BusinessDay 05 Dec 2019

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...gender equality bill stuck in NASS Iniobong Iwok & BUNMI BAILEY

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Inside CCNN shareholders grant overwhelming 99.93% approval to merge with BUA’s Obu Cement P. 2

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NGUS DEC 30 2020 366.87

g L-R: Simbi Wabote, executive secretary NCDMB; Timipreye Silvia, minister of state for petroleum resources, and Victor Okoronkwo, group managing director, Aiteo E&P, welcoming the minister and his guests to the Aiteo NCD Exhibition & mobile office at their sponsored 9th Practical National Content Expo & Conference 2019, in Yenegoa.

Women’s low inclusion in governance, worrying fall back to military era

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Analysis

espite accounting for half of Nigeria’s population, female participation in politics in the country has declined significantly in recent years to a record low.

Though a patriarchy society, the history of Nigeria and its political emancipation as a country cannot be complete without mentioning the significant contribution of women.

BusinessDay findings reveal that despite constituting the bulk of the registered voters in recent years, women political appointments and inclusion in governance in Nigeria from 19992019, has retrogressed significantly in recent years.

For the house of representatives, in 1999, the number of women were 12 out of 360 members which was 3.3 per cent but increased to

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Treasury bills

Nigeria’s macro indices set to underperform forecasts by year-end 2019 LOLADE AKINMURELE

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igeria’s economy b a re l y t r u d g e d along in 2019, with data likely to confirm another lacklustre year for Africa’s most populous nation.

Chances are that the economy, tipped to grow 2.1 percent by year-end, expanded below

population growth for the fourth straight year while foreign direct investment slumped to a six-year low of $848 million.

According to ten economists polled in a Business Day survey, unemployment rate also probably soared by the end of the year as a rapidly growing labour force expanded faster than the rate of job creation.

According to the World Bank’s

latest economic report, over five million Nigerians entered the labour market in 2018, with 4.9 million joining a growing army of unemployed people compared to the preceding the year.

The last unemployment report by government-funded data agency, National Bureau of Statistics (NBS), showed 23 percent of the labour force was unemployed while 43 percent

were either unemployed or underemployed in the third quarter of 2018, a 22 percent increase compared to the comparable period of 2017.

As at Q3 2018, 21 million Nigerians were unemployed and 39 million either unemployed or underemployed. If unemployed and underemployed Nigerians Continues on page 38

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news CCNN shareholders grant overwhelming 99.93% approval to merge with BUA’s Obu Cement

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L-R: Wiebe Boer, CEO, All On; Damilola Ogunbiyi, MD, Rural Electrification Agency (REA), and Frank Aigbogun, publisher, BusinessDay, after the fireside chat where Aigbogun and Ogunbiyi discussed her legacy at REA and her future role as the global CEO of SE4All, at the 2019 Solar Future Nigeria conference.

How Calabar IPP power deal ran into troubled waters

… As Accugas threatens to call up partial risk guarantee ISAAC ANYAOGU

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hen the Calabar IPP was completed back in 2017, five turbines were installed by General Electric to generate 560MW using 131 cubic meters of gas supply a day. Trouble was, the transmission grid is incapable of receiving that much power from Calabar through its weak lines.

It gets complicated. Only two out of the five turbines are working because the plant generates more power than the grid can take. However, Calabar IPP signed a ‘Take or Pay’ gas supply agreement with Accugas backed by a Partial Risk Guarantee (PRG) the Federal Government signed with IFC, an agency of the World Bank. This implies that if Calabar IPP fails to pay for the gas, the Federal Govern-

ment gets the bill.

Now the plant is not taking all the gas it needs, yet it must pay. Since collections from Power Distribution Companies (DisCos) are coming in trickle when a lump payments would suffice, Calabar IPP is not getting money for even the little power it sends to the grid and must settle its gas invoice which comes at over $10million a month.

Accugas which signed the agreement to supply gas to the plant borrowed around $600million from lenders to develop the Uquoo fields where it produces the gas.

The company cannot settle obligations to its lenders due towards the end of this year because it is not getting paid for its gas.

This is the perfect blueprint for chaos which is why Accugas has written to the Federal Government warning that it may trigger the PRG

provision in its contract.

According to legal experts, invoking the PRG will impact Nigeria’s sovereign credit ratings dampening the country’s ability to borrow from multilateral organisations at competitive rates and could bring about reputational risk for the country.

Some analysts say Nigeria should start reviewing some of the power contracts as they seem unsustainable. “Perhaps it is time to start looking at reviewing some of these contracts as questions are being asked about their sustainability in an industry where things are moving very fast,” says Dolapo Kukoyi, partner at Detail Commercial Solicitors, a Lagos-based law firm.

However, the issues are nuanced. The liquidity crises in Nigeria’s power sector has led to a situation where investors are unwilling to progress deals until they ex-

tract Azura-type concessions including a PRG from the Federal Government because the electricity market, bogged down by debts and tariffs that do not guarantee commercial returns, is not viable.

GenCos say they get barely 30 percent of their market invoices and have threatened to declare force majeure. The FG through the Nigerian Bulk Electricity Trader (NBET) is prioritising settlement of market invoices of Azura over other power plants. The Transmission Company of Nigeria (TCN) who operates the country’s transmission grid says it gets less than 25 percent of its market invoice.

The grid is so vulnerable that it too little power or too much power triggers a collapse. This year alone, it has collapsed over half a dozen times.

•Continues online at www.businessday.ng

New TIN registration system could stop your next driver’s licence, passport FRANK ELEANYA

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he Nigerian government launched a new Tax Identification Number (TIN) Registration system in July 2019 as part of efforts to reform tax administration and make it easy for more people to pay tax in Nigeria using digital technology.

The Joint Tax Board (JTB), at its 135th meeting held on 25 and 26 July 2016 made several resolutions aimed at boosting Internally Generated Revenue (IGR) at various levels of government. One of them was the TIN registration system.

The new tax registration system is one of a twophased project that includes

Implementation of a Unified Tax Identification Number (UTIN) and Integrated Tax Administration System (ITAS) at the Federal Inland Revenue Service (FIRS).

During the launch in July,

Explainer: Vice President Yemi Osinbajo explained that the system was introduced to help tax-payers and other stakeholders easily verify their TIN online. The service also enables tax-payers to print their TIN certificate or send it to their emails.

Importantly, it is expected to help grow the number of Nigerian tax-payers to 45 million by the third quarter of 2019.

BusinessDay reached out www.businessday.ng

to FIRS to confirm whether the target was met in September.

The revenue collector is yet to respond to questions as of time of publishing this article.

Nigeria currently has a tax base of 20 million.

How it affects you The TIN registration system is among the tax reforms presented in the Finance Bill by the Ministry of Finance.

The Finance Bill which was passed by the National Assembly amends sections 33, 49, and 58 of the Personal Income Tax Act. Consequently, individuals are required to produce their TIN before they can operate new or existing bank accounts in Nigeria.

However, this provision is mainly for corporate custom-

ers. Banks would be required to obtain TIN from corporate customers as a pre-condition for opening or maintaining bank accounts. While this is the practice, the amendment gives a legal basis to the practice.

For individuals, two of the resolutions reached by the JTB at the meeting in July is empowering Nigeria Immigration Service to make it mandatory for the presentation of Tax Clearance Certificate (TCC) for issuance of immigration facilities. Issuing or renewal of international passports, for instance, would require the presentation of the TCC. Secondly, the JTB resolved

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hareholders of the publicly listed Cement Company of Northern Nigeria (CCNN:NL) and BUA’s Obu Cement Company have approved the merger of the two firms, pending final regulatory approval.

The approval was sequel to two separate courtordered and Extra-Ordinary General Meetings in Abuja, Nigeria, and would see CCNN merge with the BUA Obu Cement Company and solidify BUA Cement’s drive to be the country’s second largest producer of cement by volume by 2020 - while also being the industry leader in efficiency and capacity utilisation. It should be noted that CCNN shareholders voted 99.93 percent in favour of the deal at their court-ordered meeting.

Upon regulatory approval and completion of the merger, the new entity, which currently has a combined installed capacity of eight million metric tons per annum will increase to 11 million mtpa by H2 2020 and is set to remain the dominant cement player in the key regional markets in Northern Nigeria, SouthSouth and South-East Ni-

geria with almost unfettered access to key export markets in West Africa due to the prime location of its plants.

In his comments, chairman, CCNN and founder, BUA Group, Abdul Samad Rabiu, expressed his profound gratitude to the shareholders for their support throughout the process.

He said: ‘We thank shareholders of both companies who voted overwhelmingly to approve this merger to mark the completion of yet another phase of our local cement expansion programme. This deal will create one of the largest companies in Nigeria and the Nigerian stock exchange. It will also ensure a more efficient operation, improved financial performance and create better value for all stakeholders.

“We are certain that the new entity can continue to compete effectively in the cement industry in Nigeria with its more advanced plants and geographical advantages while maintaining its market dominance in its key regions.

•Continues online at www.businessday.ng

Lessons from Ghana for Nigeria on mortgage, affordable housing delivery CHUKA UROKO

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hough Nigeria is a larger economy, many African countries including its ‘small’ West African neighbours, Ghana and Gambia for instance, have lessons for the country (Nigeria) to learn in various sectors, particularly housing, where it is lagging.

Nigeria has 17 million housing units deficit and this has been attributed to a number of factors, prominent among which is the absence of mortgage or other forms of housing finance for buyers.

But unlike Nigeria, Ghana has only 1.7 million housing units deficit with an active mortgage sector. In Ghana, houses can be paid for over 30 years.

Both the Ghana Homes Loans Bank (GHL) and the Housing Finance Company Bank (HFC) aretheleadingprovidersofmortgage facility to home buyers.

Individuals acquiring housing units in Ghana require a minimum initial payment of 15 percent, a Ghana Real Estate Market Review compiled by a Lagos-based real estate firm, Northcourt, has shown.

This is several steps ahead of Nigeria where minimum initial payment for housing hovers between 20 and 30 percent, depending on the perceived risk level of the buyer.

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According to the Northcourt market review, the mortgage lender provides the balance 85 percent.

“GHL secured $60 million from the Overseas Private Investment Corporation (OPIC) to address the demand for affordable housing by providing finance for constructing homes at the Apolonia City,” says Tayo Odunsi, Northcourt CEO. Odunsi points out that in addition to this, the government has started $190 million mortgage and housing finance window with a kick-off amount of $19 million every year for the next five years.

A critical look at the Nigerian housing market and the 17 million housing units deficit shows that the deficit leans heavily on affordable housing for low income earners. Apparently, nobody is building for the poor because, according to house supplier, there is no incentive from the government.

“The environment is not enabling; that segment of the market is a pool of risk and there is no encouragement for the private sector from the government; we need some form of incentive to enable us provide housing for that class of buyers,” Pascal Oforkansi, a Lagos-based developer, explains to BusinessDay.

•Continues online at www.businessday.ng

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Buhari unveils new national security strategy ...flags off new citizens security initiatives Anthony Ailemen

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resident Muhammadu Buhari on Wednesday flagged off a new Security Strategy aimed at encouraging citizens’ participation in enhancing national security to tackle incessant security challenges in the country.

The new national security strategy is expected to prioritise government’s commitment to enhancing the social security of Nigerians as a means of improving their physical security.

President Buhari said its main objective was to the “achievement of a safer and more secure nation.”

The new security strategy replaces a similar one launched in 2014 by former President Goodluck Jonathan and is a direct result of several stakeholder engagements, involving state security apparatus, religious leaders, the civil society organisations as well as traditional rulers.

The president, while flagging off the new strategy, also appealed to heads of ministries, departments, and agencies to see themselves as stakeholders

and partners in the onerous task of securing “our people and to demonstrate the unity of purpose in implementing this strategy.

“I’m happy to observe that the National Security Strategy reflects this thinking with an emphasis on overall human security.

“I’m pleased also to know that the strategy emerged after a long time consultative and participatory process that elicited contributions primarily from our security, intelligence, law enforcement agencies and the armed forces. Other stakeholders such as ministries, department and agencies and civil society were also contributory to this strategy.

“As such, this strategy will inform government-wide and society-wide measures designed to promote public safety and national security.”

President Buhari said security was about bottom-to-top operation, and that failure at any level would lead to serious lapse in overall security.

The event took place at the Council Chambers of the State House, Abuja.

Reps mandate FG to prevent another xenophobic attack on Nigerians in Ghana James Kwen, Abuja

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ouse of Representatives has mandated the Nigerian Diaspora Commission, Federal Ministry of Foreign Affairs alongside the Committee on Diaspora Matters to consider and investigate the recent attacks on Nigerian traders in Ghana and ensure that another Xenophobic attack on Nigerians is prevented.

This resolution was reached Wednesday during plenary, following a motion of urgent matter on: ‘Recent attacks on Nigerian traders in Circle Market, Ghana,

by Tolulope Akande-Sadipe (APC, Oyo).

Akande-Sadipe, while presenting the motion noted that as the Chairperson, House Committee on Diaspora, her primary duty was to represent the government and collaborate with the Nigerian Diaspora Commission and Federal Ministry of Foreign Affairs to put in place/implement modalities to improve the welfare

of Nigerians in Diaspora.

According to the lawmaker, the House recalled that a few months ago, she raised her voice on the Issue of Xenophobia, and urged the Federal Government to create additional air lifting opportunities to evacuate our citizens who are stranded in South Africa.

She said the House was “informed that Sunday December 1, 2019, over 600 shops belonging to foreign traders particularly Nigerians at the Kwame Nkrumah Circle, Accra, Ghana were locked up by members of the Ghana Union of Traders Association (GUTA).

“Also informed that this is not the first time the quest to rid the Ghanaian market of foreign traders who are engaging in retail businesses has occurred.

There was a case last month where Ghanaian traders at Opera Square in Accra locked up shops belonging to foreign nationals involved in retail business. Most of the shops were believed to belong to Nigerians.

“There was also a case in August last year where the InterGovernmental Task Force constituted by the Government of Ghana in its bid to regulate retail trade arrested and detained 37 Nigerian traders and locked up about ten shops in Tip Toe Lane at the Kwame Nkrumah Circle Ghana due to the failure of the traders to regularise their business concerns as prescribed by the local law and their inability to provide necessary documents such as passports, resident/work permit among others.

“Concerned that the recent attack on Nigerian traders would become another Xenophobia attack with loss of lives as GUTA had decided to take laws into their hands because according to them, the government had failed to enforce the GIPC law 865 article 27 and 28, which bars foreigners from doing retail business in Ghana. In 2018, the enforcement of the quit notice initiative commenced and it was properly communicated by the

Ghanaian Minister for Foreign Affairs and Regional Integration, Shirley Ayorkor-Botchwey that this law would not affect Nigerians or other ECOWAS citizens.

“However, the National Association of Nigerian Traders warned the minister that the law could spark xenophobic attacks from ignorant persons but she assured the union that the Ghanaian government is ensuring that there is an understanding among Ghanaian traders that the quit notice initiative has nothing to do with Nigerian and other ECOWAS traders and that Nigerians should in no way interpret the issue as a future xenophobia against Nigerian traders.

“Aware that on December 2, 2019 the Ghanaian police in the bid to control the mayhem were pelted with stones by some of the traders, this act resulted in a repel attack by firing shots to control the crowd. Some arrests were made and detainees are currently undergoing further investigations at the police headquarters.

Senate raises mobilisation of local contractors from 15% to 30% Solomon Ayado, Abuja

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enate on Wednesday raised the mobilisation of local contractors from 15 percent to 30 percent. The increase was contained in a new amendment of the Public Procurement Act 2007.

The lawmakers argued that the amendment became imperative to eradicate abandonment of contracts due to the fact that contract mobilization is always not enough.

On foreign contractors, the Senate was silent on any fixed percentage. However, it insisted that it was better the contractors use their funds to execute projects before being paid.

The Senate further set a time limit for award of contracts and recommended two weeks for

processing, and four days for issuance of certificates to qualified contractors.

The senators took turns to argue on the new amendment and most of them said contract certificates be issued by Bureau of Public Procurement, instead of MDAs. Chairman of the Senate Committee on Procurement, Shuaibu Is, a explained, while presenting the amendment Act, that the legislative action was meant to revolutionise procurement process and end scam in award of contracts.

Senate President Ahmad Lawan said the legislation and amendment of the Act, apart from encouraging local contractors, would further eradicate sharp practices in the procurement processes.

NUPENG, Nexen Petroleum embrace dialogue for industrial harmony JOSHUA BASSEY

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igerian Union of Petroleum and Natural Gas Workers (NUPENG) and Nexen Petroleum Limited have commenced negotiation in furtherance of their commitment to social dialogue in workplaces.

Afolabi Olawale, general secretary of NUPENG, told newsmen in Lagos that the ongoing talks between the two organisations would address all industrial relations issues earlier raised by the union, as they relate to Nexen and its workers.

Olawale commended the willingness of the management of Nexen Petroleum to adopt global best practices in industrial relations by engaging the union in social dialogue over workers condition of service.

The union believed that the

dialogue would enhance industrial peace, harmony and productivity in the workplace.

Meanwhile, the labour union has urged General Electric/Arco Group plc “not to plunge the country into avoidable industrial crisis during this yuletide period.”

The union, which accused General Electric of being “recalcitrant,” advised the company to do the needful by remitting back to ARCO Group plc all outstanding over-deducted withholding tax to enable Arco pay the severance packages of all workers sacked since 2016.

Olawale warned that the endurance level of the union should not be overstretched, and called on all relevant authorities to prevail on General Electric to do what is right in order not to plunge the nation into avoidable industrial crisis. www.businessday.ng

L-R: Abiodun Adetayo, manager, Audit, Risk and Compliance, C&I Leasing plc; Andrew Otike-Odibi, managing director/CEO, C&I Leasing plc, and Samuel Sawah, managing director, 4 Quarters Consultant, at the presentation of the ISO 9001:2015 international certificate to C&I Leasing in Lagos.

Governor Sule presents N100.5bn 2020 budget to Assembly for approval Anthony Adgidzi, Lafia

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asarawa State governor, Abdulahi Sule, Wednesday presented the 2020 budget proposal of N100.52 billion to the Nasarawa State House of Assembly for consideration and approval.

Ibrahim Balarabe-Abdullahi, speaker of the House, assured the state government of speedy passage of the budget to enable the people of the state benefit from more dividends of democracy.

Sule, who tagged the budget as “Budget of Inclusive Development,” said his administration’s policy was anchored on transparency, accountability and prudency for the overall development of the state and the country at large.

The governor assured the House of full implementation of the budget if finally passed into law, saying, “I hereby present the 2020 appropriation bill of N100,519,956,857 to you for your consideration and approval.

“A total of N56,733,129,610 billion of the budget is ear-

marked for recurrent expenditure while N43,786,827,247 of the total budget is earmarked as capital expenditure for the year 2020.”

The governor assured the people of the state that the budget would be used to complete all ongoing projects, provision of social services, youths empowerment programmes, among others, for the benefits of the people of the state.

