government departments.

Mr Catterberg said Mr Macri faces several risks in the coming weeks. Most important, he must prevent the run on the currency from spiralling into a run on the banks, as had happened in the 2001-02 economic crisis after the IMF’s last programme in Argentina failed.

In an apparent attempt to spread panic, Mr Macri’s most radical opponents posted videos

on Twitter of people complaining that banks had allegedly refused to allow them to withdraw dollar savings. Video footage was also circulating of looting in supermarkets, together with threatening images of security forces in riot gear.

Mr Catterberg said Mr Macri would have to contain unrest on the streets by leftist militants and trade unions, as well as maintain the support of his own core voters. The unity of Cambiemos itself could also be threatened, he said, particularly if other senior figures from within the coalition rebel.

“The solution [to this crisis] is not purely economic, it’s also political,” said Mario Blejer, a former central bank governor.

“The government will have to find consensus with additional forces in the political spectrum. They cannot continue to govern alone.”

Analysts agree on the importance of passing the 2019 budget bill in congress with the help of more moderate elements of the Peronist opposition. That, they say, could help to calm nervy investors by clarifying how the government will rein in spending to meet its target to cut the primary fiscal deficit to 1.3 per cent of gross domestic product next year.

Even if Mr Macri navigates the coming months successfully by restoring stability to the peso and heading off the most urgent social and political threats, investors who had been betting that he would win next year’s elections are re-evaluating their assumptions.

“The crisis has delivered a major blow to Macri’s re-election plan in 2019,” said Carlos Caicedo, associate director for Latin America country risk at IHS Markit. “With the peso plummeting, inflation well above targets, the economy contracting and the risk of another sovereign default, Macri’s leadership is increasingly questioned by the Argentine electorate.”

Europe fires the starting gun in race for top jobs Next 12 months will bring unprecedented reshuffle in EU power structures ALEX BARKER, JIM BRUNSDEN AND GUY CHAZAN

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urope’s biggest jobs reshuffle is at hand. Never have so many top EU positions become vacant at once — nor have the politics of filling them looked so wickedly complicated.

In 2019 new presidents are to be appointed at the union’s four most important institutions — the European Commission, its executive; the European Council, co-ordinating its political leadership; the European

Central Bank, setting monetary policy for most members; and the European Parliament.

These are just for starters. The EU’s foreign policy chief will be in the mix, as well as Europe’s nominee to be Nato’s secretary-general, and a surfeit of other European Commission posts. Brussels is thick with intrigue.

There is recognition, too, that the internal and external pressure on the bloc means more is at stake than horse-trading between personaliContinues on page A2

Mauricio Macri’s approval ratings have been relatively resilient throughout the currency crisis © Reuters

Turkey’s central bank hints at rate increase as inflation rises Rapid price growth in August could force climb down on monetary policy LAURA PITEL AND ADAM SAMSON

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urkey’s central bank has hinted at a long-awaited interest rate rise next week after new data showed inflation approaching four times its official target.

Figures released on Monday showed annual consumer prices rose 17.9 per cent in August, while producer prices showed an annual increase of 32.1 per cent.

In a statement following the publication of the data, the central bank said its “monetary stance will be adjusted” when its rate-setting committee meets on Thursday next week. It warned that the latest data posed “significant risks to price stability”.

Turkey’s currency, the lira, regained some of its losses to trade down 1.2 per cent at TL6.6 to the US dollar.

In an interview with Reuters, Berat Albayrak, Turkey’s new finance minister, said the country had reached the point where it needed a “full-fledged fight

against inflation.”

The central bank had previously stunned international investors by refusing to raise rates despite the lira losing 40 per cent of its value against the dollar this year and inflation climbing far beyond its official 5 per cent target.

Recep Tayyip Erdogan, Turkey’s president, is a staunch opponent of high interest rates, arguing that they cause rather than curb inflation.

Instead of raising the main policy rate — the one-week repo — which stands at 17.75 per cent, the central bank and other government bodies have announced a series of technical measures viewed by the markets as insufficient.

Some analysts have responded cautiously to the central bank’s statement on Monday and warned of the dangers of an insufficiently radical interest rate rise. Piotr Matys, emerging market currency strategist at Rabobank, said the announcement put pressure on the bank to deliver a “proper” rate increase.

“Governor [Murat] Cetinkaya raised the bar for himself to exceed market expectations at the time when there is no room to disappoint in the first place,” Mr Matys wrote in a note to clients.

“To our mind the central bank should surprise the market by raising rates by at least 10 per cent. However, as always there is a massive difference between what the central bank should do and what it will be capable of doing amid perceived dislike for higher rates among prominent Turkish officials.”

Jason Tuvey, a senior emerging markets economist at the consultancy Capital Economics, echoed that view. He predicted that “pressure from the government” would lead to a 2 per cent rate increase rather than the 7-10 per cent rise that he said markets wanted to see.

The central bank appeared to have been spurred into action by the latest inflation statistics, which showed how the tumbling lira has fuelled soaring prices.

Liberals, nationalists and the struggle for Germany GIDEON RACHMAN

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n 1989, the chant “we are the people” excited people all over the world. It was the slogan of the popular demonstrations in East Germany that brought down the Berlin Wall and ended the cold war.

Almost 30 years later the same chant is once again being heard on the streets of eastern Germany — but in a new and disturbing context. It has become the rallying cry for antiimmigration demonstrators, linked to the far-right.

In Chemnitz, a small town in eastern Germany that has become the flashpoint for the protests, one retired teacher and demonstrator explained to me last Thursday: “I was on the frontline in 1989 and it’s exactly the same spirit today. The same deep anger against the government.” Another retiree recalled that

in 1989 the East German government had called the demonstrators “an out-of-control mob” and added, “the Merkel government is using exactly the same language now”.

These comparisons between the democratic revolution of 1989 and today’s anti-migrant rallies will strike many as grotesque. Mainstream German politicians are instead warning of similarities with the 1930s, pointing to the fact that some demonstrators have given Nazi salutes on the streets. But the 1989 parallel is thought-provoking in one important respect.

The upheaval in East Germany was triggered by profound changes outside the country — above all in the Soviet Union. In a similar fashion, the current surge of nationalist and populist sentiment in Germany is part of a broader shift in international politics.

In 1989, the rise of a reformist leader of the Soviet Union, Mikhail Gorbachev, fatally undermined the East German government, which was essentially a Soviet client. Today, a German government once again feels shaken by a fundamental change in the politics of the country that it has traditionally looked to for leadership — except that this time the change has taken place in Washington, not Moscow.

The great influx of more than 1m refugees and migrants into Germany took place largely in 2015. Donald Trump was elected president of the US a year later. Just as in 1989 Mr Gorbachev was widely assumed to be in sympathy with pro-democracy demonstrators in East Germany, so now Mr Trump is in sympathy with Germany’s anti-migrant movement and with broader nationalist forces across Europe.

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FT Bain urged to repay fees after South Africa...

Myanmar judge sentences Reuters journalists to 7 years in prison

Continued from page A1 ties, parties or countries.

This time “is very different”, said Fredrik Reinfeldt, a former Swedish premier who took part in the last big EU reshuffle. “We have Trump as president of the US, Brexit in the UK, Italy going from being one of the most pro-EU countries to one of the most anti, and nationalist sentiment raging in eastern Europe . . . the context is completely different.”

Some crucial decisions are supposed to be taken at a summit of EU leaders in June 2019, a month after elections for the European Parliament. But that may prove a tall order. One ECB selection alone took a seven-hour “lunch” between EU leaders in 1998. Since then deciding a commission and council president has proved even more fraught, twice requiring holdout prime ministers to be formally outvoted.

Whatever the outcome, the tangled process, lasting more than a year, will involve three main phases.

A Franco-German deal?

Anything so significant in the EU will start with France and Germany, the two most powerful member states, trying to reach common accord. Private discussions have begun, with two jobs standing out: the presidencies of the ECB and the commission.

Some German, French and EU officials say Germany’s wish to place one of its citizens at the central bank has waned, while French interest in the post has risen. With that the odds on Jens Weidmann, Bundesbank president, have lengthened dramatically, while those of two Frenchmen — Benoit Coeuré, already an ECB executive board member, and François Villeroy de Galhau, the French central bank head — have shortened.

“I doubt it makes much difference what passport they have,” said one German official. “I don’t think the chancellor really is eyeing the ECB chief job for Germany.”

Instead Berlin may seek a commission under German leadership for the first time since Walter Hallstein in 1967. One senior EU official said it was “quite possible” the result would be a Frenchman at the ECB and a German commission president.

Such a trade-off is far from settled. Both Paris and Berlin may prefer proxies to achieve their aims.

Some French officials are also wary of further entrenching German dominance in Brussels; Germans already hold three of the top four EU civil service posts.