He said his administration would also create an enabling environment for business and other activities to thrive in the state, and called on the House members to give the budget proposal speedy passage to enable the state government executes developmental projects across the state.

The speaker of the House assured the state government of the House readiness to do justice to the budget for the overall development of the state.

“I therefore call on all government agencies, ministries and parastatals, MDAs to cooperate with the Assembly so that this budget will be passed in the shortest possible time,” he said.

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Government reforms to fast track country’s economic growth – minister

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addled with the responsibility of fast racking the Nigerian ailing economy, the Federal Government states that bulk of the policies initiated recently are aimed at putting Nigeria on the fast lane of sustainable development.

President Muhammadu Buhari who was represented by the Minister of State for Science and Technology, Mohammed Abdullahi, at the opening ceremony of the 17th meeting of the National Council on Science and Technology at Awka, Anambra State, at the weekend, noted these policy initiatives would not only fast track growth, but would also reduce unemployment.

According to the president, the theme “Moving Nigeria from Import dependent to Sustainable Self-reliant and exporting Nation through Science, Technology and Innovation” is apt in view of the numerous challenges facing the country, such as security and rampant cases of smuggling across the borders.

He pointed out that his @Businessdayng

administration had initiated guided reforms for the growth, development and wellbeing of the citizens, adding that his administration meant well for the citizens.

He called on Nigerians to make use of what is being produced in the country, stressing that the Government and the Ministry working hard at synergizing with the organised private sector at achieving commercialization of research and development results.

Abdullahi said the only way to having sustainable growth in moving the country forward, is through export, saying that it can only be achieved through Science, Technology and Innovation.

He said the ministry was endowed with human resources, which can help in moving the country to the next level, adding that STI had a pivotal role in transforming Nigeria into a sustainable, selfreliant nation and investment into STI was very essential for economic growth and social progress.

Thursday 05 December 2019

Climate change, decline in nature now threatening human existence UN report CHUKA UROKO

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limate change and the decline in nature have reached a point where human existence is now under threaten, a recent scientific reports from the United Nations and other international agencies have shown.

Though this is a global phenomenon, environment experts say it is worse in Nigeria where awareness of environmental issues is quite low and these issues rank low in priority in the country’s private and national lives.

“This is the essence of our gathering to deliberate and raise fund for conservation promotion,” Muhtari AminuKano, director-general, Nigerian Conservation Foundation (NCF), said.

Aminu-Kano spoke at the annual fundraising dinner tagged ‘Green Ball’ organised by the Foundation in Lagos recently. This year’s event had as theme, ‘Restoring Mother Nature: New Deal for Nature and People.’

Philip Asiodu, chairman of the occasion, who is also the president, Board of Trustees of NCF, made some observations about the state of the environment in Nigeria.

“The nation is losing its land at a fast rate, desert is disappearing, mangroves are being cleared, and pollution is everywhere,” he said.

Asiodu warned of alarming consequences if the Federal Government does not take drastic steps to halt these incidents, and drew attention to a report which says Lagos and other coastal communities may be submerged under water in 2050 if nothing is done.

Also present at the dinner were the Minister (State) of Environment, Sharon Ikeazor; DMD of Total E&P Limited, Musa AhmaduKida; representative of WWF, Seif Hamisi among others.

Earlier in the day, a business forum which started the previous day was rounded off.

The forum brought together stakeholders from in and outside Nigeria. That was the Nigerian Business for Nature.

It was a platform where officials and business leaders shared experiences and organisations’ best practices on the environment. Participants included government officials led by Ikeazor, directors general of institutes, heads/reps from corporate organisations, WWF, RSPB and Birdlife International.

Total E&P Nigeria Limited; Nigeria Liquefied Natural Gas (NLNG); Chevron Nigeria Limited; Sokoto State Government; Ecobank Plc; Stanbic IBTC bank; Keystone Bank Plc; Firstbank Private Banking; Ethiopian Airline, Virgin Atlantic, Environmental Accord were among the sponsors of the fundraising dinner.

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Weak property right threatens investment, capital inflow into Nigeria – Utomi AMAKA ANAGOR-EWUZIE in Abuja

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n economist, Pat Utomi, has identified weak property right as one of the biggest threats to capital inflow and foreign direct investment (FDI) into Nigeria’s economy.

Utomi, who spoke in Abuja on Wednesday at the Day Two of the ongoing National Transportation Summit organised by the Chartered Institute of Transport Administration Nigeria (CIoTA), said investors do not go to countries where property rights are threatened.

“In Nigeria, governors are revoking C-of-O that were approved by their predecessors.

We are talking of properties that

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people have invested billions of Naira to build. Government revokes them due to political considerations. Investors don’t come to such countries,” he said.

Apparently, the governors are abusing the powers bestowed on them by the Land Use Act of 1978, which made them hold land in trust for the people.

But it has become a political tool in their hands.

Besides this, analysts are of the view that the land and property ownership in Nigeria is also a disincentive to investment.

Because of the country’s rigid land tenure system, it has a large chunk of assets the analysts have described as ‘dead assets.’

Andrew Nevin, partner and chief economist at PwC, says

only land and property ownership reforms can unlock these dead assets whose value is about 81 percent of the country’s GDP. Nevin says further that Nigeria needs comprehensive reforms in its land and property ownership systems, given that its rigid traditional land tenure system coupled with the current land titling system excludes many people from formal land ownership.

This, according to him, hampers full scale economic activities, especially real estate, which happens on land.

Utomi pointed out that Nigeria was presently losing relevance to smaller African countries due to lack of efficient transport infrastructure.

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“Africa will not make the progress that it’s destined to make unless Nigeria leads the flying geese. What transformed South-East Asia economy? It was Singapore that began to get it right, and others looked across the border, and joined in the development stride. Before you knew it, Malaysia, Thailand and others had their economy transformed,” he said.

Utomi noted that Nigeria is central to African development, saying it was unfortunate that the country had not done anything right in the transport sector such that small countries were beginning to lead the way on the continent.

Citing an example, he said that he was in Addis Ababa last

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week, and saw that they had a functional Light rail system.

“The road network in Addis Ababa is flourishing, and not the place we used to struggle to go to in the 70’s. We need to see a lot of investment to come to Nigeria’s transport infrastructure.

Emmanuel Iheanacho, former minister of interior, blamed the problems in Apapa port on inadequate capacity to handle the volume of cargoes coming to the port.

“On Creek Road in Apapa there are numerous obsolete buildings that the government could buy, demolish and convert those areas into marshalling areas for cargoes.

What we advocate is dynamism,” he said.

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CBN to issue N847.4bn Reps demand increased revenue allocation for airspace management treasury bills Q1 2020 IFEOMA OKEKE

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ouse of Representatives Committee on Aviation has called for more capital to improve the management of the country’s airspace.

Nnolim Nnaji, chairman of the committee, said the Nigerian Airspace Management Agency had many ongoing projects to improve navigation and needed more funding.

Nnolim made this k n o w n o n We d n e s d ay during an oversight visit and inspection of navigational aids at the Murtala Muhammed International Airport, Lagos.

“Right now we are having a lot of challenges and difficulties on our roads and a lot of people prefer to travel by air and it is not the time we should toy with our air services.

“This is the time for everybody to come together to see how we can support the air industry that is the thing that is available now.

“We know NAMA has a lot of ongoing projects and is critical to the industry and we are open to supporting the agency from the legislative point of view. We will

push for more budgetary allocation to support NAMA projects.”

Nnaji also stated that there was a need to amend the NAMA Act, saying that it would help the agency to conform to modern standards and practices.

He said, “We notice the manual operations in the Total Radar Coverage of Nigeria, when we got to the control tower, we also saw the digital aspect of it. It is highly commendable that we have such equipment on ground.

“But we also believe that with government support, those facilities need to be upgraded, other airports across the country need to follow suit, not just lagos, Abuja and Port Harcourt. When budget implementation of 2020 will commence, those issues he mentioned will be taken into consideration.”

He said the aviation bills sent to the House of Representatives by President Muhammadu Buhari would soon be called for hearing to ensure speedy assent.

Fola Akinkuotu, managing director of NAMA, urged the committee to look into some of the agency’s challenges by enabling laws that would improve safety.

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Hope Moses-Ashike

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entral Bank of Nigeria (CBN) will issue a total of N847.4 billion treasury bills in the first quarter of 2020 as the same amount will be maturing between December and next quarter, next year.

The CBN stated this in the Nigerian Treasury Bills issuance programme calendar released on Wednesday.

The breakdown of the Tbills programme to be issued in the next three months of year 2020, which represents the amount that will mature during the period consists of a total of N75.6 billion for 91-day tenor; N141.04 billion for 182 daytenor, and N630.8 billion for 364 days tenors.

The CBN issues Treasury Bills twice in a month to help the Federal Government fund its budget deficit, support banks in managing liquidity in the system and curb inflation.

The inflation rate rose to 11.61 percent in the month of October, its fastest increase in four months. Nigeria’s economy expanded 2.28 percent in the third quarter of the year with improvements seen in the telecommunications, manufacturing and so on.

At the government securities market, NTBs and long-term FGN Bonds were

issued on behalf of the Debt Management Office (DMO) in the month of October 2019 according to the CBN’s economic report.

Consequently, NTBs of 91- 182- and 364-day tenors, amounting to N255.86 billion, N972.29 billion and N255.86 billion were offered, subscribed to and allotted, respectively. At the 91-day auction, total offer, subscription and allotment were N15.85 billion, N19.78 billion and N15.85 billion, respectively, with bid rates ranging from 10.9000 per cent to 11.7000 percent, while the stop rates were 10.8000 percent and 11.0845 percent.

For the 182-day auction, total offer, subscription and allotment were N21.10 billion, N57.68 billion and N21.10 billion, respectively. The bid rates ranged from 11.3000 percent to 12.7500 percent, while the stop rates were 11.0000 percent and 11.6000 percent. At the 364day auction, total offer, subscription and allotment were N218.91 billion, N894.83 billion and N218.91 billion, with bid rates ranging from12.9000 percent to 17.0000 percent, while stop rates were 12.9400 percent and 13.2000 percent.

On all the maturities, the stop rates ranged from 10.8000 percent to 13.2000 percent.

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Gender equality is vital in boosting economic growth – NESG Gbemi Faminu

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igerian Economic Summit Group (NESG) has called for improved gender balance across board in order to achieve sustainable economic development in Nigeria with inputs from the female population.

Speaking at the inaugural meeting of the NESG community of practice on gender, Niyi Yusuf, vice chairman, NESG, stated that over time, the NESG had noticed that issues relating to groups such

as gender, youth and Micro Small and Medium Scale Enterprises (MSME) might not be optimally resolved within the Policy Commissions structure with which it operates.

“Asagroupthatshareconcern and passion to achieve a common, Communities of practice moves to tackle these central issues that will guaranteeasustainableand vibrant Nigerian economy by the year 2050,” Yusuf said.

Deliveringapresentation on the Gender Community of Practice, head, Corporate ServicesattheNESGNkechi Onyenso stated that the approachforNESGGenderCoP will allow key stakeholders/ individuals across private

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andpublicsectorgroupscollectivelyownandchampion the issues around women through the NESG’s structuredapproachofdeliberating,agreeingandadvocating on policy focal points.

Furthermore, the CoP will act as a facilitating block for addressing policy areas regarding women and interactions with the Policy Commissions, and ensure deliberate focus on the key issues affecting women are paid attention to and addressed effectively.

Ultimately, the NESG GenderCommunityofPractice will convene for policy, legislativeandenvironmental changes that close the womengapandensurethey can be incorporated in the 2050 calendar of economic development.sheaddedthat going forward the dialogue will continue until impacts are made and results are achieved.

In an interview, she said, “For an inclusive economy we need to clap with both hands everyone needs to participate actively in order to foster economic growth.

Whatwewanttodoistohelp womenstructuretheirbusiness in the best possible way and train them to become entrepreneurs in line with global best practices.

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From Lagos to Onitsha: Who will save us from the nightmare this Christmas?

ik MUO

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he gods are angry, a sacrifice MUST be performed and the white chalk is needed!

This is what a policemen, detailed to provide security along the Benin Bypass told me thrice, on Thursday, 8/8/19. The man was a Yoruba man, who spoke a good dose of Igbo language, which he claimed to have learnt while serving at the Alaba market, in Lagos.

However, let me begin the story from the beginning. I had to go home for a thousand and one engagements, the key one being the Igbo-Ukwu 2019 Ili-ji (new yam) festival. On my entourage were my beloved, the acting president of Igbo-Ukwu Development Union, and a driver I had hired to drive me down for that day (You see, the son of man is going down gradually and that was why the man who drove effortlessly from Enugu to Jos, to Gombe, to Maiduguri Kano, Kaduna Abuja and back to Enugu now finds it difficult to drive from Lagos to the east). We had left Lagos around 5.30am and hoped to arrive there at 12pm. However, the Nigerian policemen were on duty! Between Ijebu-ode and Benin, we encountered more than 50 police roadblocks. At a stage, it was so bad that while being harassed at roadblock X, you could see roadblock X+1 about 500m away.

At each point, the policemen carried out their due diligence. The consequence was that we got home around 3pm despite no traffic! And the extra 3 hours delay was due to the activities of the policemen who were searching for

herdsmen in the boot of our car. And one of them was the man who demanded for white chalk with which to make sacrifices to the gods of Benin! Is that how the catch the herdsmen who emerge from the bush, strike and disappear?

Do the herdsmen wear red caps; drive along the express way and particularly on Sagamu-Benin Expressway?

How do stationery police teams, whom everybody knows where they are stationed, provide security? Why do policemen allow easy passage to unregistered vehicles who pay 200 per checkpoint but ask those whose cars are duly registered for documents I have not heard about since I started driving 36 years ago? And which one is better: the policemen, who stop, search, ask asinine questions and demand for partikolas via body language or soldiers who just block the road with logs of wood and watch as people struggle over the consequential artificial traffic?

And back to my police friend, who made him a priest of Bini Kingdom and why must he demand for white chalk (nzu) for the sacrifice...along the expressway? We have been measuring ease of doing business. It is time we start measuring ease of travelling because ease of travelling is also related to ease of doing business! That was my experience on 8/8/19 as documented in the subtitle of my BusinessDay column, 15/8/19: Other matters: checkpoints, security and the ease of travelling.

The main title however was 9th NASS; Sinators, horribles and old peoples’ home! Since that day (8/8/19) it has become worse. When I travelled two weeks later, I could not make it to the east in one day; I had to sleep at one obscure corner of Asaba. Another towns man who travelled on 29/11/19, was only able to get to Onitsha at 2am, stayed at Chisco Park for the rest of the night and paid a security fee of N200!

However, this is not a recent development. Over the years, I have bemoaned the traffic madness along

the Lagos-Onitsha, which has always been caused by the bad roads, contractors without a human face or the Niger bridge war. Early in 2011, I complained thus’ I drove down East with my domestic entourage and it was not a joyful experience. I encountered about 100 police toll gates between Lagos and Asaba; the Ore-Ofosu portion of the Sagamu-Benin expressway is no longer worthy to be called a road (probably, it was a road) customs officers wanted me to explain why their counterparts collected Nx and not Nx+ as import duty on my car[which one concern me?].

We spent hours at the Asaba end of the Niger Bridge even though we got there before 12 noon!’(Ik Muo; Happy Christmas? Not Quite. BusinessDay, 4/1/11)’.

In 2013, I spent 7 hours from Lagos to Asaba and another 7 hours from Asaba to Onitsha and asked:’ when will this end? When will one easily travel to the East? Why will our rogue-politicians continue to play politics with the second Niger Bridge even when the existing bridge is so weak that vehicles are now only allowed to ply it in a single-lane mode? How many man-hours were lost and what were the other socio economic costs of this unfortunate experience which has become a regular occurrence in recent times? And when will our people become a little bit more disciplined and patient whenever there is a contorted traffic? (Ik Muo, Lagos to Asaba,7 hours; Asaba to Onitsha,7 hours; BusinessDay,2/4/13) and then this: ‘Sometimes in September this year, I left Olabisi Onabanjo University at 3pm, hoping to get to Lagos around 5pm but I was on the road till 11pm! That day, I spent 3 hours at one spot in Shagamu.

On 8/11/19, I came in from the East, got to IjebuOde around 11am but I could not get to Lagos until 4 hours later. IjebuOde to Lagos ordinarily takes 1 hour.

On 9/11/19, I left Kingsway Road Ikoyi around 8pm, got to Carter Bridge within 15 minutes but I was in traffic for 2 hours on Carter Bridge without covering up to

‘

WHEN will this stop? The man hours lost and the disruption of businesses and economic activities is so humongous, except that it has not been computed. Who will save us from this nightmarish menace?

500 meters. Of late, moving into, out of or within Lagos has become an impossible task. (Ik Muo, If Lagos should run, BusinessDay, 14/11/19) and this was a follow up to an article of the same title I wrote in 2002.

Now, another compatriot, Tony Onyima, a former Commissioner for Information in Anambra State has documented this Lagos-Onitsha traffic madness, this time occasioned by the several tollgates on that route (Police, Customs, FRSC and Army, at times supported by local vigilantes) His study was empirical because he detailed the organisation that mounted the road block, where they mounted it, when they did combined operations He travelled from Lagos to the east on 27/11/19 and counted 60 tollgates. Yes, you heard right; SIXTY: Lagos to Ore-24 (police, 17; Customs, 2, Army, 2; combined operations 3) Ore to Benin-20 (police-12, army3, customs, 1; combined operations 5; Benin ByePass to Onitsha: 14 (police 9, army 2, customs 2; combined, 1). Ajebendale won the gold medal, with “9 tollgates”, followed by Ijebu axis (5), Orilewo and Beninbypass (4 each).

The soldiers cause the least offence apart from elongating the traffic snarl).

The policemen particularly enjoy it when they seize the car documents and the victims would be following them up and down the road, pleading. What offences did they commit? Many of them could not tell because what policemen at Point A would ask is quite different from what the policemen 200m down the road would ask. The only thing Mr Onyima did not capture was the amount extorted from the different drivers and passengers at different tollgates and which organization extorted more per capita!

Note: The rest of this article continues in the online edition of Business Day @ https://businessday.ng Dr Muo is of the Department of Business Administration, OOU, Ago-Iwoye

Crowd funding, alternative sourcing methods and leveraging FinTech solutions in Nigeria (2) Opportunities for businesses leveraging on FinTech solutions ompanies seeking to raise capital from the public must do so in accordance with CAMA and the ISA, amongst others. Particularly, the ISA provides that no company shall invite the public to deposit money with it for a fixed period unless such company is (i) a public company, whether quoted or unquoted (in compliance with the provisions of the ISA) or (ii) a statutory body or bank in Nigeria duly established and licenced to accept deposits and savings from the public.

Nigerian banks must be duly licenced by the Central Bank of Nigeria (CBN) and upon obtaining a banking licence, they are authorised to receive deposits of money from the public.

Various types of banks exist including commercial banks, merchant banks, microfinance banks, etc. Microfinance Banks (MFBs) play a major role in bridging the gap for technology solutions which seek to cater to large numbers of people within the confines of the law.

Regulation of microfinance banks in Nigeria A MFB is a company incorporated in Nigeria and licensed by the CBN to provide financial services (such as savings and deposits, loans, domestic fund transfers, other financial and non-financial services) to economically active low-income earners, low income households, the unbanked, etc. MFBs are permitted to accept deposits from persons (other than public sector deposits) provide credit/loans, issue debentures, act as agents for mobile banking

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and micro insurance services to its clients.

Currently, the CBN regime governing MFBs provides various categories of MFBs, namely: (i) Tier 1 Unit MFB: authorised to operate in one location; must have a minimum capital requirement of N200,000,000 and is prohibited from having branches and/or cash centres; (ii) Tier 2 Unit MFB: authorised to operate in urban and high-density banked areas and must have a minimum paid-up capital requirement of N50,000,000; (iii) State MFB: authorised to operate in one state or the Federal Capital Territory, Abuja, have a minimum paid-up capital of N1,000,000,000 and may open branches or cash centres; and (iv) National MFB: authorised to operate in more than one State including the Federal Capital Territory, Abuja, must have a minimum paid-up capital of N5,000,000,000; and can open branches in all States of Nigeria and the FCT. MFBs are also required to comply with the Code of Corporate Governance for Other Financial Institutions in Nigeria issued by the CBN dated October 26, 2018 (MFB Code) which came into effect from April 1, 2019. The MFB Code provides for relevant governance requirements relating to minimum board committees, directors’ qualification, number and tenure and disclosure requirements, amongst others.

What do MFBs have to do with alternative capital raising methods?

The CBN in March 2019 directed MFBs to register 64 new customers every month per branch (as applicable) in order to meet the CBN’s 80 percent financial inclusion rate by

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2020. The CBN also highlighted the contribution of MFBs towards the realisation of the financial inclusion target over the last six years of implementation of The National Financial Inclusion Strategy, which was launched in October 2012 and revised in 2018. MFBs can largely leverage on the requirements for setting up a MFB and the technological advancements that make it possible to reach large numbers of prospective investors.

For example, a company seeking to channel investments solely to agriculture can establish a Tier 2 Unit MFB (which requires N50,000,000 (circa $137,000) paid up capital) and upon obtaining the final approval of the CBN to operate as a MFB, accept deposits from the public i.e. its clients. Such deposits can be invested by the MFB in its specific targeted products i.e. agriculture. Unit MFBs are restricted to operating from one location. Nonetheless, a technology solution such as a web-based portal operated by the MFB or a mobile application can serve as the ‘numerous locations’ through which the MFB operates from.

This will reduce operating costs of the business (since it will not require physical state of the art furnished branches). Mindful of the high mobile penetration rate in Nigeria, customers can conduct certain banking transactions in Nigeria through such mobile platforms. Additionally, such a MFB may, with the approval of the CBN and the SEC, raise capital from the public.

Food for thought In 2018, Piggybank.ng, an online savings platform that enables people to put away funds

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TONI NUMA

that they don’t want to withdraw easily, acquired a significant stake in a fully licensed and functional Nigerian MFB to aid its operations as part of its expansion plan. It is expected that start-ups who have the financial and technical ability to set up MFBs for their operations will continue to take this approach in order to expand their service offerings, tap the capital market for funds and also incorporate (as appropriate) similar business models for their operations. As such, the existing legal framework does accommodate old paths to new money.

The information provided herein does not, and is not intended to, constitute legal advice.

The contents of this paper are for general informational purposes only. Please formally engage a lawyer in the relevant jurisdiction before acting on any information contained in this paper.

Toni is an Associate in the firm of Banwo & Ighodalo, a top tier law firm in Nigeria. He has other published works on capital markets, consumer protection, crowd funding, financial technology and governance which are available online at www.academia.edu/ToniNuma

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The guardrails are finally off CHRISTOPHER AKOR

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he 8th National Assembly under the leadership of Bukola Saraki and Yakubu Dogara could be accused of many things. But it could not be said to be a rubber stamp legislature. It vigorously resisted the manifest wish and plans of President Muhammadu Buhari to control all arms of government upon coming to power in 2015. No wonder they were always at loggerheads. The level of tension between the two arms could be seen in the record number of bills passed by the National Assembly but refused accent by the president. That tension in a way, slowed down the president, as he himself confirmed recently, and prevented Nigeria’s precipitous descent into dictatorship.

It was clear from day one that President Buhari was out to emasculate other arms of government. Since he could not get his favoured candidates to head the National Assembly in 2015, he shifted his focus to the judiciary while waiting for 2019 to complete the takeover. The regime’s wilful disobedience of legitimate court orders, invading and arresting judges of the Supreme Court at their homes, harassing and intimidating judges that deliver judgements deemed unfavourable by the government or some of its agencies were the first signs that it was out to

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emasculate the judiciary but most of us were deceived by the so-called fight against corruption and we cheered the president on.

The takeover of the judiciary was completed with the ruthless and extralegal removal of the Chief Justice from office on the eve of the 2019 elections.

It not only sent shivers down the spine of other judges, it ensures the administration will always get its wish and the judiciary remains under strict control.

The project of full takeover of all arms of government was completed in 2019 when the government got its wish by installing its preferred candidates as leaders of the National Assembly.

To confirm the rubber-stamp status of the 9th National Assembly the Senate President, Ahmad Lawan, recently declared that “any request that comes from Mr President is a request that will make Nigeria a better place...[and] the Senate will act expeditiously to ensure” its speedy passage.

Enter the Social Media and Hate Speech Bills. Both bills seek to stifle free speech and prevent criticism of the government. Under the proposed social media legislation, sponsored

by Muhammad Sani Musa (APC Niger East), and which has passed second reading in the Senate, one could be arrested for making statements on social media deemed “likely to be prejudicial to national security”, sway elections or “diminish public confidence” in Nigeria’s government. The bill also seeks to authorise the state to cut off the internet access of those that violate the regulation.

Of course, the bill is a reincarnation of the infamous Decree 4 of 1984 that prohibited journalists from reporting anything that could embarrass the regime, even if it were true.

The Hate Speech bill, sponsored

by Sabi Abdullahi (APC, Niger North), Deputy Chip Whip of the Senate, seeks to regulate what it calls hate speech and prescribes life imprisonment and the death sentence for offenders.

It is unfortunate that the APC, having greatly benefited from, and used the social media to great effect to vilify the past administration, get it voted out of power and won election on its platform, is now hell bent on taming that very medium. The party and its officials appear to have become fearful of the very medium they use to ride to power being used against them.

Since coming to power in 2015, President Buhari has been desperate to curtail free speech and trying in various guises to resurrect the infamous decree 4.

It began early in the life of the administration with the anti-social media bill sponsored by Senator Bala Ibn Na’Allah (APC Kebbi South), which seeks to “to criminalise anyone disseminating via text message, Twitter, WhatsApp, or any other form of social media an “abusive statement” intending to “set the public against any person and group of persons, an institution of government or such other bodies established by law”.

When that bid failed at the National Assembly, another phony bill seeking to regulate Non-Governmental Organisations (NGOs) came up. The bill, sponsored by Umar Buba Jibril, APC Kogi West sought for the establishment of yet another federal agency to supervise, coordinate and monitor NGOs with sweeping powers to regulate their conduct and grant a license for operation renewable every two years. Without such license, no NGO can operate and the agency could refuse renewal for no reason. What is more, only the license of the agency (not registration with the

‘ It is unfortunate that the APC, having greatly benefited from, and used the social media to great effect to vilify the past administration, get it voted out of power and won election on its platform, is now hell bent on taming that very medium

The conspiracy against Onyema The recent US indictment of Allen Onyema and his business transactions came as a big shock to me. Allen and I have known since 2005. An eminent senior citizen called Kola introduced us in Port Harcourt at a time when militancy was at its worst and wildest. However, we talked about bringing peace back to the Niger Delta.

My immediate impression was that Allen was a man who had my type of gene for great ideas. I was already aspiring to become the president of the Ijaw Youth Council, IYC. Allen immediately saw the transformative opportunity of converting me to the Kingian non-violence approach to social change. He rightly calculated that a prodialogue IYC president was all that was needed to transform the council as a necessary step to transforming the region.

Allen asked me about the IYC motto and I told him it was “By Any Means Necessary.” He set about, using his immense influence and wealth, transforming me and a handful of other youth leaders from Ijawland. Under his tutelage we successfully underwent the first two stages of the Kingian non-violence programme in Nigeria and South Africa. But he only took some ten of us to the US for the stage three. Back from the US we set about de-radicalising our youths. Allen was there for us. Shell, Chevron and the other oil companies paid for the programmes making it possible for us to take the beneficiaries to Lagos, South Africa and America.

It has often been suggested that the North shot itself in the foot sponsoring our youths to Abuja to campaign for General Sani Abacha’s transmutation from dictator to democrat. The campaigners left the Niger Delta innocent and returned from Abuja radicalised: What they saw there made them completely dissatisfied with

the squalor back home.

Likewise, Allen was smart exposing our youths to the splendours of foreign capitals. He showed them the wonders that could be replicated in the Niger Delta if only they stopped fighting and embraced dialogue. He changed their mind set and it was only a matter of months before they began to desert their camps to seek us out in the city. That enraged a couple of the commanders who then targeted me.

I escaped multiple attempts on my life. But somewhere in Bayelsa State my voyage on this earth almost came to a sudden end as I was shot at by my own brothers who were fellow Ijaws.

Their bullets missed me. As for Allen, they are those who still believe he was a CIA agent sent to destroy our struggle through non-violence.

He was the one preaching to our boys to engage their minds rather than their guns in the pursuit of social change. Things were not helped as Shell and Chevron continued to pay for the de-radicalisation programmes; knowing they stood to benefit if peace returned to the region.

I eventually became IYC president in 2007 with the support of many friends. Tompolo supported me. Timi Alaibe was one of them. Allen was another. Asari Dokubo supported me from prison. Jonathan Lokpobiri and Carol Bakumo, who later married Asari, were among those that made my election possible. These were people who believed I was pro-intellectual and nonviolent in my approach to the struggle. Asari was at war with the Nigerian state. His armed struggle ideology was the order of the day and I had to preach endlessly for non-violence.

On winning the election I immediately sold the Kingian non-violence to Timi who was the Managing Director of the Niger Delta Development Commission, NDDC. I then introduced

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Corporate Affairs Commission) confers legal personality and perpetual succession on NGOs. When these efforts failed again, the government, in 2017, started railing against hate speech, with the Vice President, Yemi Osinbajo, likening it to terrorism and vowing to clamp down on perpetrators. Although Osinbajo never defined what exactly he or the government meant by hate speech, the army provided a precise definition when it announced that it was creating “strategic media centres” “to monitor social media in order to sieve and react to all anti-government, anti-military, and anti-security propaganda”.

With this, the government could conveniently lump any statement or criticism by group or persons which caused it consternation, into its amorphous definition of hate speech and promptly clamp down on such groups or persons. This is precisely the pretext for clamping down on media houses, Nongovernmental Organisations, Civil Society Organisations, international NGOs, relief agencies, journalists, social and social media activists since 2017. One could only imagine what would happen if these bills are now passed into law.

While the bills suffered still births at the 8th Assembly because Saraki and Dogara ensured the independence of the legislature, they are almost certain to be passed into law by this current rubber-stamp National Assembly.

And with Buhari controlling all the arms of government, all forms of opposition to the government is about to be outlawed. Perhaps, that is why the resistance to the bills by Nigerians is quite vociferous. But Nigerians may have woken up late to the game plan.

Now that all the guardrails are off, there is nothing to stop or delay the sure descent into dictatorship.

CHRIS EKIYOR Allen to Timi and the region never remained the same again. The IYC, NDDC and Allen’s Foundation for Ethnic Harmony in Nigeria, FEHN, began to decongest the creeks in piece meal. A batch of 600 youths were pulled out and de-radicalised.

Kingsley Kuku was Timi’s aide. That was how Allen met him. So the hues and cries about Kuku and Allen make no meaning if we can remember that Kuku was working for Timi when I introduced Allen and Timi. Furthermore, Allen was already being contacted by General Godwin Abbe to be part of the envisaged amnesty programme.

Timi eventually consolidated the relationship as General Abbe’s successor at the Amnesty Office.

At a point the Presidency queried Timi on the rationale of using government funds to train militants. We went to Aso Rock and explained what the programmed entailed. Yar’Adua listened and gave his approval. It was our approach to peace building that eventually led to the amnesty programme as we know it today. Allen played a big role in bringing the Oil War of 2009 to an end.

He worked with us in saving American lives and businesses in the Niger Delta.

The Presidential Amnesty Programme was pronounced in 2009. Allen was perhaps the most qualified among us with the requisite experience and exposure, having trained more than 600 successfully out of the radar. The federal government paid a huge sum per youth based on international best practices as Allen brought in experts from America to do the job. Over 30,000 ex-militants were for training. We set up camps in Akodo for months and Obubra for one year.

As a contractor Allen was the major player. His FEHN was an NGO but he actually used it for consultancy, was paid by Shell and the Federal Government and he paid tax.

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variance with that of America. Here if you give quotation to government and they find your price acceptable, they award you the contract.

Whether inflated or not, if the government approves your quotation, it becomes legally binding. That is no fraud. It is pure business.

For instance, you could prefer to sell a bottle of water for N500 to government, probably because of the way you packaged and promoted it, even though the public is buying it for N150. If the government pays you what you asked for then the transaction is very much in order! I do not know if Allen’s transactions were inflated or not. The question is did he deliver what he was contracted for? The overwhelming answer is affirmatively yes to the letter. He is a wise businessman who invested heavily in real estate. Allen told me about his investments even before diversifying into aviation. I think he got the idea from training our boys as aviators. Anyone doubting his integrity should investigate if he bought his planes cash or owing banks.

America must understand that Allen made his money legitimately. He was a very successful man when I first met him. He was in real estate big time, lived in a comfortable home, frequented South Africa and funded nonviolence programmes with his own money or with funds provided by Shell. None of his NGOs has ever received grants. FEHN paid tax from legitimate jobs.

Note: The rest of this article continues in the online edition of BusinessDay @https://businessday.ng Dr. Ekiyor was 4th President of Ijaw Youth Council. IYC, and Convener of Integration Summit Group of Nigeria, ISG-N.

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Thursday 05 December 2019

Editorial Publisher/CEO

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

Bashir Ibrahim Hassan

GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu

Urgent, bold reforms can counter shrinking investments

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hen measures to ameliorate an u n d e sirable and unnecessary situation are ignored, the avoidable becomes reality. Sadly, this is the story of Nigeria as it squanders opportunities for foreign direct investment (FDI); opportunities which ordinarily attract investments to frontier markets with less potentials. In a recent report released by the National Bureau of Statistics (NBS), foreign investments into Nigeria dropped to $200.8 million, declining by more than half (62.29 percent) and the lowest in four quarters as far back as 2018 – so far in 2019, foreign investments have averaged $222 million quarter on quarter.

This is a paltry amount; Vietnam, Indonesia, Egypt, South Africa and Argentina, who attracted on average FDIs of $2.2 billion, $7.04 billion, $3.5 billion, $1.3 billion and N681 million respectively during the

same period. It is less than 1 percent of GDP, and so small that if shared equally among 190 million Nigerians each person will get only $1.2 per quarter. That’s like making do with $1.2 for a period of 90 days, which is far worse than the World Bank’s international poverty line of $1.90 per day.

For an e c onomy that needs about $31 billion every year for ten years to bridge its infrastructure gap with approximately 200 million people and an unemployment rate of 23.1 percent it’s absurd that attracting more investments isn’t paramount in our policy actions.

The importance of FDI in the growth and development of an economy cannot be overemphasised. Emerging markets have developed through the investment of large and highly competitive companies. FDI inflows, complemented by infrastructure, increase productivity and generate jobs.

Based on the miniscule investment Nigeria is attracting, we believe that the current low growth cycle of

the economy will continue because there is no other assured path to robust growth based solely on government.

The government’s “I-can-doit-alone” approach without attracting foreign direct investment is making Nigerians poorer.

Also, we are at a critical stage where the government’s lack of urgency in implementing the reforms that will open the economy to investment has gone beyond the tipping point. The World Bank warns that, “Unless the government quickly embarks on needed reforms, the number of Nigerians living in extreme poverty could increase by more than 30 million by 2030, pushing the country to account for 25 percent of the world’s extremely poor population.”

What will attract these long term foreign investors?

The answer seems simple but increasingly seems like rocket science for the current administration. The clamour for bold reforms in key sectors of the economy cannot be over reiterated.

Delay of reforms in the

power sector, full deregulation in the petroleum sector value-chain, removal of multiple exchange rates, are among the risks that constrain investments and long-term growth, according to PricewaterhouseCoopers, a consulting firm.

Nigeria’s treatment of some of its largest foreign direct investors such as oil companies, who are being accused of owing billions of dollars in unpaid taxes, and MTN who has been on the receiving end of a number of hefty fines, is surely not the best way to sell the country to potential investors.

With long term foreign investors shying away from the Nigerian market, the federal government should be worried as intra-Africa trade draws near. This only strengthens the argument that foreign investors would be more attracted to economies with lower cost of production and better infrastructures hence, positioning Nigeria as a dumping ground for these products.

The best time to enact these reforms is yesterday.

HEAD, HUMAN RESOURCES Adeola Obisesan

EDITORIAL ADVISORY BOARD Imo Itsueli Mohammed Hayatudeen Afolabi Oladele Vincent Maduka Opeyemi Agbaje Amina Oyagbola Bolanle Onagoruwa Fola Laoye Chuka Mordi Mezuo Nwuneli Charles Anudu Tunji Adegbesan Eyo Ekpo Wiebe Boer Paul Arinze Boye Olusanya Ayo Gbeleyi Haruna Jalo-Waziri Clement Isong

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Thursday 05 December 2019

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Kano versus Dubai-the difference Positive Growth with Babs

Babs OlugbemI

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he recent spending spree of Davido and some of our celebrities including the politicians and other fun-seeking people around the world in Dubai, a city in the United Arab Emirate (UAE) is part of the reward for the vision of Sheikh Mohammed.

Dubai is the most populous city of the United Arab Emirate, an emirate among the emirates having 3.32 million people out of the total 9.89 million living in the United Emirates. Dubai, now an adult Disney land was once a “Creditopolis”, a city built entirely on debt. Though Oil revenue helped to pay off the debt and accelerate the development of the city, Dubai current revenue profile showed Oil accounting for less than 5 percent and increasing income from trade, tourism, aviation, real estate and financial services. What a change! This is a mercurial diversification of the fortunes and image of once a low valued desert and port to a city built on a desert and now the centre of attention for people around the globe with colossal revenue.