Smaller countries’ concerns will be more pronounced. “During my years as prime minister, one of the things I learnt is that when important decisions are taken, France and Germany are always very much present,” said Mr Reinfeldt. “On top of that do you also need France and Germany taking the leading jobs? It concentrates power that is already very concentrated.”

The ‘Spitzenkandidaten The further complication is electoral politics. Picking a commission president is no longer in the gift of EU leaders. The European Parliament must approve of a nominated candidate — and MEPs are insisting on the nominee being a lead party candidate in May’s European Parliament elections.

Tuesday 04 September 2018

Case seen as defining moment for Aung San Suu Kyi’s civilian government JOHN REED

A China is the world’s biggest exporter of manufactured goods, but some factory owners are shifting production to other developing countries to hedge against over-reliance on one country © FT montage / Bloomberg

US-China trade war prompts rethink on supply chains Manufacturers explore options but expect China to retain dominant production position BEN BLAND

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teve Madden is shifting handbag production to Cambodia; Vietnam is sucking up some production for Hoover-maker Techtronic Industries; Google’s hardware maker Flex is searching for new production centres from Mexico to Malaysia.

The escalating US-China trade war is pushing China-based manufacturers and their US clients to rethink the complex and extensive supply chains that bind the world’s two biggest economies closely together.

“While China will remain an important part of our global manufacturing platform for the next decade, we have accelerated the ramp-up in other low-cost countries and the US,” said Joseph Galli, chief executive of Techtronic, which makes the majority of its power tools in China and generates three-quarters of its revenue from the US for products including Hoovers. “The focus on Vietnam in the short term is offsetting the future tariff impact we might see in the US.” The Trump administration has so far levied 25 per cent tariffs on

$50bn of Chinese industrial goods and is considering putting similar tariffs on another $200bn of Chinese exports, punishing Beijing for “unfair trade practices” including forced technology transfers and intellectual property theft.

Most consumer goods have been left off the tariff lists to reduce the pain felt by US consumers. But manufacturing and retail executives fear that, with Beijing and Washington both refusing to concede, the range of affected products could widen.

Clara Chan, the head of a lobby group for 150 Hong Kong manufacturers that employ more than 1m people in China, said that the while factory executives were used to managing disruptions from rapid wage rises to spikes in raw material prices, the scale of the uncertainty connected to the trade war made it a “very different” challenge.

“This is a moment for the manufacturing industry to think about how to diversify risk, whether to upgrade products and add more value or expand production to other regions,” said Ms Chan, president of the Hong Kong Young Industrialists Council and chief executive of a metal production busi-

ness in China.

China is by far the world’s biggest exporter of manufactured goods. But some factory owners began moving production to other developing countries such as Bangladesh, Cambodia and Vietnam over the past decade in search of cheaper wages and a hedge against the political and economic risk that comes from reliance on one country.

Factory owners and US buyers say the trade war will intensify this shift.

When handbags were included on the proposed $200bn tariff tranche, it sent US executives scrambling to look at alternative production sites outside China.

Steve Madden, which started moving some of its handbag production from China to Cambodia three years ago, told investors recently that it was working on a plan to double its Cambodian production next year to about 30 per cent of its total, in addition to considering price rises in the US. Michael McNamara, chief executive of Flex, which produces electronics for everyone from Bose to Google, believes it is “inevitable” that companies will reduce their reliance on China, although it will take time.

What top employers want from MBA graduates The FT’s 2018 Skills Gap survey reveals what lies ahead in the jobs market PATRICIA NILSSON

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aroline Zimmermann acquired all the usual benefits from her MBA at Insead — an understanding of the basics of business and a great network.

One skill, however, was not on offer: Python, the programming language.

Python is one of the most important tools of her job as a senior data insights and analytics director at BMG, the music company.

But when she started the job, her lack of precise technical skills turned out not to matter, because Insead had taught her the right attitude: “be unafraid”. So she ended up teaching herself Python with the help of additional online courses.

“To look at something and go ‘I don’t know anything about this, and I’m going to teach it to myself’ is more valuable when you work in the tech sector than what you actually know,” Ms Zimmermann says.

That ability to solve complex problems is one of five skills rated most important by employers in the 2018 FT MBA Skills Gap

survey, which seeks to provide a snapshot of the skills in demand — and those that are hard to find — in MBA graduates.

This year we have expanded the survey to capture sector-specific results and the opinions of MBA graduates. More than 70 leading employers from all over the world took part. Below are the most significant trends.

1. Soft skills are most important Our data shows that employers want to hire graduates with loosely defined qualities known as “soft skills”, such as the abilities to work within a team and with a wide variety of people — rated most important by 64 and 54 per cent of respondents respectively.

“Hard” skills, which are traditionally taught on MBA courses, are different. Employers said candidates with these skills, which include accountancy, were easier to find.

Susan Sandler Brennan, assistant dean at the career development office of MIT’s Sloan School of Management, says: “I reject the idea that so-called soft skills are somehow easier — they are harder.”

Such skills will prove resistant to automation, she predicts. But they are harder for employers to assess during the recruitment process than, for example, proficiency in accounting — one of the skills employers find easiest to hire. A rise in pre-interview online assessments means many employers only meet face-to face those candidates who have passed tests on hard skills.

The ability to build, sustain and expand a network may be a skill employers value highly, but “unless [MBA graduates] have technical skill requirements, they are not even getting through the door,” Ms Sandler Brennan says.

2. Some employers are questioning the value of MBAs Some leading employers are increasingly sceptical about the MBA qualification as a means of delivering candidates with the skills they need — soft or hard.

“At an MBA level we would expect candidates to have professional experience, be able to manage a team and act as a leader with clients,” says Anna Purchas, partner and head of people at KPMG UK.

court in Myanmar on Monday found two Reuters journalists guilty of violating a colonialera “official secrets” act, concluding a trial that fuelled concerns about the country’s commitment to press freedom and the rule of law.

The court sentenced Wa Lone, 32, and Kyaw Soe Oo, 28 — both Myanmar citizens who work as reporters for the news agency — to seven years of prison after convicting them of illegal possession of official documents, an offence that carries a maximum sentence of 14 years.

The men were arrested in December while reporting a story on the Myanmar military’s violent crackdown on minority Rohingya Muslims in the country’s northern Rakhine state. They have been held in Yangon’s notorious Insein prison ever since.

Governments and human rights groups have condemned the case brought against them, which has come to be seen as a defining moment for Myanmar’s troubled democratic transition under its de facto leader Aung San Suu Kyi. “Today is a sad day for Myanmar, Reuters journalists Wa Lone and Kyaw Soe Oo, and the press everywhere,” said Stephen Adler, Reuters’ president and editor in chief. “These two admirable reporters have already spent nearly nine months in prison on false charges designed to silence their reporting and intimidate the press.”

The US embassy in Yangon said that the conviction of the two men was “deeply troubling for all who support press freedom and the transition toward democracy in Myanmar”, and that there had been “clear flaws” in the case against them.

The two men entered not-guilty pleas when they were formally charged in July.

“I have not done anything wrong,” a handcuffed Wa Lone told a crowd gathered outside the court on Monday after the verdict was announced, and before he was driven back to prison. “I believe in justice, democracy and freedom.”

Kyaw Soe Oo said: “You can put us in jail, but do not close the eyes and ears of the people.”

Human Rights Watch said the convictions heralded a return to the media repression seen during Myanmar’s half century of military rule. According to press watchdog groups, arrests and prosecutions of journalists have soared since Aung San Suu Kyi, a Nobel Peace Prize winner, took power in 2016.

Wa Lone and Kyaw Soe Oo were at the time of their arrest on December 12 working on a story about a suspected mass grave in northern Rakhine state, the site of a security crackdown against the Rohingya last year that sent more than 700,000 members of the minority fleeing for their lives to Bangladesh.

The men were invited to meet policemen at a beer garden on the outskirts of Yangon, where they were presented with documents and then arrested. Myanmar’s information ministry said at the time that they had “illegally acquired information with the intention to share it with foreign media”.

Tuesday 04 September 2018

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FINANCIAL TIMES

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COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

JD.com chief returns to China after release from US custody Liu Qiangdong was released without any charges on Saturday SHERRY FEI JU AND YUAN YANG

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iu Qiangdong, founder and chief executive of Chinese ecommerce group JD.com, has returned to his home country on Monday, after spending one night in custody following an allegation of sexual assault in the US state of Minnesota.

“We were informed that our CEO Richard Qiangdong Liu was taken into custody by Minneapolis police on August 31, 2018. He has been released without any charges, and without requirement for bail. Mr. Liu has returned to work in China,” a company spokesperson said in a statement on Monday.

Mr Liu was released from the Hennepin County jail on Saturday after being arrested by local police.

The FT reported earlier that the allegation involved Mr Liu and a Chinese student at the University of Minnesota and allegedly occurred during a business trip to the US, according to sources.

The Minneapolis Police Department said on Sunday that the investigation involving Mr Liu was ongoing, and that he was released on Saturday pending a formal complaint.

Mr Liu’s attorney said: Mr Liu was taken into custody by the Minneapolis Police. He was then released without any charges or bail being required. He is free to go back to his homeland and return to work.

Under these circumstances based

on our substantial experience in the criminal justice system in Minnesota charges are highly unlikely in the future to be brought against our client. Additionally, our client denies any wrongdoing.

The US stock market, where JD.com shares trade, is closed for a public holiday on Monday, meaning investors will not get a chance to respond until Tuesday.

The company went public on the Nasdaq over four years ago, but an eye-catching provision in the company prospectus dictates that Mr Liu’s “incapacity” to act as chairman would not include “any confinement against his will”, meaning that the founder would retain control even if he were to find himself in jail.

Another line in the US initial public offering document effectively prevents the board from taking any decision against Mr Liu’s wishes.

JD.com is now China’s secondlargest e-commerce company after Alibaba. Investors include Chinese internet giant Tencent and US retail group Walmart. Mr Liu holds only 15.5 per cent of the company stock but has more than 79 per cent of voting rights.

In June, Google paid $550m for a less than 1 per cent stake in the company.

Mr Liu is one of China’s richest businessmen, with an estimated Rmb70bn ($10bn) in personal wealth, according to the Hurun Report.

Egypt to pay $2bn to Unión Fenosa Gas in natural gas dispute MYLES MCCORMICK AND DAVID SHEPPARD

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World Bank arbitration body has ordered Egypt to pay $2bn to Unión Fenosa Gas, a 50:50 joint venture between Spain’s Naturgy and Italy’s Eni, in a move that could accelerate the resumption of the country’s liquefied natural gas exports.

The ruling by the International Centre for Settlement of Investment Disputes comes after Egypt stopped supplying gas to the joint venture’s Damietta LNG plant in 2014, as the country faced internal energy shortages in the wake of the political turmoil created by the Arab Spring.

After an investigation, the ICSID found that in stopping the gas supply Egypt had failed to grant Unión Fenosa Gas “fair and equitable treat-

ment,” contravening the country’s bilateral investment protection treaty with Spain, Naturgy said in a statement on Monday.

Egypt has been a major importer of LNG in recent years, but it is expected to resume exports in the future following a number of significant natural gas discoveries in the country, including Eni’s giant Zhor field in the Egyptian sector of the Mediterranean.

The $2bn is likely to be made in the form of renewed gas supplies to Damietta rather than in cash, according to people familiar with the matter.

Naturgy, which was formerly known as Gas Natural Fenosa, said the award would allow it to reach an agreement to resume gas supplies to the plant.

Sterling faces sharpest fall in a month on Brexit jitters, weak data ADAM SAMSON

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he UK pound kicked off September on a gloomy note, skidding against its major counterparts, as last week’s Brexit optimism morphed again into angst.

Sterling dropped 0.8 per cent against the US dollar to $1.2858, marking its worst decline in a month. The fall was worse against the euro, with the UK pound off 0.85 per cent at €1.1072.

The fresh fall comes after Michel Barnier, the EU’s lead Brexit negotiator, said he “strongly” disagreed with major portions of the UK’s Brexit proposals.

Theresa May, the British prime minister, held her ground, writing in the Sunday Telegraph that the UK would not “be

pushed into accepting compromises on the Chequers proposals that are not in our national interest.”

Just days ago, the pound was boosted above $1.30 after Mr Barnier said the EU was “prepared to offer a partnership with Britain such as has never been with any other third country”.

“We stress again that we believe the process towards an agreement between the UK and the EU is poorly understood,” said Peter Schaffrik, an RBC strategist, in response to the latest back-and-forth.

Mr Schaffrik added that a ‘no deal’ scenario remains the “default option” in the bank’s view. “We continue to see more risks of this scenario gaining in prominence and being further priced into markets,” he said.

Liu Qiangdong © Bloomberg

Global stocks slip as trade worries persist Turkish and UK currencies under pressure; Italian bond yields ease back EDWARD WHITE, RICHARD BLACKDEN AND DAVE SHELLOCK

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orld stocks are heading lower for the third session in a row as nagging concerns about global trade, emerging markets and Italian politics keep the mood subdued. Activity is light due to the closure of US markets for the Labour day holiday.

Sterling has also fallen prey to political worries — falling back below the $1.29 level versus the dollar — as fresh uncertainties emerge about the UK’s exit from the EU. Weak UK manufacturing data also weighed on the pound.

The Turkish lira is under renewed pressure after data showed the annual rate of inflation in the country reaching almost 18 per cent.

The currency subsequently trimmed its initial fall after Turkey’s central bank said its “monetary stance would be adjusted” at its policy meeting later this month.

Meanwhile, Italian government bonds are rallying — but yields remain at elevated levels — after Fitch affirmed Italy’s sovereign rating at BBB, but lowered the outlook to

negative from stable.

Equities The FTSE All World index is down 0.3 per cent, extending its recent decline.

European equity indices are mostly lower, with the region-wide Stoxx Europe 600 down 0.1 per cent and the Xetra Dax in Frankfurt 0.4 per cent weaker. But the UK’s FTSE 100 has begun the new month with a gain of 0.8 per cent as sterling weakens.

Trade tension and worries over emerging markets hung heavily over Asia equities.

The Chinese stock market is also in the cross hairs of concern from signs the Chinese consumer is slowing. The CSI 300 index, a gauge of the biggest companies on the Shanghai and Shenzhen exchanges, dropped as much as 1.3 per cent before paring its fall to 0.4 per cent.

Analysts were wary over the impending end on Thursday of a public consultation in the US on the next round of Washington’s proposed tariffs on imports from China.

“On the one hand, the radical uncertainty surrounding the next

stage of the trade war weighs on sentiment . . . On the other hand, the equity valuation is pricing in a lot of bad news — not yet a hard landing in our view, but at least a material slowdown in growth in 2019,” Société Générale analysts said of Chinese stocks.

Forex Sterling weakened after Michel Barnier, the EU’s chief Brexit negotiator, told a German newspaper he was “strictly against” UK prime minister Theresa May’s proposals on post-Brexit trade.

The pound fell further on Monday morning after the release of data that suggested growth in activity in Britain’s manufacturing sector dropped last month to its lowest level in more than two years.

Sterling touched $1.2856 before inching back up to $1.2866, still down 0.7 per cent on the day.

The euro is 0.9 per cent higher at £0.9020.

Speculators’ bets against sterling are now at their highest level since Mrs May called a snap election in April 2017, according to Goldman Sachs, citing data from the US Commodity Futures Trading Commission.

TSB customers hit by second IT failure in four months UK bank says number of accounts affected is expected to be ‘in the thousands’ NAOMI ROVNICK

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housands of TSB customers were unable to access their accounts online on Monday just four months after a botched customer data transfer caused a crippling IT outage at the British challenger bank.

TSB was forced to apologise on Monday morning on Twitter for what it said were “intermittent issues with internet banking and the mobile app”. Account holders encountered various issues, including the system not recognising passwords and the app failing to register an internet connection when the device was working normally.

The bank had warned customers to expect a four-hour outage over the weekend as it carried out “planned maintenance to our online banking services”. It acknowledged there were problems on Sunday evening before informing customers early on Monday morning that these had been resolved. Several hours later it acknowledged on Twitter that

customers were still experiencing problems.

A TSB spokesperson could not tell the Financial Times how many customers were affected, beyond stating: “I would expect it to be in the thousands” and that the problem was “currently being investigated”.

Almost 2m people are registered for online banking with TSB, the spokesman added.

The outage will hinder efforts

by TSB to regain the trust of its customers following huge problems in April resulting from an unsuccessful attempt to move customer data to an IT platform designed by TSB’s Spanish owner Sabadell. In the ensuing chaos, hundreds of thousands of customers were locked out of online banking for weeks.

TSB was last month forced to delay a long-planned shift of millions of its Visa debit card holders to Mastercard. The move was originally set for later this year but has been pushed back to 2020.

Earlier in August, TSB finally restored remortgaging services for

existing mortgage-holders. These had been disabled since before the April IT outage.

TSB’s previous IT problems cost it £176m, pushing it into its first ever pre-tax loss in the first six months of 2018. Markets watchdog, the Financial Conduct Authority, and law firm Slaughter and May are still investigating the causes of the April fiasco.

The bank is also facing an exodus of some of its most senior executives: treasurer Ian Firth, head of human resources Rachel Lock and chief marketing officer Nigel Gilbert are leaving the bank in the coming months.

In a written statement, TSB said: “We’re really sorry that some of our customers are experiencing intermittent issues with online and mobile banking. There was an issue yesterday afternoon which was resolved, however customers may be experiencing a slowness in service. Customers are still able to use their cards as normal. We’d like to apologise for any inconvenience this may cause.”