I have always argued that religion is not the main problem of Nigeria, except when used as a potent tool for political advantage. I will elucidate my assertion soon.

Let’s take Kano, a metropolitan city in Nigeria as a representation of cities in the most populous Africa nation. Of course,

Dubai, as a city and Kano as another city, is representing two cities with different tales. You can call this a tale of two cities as we look for the difference in the development, economic status, relevance of Kano, Nigeria and Dubai, UAE. By the hotness of the weather, let’s name Kano as a desert to give a balance- an equal starting equilibrium. With a population of over 9 million people and with 5.5 million registered voters, the city of Kano was created in 1805. It is a metropolitan city with four addition emirates which recently reduces the influence of the Kano Emirate. Kano is a powerful state in Nigeria when it comes to voting and deciding who will win the presidential election in Nigeria. The count of votes from Kano can change the election’s outcome. The state is also known to have penchant for underage voters and prone to political violence.

Kano and Dubai are two different cites with some similar characteristics and the wide disparity in the development and fortunes for the residents and visitors.

The people of the two cities are predominantly Muslims, they both read Quran and practice Islam. Kano is ahead if religion and prayers are the significant factors for development. We have a Christian population who read the Bible in Kano, and the added faith of the two dominant religions should make Kano, a more prosperous city than Dubai. With this, the gap between the two cities is not religion. If it is religion, Kano should be better than Dubai. It is not also resources-both natural and human capital. Nigeria is equally blessed with oil and more natural resources than the UAE. Whereas Dubai was led by a visionary Sheikh Mohammed, who envisaged the vicissitudes of the city. Kano, on the other hand, focused on gaining political and religious relevance ahead of development. The mind-set represented by

Kano focused of giving the traditional institutions the taxpayers’ money to preserve it until recently when the government deemed it fit to decentralise the power of the prominent emirate by splitting the kingdom into four other equal entities.

Kano is no doubt powerful from her investment in politics. The underage voters are helping the political elites but hardly the impoverished masses, and the city was at a time volatile for violence and killings despite its cosmopolitan nature. Many people are living below the poverty line, with few in government and in the traditional robes living lives of affluence with many wives and children to show as the dividend of city’s focus and leadership. There is close no or zero income from tourism, and economic prosperity if compared with Dubai.

What’s the difference in my KanoNigeria and their Dubai- the UAE? Why are Nigerians with spare money unwilling to lodge in Kano hotels or shop in the Dawano, Galadima or the Kurumi market where native attires could be gotten at the cheapest prices?

We cannot blame or prevent people from enjoying what life has to offer. It is not unpatriotic to visit Dubai and spend lavishly to enjoy oneself and help a city whose vision and leadership is alive. I am sure there will be no border closure on trips to Dubai to develop our Kano whose objectives over the years was premised on religious supremacy and political power.

It is high time we started to have new energies and perspectives of what we want a united Nigeria to be. We will have been better than a desert if our priorities have not been on where the president comes from or which region is destined to rule others. Unfortunately, no one religion or region has benefitted from the religious and ethnic-oriented leadership we have adopted. The area with more years at the corridor of power is equally

‘

It is high time we started to have new energies and perspectives of what we want a united Nigeria to be.

We will have been better than a desert if our priorities have not been on where the president comes from or which region is destined to rule others

he quest to deepen Nigeria’s non-oil revenue base has received a big boost with the passage of the bill raising value added tax (VAT) from 5 percent to 7.5 percent. In a move quite unprecedented in recent times in executive/legislative relations, both the senate and the house of reps passed the Buhari administration’s bill in good time without the usual the legislative “stonewalling” or “foot-dragging”.

The idea is one of the proposals earlier tabled by the Babatunde Fowler led Federal Inland Revenue Service (FIRS) to prepare the nation for a post-oil life.

Expectedly, the initiative was criticized in some quarters as “punitive”. The same people who are quick to criticize the increase are often the first to deplore infrastructural deficits in the country. The question then: how else is the government supposed to generate funds to meet such challenges if not by taxation?

In any case, Nigeria’s existing 5 percent is regarded as one of the lowest not just on the African continent but in the entire world. In South Africa, for instance, standard rate for VAT is 15 percent. In Ghana, it is 12.5 percent. In United Kingdom, it is 20 percent. In Norway, people pay VAT as high as 25 percent on some goods and services purchased. Little surprise then that Norway is sometimes dubbed a “nanny state” on account of the fact that it ranks high among the most “liveable places” on earth because of massive welfare packages citizens enjoy.

By conservative estimates, additional N2trillion is expected to be generated by Nigeria from the increase in the VAT. Out of this, 85 percent (N1.7 trillion) will be shared among the 36 states

and Abuja, while the federal government retains 15 percent (N300 billion). For states already agonising on how to pay the new minimum wage of N30,000, that must be good news, just like it must be for the FG that is proposing a record N10 trillion budget for 2020.

But beyond the increase in VAT, Nigeria surely still has a lot of grounds to cover to be fully weaned off over-dependence on oil receipt as source of budget funding. According to Nigeria’s National Bureau of Statistics, the country has a taxable workforce of close to 77 million, but official records indicate that only about twenty percent (14 million) pay income tax. That is largely due to the PAYEE system that makes tax deductible up front from workers in public sector. With almost 200 million population, Nigeria’s tax-to-GDP ratio is regarded as one of the lowest in the world.

There is a good news, however. The statistics above are increasingly becoming jaded. By the end of this year (2019), an impressive 45 million individual and corporate citizens are expected to be captured in the tax net. Thanks to the aggressive implementation of the Taxpayers Identification Number (TIN) mounted by FIRS management under Fowler. When the current management took charge in 2015, the total figure in the tax net was far less than 20 million.

Incidentally, the four-year tenure of Fowlerled management is coming to end. Experts are agreed that the bouquet of reforms currently being pursued need to be sustained in order to sustain the momentum of the nation’s quest for a sustainable taxation system outside oil receipt.

The recent recertification of Nigeria as one of the most vastly improved economies in terms

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of the “ease of doing business” is substantially attributed to sweeping, investment-friendly reforms initiated by FIRS under Fowler.

Unlike in the past when the processes were opaque and therefore prone to abuses, automation is now the order of the day between the service and the public. For instance, with the Integrated Tax Administration System (ITAS), all core tax administrative processes like registration, filing, audit and payment have been eased.

Unlike in the past, taxpayers do not have to wait or bribe anyone to obtain tax certificate as such can now be generated almost immediately after payment.

For the 2020 budget, FIRS has already been given a staggering N8.5 trillion target, representing 85 percent of a N10 trillion national budget.

With global forecast not favourable for any significant rise in oil price next year or foreseeable future, the nation will definitely be relying on taxation to fund such humongous budget, outside the window of borrowing - both internal and external. Hence, the popular expectation is that Fowler’s mandate will be renewed to sustain the drive.

For the first quarter of 2019, records show that more than N1.5 trillion was recorded as revenue by FIRS. Experts project the gross for the year will likely exceed N6 trillion by the time the 2019 books are finally computed and closed.

This would mean a doubling of nation’s tax revenue within four years under the management of Fowler. At the inception of the Buhari administration in 2015, the total tax revenue was N3 trillion. The figures had grown from N3.3 trillion in 2016 to N4.02 trillion in 2017 and N5.3 trillion in 2018.

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with the highest poor and uneducated citizens who are now bandits, with the split effect of kidnapping, Boko Harams, yahoo boys, and children trafficking.

Rather than been obsessed with where the power goes or reside, the Nigerian leaders should see leadership as a service and stop the tolerance of corruption, mediocrity and ineptitude of elected officers at the detriment of the people who are becoming less tolerant to living without hope. Let’s see Nigeria as a giant with opportunity and start afresh to build “Dubais” out of our cities and communities to retain the giant name in Africa and change the dwarf nature in terms of output as it is now.

We can change! We have many Sheikh Mohammeds’ among us only if our political structure, visionary deficiency, paranoid religious and ethnical superiority mind set is relinquished for true nationalism where all Nigerians can prosper irrespective of religion, ethnic and place of origin. We need a new national identity and life to reiterate hope for the hopeless masses.

Dubai was not born as the Dubai we know today. It was taken out of hard work and vision, without which no desert can be transformed into one of the best tourists’ centres in the world.

As leaders of Nigeria especially those in elected offices, I enjoin you to think of the difference whenever you visit Dubai or other top developed cities in the world. The difference between the towns you admired and the one you make your fortunes from is you. The difference between my Kano and their Dubai is inept leadership without vision and with more focus of self. The difference must be changed to see the difference in our lives.

Babs Olugbemi FCCA, the Chief Responsibility Officer at Mentoras Leadership Limited and Founder, Positive Growth Africa. He can be reached on babs@babsolugbemi.org or 08025489396.

Between Fowler and new VAT increase

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13

AYO BALOGUN Why these figures are considered quite remarkable is because they were recorded at a time the nation experienced an economic recession considered perhaps the worse in a generation, with crude oil price tumbling to less than $30 between 2015 and 2016 from the Olympian height of $100 in the preceding years. Of course, the logic is that, in recession, the economy would contract and tax returns crumble.

Nigeria’s own survival is perhaps better appreciated when compared to a country like Venezuela which is also heavily dependent on oil to run her economy. With the steep and sustained crash in commodity prices from 2014 to 2015, the Latin American country has more or less degenerated to a basket case today with a vast majority of the people reduced to destitution and pains.

But in Nigeria, the tax graph grew when the present management took over due to creativity, innovation and dedication.

For Fowler, it was no doubt an opportunity to re-enact the magic earlier performed in Lagos.

At the outset of the Tinubu administration in 1999, Lagos’ IGR was an abysmal N600 million.

But with Fowler headhunted from the private sector and made the head of the state revenue service, the story changed overnight. Within eight years, Lagos’ revenue grew to N8 billion.

Note: The rest of this article continues in the online edition of Business Day @https://businessdayonline.com/ Balogun, a financial journalist, is based in Lagos.

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Thursday 05 December 2019

BUSINESS DAY

TECHTALK Innovation

Apps

Fin-Tech

Start-up

Gadgets

Ecommerce

IOTs

Broadband Infrastructure

Bank IT Security

Nigeria’s digital economy push needs bigger infrastructure investments - World Bank ...country’s 0.04% broadband penetration rate is below African regional average of 0.6% Stories by FRANK ELEANYA

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he World Bank said Nigeria needs to increase investment in infrastructure and create an enabling regulatory environment for its digital economy ambition to see growth.

A new report by the global economic institution defines the digital economy as the part of economic output derived solely or primarily from digital technologies with a business model based on digital goods or services.

The digital economy is made up of various components, including a platform economy, a gig economy, an industry 4.0, a digital economy, data analytics, robotics and artificial intelligence (AI), machine learning, 3-D printing, and e-commerce among others.

Nigeria’s Social Development Goals (SDG) include greater access to the digital economy by 2030 and creating 100 million jobs.

However, the Minister of Communication and Digital Economy, Isa Alli Pantami suggested at a recent eNigeria Conference, that the country did not have until 2030 to achieve a digital economy. According to him, the government plans to attain digital economy status by 2023.

But in the Nigeria Digital Economy Diagnostic Report, the World Bank noted

that any such plans would have to be backed up with bigger investments in broadband infrastructure to improve penetration. Nigeria’s 0.04 percent broadband penetration rate is below the African regional average of 0.6 percent and far below the global average of 13.6 percent.

The report explains this is due to backbone investment in Nigeria having focused primarily on major urban areas and inter-city routes, and unlike its West African peers such as Ghana and Senegal, Nigeria does not have a national backbone network through which high-speed internet connectivity can be extended across the entire country.

As a result, mobile broad-

band has become the most common and popular way through which people in Nigeria access the internet.

Nigeria’s mobile broadband investment hit 99 percent in the second quarter of 2019 whereas fixed broadband recorded no movement at 0.08 percent where it has remained since the beginning of the year.

The Nigerian minister recently signed a partnership with the UK Government’s Digital Access Programme for a new broadband plan expected to raise penetration level in Nigeria to between 65 percent and 66 percent over the next six years.

“We are working on development regulations, digital integration, build-

ing a solid infrastructure, deployment of digitisation and emerging technologies, as well as local content promotion and we want all hands on deck,” Pantami said during the conference.

The report acknowledges that Nigeria has made some strides to strengthen the country’s digital space. Nigeria’s Economic Recovery and Growth Plan 2017–2020 (ERGP) recognizes the need for a digital-led strategy to make the Nigerian economy more competitive in the 21st-century global economy. In 2015, the Nigeria Communications Commission (NCC) proposed the transition of the economy into a digital economy through investments in digital infrastructure, and

more specifically broadband, which is a key driver of digital economy growth.

Nigeria’s international connectivity is well developed, and there are new digital platforms available such as the Central Portal for Government Services.

Nevertheless, tech entrepreneurs who are largely the main drivers of the digital transformation in the country face a lot of challenges including rising business taxes. The Federal Inland Revenue Service (FIRS) the country’s tax collector recently said it plans to tax online purchases on naira-denominated cards beginning next year. This is part of the efforts by the government to diversify its revenue stream for the 2020 budget.

“There is a vibrant ecosystem of digital entrepreneurship in Lagos and Abuja that is supported by the dynamic incubators, venture capital companies, digital start-ups, and the diaspora,” said Siegfried Zottel, World Bank Senior Financial Sector Specialist and co-author of the report. “However, the growth of digital firms is not without challenges, such as a difficult business environment, lack of early-stage financing, and limited market opportunities outside of those cities, which would need to be addressed.”

Nigeria is desperate to raise tax revenue amidst fluctuating oil prices and rising debt levels and its taking

measures that are seemingly rubbing off the wrong way on small tech businesses.

The measures include an increase in Value Added Tax (VAT) from 5 percent to 7 percent. Also in July 2019, the Nigerian Stock Exchange reintroduced a 5 percent VAT for all transactions on the floor of the platform.

The inadequate regulatory and policy environment including for data protection, cyber security, and competition coupled with difficulties in securing funding, is causing many entrepreneurs to close shop and migrate to other countries where they believe the conditions are more welcoming. The report noted that these challenges are barriers preventing potential investments from global technology companies, including those from Silicon Valley.

“As the biggest economy and Africa with one of the largest populations of young people in the world, Nigeria is well-positioned to develop a strong digital economy, which would have a transformational impact on the country,” said Isabel Neto, World Bank Senior Digital Development Specialist and co-author of the report.

“Through innovations and investments, the Nigerian economy can harness digital data and new technologies, generate new content, link individuals with markets and government services, and roll out new, sustainable business models.”

Nigeria’s delayed 6-year National Plan to raise broadband penetration by 66%

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he Nigerian government said it is in the process of drafting a new National Broadband Development Plan which would raise penetration level between 65 percent and 66 percent within the next six years.

To achieve the drafting, the Ministry of Communication and Digital Economy signed a letter of intent with the UK government through the Prosperity Fund’s Digital Access Programme.

“This project contributes to the UK government’s Prosperity Fund objective of promoting inclusive, affordable, accessible, safe, and secure Internet access for the socio-economic de-

velopment of underserved communities in Nigeria.”

Following the end of the previous National Broadband Plan which lasted from 2013 to 2018, the Nigerian Communications Commission (NCC) said in January 2019, it will come up with a new plan that will consolidate the gains achieved and take the country on a new journey of digital transformation.

However, almost one year after the promise, the commission has been unable to constitute a committee to draft the plan.

It should also be noted that while the 66 percent target may seem ambitious, it is a more cautious projection

from the 71 percent target declared in January 2019 by the former Minister of ICT, Adebayo Shittu and the Executive Vice Chairman of the NCC, Umar Garba Danbatta at a conference with the theme ‘Post Nigeria National Broadband Plan 2013 to 2018.’

Although Nigeria surpassed the 30 percent target set in the previous National Plan, much of the provisions of the plan were not achieved. Even the 30 percent penetration NCC claimed it achieved was mostly gains in mobile broadband investment as fixed broadband remains untapped.

The previous adminis-

tration of the Ministry of ICT kept procrastinating action on issues such as the harmonisation of Right of Way (RoW) levies that give operators access to deploy services. At some point, even the National Assembly tried to intervene but little came of the effort.

By 2018, only a paltry 38,000km of fibre out of about 120,000km of fibre network required for pervasive coverage has been deployed in Nigeria.

This is after billions of dollars in investment have been made by the government and private operators in the telecommunications sector. For instance, Nigeria has about five fibre

optic cables lying on its shores with terabytes of capacity. The Nigerian Telecommunications Limited (now nTel), South Atlantic 3(SAT3) Fibre optic cable is an investment of over $600 million; MTN’s West African Cable System’s is worth $650 million, ACE Cable by Dolphin Telecoms is worth $700 million, MainOne is worth $300m and Globacom’s Glo cable is worth $800 million.

Gbenga Adebayo, chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON) had said in January that for Nigeria to be fully digitised in 2019, government must raise broadband penetra-

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

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tion level to 50 percent at the end of 2019 and further raise it to 80 percent by 2020, when the country will be expecting 5G rollout.

Although the NCC is yet to release the new numbers on broadband penetration, it is, however, unlikely that it is anywhere near 50 percent.

This is given that investment fixed broadband has not changed from less than 1 percent since the beginning of 2019.

The drafting of the new plan is expected to be concluded by 31 March 2020, but experts have said the real work lies in the implementation of the plan. Would it suffer the fate of the previous plan?

Thursday 05 December 2019

BUSINESS DAY

15

cityfile Court sentences 3 internet fraudsters REMI FEYISIPO, Ibadan

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Members of Human Development Initiatives in collaboration with Norad and ActionAid, during a walk to commemorate the 2019 International Day of Persons with Disabilities in Lagos.

Stakeholders raise concerns over influx of people into Lagos without identification …as LASG to leverage technology in crime fighting JOSHUA BASSEY

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takeholders in the security architecture of Lagos have raised concerns over the influx of people into the state without proper identification, saying the development is already impacting on peaceful co-existence of residents, as well as brewing suspicion.

This is as the state governor; Babajide-Olu has said that the state government would be adopting technology in the fight against crimes and criminality so as to keep the state save for residents and businesses.

At the 13th security town hall meeting held at the Civic Centre, Victoria Island, on

Tuesday, with heads of various security agencies and experts in attendance, the stakeholders also raised concerns about the continuing ‘invasion’ of Lagos by motorcycles and tricycles, just as they pointed to the activities of transportation unions, including the National Union of Road Transport Workers (NURTW), as adding to further raise the level of insecurity in the state.

“The steady influx of people into Lagos without any form of identification is brewing suspicion amongst its residents. This is putting a strain on the long established relations that has ensured peaceful co-existence amongst the diverse people of Lagos, said Abdurrazaq Balogun, the executive sec-

retary of the Lagos State Security Trust Fund (LSSTF), the organisers of the town hall meeting.

According to Balogun, intelligence so far gathered revealed the human influx and mutual suspicion is more pronounced in such areas as Ikeja, Agege, Ikoyi, Victoria Island, Lekki, Sangotedo, Abule-Egba, among others.

Similarly, a former commissioner for transportation, and the environment in Lagos, Muiz Banire, pointed to the issue of abandoned and uncompleted buildings, which serve as hideout for criminals. Banire called on the state government to consider taking over long abandoned property and vehicles, to discourage the practice.

Chairman, board of trustees of the LSSTF, HassanOdukale, noted that the issue of crime required joint effort, adding, however, that the LSSTF would not stop promoting the fight against crimes.

“After 12 years, our Trust Fund is still very relevant as we continue to provide critical support for the police and other security agencies.

This is because our esteemed donors have continued to contribute to the Fund. This continuous support is not only a vote of confidence in LSSTF, but recognition that our collective resolve to continue the fight against crime is an absolute necessity,” said Hassan-Odukale at the event whose theme was “transformational security.’

Ex-Kwara lawmaker accused of leading car theft gang REMI FEYISIPO, Ibadan

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amuel Opeyemi Adeojo, a former councillor in Ekiti local government area of Kwara State has been arrested by the Economic and Financial Crimes Commission (EFCC).

Adeojo was fingered as the alleged leader of a car theft syndicate notorious for stealing vehicles from car dealers through pretence as genuine buyers.

Before his arrest recently, the EFCC had been on his trail after series of petitions against his gang’s criminal activities were considered by the Ibadan zonal office of the

anti-graft agency.

About three cases of car theft have been established against the syndicate, with all the vehicles involved recovered and kept in the commission’s custody in Ibadan.

The gang, it was learnt, deploys similar pattern of tricks to steal vehicles from their victims.

According to the EFCC, Adeojo often pretended to be a medical doctor, adopting different names and different institutions as his place of work to appear responsible and create false sense of confidence to penetrate the victims.

One of the many cases www.businessday.ng

reported involved a Toyota Avensis wagon car in which Adeojo claimed to be one “Dr Gboyega Omojola of the University College Hospital, Ibadan.”

The case was reported to the EFCC, Ibadan office on March 23, 2019, by Tunde Adejuwon, an Ibadan-based car dealer.

According to the petitioner, ‘Dr. Omojola’ had come in company of one Babatunde Oluwatope Oni, his supposed driver, to his stand to negotiate for the car and later agreed to pay N2 million for it.

After the agreement, ‘Dr. Omojola’ issued a N2 million Skye Bank cheque ostensibly

in favour of the dealer and ordered his ‘driver’ to pay it into his Zenith Bank account at Bodija, Ibadan.

Oni later came with a copy of the Zenith Bank deposit teller, depicting ‘payment’ of the agreed sum into the dealer’s account.

It was, however, later discovered that the payment was not approved as the payer used a cloned cheque for the transaction. Unfortunately, the decline did not come until after the gang had eloped with the vehicle.

A similar scenario also played out in a petition by one Amos Arole Oloja, also an Ibadan-based car dealer.

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he Ibadan zonal office of Economic and Financial Crimes Commission (EFCC) has secured the conviction of Adetunji Ademola (a.k.a Clara Mantione Musellman), Blessing Daniel Aladetutu and Adebowale Fadairo.

Ademola stood trial before Justice K. Babs of the Federal High Court 1, Ado-Ekiti, while Aladetutu and Fadairo were convicted by Justice Ayo Emmanuel of the Federal High Court, sitting in Osogbo, Osun State, on Tuesday, December 3.

They had earlier approached the commission for a plea bargain which informed the amended charge of impersonation for which they were found guilty.

Based on the plea bar-

gain agreement, Justice Babs convicted and sentenced Ademola to four months imprisonment.

He equally ordered him to restitute a total sum of $413 to his victim through the EFCC, and forfeit his Samsung laptop, Infinix smart phone and one MTN modem to the Federal Government of Nigeria.

While Aladetutu bagged three months jail term, Fadairo was sentenced to nine months in prison.

Ju s t i c e E m m a n u e l also ordered Aladetutu to restitute to his victim through the EFCC the sum of $400 and forfeit his iphone 7 Phone to the Federal Government of Nigeria.

Fadairo was ordered to restitute the sum of $500 to his victim and also forfeit his Tecno Phone to the Federal Government.

Flood prevents pupils from school in Delta

P

rimary school pupils in Umuebu community, Ukwuani local government area of Delta State have stayed away from school, following devastating flood in the area.

A community leader, Joel Okanyi said on Tuesday that heavy flood had cut off the community from other neighbouring areas. He said that the flood also destroyed works on the untarred portion of the second phase of the community road under construction.

“Right now, our community has been cut off and a portion of the road project under construction destroyed. Our chil-

dren have stayed away from school because of the worsening situation, occasioned by the flood.

“We are appealing to Governor Ifeanyi Okowa to come to the aid of the community by commencing work on the second phase of the road project.

“We believe that if the road project is completed, it will enable the people access other areas and also sell their farm produce outside the community,” Okanyi said.

He lamented the lack of access roads in the area, which he said has also denied indigenes from accessing the community health centre for medical treatment.

Adamawa: Police arrest 319, recover 6 AK 47 rifles

C

ommissioner of Police in Adamawa, Audu Madaki, has said a total of 319 suspected criminals were arrested and six AK 47 rifles recovered from the suspects within the last five months.

Madaki said the 319 suspects were involved in kidnapping, armed robbery, cattle rusting, rape and homicide.

Weapons recovered from the suspects included six AK47 rifles, nine dane @Businessdayng

guns, 400 knives and cutlasses, and 465 wraps of Indian hemp.

The police chief said during operations and investigations, some stolen items, like a Toyota Camry car, 13 tricycles, six Plasma television sets and assorted handsets, were repossessed.

According to Madaki, 285 out of the suspects have been charged to court, while 34 others were still being investigation.

NAN

Thursday 05 December 2019

BUSINESS DAY

Investor

17

In association with

Helping you to build wealth & make wise decisions Market capitalisation

NSE All Share Index

NSE Premium Index

N11.721 trillion

Week open (22 – 11–19)

31,924.51 26,991.42

N13.027 trillion

2,222.19

Week close (29 – 11–19)

27,002.15

N13.033trillion

2,188.11

Year Open

Percentage change (WoW) Percentage change (YTD)

0.04 -14.09

2,241.37

-1.53 -0.32

The NSE-Main Board

NSE ASeM Index

NSE 30 Index

NSE Banking Index

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

130.95

723.46

NSE Lotus II

NSE Ind. Goods Index

NSE Pension Index

291.84

2,272.45

1,254.54

1,212.79

801.09

1,438.19

426.64

1,105.05

757.63

120.28

517.43

235.99

1,712.85

1,079.00

1,019.95

757.63

1,136.34 1,136.06

363.61

1,125.22

361.12

120.20

541.72

234.98

1,759.38

1,082.82

1,012.60

-0.68

-0.07

4.69

1,456.29

1.83 -21.85

0.00 -4.56

-0.02 -19.83

-9.48

-4.97

-27.66

-0.43

2.72

0.35

-0.72

-22.25

-21.24

-12.53

-16.14

These stocks still deliver positive returns despite market slowdown Iheanyi Nwachukwu

… Participating Institutions to seek approval before executing high volume trades Iheanyi Nwachukwu

E

quities never give guaranteed returns but some stocks on the Nig e r ia n b ours e a re delivering that smartly, even double-digit.

Some of the stocks and their returns as at December 2 are Access Bank Plc (+35.3percent), Africa Prudential (+8.5percent), BOC Gases Nigeria Plc (+45.4percent), Caverton (+30.2percent), C&I Leasing (+234.3percent), Custodian Investment (+6.2percent), and Fidelity Bank (+3percent).

Others are MTNN (+33.3percent), Red Star (+6p ercent), Sterling Bank (+7.9percent), Union Bank (+25percent), and Lafarge Africa (+12.4percent).

Few kobo stocks have also impressed lately. Some of them and their returns are ABC Transport (+41.4percent), AIICO (+11.1percent), Chams (+90percent), CHI (+2.6percent), Cornerstone Insurance (+265percent), Courteville (+30percent), Jaiz Bank (+32percent), Law Union (+18.3percent), Livestock (+4.1percent), Royal Exchange (+9.1percent), and Wema Bank (+15.9percent).

These record positive returns come on the heels of the market’s performance indicator showing negative return of -14.09percent as

SEC approves rules for executing negotiated deals on NASD OTC market

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at eleven months to November 30.

Just like Warren Buffett whose investing style definitely leans toward sticking with stocks for long periods, investors who chose to hold these stocks year-to-date have reasons to smile despite talks on market’s slowdown. Though, investors are expected to lock in value stocks with attractive dividend yields in anticipation of the December rally.

No doubt that some speculators made money lately from some stocks that are currently showing negative returns after improved

buy decision in their favour pushed up their prices.

Contrarily, others were caught in the web of losses due to activities of profit takers on their select counters. Some other investors took medium to longterm positions in anticipation of improved capital gains and dividend income.

“We expect the equity market to continue to benefit positively from the restriction placed by the CBN on local investors in the fixed income (OMO) space, as prices and dividend yields

remain attractive in the equity market”, according to Lagos-based Vetiva research analysts in their December 2 note.

“In the first stage of market recovery lately, bank stocks were favoured but soon experienced profit taking, last week, as consumer-facing industrial stocks were bought instead. We think that where banks continue to offer dividend yields in excess of T-bills, investors will likely continue to support their stocks,” according to research analysts at Coronation Merchant Bank.

he Securities and Exchange Commission (SEC) has approved rules for executing negotiated deals on NASD OTC Securities Exchange.

Negotiated deal is a transaction whose price is different from the prevailing price on the NASD OTC Securities Exchange and has been agreed to by a buyer and seller.

To improve transparency and price discovery on the OTC market, NASD sets out these rules for the execution of negotiated deals on securities newly admitted to the NASD OTC Securities Exchange.

SEC has approved that where a newly introduced security on NASD OTC is accompanied by a valuation sheet prepared by an independent party, negotiated deals can be executed only after 3 months of entry to the OTC market. Also, where a newly introduced security is accompanied by a valuation sheet prepared by a related party, Negotiated Deals can be executed only after 6 months of entry to the OTC market. NASD reserves the right to decline a Negotiated Deal request following a consideration of several factors including but not limited to value of transaction, frequency of transaction and market information.

Any deals negotiated outside the prevailing price band shall attract additional administrative costs as approved by the Commission to be estimated based on the volume and value of the transaction.

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Thursday 05 December 2019

BUSINESS DAY

Investor Helping you to build wealth & make wise decisions

Investor’s Square

United Capital Investment Views

Equity market sustains weekly bullish trend

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he local equity market sustained its recent uptrend as the benchmark index added 4 basis points (bps) week-on-week (w/w) to settle at 27,002.15 points while year-to-date (YtD) return improved to -14.5percent.

Notably, the benchmark index traded up on three of the week’s five trading d ay s. O n a w / w b a s i s, market capitalisation added N5.2billion to close the week at N13trillion. Activity level weakened during the review week, as average volume and value traded declined 23.6percent and 18percent w/w, to settle at 232.3million units and N2.6billion respectively.

Sector performance was tilted southwards as three out of the five sectors we track closed lower. The Consumer Goods (+4.7percent) led the gainers camp amid sustained buying interest in Nestle (+8percent), Cadbury (+10percent), and Dangote Sugar (+8.2percent).

Similarly, the Industrial Goods (+0.4percent) sector ended the week in the green territory, owing to price appreciation in CCNN (+5.3percent).

On the flipside, Banking (-0.7percent), Oil & Gas

(-0.4percent) and Insurance (-0.1percent) indices closed the week negative, on the back of price declines in FBNH (-10.7percent) Access Bank (-8percent), UBA (-6percent), Oando (-3.6percent), Conerstone (-6percent) and NEM (-4.8percent). Investor sentiment was flat, as market breadth declined to 1.0x (previous week: 1.7x). Notably, 26 stocks advanced while 26 stocks declined w/w. This week, we expect investors to lock in value stocks with attractive dividend yields in anticipation of the December rally.

Money Market : OMO and NTB spread widen to

4.8percent The overall liquidity level in the system stayed largely elevated in the prior week, as we recorded a net liquidity inflow. The major inflow for the week came via OMO maturities (N353.6billion) which outweighed outflows i n f ro m o f O M O s a l e s (N281.5billion) on Thursday.

Meanwhile, the Federal Government successfully rolled-over the total maturing Nigerian Treasury Bills (NTB), worth N150.6billion, on Wednesday. In all, average interbank funding rates – Open Buy Back (OBB) and Over Night (O/N) rates traded within the single-digit region, to close flat at 4.1percent.

At the primary market segment, while stop rates at the NTB auction crashed further across the board (91day: 6.5percent ; 182-day: 7.23percent and 364-day: 8.37percent; compared to the previous 7.8percent, 9percent, and 10percent respectively), the CBN left OMO rates unchanged.

Accordingly, the spread between average NTB and OMO stop rates widen further to 4.8percent (previously 3.2percent). Notably, total demand at the NTB auction was strong, as 3.5x the initially

offered amount turned up.

Meanwhile, at the OMO auction, demand only showed up for the high yielding 364day OMO bills (1.9x). As such, the CBN fully allotted the N281.5bn bids on the 364-day bill at 13.3percent (same levels as the last auction), with no sale on the 90-day and 182day bills.

Elsewhere, improvement in the overall liquidity levels spurred further demand at the secondary market. Despite low yields, local investors continue to pile into NTBs as there are little or no alternative re-investment outlets for their excess cash. Accordingly, average NTB yields declined

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by 136bps w/w to settle at 7.29percent. Sell pressures outweighed buying interests at the OMO bills market, as market players looked to lockin profits and position ahead of the OMO sales. Thus, the average yield tracked higher by 2bps to close at 13.39percent.

This week, we expect liquidity to stay buoyant amid sizable OMO maturity (N344.9billion) and retail FX refund on Thursday.

Accordingly, we expect the CBN to float at least one OMO auction to mop-up the incoming maturities.

Meanwhile, we expect NTB yields to continue to trend low er amid limite d reinvestment outlet for the local players.

Bond Market: Bond yields decline as MPC approves the CBN’s decision Sentiment in the secondary bond market was mixed-tobullish in the previous week.

Notably, the market started the week sluggishly as most market players traded cautiously around the outcome of the last MPC meeting for the year.

However, the committee’s approval of the Central Bank’s policy stance on the exclusion of local investors from participating at the OMO market further spurred buyside interests later in the week.

Accordingly, average yields declined by 22bps w/w, to settle at 12.3percent.

Selling interests persisted at the secondary Eurobond market, despite continued improvement in crude oil prices. Thus, the average yield on FGN dollar notes inched higher by 4bps, to 6.55percent.

Also, yields on Corporate Eurobonds advanced by 3bps w/w to 5.3percent, as yields increased across the counters.

This week, we expect bond yields to continue to trend lower as locals look for investment outlets in FGN notes. In the Eurobond space, we expect a renewed interest in the FGN dollar notes, especially as crude oil prices continue to track higher.

Currency market: FX rate weakens at I & E window, Reserves continue to dip In the previous week, the local currency bowed to selling pressures at the I & E window and the CBN’s official window, while remaining fixed at the parallel market. At the I & E window, the FX rate depreciated by 5 bps w/w to N362.8/$1, while losing 2bps w/w at the CBN’s official window, to settle at N307/$1.

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

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

E-mail: iheanyi.nwachukwu@businessdayonline.com

Economy & markets

FCMB: ‘Buy’ rating favoured despite subdued Q3 profit Iheanyi Nwachukwu

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CMB Group Plc recently released its financial results for nine month period to September 30.

Despite recording slight increase in gross earnings, the Group’s profit was subdued in the third-quarter (Q3) under review.

Following the result, research analysts at Lagosbased Vetiva Capital still placed a “buy” rating on the stock. They however revised their target price (TP) to N2.97 (previous: N3.19). As a result of the misses across key line items, the analysts have revised their FY’19 expectation.

“We maintain our buy rating on the stock”, said Joshua Odebisi’s team of research analysts at Vetiva. The Holding Company’s gross earnings of N135.79billion in Q3’2019 as against N132.87billion which represents 2.2 percent increase.

Ne t In t e re s t In c o m e of N56.23billion against N53.23billion in Q3’18, represents 5.6percent increase. Non-Interest Income of N27.59billion recorded in Q3’19 as against N33.02billion in Q3’18 represents a decline of 16.5percent.

In the nine months period, Profit Before Tax (PBT) printed lower at N12.80billion compared with N14.76billion in same period of 2018,

which implies a decline of 13.3percent. Profit After Tax (PAT) was N10.79billion in Q3’19 compared with N11.34billion PAT in Q3’18, representing 4.8percent decline.

“While Q3 has historically been the bank’s weakest period for earnings, the bank’s Q3’19 underperformance was more acute than in previous years”, said Vetiva research analysts.

NSE approves listing of N23bn Interswitch bond

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he Nigerian Stock Exchange (NSE) last week approved the listing of Interswitch Africa One Plc N23billion corporate bond. The Issuer ha d a p p l i e d t o l i s t t h e bonds on the Nigerian Stock Exchange (NSE) on receipt of Securities and Exchange Commission (SEC) approval of the allotments.

Interswitch Limited, the leading technology-driven company focused on the digitisation of payments in Nigeria and other African countries had in October successfully concluded a N23 billion Series 1 Fixed R at e S e n i o r U n s e c u re d Callable Bonds issue via a Special Purpose Vehicle (SPV), Interswitch Africa One Plc (the Issuer).

The Series 1 Issue priced at 15percent was 2.6 times su b s c r i b e d . Th e 7 - ye a r Bonds, embedding a call option that can only be exercised from the second year, are payable in full at maturity.

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The strong level of over subscription demonstrated investor confidence in the Interswitch brand, business model and long-term strategy, supported by strong domestic ratings from both Agusto & Co. Limited and Moody’s Investor Service.

FBNQuest Merchant Bank and Stanbic IBTC Capital acted as Lead Financial Advisors/Issuing Houses while ABSA Capital Markets Nig er ia, FCMB Capital Markets, Quantum @Businessdayng

Zenith Capital & Investments and Rand Merchant Bank Ni g e r i a, a c t e d a s Jo i n t Issuing Houses.

The Issuer was assigned “A a 3 ” n a t i o n a l s c a l e programme rating (stable)

by Moody’s and “Aa” (stable) national scale rating by A gu s t o, o n t h e b a ck o f positive secular industry s h i f t s, a s t ro n g ma rk e t position and a good liquidity profile. The Sponsor was also assigned “Aa” (stable) rating

by Agusto.

Thursday 05 December 2019

BUSINESS DAY

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Investor Helping you to build wealth & make wise decisions

‘We play major role in all new products, models of granting credit’ Babatunde Popoola is the Managing Director/CEO, CRC Credit Bureau Limited. Ahead of the company’s 10th year anniversary he spoke to select journalists including Iheanyi Nwachukwu. Excerpts Tell us about CRC Credit Bureau Limited and your 10th year anniversary?