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BusinessDay CEO Apprentice 2018

Frank Aigbogun, publisher/CEO, BusinessDay Media Limited, giving his welcome address.

Oghenevwoke Ighure, executive director, digital services, BusinessDay, giving his speech.

Abimbola Babalola,(R) head, market surveillance and investigation, NSE, lecturing the 2018 BusinessDay CEO Apprentice, at the exchange.

Tunji Kazeem (l), discussing with the winners of 2018 BusinessDay CEO Apprentice at the floor of Nigerian Stock Exchange (NSE).

The winners of 2018 BusinessDay CEO Apprentice with some Stockbrokers at the floor of NSE

Arrival of the 2018 BusinessDay CEO Apprentice participants to Olusegun Obasanjo Presidential Library (OOPL).

L-R: Bola Balogun, CEO, Glam Networks Limited; Ishmael Balogun, president, Nigerian-Indonesian Chambers of Commerce and Industry, and Daniel Lawani

L-R: Jimoh Basirat; Peace Ekor, and Tumininu Bamgbose, all are participants.

L-R: Ezekiel Joshua; Awosoji Alafiatayo Deborah; Fade Balogun, and Oluchukwu Okoronkwo, participants.

L-R: Amarachi Aliogo; Stephen Oyebode, chief technical officer, My-Medicines.Com, and Morakinyo Adejare, chief operating officer, My-Medicines.Com

Lawal Usman; Popoola Oluwadamilare James; Ndukuba Akachukwu, and Yusuf Al-ameen, participants.

Cross section of the participants

BUSINESS DAY

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BusinessDay CEO Apprentice 2018

L-R: Frank Aigbogun, publisher/CEO, BusinessDay Media Limited; Orinayo Ayodele, community manager, Impact Hub Lagos; Bukky Komolafe, chief commercial officer, Travelstart, and Anthonio Pinheiro, director of operations, Andela .

L-R: Orinayo Ayodele, community managers, Impact Hub Lagos; Yemi Keri, CEO, Heckerbella; Collins Onuegbu, founder/executive vice chairman, Signal Alliance Limited, and Tosin Durotoye, director, Greenhouse Lab.

L-R: Ndukuba Akachukwu, member, Smart City Group; Popoola Oluwadamilare James, member; Erute Joshua, member, and Yusuf Al-ameen, team leader, winners of 2018 BusinessDay CEO Apprentice.

Cross section of participants during the session

Arrival of the 2018 BusinessDay CEO Apprentice participants to Olusegun Obasanjo Presidential Library (OOPL).

Cross section of participants at the OOPL 8: Ubogu Jeanne (l), with Ndukuba Osita

L-R: Akinwunmi Folayele; Obidegwu Aka, and Collins Chisom, participants

Bimbo Osuchukwu, CEO, Valucon Business Services (l), with Obinna Osuchukwu.

Ubogu Jeanne (l), with Ndukuba Osita

L-R: Ezekiel Joshua; Hameed Salman, and Dokubo Whyte, participants.

Adeola Obisesan, head, HR, BusinessDay, interacting with the participants

L-R: Linda Ochugbua, head, sales digital platforms, BusinessDay; Tunji Kazeem, head, enterprise, Nigerian Stock Exchange (NSE); Erute Joshua, member, Smart City Group; Yusuf Al-ameen, team leader; Ndukuba Akachukwu, member; Popoola Oluwadamilare James, member, and Chinomso Onuoha, sales associate digital platforms, BusinessDay.

Pictures by Olawale Amoo

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Expert urges FG to address manufacturers’ challenges to boost economy

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financial expert, Boniface Ekezie, has called on the Federal Government to tackle the challenges facing manufacturers to grow the nation’s Gross Domestic Products (GDP) to enhance the economy and the capital market.

Ekezie, who is also the

President of Shareholders Association of Nigeria made the call in an interview in Lagos. According to him, manufacturers are the major drivers of economic growth, and if they can operate optimally, there will be employment opportunities and this will boost GDP, the economy and invariably the capital market.

“There is no magic that will strengthen the naira and ensure availability of dollars when the country has been import-dependent. The manufacturers are suffering from inability to source dollars for raw materials due to high exchange rate, epileptic power supply and economic instability among others.The way

forward is for the Federal Government to create an enabling environment for the manufacturers to operate effectively,” he said.

The expert said an enabling environment and stable policy would encourage foreign investors to bring hard currencies into the economy and lower the exchange rate.

GEM projects to end piracy in Nigeria entertainment industry

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espite achievement attained by the Nigerian entertainment industry as the 3rd largest movie industry in the world by value of $ 250 million per year after Hollywood and Bollywood, production standards remain relatively low, piracy high while marketing and distribution links are ad hoc and access to finance is limited. therefore, the Growth and Employment (GEM) projects of the federal government, in the sector is targeting ending piracy in the Nigerian entertainment industry.

The GEM Project has a mandate to develop selected

sectors that hold huge potentials for growth and employment generation. Sectors along these value chains of employment potential include light manufacturing, ICT, construction, hospitality & tourism, and entertainment.

Ndah Abu, the assistant project coordinator of GEM, in a statement said entertainment is a huge employment generating sector, however, about 90 percent of content and video CDs sold in Nigeria are pirated, while the country has only 130 movie screening cinemas compared to USA’s 40,000.

According to Abu there is a strong need to improve quality at all steps of the val-

ue chain, from production to post-production and retail distributions.

According to him, the GEM intervention in the Nigerian entertainment industry is largely divided into the music and movie industry with huge potentials for job creation. However, the Nigerian Film Industry known locally as Nollywood is the most prolific in the world, producing about 40 new movies every week.

In 2017, the GEM Project intervened in the music industry by implementing an online music distribution system capable of increasing the income of assisted music label and artistes on the platforms by 30percent. In

addition, a US$400,000 grant was given to the two companies that won the bid to act as collectors for the artistes and their label. “Over 100 direct jobs will be created as a result of this assistance by the end of 2018,” said Abu. GEM intervention in the Nigerian movie industry was initiated through a sponsored Rapid Skills Training in Film and Sound Production in film, video and visual content business in Lagos, Asaba and Kano states. According to Abu, the course content included increase efficiency and expertise in production of videos, sound editing and content promotion for industry professionals, with 400 participants.

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ACI team commences security, safety inspections at Lagos, Abuja airports IFEOMA OKEKE

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six-man team from Airport Excellence (APEX), an arm of Airport Council International (ACI) has commenced security and safety inspections of facilities and equipment at the Murtala Muhammed International Airport (MMIA), Lagos to determine its level of compliance to international best practices.

The team, which was led

by Brahim Lakhlili would inspect the airside, apron, tarmac and the perimeter fences of the airport to know its level of compliance, open items and how they could be closed.

The team is expected in the airport for a weeklong programme and training of personnel while it would also move to the Nnamdi Azikiwe International Airport (NAIA), Abuja next week for the second phase of the exercise.

Speaking with journalists at the Lagos Airport, Usamn Sadiq, director of security services, FAAN, said that it was not an audit exercise, but self-review to know the extent of compliance to international stand-

ards by the airport.

Sadiq explained that the team was at the airport not only for correction, but about assistance where necessary to the airport and FAAN, stressing that the team would also look at the agency’s facilities manpower at various locations, perimeter fences and others that had to do with security and ways to improve on them.

He added: “The industry has a lot to gain from the exercise. In fact, we feel happy when we see such organisaitons in our country because they make us stand on our toes. They make us see areas where we lack facilities and how to improve such areas and you will agree with me, we are trying to be the best in Africa and eventually in the world. So, such constant visits, auditing of our concerns is a welcome development. They look at our airside, equipment, facilitation and a lot of things as regards security and safety in the system.

Also speaking at the event, Victoria Shin-Aba, the airport manager, South West, said the management was prepared for the exercise.

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Chinese National Oil Company confirms guarantee funding role for NNPC’s AKK Project HARRISON EDEH, Abuja

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hina National Petroleum Corporation (CNPC) has assured the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, of its unflinching commitment towards securing funding for the successful financing and subsequent execution of the Ajaokuta-Kaduna-Kano (AKK) pipeline project.

The huge boost for the project was revealed during a high-level meeting between the NNPC and CNPC Management held on the sidelines of the Forum on China-Africa Cooperation (FOCAC) Summit in Beijing, China, on Monday.

The AKK gas pipeline would enable connectivity between the East, West and North that is currently non-existent. It would also enable gas supply and uti-

lization to key commercial centres in the Northern corridor of Nigeria with the attendant positive spin-off on power generation and industrial growth.

Financing for the 40inch x 614km AKK gas pipeline is expected to cost about $2.8bn, for the project described as the single biggest gas pipeline in the history of oil and gas operations in Nigeria.

While 85% of the money is expected to be funded by the financiers which include Industrial and Commercial Bank of China (ICBC), Bank of China, and Infrastructure Bank of China with Sinosure, China’s Export Credit Agency (ECA) providing insurance cover, the remaining 15% will be provided by the contractors which include Oilserve/Oando consortium, as well as Brentex/ China Petroleum Pipeline (CPP) Bureau consortium.