RC Credit Bureau will be celebrating its 10th year anniversary on the 11th of December, 2019 and we are grateful to you the press, for honouring our invitation to share with you the various milestones we have achieved over the last 10 years and the impact we have had on the credit monitoring industry and the Nigerian economy as a whole.

The journey of a thousand miles starts with a single step.

CRC Credit Bureau was incorporated in 2006 as Credit Reference Company Nigeria.

It changed its name to CRC Credit Bureau in line with the guidelines to obtain a credit bureau license from the Central Bank of Nigeria (CBN).

However, CRC was licensed and commenced full live operations in 2009. CRC set for itself the vision to set standard for financial empowerment and informed decision making and a mission to deliver innovative products and services that enable our stakeholders to make informed decisions and build credible profiles that enhance access to credit for strategic growth.

The company set as its core objective to generate and supply reliable and accurate credit information on borrowers in the consumer and corporate sectors for permissible purposes only. CRC is a neutral third-party service provider to its subscribers.

In the last decade, we have improved access to credit for consumers and micro, small and medium enterprises (MSMEs). Since we commenced live operations in 2009, CRC has never looked back. In June 2009, when CRC went live, 6 commercial banks submitted 1,525,228 credit records but only 154,030, representing about 10 percent passed validation process due to the bad quality of the data.

Today, CRC has over 1,300 institutions with about 30 million credit records successfully processed. We have entered strategic partnerships with the likes of the Fair Isaac Corporation (FICO) to power our credit scoring solution. FICO is the pioneer and global leader in credit scoring solutions. We partnered with Nova Credit, to make it possible for Nigerian emigrants to the United States to access their data in our repository in Nigeria.

The partnership enables

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Ahmed Babatunde Popoola, managing director/CEO, CRC Credit Bureau

creditworthy Nigerian newcomers to gain access to credit opportunities previously unavailable to them because of a lack of credit history in the US. The whole idea is to assist more than 16,000 Nigerians who move to the United States each year to pursue new opportunities to settle down faster and have access to credit to continue their lives and lifestyles.

The newcomers often encounter a common challenge when they reach the United States: access to credit, which is fundamental to basic comfort and livelihood from getting an apartment lease to obtaining a cell phone plan or securing student loan. We intend on expanding this partnership to also include Canada, another choice destination for Nigerian immigrants in the coming few months.

CRC has assisted in generating growth in loans both to consumers and commercial entities and stimulate the emergence of new loan products and services. We have improved the quality of credit booked and loan processing through the introduction of customer profiling and loan monitoring.

We have made substantial contributions to access to credit and the change in the business models of lending in Nigeria.

On February 14, 2010, we led the credit bureau industry players to spearhead the need for a unique identifier for all banks customers.

Today, BVN has been adjudged as successful and impactful. We took a front seat in www.businessday.ng

the efforts and processes that led to the enactment of the Nigerian Credit Reporting Act, 2017 and our leadership position in the industry has been attested to by a number of awards and recognitions.

In 2017, the Federal Government through the Presidential Enabling Business Environment Council (PEBEC) recognised our contributions to the success of the Ease of Doing Business in 2016-17 that assisted Nigeria to improve in ranking from 169th to 145th position.

That same year, the Nigeria Brand Award presented CRC as the most innovative and impactful credit information provider in West Africa. CRC was awarded the Best Credit Bureau Service Provider in 2018 at the 4th Nigerian Finance and Innovation Awards. This year, the company was also awarded the Best Credit Bureau of the Year 2019 at the Business Excellence Awards organised by Acquisition International, UK. We are celebrating to showcase the impact we have made in the country. We are providing insight and making it easy for businesses to take decisions with confidence and trust. And we are contributing access to credit and the way credit is granted thereby stimulating economic growth. This is why the theme of the 10th year anniversary is: Providing Insight; Enhancing Growth. We want to be able to stimulate discussion in the area of our focus – access to credit. We are an intellectual organisation and this is why the celebration is taking the form

of lecture and public discourse.

What are the bottlenecks you have experienced over the past decade you have been in operation?

There is just one major bottleneck that we have in this job of empowering Nigerians, and that is the bottleneck of the limited means of identification.

Nigeria needs unique identifier; every Nigerian needs to have a number by which we can identify the person. If we all agree that the future is about data, and we all agree that with data there is a lot that can be done to change the fortunes of the people from poverty to prosperity.

We will not be able to take maximum advantage of it unless we have a unique identifier for every Nigerian. Unique identifier is not about holding an Identification Card –that is not what a unique identifier is.

Unique identifier is to have a unique number, so once you mention that number, everybody goes to the data base to see who you are, where you live, what you do. If we have that, this economy can move faster. It will help in financial inclusion and complete eradication of poverty. This particular project is what has changed the fortunes of India and China to where they are today.

In 1980, China’s poverty rate was 75percent and India was 65percent. At that time Nigeria’s poverty rate was only 28percent in 1980. Today we have reversed the case, in China and India; they have less than 2percent of their population now in poverty. And each of those two countries has over a billion people.

Now we have moved from 28percent to about 55percent to 60percent, more and more people in poverty, because we are unable to provide the basic needs of live for them, we are unable to empower them to have access to what we call economic asset. The issue of identification is what most countries have used to put any asset at the disposal of their people. And unless we have it, it is going to be very difficult for us to move forward. Banks, retailers, whoever provide services is not going to be giving credit to people they don’t know. But now we are getting there, we can do more, can move faster if we have a means of identification. That is one thing I think we have to work on, that is one major thing we are taking to government.

What roles did you play in tracking either the movement of credit or defaulters in cat-

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egory of institutions because we have seen some banks still talking about defaulters in the system and we have record of those who are still going there to get money?

In recent time when you look at it, you will discover that the only bank that is crying of default now is AMCON. And those are the historical loans then. The incidence of non-performing loans has really reduced substantially. This system is not just about profiling customers, it is not just about making the institution to see the credit history and know the credit of the individuals.

But it is also a social institution that changes the way people react, because you know as an individual or as company that you have a bad loan that is the last one you will have, you will never have another one again until you go and settle the last one. So everybody now knows.

And so we see ourselves not just as an economic agent, we are also a social institution that changes the behaviour of people to honour agreement and to honour obligations.

And that is why you have seen that clearly there has been some level of reduction, and CBN also keep on telling you that non-performing loan is reducing.

The second issue you see is that it has democratised access to credit. More people are having access to credit. In those days you have 90percent to 95percent of bank loans concentrated on only few individual high net worth or big companies. But now every bank that I know has SME in it –SME department or desk.

Every bank that I know now is trying to digitalise how to access credit, either through your phone, some even have USSD code that you can use to access these credit. So, all those things are happening now because they now have information that they can use to profile the customers. Some are even lending to customers, to people who are not there directly as long as they have information about them, they can lend to them. That is where we are in the country.

Looking at when you started operation, and 10 years after now if you are to assess the easy of accessing credit how would you rate it? Secondly these days you realise that with just your phone you can have access to credit, looking at that phenomenon, did the CRC play any role?

If you look at the easy of @Businessdayng

doing business ranking, one of the reasons why we were given an award is because Nigeria moved to 6th position in the world in the use of access to credit in 2016, 2017 circle. So we clearly played a role. What role did we play? First we have a credit infrastructure that can give credit information.

Second we introduce a credit score that is recognised internationally. And so the World Bank, those doing the ranking realised that Nigeria has transformed the way credit is processed and Nigeria moved to 6th position in the world. That is what we have done. Beyond the paper issue of moving in ranking, it is also the typical thing that people can see. Now that everywhere you go you can really have access to credit if you are credible. You can really have access to credit without necessarily having that big collateral of grandfather or grandmother.

It is changing rapidly.

As regards the second question you asked, yes we are a major player in that regard.

Because why were banks not lending? They were not lending because they were lending in the dark. You are Mrs A and you approached a bank and you say I need a loan and the man looks at you and says this is beautiful lady and gives her a loan.

And then he gives you because of your beauty and you decided not to repay. That is what we call haphazard selection, selection based on emotions, not on any profile.

That was what happened in those days. They made wrong judgement, people that they should give loan did not get loans. People that should not get loans got loans and then there were also incidents of serial defaulters.

Then she (Mrs A) took a loan from a bank, say Bank A, she is on able to pay, she goes to Bank B take another loan and use that one to pay Bank A, it continues like that. All of that is not possible anymore; there is this infrastructure where you can see everything that is happening.

Not just on the banking side even on non-banking transaction like telephone, electricity, buying ticket on credit and like what you are doing in your corporative societies. So it is a total life changing thing, and that is how we have affected what is happening now. So we play a major role in all the new products, in all the new models of granting credit that you are seeing now that make it very fast for people to get credit.

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Thursday 05 December 2019

BUSINESS DAY

COMPANIES & MARKETS

COMPANY NEWS ANALYSIS INSIGHT

BANKING

Banks’ bad loans slide to 4yr-low as oil and gas firms come good LOLADE AKINMURELE

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on-performing loans (NPL s) in the banking sector fell to a four year low in the third quarter of 2019 as oil and gas companies paid down stubborn debt.

Data released Tuesday by the National Bureau of Statistics (NBS) showed bad loans made up 6.67 percent of total gross loans extended by the banks in the third quarter of 2019. The first time it has collapsed to within single digits since 2015.

NPLs dropped over 50 percent to N1.103 trillion in the period from N2.24 trillion a year ago.

The recovery was driven by an improvement in non performing loans to the oil and gas sector.

According to the NBS report, NPLs in the oil and gas sector dropped 278 percent to N264 billion in the third quarter of 2019 from N1.002 trillion in the third quarter of 2018.

This implies that the banks have recouped some N738.15 billion in non-performing oil and gas loans in the space of one year.

A big drop in the international price of crude oil in

2016 as well production disruptions caused by militant attacks on oil installations in the Niger-delta, had led to a surge in bad loans in Nigeria’s banking sector.

Nigerian banks were heavily exposed, and still are today albeit to a lesser degree, to the

oil and gas sector. Oil and gas firms rose to become to hottest borrowers in an economy that was reliant on the sector for nearly 80 percent of its exports and 70 percent of government revenue.

Banks fell over one another to extend credit to the

sector but the party came to an abrupt end after the lengthy collapse in oil prices.

Oil prices averaged $38 per barrel in 2016, the lowest in over a decade while production volumes were set back by almost a million barrels daily to 1.2 million barrels

daily. That caused all sorts of problems for oil and gas firms with most defaulting on their loan obligations to the banks whose asset quality was fast deteriorating.

In the first quarter of 2016, bad loans as a percentage of gross loans doubled to 9.72 percent from 4.86 percent in the fourth quarter of 2015.

By the end of 2016, NPLs had surged to 12.8 percent, the highest since 2011, according to CBN data.

Bad loans would peak at 15.13 percent in the third quarter of 2017, but then began to cool as oil prices recovered and the militant attacks in the Niger-Delta that affected production abated.

The price of Brent crude averaged over $60 per barrel in 2018, almost double the price in 2016.

As at December 3, Brent for February settlement sold for $61.8 per barrel, as investors focused on the upcoming OPEC+ meeting that could lead to deeper supply cuts by some of the world’s biggest crude producers.

Banks are now sharing in the improved fortunes of oil and gas firms, which bodes well for their asset quality and frees up cash for more lending.

Banks also saw some im-

provement in the NPL portfolios of Power and Energy (N116.01 billion); Real Estate Activities (N74.02 billion); Manufacturing (N43.67 billion); Information and Communication (N39.40 billion), and Finance and Insurance (N34.42 billion).

Other sectors where NPLs reduced include Transportation and Storage (N32.27 billion); General (N26.42 billion); Scientific and Technical Activities (N5.19 billion); Mining and Quarrying (N2.69 billion); Art, Entertainment and Recreation (N2.36 billion); Human Health and Social Work Activities (N1 billion); Administrative and Support Services (N620 million); Capital Market (N600 million), and Public Utilities (450 million).

Meanwhile, NPLs swelled in some other sectors in the period, with Construction leading the charge.

Bad debt in the construction sector hit N81.60 billion in the third quarter, an increase of N9.25 billion in one year.

Other sectors that recorded a rise in NPL include the agricultural sector (N49.96 billion); education (N8.69 billion); government (N1.28 billion), and waste management (N2.24 billion).

ENERGY

Dutch firm to light a million Nigerian homes with solar Bloomberg umos Global BV, a Dutch company specializing in off-grid solar power, plans to light up over a million Nigerian households by 2025 as it expands in Africa’s most populous country of more than 200 million where only 60% have access to electricity.

The Nigerian government announced last week that it awarded a share of a $75 million World Bankfunded grant to Lumos to support its business in the west African nation, as part of efforts to back quick and simple solutions to the country’s energy deficit due to an absent or unreliable electricity grid.

“The market is enormous”, Lumos Chief Executive Officer Alistair Gordon said by phone of Nigeria’s fast growing population.

“Having some assistance with that significant capex outlay and investment through these sorts of grants is a real help.”

Lumos, which has already fitted more than 100,000 solar home systems

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around Nigeria, will receive a fee for each new installation from the Rural Electrification Agency, known as REA, Gordon said.

The Amsterdam-based company isn’t targeting only rural areas that are not served by the electricity grid but also towns and cities where power outages are frequent and households rely, at least partly, on generators. Lumos’ offering of solar panels and a battery enables families to spend a flat fee of around $15 per month rather than three or four times as much on kerosene or diesel, according to Gordon. The company expects to sign up more than a million households by the middle of next decade, he said.

Lumos distributes its equipment and services in Nigeria through the stores of MTN Group Ltd, the biggest mobile telecommunications operator in the country, charging a $40 joining fee and a $12 installation charge. Customers pay the monthly fee via their mobile phones or the system is shut off.

The Lumos unit runs appliances such as lights, fans, mobile phones and televisions, or – in the case of small businesses – sewing machines and hair clippers, Gordon said.

The grant for standalone systems is part of $350 million raised by Nigeria from the World Bank to increase electrification rates in rural areas. The largest portion of $150 million is dedicated to developing solar mini-grids.

The World Bank said last week it’s negotiating a $3 billion loan with Nigeria to tackle mounting debt in the power sector that risks the collapse of companies running the national grid.

“The REA knows that solar is the quickest way that everyone is going to get power as fast as they can,” Gordon said.

Nigeria is only able to send about a quarter of its total installed capacity to homes and businesses due to its dilapidated power network, much of it built in the 1980s. The government signed a deal with Siemens AG in July to rehabilitate and expand the country’s

L-R: Abdulrahman Ado, executive director, regulatory and corporate affairs; Eno Udoma-Eniang, head, government and legislative affairs, both of 9mobile; Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON); Arinze Chidozie, head, regulatory affairs, 9mobile, and Stephane Beuvelet, acting managing director, 9mobile, with Telecom Industry Special Recognition award presented to 9mobile at the 20th anniversary celebration of the association held recently

L-R: Chuks Maha, chief security officer, Access Bank Plc.; Mac Atom, group head, Enterprise Business Resources, Access Bank Plc.; Murtala Mani, assistant inspector general in charge of the Force Criminal Investigation Department (FCID) Annex, Alagbon, Ikoyi; and Kayode Samuel, Deputy Commissioner of Police (DCP), performing the ribbon cutting ceremony at the commissioning of the Interrogation and Observation Room, donated by Access Bank Plc., on Tuesday.

Thursday 05 December 2019

COMPANIES&MARKETS

BUSINESS DAY

21

Business Event

TECHNOLOGY

Tech experts urge startups to leverage technology to remain relevant GBEMI FAMINU

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usiness owners on a small and medium scale have been advised to keep being innovative in order to remain relevant in the business world.

Speaking at the 2019 Google Launchpad Accelerator Africa (GLAA) graduation program, Fola olatunji David head of startup success and services said regardless of the infrastructure deficit, MSMEs can still thrive because it gives room for growth , adding that due to global change and technological advancement, infrastructure is different from how it was 20 years ago, therefore present infrastructure challenges have given a platform to proffer solutions and as well engage in technological advancement to fill the infrastructure gap, therefore technology is important for a business to thrive.

“We believe Africans can solve Africa’s problems, in running Launchpad Accelerator Africa we specifically look to work with startups with that share this vision. Launchpad Class 4 is tackling some of Africa’s most pressing challenges, including access to financial services, education, and agriculture.

We cannot rely on the government to do everything for us, so we have to create jobs and the MSME is a sector with lots of job opportunities, if we give them right tools and support, SMEs will eventually grow to become big and sustainable organizations

which will grow the economy by creating more jobs in the country” He said the GLAA program which runs twice a year is a 3 month program which provide startups with technology, business development, mentorship, strategy and product and at the end, the startups are inducted into the alumni network providing another platform of opportunities “Every year, Africa’s economic growth continues to strengthen. Google for Startups has put its weight behind supporting the continent’s startups as they continue to build great products tackling key global social issues. This is an incredibly exciting space which is very relevant to UK ecosystem and investors,” says Marta Krupinska, head of Google for Startups UK. Craig Fenton, director strategy and operations Google, U.K, said “change is constant, and it is necessary to engage in constant critical examination of yourself and your business. You have to be creative and continually innovative, because this is a superpower that separate winners from losers” JR Kanu, co-founder of Reach and a graduate of the Google class 4 startups, he said the program was a goldmine of opportunities and an avenue to rebrand the business which helps in accountability as it recognizes, categorizes and interprets transaction data from SMS and other sources, making this data available as individual financial and market insights.

the maiden edition of the Google Startup Week in Lagos, with participants across Africa, had activities including pitch funding from some of Africa and the UK’s top venture capitalists (VCs), The fourth set of graduates from the GLAA program were 12 in number from six countries in Africa addressing six different sectors and providing solution with technology. These startups have collectively raised $4.3m, created over 300 jobs and signed up over 110,000 users.

They jointly raised over $600 thousand before the commencement of the program, and have been able to use Launchpad Accelerator Africa to scale their businesses to new levels The launchpad accelerator Africa is in line with Google’s commitment to training 60 African startups over 3 years, representing over $3-million in equity-free support, working space, and access to expert advisers from Google, Silicon Valley, and Africa.

Participants also receive travel and PR support during each three-month program. Since its commencement in late 2017, it has worked with 47 startups on their growth journey, providing working space, and access to expert advisers from Google, Silicon Valley, and Africa. Participants also receive travel and PR support during each three-month program. These companies have raised millions of dollars in investments, and created hundreds of jobs across the continent.

L-R: Chuka Obi; Creative Director, Insight Publicis; Mr. Wale Edun, former Commissioner of Finance, Lagos State; Dr. Tendai Mhizha, Chief Executive Officer, Insight Publicis; and Mr. Yemi Babington-Ashaye, President, United People Global (UPG) at the ‘UPG2019: Toward a Greater Lagos’ initiative held recently at the BWC Hotel, Victoria Island

L-R: Ganiu Bakare, representative of acting plant manager, Ewekoro Cement Plant of Lafarge Africa plc; Abdul Razak Famuyiwa, onipapa of Papalanto and Marie-Christiane Kaul, head financial planning and performance analysis of Lafarge Africa plc presenting a N20.4 million cheque as bursaries to 204 tertiary institution students drawn from 12 Lafarge Africa’s host communities in Ewekoro local government area of Ogun state at the 2019 Annual Community Day held at Ewekoro Cement Plant.