Speaking on behalf of

over six CNPC subsidiaries at the meeting, the Assistant President and Board Member of the CNPC, Wang Shihong, said his company placed a very high premium on the AKK Project, describing it as the beginning of several collaborations between both corporations.

“We are in full support of Nigeria’s quest to deliver the AKK project. We are working relentlessly towards securing funding for the project based on regulations and policies of Chinese financial institutions,” Shihong stated.

Shihong, who said that the CNPC cherished its relationship with the NNPC, also pledged to fully support his company’s subsidiary, CPP Bureau, partner in the AKK Project, to ensure success of the initiative.

Responding, Baru stated that the AKK Project was dear to Nigeria, adding that while at the FOCAC Sum-

mit, President Buhari reiterated the potentials of the project to strengthen Nigeria-China relations.

He added that the NNPC was looking forward to a successful close-out of the project’s financing towards official groundbreaking ceremony in October, this year.

“We want to maximize the construction work before the end of the year. We are hoping for the quick resolution of the financing agreements so that we will kick-start the project in October, when the dry season begins,” Baru added.

Also speaking, Executive Vice Chairman of Brentex, one of the contractors handling Lot 3 of the project, Sani Abubakar, said since signing the Engineering, Procurement & Construction (EPC) Contract, tremendous progress had been made towards securing financing for the project.

L-R: Rauf Aregbesola, governor, Osun State; Vice President Yemi Osinbajo; Toyin Adeniji, Executive Director, Bank of Industry (BoI); Abdulrasheed Adewale Akanbi, Oluwo of Iwoland, and Victor Afolabi, chief executive officer, GDM Group, during the inauguration of TraderMoni at Abattoir, Iwo, Osun State.

Nigeria, S/Africa armies pledge cooperation

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he Nigerian and South African armies on Monday pledged to strengthen collaboration to create conducive environments for their peoples to pursue economic activities.

The Chiefs of Army Staff of Nigeria and South Africa, Tukur Buratai and Windile Yam, made the pledge at a joint news conference at the army headquarters in Abuja.

Buratai had earlier received the South African army chief behind closed doors, where they discussed modalities to strengthen cooperation.

Speaking earlier, Yam noted that the reason armies existed was to ensure

JUMOKE AKIYODE-LAWANSON

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oremost connectivity and data centre solutions provider, MainOne, and data centre supplier Minkels have announced the completion of the second phase of upgrade to West Africa’s largest Tier III+ Data centre company (MDXi). The recent upgrade further enhances the capacity of Mainone to deliver on its promise of quality services.

MainOne plans to expand its data centre business, MDXi, into new territories across West Africa with a target to build new facilities in 3 new locations including Sagamu, Nigeria; Accra, Ghana and Abidjan, Cote D’Ivoire in addition to an on-going

expansion of its Lekki Data Centre in Lagos, Nigeria.

Over the next ten years, the company plans to build new data centres in each location and invest in infrastructure projects as part of a push to ramp up technology penetration in the region.

Reiterating the company’s commitment to the digital transformation of West Africa, Funke Opeke, chief executive officer of MainOne highlighted the opportunities in the region and noted that ICT infrastructure investments will support rapid technology proliferation.

“Given the size of its markets and status as home of some of Africa’s biggest economies, West Africa has a vantage opportunity to scale up

OWEDE AGBAJILEKE, Abuja

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he Independent National Electoral Commission (INEC) has announced that 46 out of the 91 political parties in Nigeria have so far indicated their interest to conduct primaries for the 2019 General Elections.

This is in line with the Electoral Act 2010 (Amendment) Bill which provides that all political parties must inform the Commission in writing no later than 21 days to the date of their primaries.

INEC National Commissioner in charge of Publicity, Adedeji Soyebi, revealed this in Abuja on Monday at a Situation Room Dialogue Session on Osun State Governorship Election.

According to the timetable and schedule of activities released by the electoral body, political parties have between August 18 and October 7 to conduct primaries.

This comes as the Convener of Situation Room and Executive Director, Policy and Legal Advocacy Centre (PLAC), Clement Nwankwo expressed

on economy deserves re-election BOLADALE BAMIGBOLA, Osogbo

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ice President Yemi Osinbajo on Monday in Iwo, Osun state, launched ‘TradeMoni’, saying no government in the history of the country had outperformed President Mohammadu Buhari in boosting the economy ‘Trade Moni’ an initiative of Buhari-led Federal Government, through Bank of Industry (BOI) and Government Enterprise and Empowerment Programme (GEEP), is a social intervention programme.

Osinbajo said the programme was part of the Federal Government social intervention aimed at funding

security and peace so that their respective country’s economies could thrive. He described the Nigerian army as a “very experienced” army that had worked to ensure peace and stability, not only in Nigeria and the West African sub-region, but the continent in general.

On his part, the Nigerian army chief said that when the armies of both countries were strong and collaborating, there would be security for their economies to thrive.

Buratai said also that when both armies collaborated, they would be in a better position to tackle the security challenges confronting the African continent.

Only 46 political parties have submitted dates of primaries to INEC - Soyebi

MainOne, Minkels announce expansion of West Africa’s largest Data centre company Osinbajo in Osun, says Buhari’s performance infrastructure deployment to support digital transformation. Targeted investments in the region will bridge the gap in digital infrastructure and address the increasing reliance on data storage.”

Minkels says it is also delighted with the second phase of the project. Christiaan van Terheijden, CEO of Minkels says: “We are very proud to be part of the digital transformation of West Africa. MainOne is a company that knows how to drive Internet use across West Africa through investments in digital infrastructure required to grow the broadband ecosystem in the region. This benefits both inhabitants as well as Internet-enabled business models across the region.”

Tuesday 04 September 2018

micro business in the country.

Under the programme, Osinbajo said the beneficiaries would be given a sum of N10,000 naira each, repayable within six months and added that, any of the beneficiaries that pay back the loan within the stipulated period, would qualify for a bigger amount of N15,000.

He said: “TraderMoni scheme, is targeted at petty traders, market women, artisans and small scale business enterprises to cater for ultramicro enterprises.

“The policy of the Federal Government is to support businesses, not just big business but particularly small, medium-sized businesses and micro businesses”.

disappointment over the inability of President Muhammadu Buhari to sign the Electoral Act (Amendment) Bill into law, with about five months to the 2019 General Election. The exercise is billed for February 16 and March 2, 2019.

Although Soyebi refused to name the political parties that have submitted dates of their primaries to the Commission, BusinessDay gathered that the two main political parties: the All Progressives Congress (APC) and Peoples Democratic Party (PDP) have already complied.

He said: “As of now, 46 different political parties have given us notice of their intention of their primaries. We still expect more to come in. So you can see that we are inundated by a lot of activities towards the 2019 general elections. And you will see that activities are going to pick up, especially campaigns”.

While urging political parties to adhere strictly to their constitution in the conduct of primaries, he revealed that since 2015, there have been over 1,000 preelection cases in various courts across the country.

India plans to increase embassies in Africa from 18 to 47

I

n a bid to expand its diplomatic presence across Africa, the Indian Government on Monday announced plans to increase its missions on the continent from 18 to 47 resident embassies.

The High Commissioner of India to Nigeria, Nagabhushana Reddy, made the announcement in Lagos at the Nigerian Institute of International Affairs (NIIA) Ambassadorial Briefing.

The theme of the briefing is, “India-Nigeria Relations on the Eve of Sixty Years of Diplomatic Engagement, and Ten Principles of IndiaAfrica Engagement”.