L-R: Lanre Smith, Managing Director, Worldbay Technologies; Sansa Oluwaseyi, Unit Head, Grocedy; Mrs Bolanle Osinowo, Beneficiary /1000th Subscriber and Donald Oyeyemi, Product Manager, during the presentation of Bronze Basket to the 1000th subscriber of Grocedy product at Owode- Oniru Market

HUMAN RESOURCES

Whyte Cleon to introduce ‘Life-After-Work’ entrepreneurial scheme JOSHUA BASSEY

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hyte Cleon Limited, a leading human resources and consulting company, is to commence entrepreneurial development training, targeted at its exemployees.

The company’s CEO, ‘Nireti Adebayo, announced this at the unveiling of activities lined up to mark the company’s 10th anniversary, from the first quarter of 2020.

“Over time we have delivered unrivalled quality service and provided practical solutions to our clients assisting them in strategy formulation and execution, talent acquisition, organisational performance and human capital investment,” remarked Adebayo, adding that “the entrepreneurial development training is a platform through which we aim to give back to the society by equipping our former colleagues with a new mind-set that will enable them become more productive, solutions providers and

employers of labour thereby helping to lift others out of poverty”.

The initiative which, according to Adebayo, is first of the kind by any organisation in the outsourcing space, attests to the status of Whyte Cleon as Nigeria’s fastest-growing human resources solutions provider.

Confirming this development in Lagos, Yakubu Wuyep, the company’s general manager, explained that “beneficiaries of this programme will be our ex-colleagues.

Wuyep noted that the entrepreneurial development classes, which is being organised free to the company’s ex-employees, will teach the basics of starting a business, growing and sustaining it, towards financial freedom, selfsustenance and ultimately becoming employers of labour, in addition to setting up a business network for them.

“This is an integral part of Whyte Cleon’s reputed policy on CSR and tradition of promoting workplace en-

gagement which dovetails into great experiential service for our clients. Our ex-colleagues are encouraged to remain members of the Cleon Cooperative Society and continue to take advantage of our savings and investment platform as well as the many asset acquisition and loan products of the cooperative, which are at interest rates of 5%,” said Wuyep.

With the vision “to be the preferred HR solutions provider”, Whyte Cleon has grown from a humble beginning of a single client, in the financial services sector, to a client base of over 30 companies in different sectors of the economy with a staff strength of over 6,000 in all states of the federation. The company leverages big data gathered from market intelligence, research and historical records in its decision making, strategy formulation, products development, employees and clients’ relationship management.

It currently has presence in Nigeria, Ghana and Kenya.

L-R: Joseph Okonma, principal partner, Jasek Communications Limited, presenting the Top50 Brand Nigeria award won by 9mobile to Layi Onafowokan, acting director, Marketing, while Bunmi Oke, CEO/lead Consultant, Ladybird Limited, looks on during the Top50 Brand Nigeria Awards and Gala held recently

L-R: Olusina Adegoke, Lagos regional operations director; Chioma , CSR lead; Erhumu Bayagbon, head PR/ communications, and Emeka Oparah, director, corporate communications and CSR, all of Airtel Nigeria, during the SERA Awards, where Airtel was awarded with ‘Best Use of Storytelling’ at the Oriental Hotel in Lagos, recently.

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Thursday 05 December 2019

BUSINESS DAY

Corporate Social Impact

Even more than Ice Cream, Ben & Jerry’s is about shared humanity Stories by ONUWA LUCKY JOSEPH

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erry Greenfield and Ben Cohen were two fat boys who, as kids, loved food. As 26year olds down on their luck and experimenting on ways to move their lives forward, they experimented with selling different kinds of foods, but eventually they settled on ice cream and did a crash course correspondence programme on how to produce it. It wasn’t smooth sailing in the beginning, but eventually they got traction and just blew through the roof with record sales, enjoyed cultlike customer loyalty but attained rock star status for their community involvement projects.

Over the years, Ben & Jerry’s has stayed grounded with whatever they believe is of concern to the mass of thinking and reflective humanity. Even when the company got bought over by Unilever in 2000 and everyone assumed that they had sold their cheap souls for filthy lucre, the company has somehow managed to stay engaged with the issues that bother them, their customers, suppliers, employees, franchisees and neighbours. As well, it hasn’t lost its sense of fun, what with flavours like Karamel Sutra, Chubby Hubby, Imagine Whirled Peace, Coffee Coffee BuzzBuzzBuzz, Dublin Mudslide, etc.

Ben & Jerry’s started fighting from very early when in 1984, a mere six years after its founding, the food behemoth, Pillsbury, parent company of Haagen-Dazs, tried to muscle it out of distributors’ refrigerator shelves. The young company coun-

ter punched brilliantly via litigation and a well-executed marketing campaign that saw Pillsbury retreating.

That was a fight for its own survival.

But it has since then taken on all kinds of other fights, not all of them universally supported.

One thing you can say for Ben & Jerry’s, now sold in 35 countries, is that it walks its talk. If it believes in something it will fight for it. It will do everything in its power to actualise it. Sometimes it fights alone but more and more it goes the route of cobbling a coalition to ensure the fight is won. The fight is not about Ben & Jerry’s taking the glory, it’s about winning the fight and having humanity share the spoils. At least that is the understanding.

Its front row position in support of same sex marriage has brought it at odds with conservatives not just in America but also in places like Australia, Ireland, France, and we believe in other countries, especially those in which they do business.

OTHER MAJOR BEN &

JERRY CAUSES This mission-driven company has been involved in a plethora of issues including Supporting Mandatory GMO Labeling – this transparency initiative is to ensure consumers know exactly what they are biting into or licking.

Supporting Climate Justice – The Company believes that while the rich can move and find ways around the menace of climate change, the poor are stuck. For this reason, the war must be fought.

Using Fair Trade Ingredients – Often times, suppliers of raw materials are bullied into supplying at less than cost price. Fair Trade tackles this and Ben & Jerry’s are fully supportive Promoting Active Citizenship – Everyone should be on board to ensure the right things are done politically Supporting Social Enterprises – Assisting entrepreneurs solve pressing needs of society, e.g. homelessness, poverty, homelessness, etc.

Speaking Out Against President Trump’s Travel Ban – when Trump banned immigrants from 6 Muslim majority countries, Ben & Jerry’s said no.

Not to forget, Ben & Jerry’s was right there with its placards when Occupy Wall Street happened Etc., etc., etc….

Of interest to wannabe Ben & Jerry’s is that Ben & Jerry’s has never been just about activism for the sake of activism. It is a fully 3-Missions company.

First the Product Mission – which is about producing damn good ice cream. That has been the draw for most of its eventual supporters, a lot of who happened to enjoy scooping and loving its ice cream flavours.

Second, is its Economic Mission, which is about sustainable financial growth for shareholders and employees. This is strictly profit that redounds to all.

Its Social Mission, which has eclipsed all the others in the public consciousness, just happens to be

the third. And this is about employing business to improve the quality of life locally, nationally and internationally.

According to current CEO, Jostein Solheim, in an interview with Katherine Klein of the Wharton Social Impact Initiative, “….When companies come to the world of corporate social responsibility, they ask themselves, ‘What do people really care about? And how can we be a part of that?’ At Ben & Jerry’s, we come at it the other way. We actually ask ourselves, ‘What do we truly believe in — us?’ And then we execute well, because we truly believe in it, and hence, convince others to join us. So that’s what we mean by that: It starts with our values, and then we apply and join in movements with other partners to make change”.

The company has a well-burnished counter culture reputation that has made it a favourite with progressives, Baby Boomers and now Millennials. There’s always something fresh to talk about Ben & Jerry’s. The brand is not so young anymore, its founders are past middle age, its current owners are establishment dyed in the wool capitalists, so to speak. However, it has retained its freshness, its disdain for the conventional and its all-out combativeness against whatever stands in its way of what it considers progress.

Clearly, not many companies can pull a Ben & Jerry’s successfully. However, it’s important that corporates realize the powers they have and to be willing to deploy that power to achieve the greatest benefit for the common good.

Junior achievement Nigeria schools win awards for innovation

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unior Achievement Nigeria (JAN), for understandable reasons, likes to say that amongst its achievements in the past 20 years, it has reached over 970,000 students in over 20,000 classrooms in all the 36 states across the country and the FCT through over 4,000 volunteers. This puts the organization on track to reach one million students by the end of 2019.

With a mission to inspire and educate young people to become conscientious business leaders, JAN achieves this by implementing economic education programs that develop attitudes and skills necessary for personal success and social responsibility.

This mission came to life once again as t w o Junior Achievement Nigeria schools were recognized at the National NTA Expo in Abuja and Beyond School Community Challenge organized by the Mandela

a water level indicator which automatically switches on the water pumping machine when water is low and switches it off when full. This innovative product made the JA Explorers win the National NTA Expo in Abuja.

At another competition in Lagos State organized by the Mandela Washington Fellowship Alumni of Nigeria, the Green Tech Company founded by the Junior Achievement Nigeria students at the Topfield College, Ajegunle, Lagos won the Second Place Prize of 250,000 Naira for developing a ReWashington Fellowship Alumni of Nigeria. chargeable Power Box. The invention which The JA Explorers company founded by the is an eco-friendly power box was designed Junior Achievement Nigeria students at Gov- to curtail the effects of power supply lapses ernment Technical College, Uyo developed www.businessday.ng

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in homes within the society.

The impact JAN is making is made possible by the tremendous support it has enjoyed over the past 20 years and counting, from companies such as FirstBank, Citibank, Union Bank, African Capital Alliance, ACT Foundation, Google, Dangote Group, Stanbic IBTC, Deloitte, Schlumberger, Sigma Pensions, Facebook, Microsoft, IBM, Agile Communications, Channels Television and Verraki Partners amongst others. This support, which has enabled JAN impact lives and execute programs nationwide, is most commendable. We entreat more of that support for worthy organisations and causes in Nigeria.

@Businessdayng

Thursday 05 December 2019

BUSINESS DAY

Corporate Social Impact

International Breweries Foundation Kick-Starts 70 Startups

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O young Nigerian entrepreneurs are seeing their dreams get a bolster as International Breweries, through its foundation, shells out N3m to each of them.

For those newly empowered entrepreneurs, ‘paucity of funds’ will now no longer be the main gripe in their quest for entrepreneurial self actualisation.

The disbursement, coming under the aegis of the annual International Breweries KickStart entrepreneurial initiative, will see the company enable young enterprising Nigerians with business management trainings, mentorship, and grants. It’s a

phased project covering a period of five months that sees only the very serious making it at the end of the day.

Kick Start, by the way, is not for aspiring entrepreneurs. It’s for those who are already in the trenches sweating it out and working to create a niche for their products and services. Which is why a critical phase of the innovation is the Pitchfest where independent judges grill the candidates and score them based on the Overall Business Concept, Business Maturity, Applicant’s Business Experience, and the Business’ Financial Statement.

Peter Bamkole, Chairman of

the International Breweries Foundation, says what stands Kick Start out is the transparency, something that gives serious candidates the opportunity not based on any criteria besides their know how and a willingness to put in the work required.

With more corporate organisations toeing the International Breweries path, there will be fewer young Nigerians on the unemployment queue. And what’s more, the freshly energized entrepreneurs are sure to start a new tribe of enterprise minded folks with a percolation that drips all the way to the grassroots. Now, that will be a good place for Nigeria to be.

23

Onuwa Lucky Joseph (08023314782) Editor.

Making HIV test a condition for employment, illegal – NACA DG

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ack when HIV was the undeconstructed hydra headed monster, no one felt safe with an HIV infected individual around them. You couldn’t sleep on the same bed with them, couldn’t share spoons or a meal, couldn’t share cups, couldn’t share seats or live in the same space. Back then, if you were positive, you were either tight lipped about it or you committed suicide.

If you didn’t do either, there was no hiding the symptoms which would become manifest in quick time leaving everyone in the know about that terrible secret you were hiding and as well leaving them no

his way to contract HIV”. Very true, there. Or do you know one such person?

“Secondly”, continues the DG, “HIV is not even that infectious.

There are other infections that people should run away from rather than HIV. Ebola, Lassa fever and even Hepatitis B is a hundred fold more infectious than HIV. Tuberculosis is more infectious. If you see someone with HIV on the road, you may not even notice because people are doing so well managing it”.

Insisting that NACA will not tolerate stigma and discrimination, he offered that NACA had

Meet Yacouba Sawadogo , Climate Change Activist (Courtesy Thomson Reuters Foundation)

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acouba Sawadogo from Burkina Faso is implementing an ancient African farming method that is turning barren land fertile and keeping the desert at bay.

Zai pits are holes dug in dry, hard soil. Water and compost collect at the bottom, keeping crops alive during drought and making nutrient-free soil productive again.

Farmer Sawadogo who pioneered the Zai pits recently won Sweden’s ‘alternative Nobel prize’.

Since the 1980s, Zai pits have restored thousands of hectares of dry land in Niger and Burkina Faso. And now, aid agencies are using it to combat hunger.

By 2020, 50 million people could be forced to move because their land is turning to desert.

Climate change and over farming are drying out soil, making growing crops impossible.

1million people in Burkina Faso needed food aid in 2017 because of erratic rainfall.

Almost 12 million hectares of ar-

able land turn to desert every year.

Sub Saharan Africa is especially vulnerable, as 80% of its economy relies on subsistence farming. This technique could reduce forced migration and restore huge areas of dry land.

Why Whirlpool Consistently Makes Fortune Magazine’s Most Admired Companies List Whirlpool makes a difference via its products, and by its actions: Total employee and retiree giving with Whirlpool Foundation totaled nearly $5million More than 100,000 families were impacted worldwide as a result of Whirlpool staff volunteering with Habitat for Humanity The Whirlpool Maytag brand has donated more than $7millon to date to the Boys and Girls Club of America to help young people in need Has raised more than $10.7million over the past 15 years for the

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fight against breast cancer 500 Europe, Middle East and Asia employees and 29 Non –Governmental Agencies in 10 countries volunteered for 4,000 hours Empowered and improved the lives of more than 32,000 low income women in Brazil The Whirlpool Foundation has awarded more than $200million in grants since its founding More than 100 Whirlpool Foundation Sons & Daughters Scholarship & Award recipients are currently attending college For Kitchen Aid Day of Caring, Hundreds of Whirlpool Corporation Volunteers around the world helped out at multiple non-profits for a day.

Whether in support of a tsunami, hurricane or flooding in any of its plant communities, employee and retiree donations are matched by the Whirlpool Foundation to help those in distress.

Company employees volunteer an average of 270,000 hours per year

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DG Naca

choice but to have you isolated.

But things have since changed.

‘AIDS nor dey show for face’, to echo that popular commercial.

The healthiest looking chaps just might have HIV. It’s not the death sentence it once was. There are drugs for managing it and keeping people healthy and productive.

Former basketball star and now business mogul, Magic Johnson, has remained the perfect poster boy. After coming out in 1993 as HIV Positive, he has not shrunk in size like Rock Hudson and other 80s/early 90s victims did.

Much progress is being made in tackling the disease.

Unfortunately, in Nigeria, some corporate organisations still insist on an all clear from HIV before you are employed. That is DISCRIMINATION in Bodoni Bold!

Despite the provisions of the National Workplace Policy on HIV/AIDS (2013) and the National HIV/AIDS Anti-Discrimination Act (2014), most states are yet to pass the law. This makes it a little difficult to manage cases of discrimination. However, according to Dr. Sani Aliyu, the DG National Agency for the Control of AIDS, (NACA), “The issue of stigma and discrimination is something that really continues to worry me because we cannot effectively tackle HIV if some people are still living with the stigma. I have never met anyone who willingly went out of

@Businessdayng

done a lot of work in the recent past with people living with HIV who had had issues with their employers. “We have supported them with legal persons. Certainly, if we are aware of anybody who has been discriminated against, where employers are making HIV test a condition for employment, it is illegal. We will definitely make an example of employers that we know are trying to continue with this trend because it is unacceptable.

A 2012 study of stigma among people living with HIV in Nigeria showed that 26 per cent of those surveyed had lost a job or source of income in the past year due to HIV-related stigma.

Even worse is the knowledge that some schools close their doors against kids who are known to be HIV positive. “Unacceptable!” bellowed the DG. He called on schools and employers of labour to know that there is a law in place against discrimination and that if they were caught flouting that law, NACA will support the employee in taking them to court and make sure they get justice.

(A republication)

(Kindly send feedback to 08023314782 / csrmomentum@gmail.com)

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Thursday 05 December 2019

BUSINESS DAY

Markets + Finance

‘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.’

Banks’ asset quality improves as new CBN rules raise concerns BALA AUGIE

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ike the cold hands of death that brings forth devastation, the sudden collapse in crude oil price in the mid-2014 nearly paralysed the Nigerian banking industry . A quarter of their lending was to oil and gas.

In the two years before crude oil prices began falling, Nigeria banks lent an estimated $10 billion to local oil and gas companies to buy asset from Royal Dutch Shell, Eni and Total as they retreated from the country’s onshore business.

In 2017, thirteen of them were exposed to Etisalat (now 9 mobile)’s $1.20 billion, money that they had lent to the beleaguered telecommunication giant in 2013.

The pang of stuttering economy was most felt by the mid-sized bank, while the big ones (Tier 1 lenders) were able to weather storm, thanks to solid capital buffers.

Last year, Central Bank of Nigeria (CBN) withdrew the operating license of Skye Bank (a midsize lender) over corporate governance lapses and failure to meet minimum threshold.

The good news is that Nigerian largest banks have overcome these challenges as there has been progressive improvement in their asset quality.

The improvements in No n - Pe r f o r m i n g L o a n s (NPLs) can be largely attributed to efficient and effective risk management strategy and conservative approach to loans distribution as lenders avoided risky assets.

Also, a rebound in crude oil price on 2017 that helped the country exit its first recession in 25 years and the introduction of the new foreign exchange policy was a boon for industry as customers began to pay back interest on money borrowed.

The cumulative NPLs of the 10 largest lenders that have released third quarter results fell by 18 percent to N1.06 trillion, from N1.29 trillion the previous year.

Similarly, combined impairment on financial assets were down 21.35 percent to N124.06 billion as at September 2019, from N145.41 billion as at September 2018.

That compares with a N220 billion and N254 billion incurred by them in 2018-17

and 2017-16 financial years.

First Bank Holdings Plc’s NPLs fell to 21.60 percent in the period under review from 25.90 percent the previous year. Impairment charge on financial asset reduced by 62.64 percent to N28.46 billion as at September 2019, thanks to risk management strategy.