BUSINESS DAY

Tuesday 04 September 2018

A11

Live @ the Stock exchange Prices for Securities Traded as of Monday 03 September 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. 271,922.93 9.40 -1.05 180 6,317,471 UNITED BANK FOR AFRICA PLC 270,175.43 7.90 -1.25 213 10,746,538 670,315.14 21.35 1.67 263 5,877,744 ZENITH INTERNATIONAL BANK PLC 656 22,941,753 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 317,673.34 8.85 0.57 251 6,195,390 251 6,195,390 907 29,137,143 BUILDING MATERIALS DANGOTE CEMENT PLC 3,919,316.70 230.00 0.88 72 425,972 203,825.56 23.50 - 51 263,472 LAFARGE AFRICA PLC. 123 689,444 123 689,444

EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY LTD 382,488.96 650.00 - 5 1,555 5 1,555 5 1,555 1,035 29,828,142 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 1 20,000 OKOMU OIL PALM PLC. 73,928.03 77.50 0.71 31 228,046 60,050.00 60.05 - 6 3,656 PRESCO PLC 38 251,702 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,800.00 0.60 - 13 667,562 13 667,562 51 919,264

DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 1,111.86 0.42 - 8 7,648 JOHN HOLT PLC. 225.71 0.58 - 1 862 2,111.93 3.25 - 1 300 S C O A NIG. PLC. TRANSNATIONAL CORPORATION OF NIGERIA PLC 47,151.67 1.16 -7.94 44 1,866,363 34,863.69 12.10 - 26 205,360 U A C N PLC. 80 2,080,533 80 2,080,533

BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 33,000.00 25.00 - 17 52,054 ROADS NIG PLC. 165.00 6.60 - 0 0 17 52,054 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT CO. LIMITED 4,079.48 1.57 - 6 48,412 6 48,412 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,900.00 95.00 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 11,300.89 45.20 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 24,014.43 9.00 - 1 100 1 100 24 100,566

AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 1 120,000 1 120,000 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 14,093.09 1.80 - 7 17,093 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 2 55,000 GUINNESS NIG PLC 197,134.45 90.00 -5.26 44 212,930 INTERNATIONAL BREWERIES PLC. 275,067.58 32.00 - 8 14,062 NIGERIAN BREW. PLC. 759,705.69 95.00 -2.96 94 19,130,589 155 19,429,674 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 40,000.00 8.00 - 63 678,563 DANGOTE SUGAR REFINERY PLC 181,200.00 15.10 -4.13 34 480,659 FLOUR MILLS NIG. PLC. 90,003.33 21.95 -9.67 60 911,687 HONEYWELL FLOUR MILL PLC 12,688.32 1.60 7.38 24 411,094 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 1,158.30 6.50 - 4 46 NASCON ALLIED INDUSTRIES PLC 52,988.77 20.00 - 20 263,757 UNION DICON SALT PLC. 3,676.41 13.45 - 0 0 205 2,745,806 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 18,875.93 10.05 - 11 34,153 NESTLE NIGERIA PLC. 1,188,984.38 1,500.00 - 43 19,055 54 53,208 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 3,377.28 3.24 - 15 354,971 15 354,971 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 59,557.16 15.00 - 13 63,465 UNILEVER NIGERIA PLC. 287,250.27 50.00 - 26 73,389 39 136,854 469 22,840,513

BANKING DIAMOND BANK PLC 26,634.45 1.15 -6.50 43 4,662,074 ECOBANK TRANSNATIONAL INCORPORATED 366,991.02 20.00 - 25 27,973 FIDELITY BANK PLC 46,939.17 1.62 -1.82 47 883,674 GUARANTY TRUST BANK PLC. 1,074,238.04 36.50 1.39 150 2,138,906 JAIZ BANK PLC 13,258.91 0.45 -10.00 32 4,004,587 SKYE BANK PLC 7,217.76 0.52 1.96 44 4,235,502 STERLING BANK PLC. 39,442.87 1.37 - 24 1,227,304 UNION BANK NIG.PLC. 170,356.40 5.85 - 36 174,995 UNITY BANK PLC 8,650.11 0.74 - 6 52,292 WEMA BANK PLC. 23,144.68 0.60 - 15 256,836 422 17,664,143 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE COMPANY PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 6,237.18 0.90 9.76 94 11,241,291 AXAMANSARD INSURANCE PLC 24,150.00 2.30 - 6 75,128 CONSOLIDATED HALLMARK INSURANCE PLC 2,310.00 0.33 10.00 8 233,012 CONTINENTAL REINSURANCE PLC 15,559.12 1.50 9.49 12 520,307 CORNERSTONE INSURANCE COMPANY PLC. 3,535.08 0.24 - 8 39,000 GOLDLINK INSURANCE PLC 2,411.47 0.53 - 0 0 GREAT NIGERIAN INSURANCE PLC 1,913.74 0.50 - 0 0 GUINEA INSURANCE PLC. 2,149.00 0.35 - 1 100 INTERNATIONAL ENERGY INSURANCE COMPANY PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,343.50 0.32 -3.03 6 683,770 LAW UNION AND ROCK INS. PLC. 3,136.32 0.73 - 1 5,500 LINKAGE ASSURANCE PLC 5,760.00 0.72 -4.00 11 533,875 MUTUAL BENEFITS ASSURANCE PLC. 2,240.00 0.28 -6.67 8 741,479 N.E.M INSURANCE CO (NIG) PLC. 18,217.74 3.45 1.47 72 7,273,264 NIGER INSURANCE CO. PLC. 3,405.37 0.44 - 17 834,800 PRESTIGE ASSURANCE CO. PLC. 1,832.36 0.48 -7.69 4 118,028 REGENCY ALLIANCE INSURANCE COMPANY PLC 1,467.13 0.22 -4.35 5 818,651 SOVEREIGN TRUST INSURANCE PLC 2,085.21 0.25 4.17 17 1,253,534 STANDARD ALLIANCE INSURANCE PLC. 4,906.19 0.38 - 1 1,000 STANDARD TRUST ASSURANCE PLC 4,483.72 0.48 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 3 69,770 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 1 50 UNIVERSAL INSURANCE COMPANY PLC 6,400.00 0.40 - 0 0 VERITAS KAPITAL ASSURANCE PLC 3,744.00 0.27 -6.90 4 1,566,724 WAPIC INSURANCE PLC 5,219.27 0.39 8.33 49 4,626,821 328 30,636,104 MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 3,612.89 1.58 8.97 2 120,300 2 120,300

MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,914.00 1.17 - 0 0 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 5,922.05 1.42 - 1 200 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. 1 200 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,000.00 4.00 - 31 88,814 CUSTODIAN INVESTMENT PLC 30,409.24 5.17 - 16 82,575 660.00 0.44 - 0 0 DEAP CAPITAL MANAGEMENT & TRUST PLC FCMB GROUP PLC. 36,436.99 1.84 2.22 37 1,342,419 NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 1,234.89 0.24 - 7 20,204 ROYAL EXCHANGE PLC. STANBIC IBTC HOLDINGS PLC 485,456.37 48.00 -1.87 46 11,807,504 18,120.00 3.02 -0.33 44 871,079 UNITED CAPITAL PLC ValuAlliance Value Fund 3,312.39 103.20 - 0 0 181 14,212,595 934 62,633,342

HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 994.88 0.28 7.69 20 3,393,502 20 3,393,502 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 544.04 0.55 - 2 1,389 2 1,389 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 9,000.00 6.00 0.84 16 201,678 15,665.98 13.10 - 20 100,594 GLAXO SMITHKLINE CONSUMER NIG. PLC. MAY & BAKER NIGERIA PLC. 2,352.00 2.40 - 6 114,679 1,035.90 0.60 - 8 57,858 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 556.71 3.62 - 0 0 NIGERIA-GERMAN CHEMICALS PLC. PHARMA-DEKO PLC. 411.96 1.90 - 0 0 50 474,809 72 3,869,700

COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 1 10,999 1 10,999 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 - 0 0 TRIPPLE GEE AND COMPANY PLC. 420.71 0.85 - 6 3,312 6 3,312 PROCESSING SYSTEMS CHAMS PLC 1,455.78 0.31 - 3 4,700 E-TRANZACT INTERNATIONAL PLC 16,590.00 3.95 - 0 0 3 4,700 10 19,011

BUILDING MATERIALS BERGER PAINTS PLC 1,898.34 6.55 - 5 14,825 CAP PLC 19,845.00 28.35 - 3 1,080 38,831.34 30.90 - 3 6,600 CEMENT CO. OF NORTH.NIG. PLC FIRST ALUMINIUM NIGERIA PLC 717.52 0.34 - 2 200 361.24 0.68 - 2 21,730 MEYER PLC. PORTLAND PAINTS & PRODUCTS NIGERIA PLC 2,364.38 2.98 - 2 1,000 PREMIER PAINTS PLC. 1,279.20 10.40 - 0 0 17 45,435 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 3,487.42 3.96 - 18 171,930 18 171,930 PACKAGING/CONTAINERS BETA GLASS PLC. 38,997.82 78.00 - 3 550 GREIF NIGERIA PLC 388.02 9.10 - 0 0 3 550 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 38 217,915

CHEMICALS B.O.C. GASES PLC. 1,752.39 4.21 - 4 3,620 4 3,620 METALS ALUMINIUM EXTRUSION IND. PLC. 1,803.64 8.20 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 3 207,300 3 207,300 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 55.00 0.25 - 1 5,861 1 5,861 8 216,781

ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,503.05 0.24 -4.00 22 590,139 22 590,139 INTEGRATED OIL AND GAS SERVICES OANDO PLC 62,157.06 5.00 -5.66 79 1,579,909 79 1,579,909 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 64,907.15 180.00 - 19 33,353 CONOIL PLC 16,863.04 24.30 - 20 10,424 ETERNA PLC. 8,998.60 6.90 2.99 42 5,697,213 FORTE OIL PLC. 25,854.25 19.85 -0.75 75 552,631 MRS OIL NIGERIA PLC. 8,701.65 28.55 - 3 1,396 TOTAL NIGERIA PLC. 64,407.29 189.70 - 20 16,488 179 6,311,505 280 8,481,553

ADVERTISING AFROMEDIA PLC 2,219.52 0.50 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 18,818.75 1.93 - 4 2,440 4 2,440 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 541.12 0.46 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 3,065.38 5.20 - 1 15,000 TRANS-NATIONWIDE EXPRESS PLC. 365.70 0.78 - 0 0 1 15,000 HOSPITALITY TANTALIZERS PLC 674.44 0.21 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,801.22 3.10 - 1 100 IKEJA HOTEL PLC 4,718.87 2.27 - 2 22,826 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 1 10 TRANSCORP HOTELS PLC 51,302.73 6.75 - 3 14,425 7 37,361 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 5,280.00 0.44 - 2 26,000 2 26,000 PRINTING/PUBLISHING ACADEMY PRESS PLC. 302.40 0.50 - 0 0 LEARN AFRICA PLC 864.02 1.12 - 3 7,724 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0

A12 BUSINESS DAY

C002D5556 Tuesday

03 September 2018

Live @ The Exchanges Top Gainers/Losers as at Monday 03 September 2018 GAINERS TOTAL

Market Statistics as at Monday 03 September 2018

LOSERS N177.6

N181

3.4

Company GUINNESS

DANGCEM

N228

N230

2

OKOMUOIL

N76.95

N77.5

0.55

GUARANTY

N36

N36.5

ZENITHBANK

N21

ETERNA

N6.7

Opening

Closing

Change

ASI (Points)

34,837.50

N95

N90

-5

NB

N97.9

N95

-2.9

0.5

FLOURMILL

N24.3

N21.95

-2.35

VOLUME (Numbers)

N21.35

0.35

DANGSUGAR

N15.75

N15.1

-0.65

VALUE (N billion)

N6.9

0.2

N5.3

N5

-0.3

OANDO

DEALS (Numbers)

3,080.00 131,531,680.00 3.130

MARKET CAP (N Trn

12.718

Guinness, Nigerian Breweries top laggards list of 19 …as Lagos Bourse routes further south Stories by Iheanyi Nwachukwu

I

n line with most analysts view, the Nigerian stock market routed south in the first trading day of this week as nineteen (19) companies lost their values against 18 advancers.

The Nigerian Stock Exchange (NSE) All Share Index (ASI) decreased by 0.03percent, while the Year-to-Date (Ytd) return stood in the negative region of minus 8.91percent.

The All Share Index closed at 34,837.50 points against the preceding day close of 34,848.45 points while Market Capitalisation closed at N12.718 trillion against preceding day close of N12.722 trillion, indicating a loss of N4billion.

The share price of Nige-

L-R: Charles Bowman, Lord Mayor of the City of London; Oscar N. Onyema, OON, chief executive officer, The Nigerian Stock Exchange(NSE); David Schwimmer, chief executive officer, London Stock Exchange Group (LSEG) and Abimbola Ogunbanjo, president, National Council, NSE, during a business networking event hosted by the British High Commission in Lagos recently.

ria’s second largest brewer, Guinness Nigeria Plc dipped most on the Lagos Bourse after shedding N5

or 5.26percent, from N95 to N90; while the share price of its industry leader Nigerian Breweries Plc

followed from N97.9 to N95, recording N2.9 or 2.96percent decline.

The share price of

FCMB drives growth, organises business finance training for SMEs in Abuja

F

irst City Monument Bank (FCMB) has reiterated its commitment to champion and execute initiatives that would boost the growth and performance of Small and Medium Scale Enterprises (SMEs) through increased lending, capacity building, advisory and value-added offerings that would fast-track overall national development.

The Bank gave the assurance during the third in its series of free capacity building programmes, tagged ‘’Business Enterprises and Sustainability Training (BEST)’’ organised for existing and start-up SMEs in Abuja on the 1st of September, 2018. This followed the success of the first and second editions of the training in Lagos.

The initiative, led by

FCMB Training Academy, the Bank’s Business Banking Group and seasoned facilitators, focused on business and skills development, marketing, finance and accounting for SMEs. It covered various topical areas such as identifying business opportunities, improving productivity, raising capital, optimising sales, cost and revenue management among others.

Speaking on the BEST

initiative, Bukola Smith, Executive Director, Business Development of FCMB said the Bank recognises the increasing role and impact of SMEs on the lives of people and the society.

According to her, “The BEST initiative is one of the innovative ways we support the growth of our SME customers because without effective training and exposure, it can be a challenge to succeed. In FCMB, we are passionate about helping our customers thrive in a sustainable manner.

We believe that this comprehensive training programme will go a long way to impact positively on the operators of SMEs and propel them to further develop themselves. This will also help them take their respective businesses to

the next level and compete favourably within and outside the Nigerian market. We therefore, urge participants to take advantage of the unique opportunities provided

by FCMB’’.

Also commenting, Sola Oyegbade, Head, Training Academy of FCMB stated, “BEST Initiative is a proof of our commitment to the growth and sustainability of the SMEs. We focus on helping and getting these businesses sustained beyond just focusing on what value they add to our own Business on the immediate, and then overlook the critical need to develop the nation’s growing economy. A number of our SME partners who have participated in earlier versions of this training, are much better off today.’’

Flour Mills Nigeria Plc declined from N24.3 to N21.95, down by N2.35 or 9.67percent. Stock investors were told that Jacques Vauthier will be resigning at the end of the year as Flour Mills Nigeria Plc group Chief Financial Officer. Vauthier has been with the Group for over seven years. In preparation of his exit, Anders Kristiansson, has been identified as his successor.

The share price of Dangote Sugar Plc also decreased from N15.75 to N15.1, down by 65kobo or 4.13percent; while Oando Plc dipped from N5.3 to N5, down by 30kobo or 5.66percent.

“This week, we expect sell-offs to be sustained due to the absence of positive drivers coupled with weak interest in market bellwethers”, said Lagosbased Afrinvest Research

analysts in their September 3 note to investors.

The volume of stocks traded decreased by 65.83percent, from 384.89 million to 131.53million, while the total value of stocks traded decreased by 68.02percent, from N9.79billion to N3.131 billion in 3,080 deals.

On the advancer league, Dangote Cement Plc stock price rallied most from N228 to N230, up by N2 or 0.88percent; Okomu Oil Palm Plc increased from N76.95 to N77.5, up 55kobo or 0.71percent; while GTBank Plc increased from N36 to N36.5, up by 50kobo or 1.39percent.

Zenith Bank Plc increased from N21 to N21.35, up by 35kobo or 1.67percent; followed

by Eterna Plc which increased from N6.7 to N6.9, up by 20kobo or 2.99percent.

Eaton Acquisitions raises stake in NEM Insurance

E

aton Acquisitions Limited, an investment company, has increased its stake in NEM Insurance to 9 percent.

This comes days after the firm announced the acquisition of 4 percent of the insurance company.

Eaton is seeking to acquire 10 percent of the insurance company. The latest acquisition puts it within a distance of its target. While the initial 130 million shares sold at N4 each, represents a premium of 40.35 percent against the closing share price of N2.85, the new shares were acquired at a lower value.

“There is no better option in the market from the perspective of effective leadership, strategic opportunities and reforms for growth in the industry, broad sharing holding base that engenders good corporate governance, and a network of current and potential sharehold-

ers for enhanced business development,” Eaton Acquisitions’ managing director, Olaleye Adeyinka, said.

Adeyinka said, “We cannot say much about the strategic vision of the company yet as it is in the purview of management and the board, but we have unalloyed confidence in both organs of the company’s governance.”

The investors said they increased their stakes in the company because it offers strategic opportunities and growth.

“We intend to acquire more shares until we meet the mandate of our Board to acquire 10% of the company’s shares,” Olaleye said. Although the Eaton boss expressed confidence in the ability of current NEM’s leadership, he said his company is desirous of gaining board representation in view of its dominant shareholding stake in the company

BUSINESS DAY

C002D5556

NEWS YOU CAN TRUST I TUESDAY 04 SEPTEMBER 2018

INSIGHT/INNOVATION BONGONOMICS

BONGO ADI Bongo Adi, PhD is a faculty member of Lagos Business School

T

he current global power shift and the realignment of forces in international political economy can no longer be ignored. As the Soviet hammer and sickle flag got lowered for the last time on December 25, 1991 over the Kremlin, the curtain was drawn on the erstwhile bipolar world.

Pax Americana arose from the ashes of that Soviet disintegration and reigned supremely unipolar, until the Chinese dragon reared its big, red head, recently. Niall Ferguson - the man who wrote “The Ascent of Money”- captured the mood when he wrote that the bloody twentieth century witnessed “the descent of the West” and “a reorientation of the world” toward the East.

With its vast economic surplus aggressively amassed over decades of high productivity growth and export, China rapidly transformed into a net exporter of capital to the rest of the world. American consumers owe the Chinese very much. In fact, China is one of the world’s largest creditors especially to the US. Like America, Chinese imperialism, has not been of the gunboat type of brute military force — exterminating entire races, reorganising settled livelihoods and governance patterns and imposing foreign people, bureaucracy, culture,

EJEVIOME ELOHO OTOBO & OSELOKA H. OBAZE Otobo is a Non-Resident Senior Expert at the Global Governance Institute, Brussels.

Obaze is a public policy expert and MD/CEO Selonnes Consult, Ltd. Awka.

S

peaking at the 58th Annual NBA Conference in Abuja recently, President Muhammadu Buhari proclaimed that “the rule of law must be subject to the supremacy of the nation’s security and national interest”. Grasping the significance of this statement, requires recalling a bit of history.

When in 1949 George Orwell wrote Nineteen Eighty-Four, his seminal dystopian book, he could have hardly imagined that script being played out fully anywhere. But in a classic case of life imitating art, Nineteen Eighty-Four transpired in Nigeria in 1984, albeit under a military leader, whose regime lasted till 1985.

Thirty years later, during his fourth attempt at the running for the presidency, candidate Buhari made a declaration of conversion in his famous address at Chatham House in London on 26 February, 2015. He said, “I cannot change the past. But I can change the present and the future. So before you is a former military ruler and a converted democrat, who is ready to operate under democratic norms and is subjecting himself to the rigors of democratic elections for the fourth time.” Ever since the Buhari administration was inaugurated after the 2015 presidential elections, Nigerians

Too late Ms May, China ate the lunch religion and language on other people. The Chinese haven’t also labelled these territories “savage tribes” and “brute natives”. They haven’t also uninvitedly taken upon themselves the “Yellow-man’s burden” as the British and their fellow Europeans unsolicitedly self-imposed on themselves the so-called “whiteman’s burden.”

But the Chinese form of imperialism is the lowly one, albeit, insidious — scrounging, scavenging and pillaging through the African dirty earth and thick forests, licking and lapping up the ores, the oils and the vegetation of the land. They also give no qualms and meander their way into the slimy dungeons of official corruption in Africa - so long as their interest is served. Though as dirty as their underground, undocumented immigrant workers operating in the dark tunnels of mines and construction sites of Africa, evading the police and immigration, the Chinese scrounging imperialism and chinko-mouse foraging and burrowing diplomacy, are nevertheless, as nefarious as the British one - in both outcome and aftermath.

Of note is the fast and ongoing disappearance of primary vegetation along the tropical wood belt of Nigeria across Oyo-Kwara-Niger-BenueTaraba-Adamawa, as the Chinese scramble for the deforestation of our tropics, cutting down Kosso wood (PterocarpusErinaceus) for export to China and Vietnam without replanting.

Using cheap or even free credit, the People’s Bank of China has promoted Chinese businesses and encouraged Chinese citizens to foray into every nook and cranny of the globe in search of products and raw materials to feed their gargantuan economic production power or to open up new markets for Chinese exports. In doing this, they have always maintained the age-long policy of non-interference in the internal affairs of its trading partners and to use reciprocal tokens to cement relationships. These are policies established in the earlier Chinese ascendancy before British militarised international relations took the wind off their sails and twisted the narrative to award themselves the prize for inventing technocratic industrialisation. Not

speaking out against oppressive regimes and turning the other eye on human rights abuses has earned the Chinese not a few knocks from the international community who see them as aiding and abetting high-handed, oppressive regimes in Africa and elsewhere. For China, it has always been “business first.”

But the Chinese have often brought infrastructure, technology, and financial capital in their relationship with Africa. Unlike the British relationship with Africa that has always been self-serving, one-sided and non-reciprocal.

Trade treaties with the British have been largely unequal and political and economic relationships have been such that continue to prop up comprador bourgeoisie that are manipulated as puppets on strings to continue the rapacity of colonial imperialism in Africa.

Theresa May’s visit to Africa is coming at a time that it seems the British eccentricism and exceptionalism have finally driven them into an inglorious global self-extermination. Brexit has arguably pushed the UK into a self-imposed isolation. As the economic and political implications of this self-imposed international ostracism continue to unravel on Britain, its

Everything points in the direction of a new wave of scramble for Africa by the new power blocs of the East and the West. Only this time, the East is no longer Russia, but the true Orient - China

leadership are beginning to reimagine the days of yore, when the empire stretched from the rising of the sun to its setting. But those days are far gone: Pax Britanica elapsed at the wake of World War II. Enter Pax Sinica The Pax Americana that upended both Pax Britannica and the Cold War has been powerfully challenged by Pax Sinica. It is important to note that contrary to twisted Western narrative, Chinese ascendancy preceded European imperial domination. China had attained a world power status in both trading and technological development in the period between 1100 and 1800 AD — many centuries before the West.

It led the West - especially England - in steel production by 1078 AD, textile manufacturing, agricultural revolution, shipping, printing technology, and development ideology. Its undoing was its de-militarised development and international relations which gave England upper hand in upending this civilisation in the 19th century as the latter militarised its shipping and sea faring.

The current resurgence of China did not start in 1980 as western and neoliberal historical recidivists reckon. It actually started in 1950 when the agrarian reform provided land, infrastructure, credits and technical assistance to hundreds of millions of landless and destitute peasants and landless rural workers. Since the 1980s, the Chinese economy has been growing at about 9% per annum and its goods and services are rapidly rising in quality and value.

In contrast, the US and Europe have wallowed around 0% growth from 2007-2012. China’s innovative techno-scientific establishment routinely assimilates the latest inventions from the West (and Japan) and improves them, thereby decreasing the cost of production. China has replaced the US and European controlled “international financial institutions” (the IMF, World Bank, the Inter-American Development Bank) as the principle lender in Latin America.

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The rule of law in Nigeria … what separates a wellfunctioning democracy from non-democracies or illiberal democracies is the rule of law. and when there is doubt about the application of the law; the courts are the only arm of government that is empowered to interpret and clarify the situation have gauged the performance of the current administration not only in terms of three public policy priorities – fighting corruption, tackling security and reviving the economy -that Buhari campaigned on, but also watched his every move on rule of law.

Global norms relating to rule of law are quite unambiguous. In any true democracy, certain creeds and tenets stand inviolable. Of the lot, the separation of powers and respect of

ordered liberties top the list. As experts have observed, these narratives are “foundational and settled concepts” of any worthwhile democracy. Section 1(1) of the 1999 Constitution clearly states inter alia, that “all people and institutions are subject to and accountable to the law.” No exceptions. Security and national interest ought not to precede legalities that derive from the Constitution. It is a false choice to pit national security or national interest against the rule of law. Citizens in a democracy are entitled to both.

At a time when the nation should be embarking on modernisation of its economy and strengthening the foundations of its democracy, we are witnessing a severe reverse, especially in regard to the latter. The signs have come in increments but the direction seems clear enough. Nigerians can still recall the invasion of the residences of some serving judicial officers by security agents; the invasion of a High Court premises in Rivers State in May 2018; the non-compliance by government agents with court orders of habeas corpus and indeed, the growing contempt of court orders by the Attorney General of the Federation and other appointive and elected officials. Former NSA Sambo Dasuki and Islamic Cleric El Zakzaky have been in detention for over three years and well beyond what the Constitution permits.

Not long ago, there was illegal siege laid over the National Assembly Complex by armed and hooded security agents on 7th August 2018 - an action that was quickly reversed - and the freezing of Ekiti State, Benue State and Akwa Ibom State bank accounts. All these have and are happening in a democratic Nigeria.

Yet, what separates a well-functioning democracy from non-democracies or illiberal democracies is the rule of law. In its broadest and best construction, the rule of law means that all persons are equal before the law, constitutional norms are supreme and must be strictly adhered to, and when there is doubt about the application of the law; the courts are the only arm of government that is empowered to interpret and clarify the situation.

Nigeria isn’t alone in manifesting certain governance limitations in a democratic dispensation. Its current governance leaning mimics discomforting trends elsewhere; “the discomforting truth is that some amount of ethnic nationalism is not just tolerated, but accepted as completely legitimate.” This erodes the very foundation of Nigeria’s nationhood, more so its quest for true federalism. This reality continues to fuel calls for restructuring. Issues such as these cannot be quelled or overcomeby ignoring the rule of law or subjugating it to the whims of elected and appointed officials.

Nigeria, having survived thus far as a political entity, even overcoming a civil war, represents a triumph of faith over resilience and experience. Faith in Nigeria cannot depend on good will or benevolence of leaders. Hope and faith in a nation are cultivated and nurtured and not forced. That requiresfair, even and consistent application of rule of law. This critically depends on ensuring that institutions that are designed to act as guardians of rule of law function as intended. This is the premise for the observation that great nations rely not on the will of great men or women but on the reliability and effectiveness of national institutions.

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