The lender attributes the progressive improvement in asset quality to a resolution to significantly close challenged legacy exposures.

Zenith Bank declined to 4.95 percent in September 2019 from 4.98 percent as at September 2019.

A breakdown of Zenith Bank loan portfolio shows it has foreign currency loans of $2.40 billion (N871.40 billion) while cumulative restructured loans stood at N248.15 billion, of which N192.80 billion comprise of credit to oil and gas.

Stanbic IBTC Holdings NPLs fell to 2.70 percent in the period under review from

3.90 percent the previous year while impartment charge on financial assets increased by 97.87 percent to N90 billion.

Fidelity Bank’s declined to 4.8 percent in September 2019 from 5.7 percent the previous year, thanks to an increase in the total loan book by 24.2 percent, The Banks said key sectors responsible for the drop in Stage 3 Loans were Oil & Gas, Manufacturing, Real Estate, and Construction.

However, Access Bank’s NPLs increased to 6.30 percent in the period under review from 4.70 percent the previous year. The deterioration in asset quality was caused by huge loans it inherited when it acquired Diamond Bank.

Analysts say the new rules by the central bank that mandated banks to maintain minimum loans to deposit ratio of 65 percent will result in deteriorating assets quality.

The aim of the stringent rules is to force lenders to extend credit to the real sector of the economy, but these sectors are highly risky because they do not have the cash flow to pay back interest on loans.

Forcing banks to lend under the current macroeconomic conditions is tantamount to receding earnings as they are likely to book huge write offs.

NPL ratio for the Nigerian banking sector was down 2.6 percentage points (ppts) q/q to 6.7 percent in the third

quarter (Q3) of 2019 from 9.3 percent in the second quarter (Q2) 2019 according to data obtained from the NBS. On a year on year (y/y) basis (Q3 2019 compared with Q3 2018), the sector NPL ratio was down 7.5ppts, a ratio that is above the CBN’s regulatory limit of 5 percent, according to a recent report by the National Bureau of Statistics (NBS).

Consumer NPLs (for listed banks) fell by 1.30 percent to N75 billion as at June 2019 with NPLs of the sector declining to 8.60 percent from 9.60 percent as at full year 2018, according to a recent report by research firm, Chapel

BD MARKETS + FINANCE Analysts: BALA AUGIE www.businessday.ng

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@Businessdayng

Hill Denham Limited.

“While this suggests risk measure amid relatively weak macroeconomic environment, the 872.10 percent YTD growth in its customer loan book is reflective of a potential deteriorating in risk asset quality,” said analysts at Chapel Hill Denham Limited.

Consumer lending in Nigeria is hampered by lack of reliable household credit records and weak recovery enforcement, Moody’s says in a note on July 8.

Midsize banks with higher exposure to consumer and SME loans tend to have higher NPL ratios than large banks, according to Moody’s.

Thursday 05 December 2019

BUSINESS DAY

25

LegalBusiness BD Business Law Industry Report Practice Intelligence Partnerships

New National Housing Fund: Summary and Critic OSEROGHO & ASSOCIATES

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helter or Housing is one of the very important, basic needs of mankind. Unfortunately, the acquisition of land and houses continue to be a herculean task; principally due to an ineffective land tenure system, with a double-digit interest rate financial environment.

The now repealed National Housing Fund Act Cap. N45, which created the National Housing Fund (NHF) to assist with the pooling of funds from multiple sources, with such pooled funds used to alleviate the excessive housing deficit, has from available data been mostly unsuccessful for some of the reasons stated above, among other reasons.

The National Housing Fund (Establishment) Act 2018 (“the 2018 NHF Act”) has in addition to repealing the former abovementioned legislation, seeks to among other things provide for additional sources of funding individual home acquisitions and

improvements. Transitional provisions are also provided in the 2018 NHF Act to cater for transactions under the old repealed Act which transactions are now migrated and transitioned to the rebranded National Housing Fund (“NHF”).

New NHF Sources of Funding The avenues from which the NHF can now source for and obtain funding to facilitate an efficient housing development regime is under the 2018 NHF

Act expanded to include investments made in the NHF by Pension Fund Administrators (“PFAs”), and a 2.5% Sustainable Development Levy charged and derived from each bag of 50 kilogramme cement, whether locally produced or imported.

Other sources of funding for the objectives of the NHF in the repealed NHF Act are retained in the new NHF Act. And these other sources of funding include, in addition to the two mentioned Continues on page 26

Legal experts advocate moderate regulation, tech advancement to spur growth

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usiness and legal experts have canvassed for moderate regulation of the business environment as well as the need for technological advancement in order to foster efficiency, effectiveness and improve productivity, which will act as a catalyst to grow the economy.

Speaking during a panel session at the maiden edition of the innovation and tech law summit (ITELAN), hosted by the innovation and technology lawyers network themed “ensuring an enabling environment for digital innovation,” Adeniran Haastrup, counsel, Sub-Saharan Africa, Uber said “businesses need regulation as it provides accepted operational framework which will guide the activities of the business however regulation performs best when industry players make inputs.”

He urged policymakers and regulatory agencies to actively and effectively communicate with the private sector in order for both parties to make deci-

sions that will benefit both sides.

Abolore Salami, Founder, Riby, said regulations should benefit business operators however over regulation in some industries like the financial industry which is highly regulated hampers growth in the sector.

He added that players in the financial industry find it difficult www.businessday.ng

to comply with all the required regulations and operating licenses issued in the industry.

Nsikak John, head enterprise innovation hub, Nigerian Stock Exchange said regulation is useful but it can stifle growth if it becomes burdensome adding that regulation and laws cannot be front runners to technolhttps://www.facebook.com/businessdayng

ogy because it is always moving ahead, however there is need to understand technology and incorporate it in regulations.

He advised business owners to regularly engage in innovative activities as innovation grows on regulatory blindspot.

While delivering his speech, Chuma Akana, co-founder, Innovation, and Technology Lawyers Network said there is a need to focus on the role of innovation and technology in Nigeria’s business environment as well as the impact of regulation, over-regulation, and deregulation on various businesses and industries.

He said “Regulations in Nigeria especially for startups are not quite encouraging, especially as it seems too strict for businesses that are taking baby steps.

Regulators to understand each industry and business operations before laying down rules, they should also consult and engage with industry players.”

Speaking on technological advancement, Akana said “technology can be a tool for economic growth, if Africa leverages on @Businessdayng

technology and innovation, she will grow very fast and this will foster all round growth and development” Also speaking about the summit, he said while this is the maiden edition, it will be an annual event which will have in attendance, business owners, regulatory agencies, lawyers, tech experts among others coming together to proffer development solutions using technology to drive growth and development.

Akpata sponsors 40 lawyers to the summit In another development, the immediate Chairman of the Nigerian Bar Association section on Business Law (NBA-SBL), Olumide Akpata sponsored 40 young lawyers to the innovation and tech law summit (ITELAN).

The young lawyers drawn from various branches of the Nigerian Bar Association (NBA), Lagos branch attended the summit free of charge courtesy of Akpata, who is also a Partner at one of Nigeria’s most innovative law firms, Templars.

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LEGALINSIGHT

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LegalBusiness

New National Housing Fund...

Continued from page 25

above, contributions made by individuals in the private and public sectors of the economy, contributions made by the Federal Government for long-term housing loans, and investments in the NHF by Commercial Banks, Merchant Banks and Insurance Companies.

Mandatory Individual Contributions Every person, whether employed or self-employed, earning the national minimum wage and above, are now required to contribute 2.5% of their monthly income to the NHF. A 2% per annum or such other interest rate of return as may be determined by the Federal Mortgage Bank (“FMB”) shall accrue on every NHF contribution.

Contributors who attain the age of 60 years or who have expended 35 years in service and are not indebted to the NHF are eligible to apply for a refund of all their NHF contributions within three (3) months of their submission of such an application.

Where the Contributor is deceased, all the contributions and the interest earned are to be paid to the Contributor’s Executors or Personal Legal Representatives.

Contributions and Refunds under the NHF are exempted from any form of taxation.

Institutional NHF Investments Every Licenced Commerical Bank, Merchant Bank, Insurance Company and Pension Fund Administrator are mandatorily required to invest in the NHF, a minimum of 10% of each institution’s annual Profit Before Tax (“PBT”) at an interest rate of 1% above the interest rate paid on desposits held with the FMB. Contravention of the above investment requirement in the NHF by any of the licenced

Commercial Banks, Merchant Banks, Insurance Companies or Pension Fund Administrator attracts penalties. One of the most punitive of such penalties is the cancellation of the Operating Licence of such defaulting Institution, by its Regulator, for infringing the NHF 10% PBT investment rule.

Sustainable Development Levy A 2.5% Sustainable Development Levy is now imposed, to be collected and remitted to the NHF, by all importers and manufacturing companies.

Barring repetition, all imported and locally produced cement are also now obligated to bear and remit to the NHF a 2.5% Sustainable Development Levy on each bag of 50KG cement or its equivalent in bulk.

Some of the penalties that any of the above persons may incur for any contravention, on

conviction, is a punitive fine or imprisonment to a term of three (3) years or to both the fine and the term of imprisonment.

Mortgage Institutions Contributions, Levies and Investments in the NHF are managed and administered by the FBM. FBM is required to, among other things, utilise these funds in the NHF to finance the housing sector through Wholesale Mortgage Lending to licenced Primary Mortgage Banks (“PMBs”).

A registered PMB is in turn required to utilise the housing loans obtained from the FMB to finance mortgage lending to NHF Contributors wishing to build, purchase or renovate their houses.

Mortgage Loans are required to be secured by Tripartite Legal Mortgage Agreements between the NHF Contributor, the PMB and FMB.

General Offences and Penalties Failure to deduct, remit or produce any documents requested for, obstructions, making false statements and misrepresentations are some of the offences itemised in the 2018 NHF Act. Penalties on conviction for any of the offences under the 2018 NHF Act include punitive monetary fines and terms of imprisonment. The defence of not knowingly committing the offence complained about is one of the defences available to anybody accused under the provisions of the NHF. Critic of NHF The success of any National Housing Fund must be premised on a well-founded Land Tenure System. An ineffective Land Tenure system that is not fit for the purpose of developing the housing industry, will only lead

the NHF to continue to suffer from “building collapse due to the use of poor building materials.” A modernised Land Use Act is therefore critical at this time.

Legislation, which encourages voluntary contributions and investments, premised on a sound financial return from the housing fund and the housing market is a much-preferred pancreas to evolving the NHF into a sound and well-grounded housing development institution.

Mandatorily requiring minimum wage earners to contribute 2.5% of their monthly remuneration to the NHF will only improvise this category of wage earners who do not earn a living wage. This is especially as this contribution criteria imposes a higher contribution burden on the poor. There is also a very slim likelihood of low wage earners been able to afford a Loan from the NHF. A higher remuneration threshold will therefore be more viable for the constructive development of the NHF. Requiring 10% of the PBT of all licenced Banks, Insurance Companies and PFAs to be invested in the NHF may likely further increase the costs of funds as the nominal single digit interest rate on NHF contributions and Investments are not competitive with the doubledigit interest rate obtainable in the open financial markets.

Finally, the Sustainable Development Levy of 2.5% on every 50KG of Cement ex-factory will be transferred to the enduser thereby further increasing the price of cement, which is a key building material. Collecting this Levy may also be a challenge as most aspects of the construction industry are still largely informal.

Oserogho & Associates Legal & Tax Practitioners.

CAPTIALMARKET

Bismarck Rewane to speak at CMSA year-end event this weekend

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h i e f E xe cutive Officer of Financial Derivatives Company will be the special guest at the Capital Market Solicitors Association (CMSA) end of year event, where he will speak on the ‘Nige-

rian Economy and Capital Market 2020 Prospects’.

The event, which will hold on Saturday December 7th 2019 in Lagos, will feature amongst other things, networking and knowledge sharing sessions, music, dining, a special raffle draw and various other forms of entertainment.

The Capital Market Solicitors’ Association is an independent selfregulatory association of solicitors and commercial law firms engaged in capital market practice.

The Association was established in 2001, with the aim of addressing the marginalization of Solicitors in capital market

operations vis-à-vis other professionals, such as Accountants, Brokers and Stockbrokers. It is set up primarily as a platform to articulate and promote the interest of legal practitioners specializing or dealing in capital market transactions.

Thursday 05 December 2019

BUSINESS DAY

RIGHTSWATCH

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LegalBusiness

Falana, Odinkalu, Ozekhome ready for face-off with DSS at human rights summit

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eading human rights activists are set for a face-off with the top brass of Directorate of State Security (DSS) and Nigerian Police at the 2019 “Human Rights Summit” in Lagos.

According to a statement by Messrs Okey Ilofulunwa and Emeka Nwadioke, Chairman of the Nigerian Bar Association (NBA), Lagos Branch Human Rights Committee and “Human Rights Summit 2019 Planning Committee” respectively, the summit will hold on Tuesday, December 10, 2019 at 1 pm at the AGIP Recital Hall of MUSON Centre, Onikan, Lagos.

Among the leading lights of the human rights movement who have committed to attend the event are fiery human rights crusader, Femi Falana SAN who will chair the occasion and Prof.

Anselm Chidi Odinkalu, former Chairman of National Human

Rights Commission (NHRC) who is the Keynote Speaker. The theme of the summit is “Youth standing up for human rights: the case for Nigeria.”

The list of panelists includes such human rights heavyweights as Mike Ozekhome SAN; Ayo Obe, former President of Civil Liberties

Organisation (CLO); Tony Ojukwu, Executive Secretary, National Human Rights Commission, and Monday Ubani, former NBA 2nd Vice President.

Other panelists are the United National Special Adviser on Human Rights, Martin Ejidike; Yusuf Bichi, Director General of Direc-

torate for State Security (DSS) and Head, AIG Zone 2, Nigeria Police Force, Lagos, Ahmed Iliyasu.

Among the dignitaries expected at the summit are the Chief Judge of Lagos State, Justice Kazeem Olanrewaju Alogba, Special Guest of Honour; Lagos State Attorney-General & Commissioner for Justice, Moyosore Onigbanjo SAN, Guest of Honour and former NBA President, Dr. Olisa Agbakoba, Guest of Honour.

According to the organisers, the summit, which is regarded by human rights watchers as the largest gathering of human rights activists in recent times, is open to the general public at no cost.

In line with this year’s theme, many university and high school students have also been invited to attend the summit.

Noting the importance of this year’s theme, the United Nations said:

PHOTOFILE

“After a year marked by the 30th anniversary celebrations of the Convention on the Rights of the Child, which culminated on 20 November, 2019, our plan is to capitalise on the current momentum and spotlight the leadership role of youth in collective movements as a source of inspiration for a better future.

“Under our generic call to action ‘Stand Up for Human rights,’ we aim to celebrate the potential of youth as constructive agents of change, amplify their voices, and engage a broad range of global audiences in the promotion and protection of rights. The campaign, led by the Office of the High Commissioner for Human Rights (OHCHR), is designed to encourage, galvanise, and showcase how youth all over the world stand up for rights and against racism, hate speech, bullying, discrimination, and climate change, to name a few.”

Amina Oyagbola receives telecoms industry achievers award

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m i na O yagb o l a, Founder and Chairperson of WISCAR, on Friday November 29th, 2019 received the Industry Achievers Award from the Association of Licenced Telecom Operators at the Muson Centre in Lagos.

Amina Oyagbola is a business leader and former Human Resources and Corporate Services Executive at MTN Nigeria Communications Limited.

With over 30 years’ experience, her career spans legal consulting, banking and finance, oil and gas and telecommunications. She is the managing consultant of AKMS Consulting Ltd (Business and management consultants) and a partner in Oyagbola Chambers.

Amina obtained her undergraduate law degree from Ahmadu Bello University, her Masters in Law from Cambridge University and her MBA from Lancaster University.

She is also an alumnus of INSEAD, London Business School, IMD and Harvard Business School.

Justice Chima C. Nweze

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Thursday 05 December 2019

BUSINESS DAY

THE LAWBRAND BOX

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LegalBusiness

The business of law and paradigm shifts The Loorbrandbox & Consult

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egal practice was once synonymous with legal service delivery, while Law was about legal expertise and nothing else, so lawyers were well suited to define and enforce practice standards. As a result, much attention is paid to the word Profession while there is an unconscious neglect of other factors that would make it more worthwhile and firms more sustainable.

A profession is an occupation founded upon specialized educational training, the purpose of which is to supply disinterested objective counsel and service to others, for a direct and definite compensation, wholly apart from expectation of other business gains.

Of course, it is important to use a client centric approach in the legal practice.

However, one must bear in mind that you are a provider of value and not a recipient of

charity. This goes on to emphasize that the client perspective keeps value delivery at the forefront of the legal practice and this is a good virtue.

The average man has a habit of accepting without question, the popular and majority verdict on things with which he is not personally familiar. The lack of the critical instinct is nowhere more evident than in

the almost universal accepting of the statement that the professional man is per se of finer clay than his “lay brother”.

This acceptance and misguided focus has led to the fall of a lot of law firms as they oftentimes seclude the intricacies of running a business such as succession planning, brand development and business development and focus solely on

their passion for their practice and profession.

While basking in the euphoria of winning cases, giving excellent legal counsel and offering other fulfilling legal services, it is important to keep in mind that at the end of delivering an excellent professional service comes a direct compensation. Also, your law firms just like the “lay man” business pays tax, commissions, wages and several other operational costs In this regard, Business development, Brand Development and strategic Communication are just as important and beneficial to your law firm and practice as it is to every business.

Globally and locally, vast changes and transformations are continuously occurring in the legal industry and law firms should not be left out of the party. Experienced “star” lawyers and law firms bear witness to the metamorphoses and consolidation of the legal profession into commoditization. Every day, innovative strategies are being cultivated and applied

into the legal arena.

Now is the time to ensure that legal practice is more than a profession but ver y much a business and thus, best practices for establishing a successful business and brand identity must be employed.

Our new column: ‘The Law Brand Box’ addresses critical issues in the business of law – touching on legal brand/ business development, brand strategy and positioning for law firms, competitive business intelligence, brand communication, strategic partnerships, amongst other things. The segment is the initiative of our content partners, The LoorbrandBox & Consult a Legal Business Support, Brand Development and Strategic Communication Company that caters to the legal industry

GLOBALREPORT Andrew Ballheimer to step down from Global Managing Partner role in 2020

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more than 40 top tier offices around the world and industry leadership in innovation.

The firm’s leadership has also championed diversity and inclusion in all its forms, with A&O being recognised as one of the Top 50 Employers for Women in the UK by The Times/Business in the Community and the recipient of the Queen’s Award for Enterprise for the promotion of social mobility.

Commenting on his decision to step down, Andrew said: “This has been an immensely difficult decision for me, as A&O has been my professional home for almost a lifetime and it has been a unique privilege to serve in my current role. I am happy that the firm is in such great financial shape and, as a result, after 35 years in private practice including 15 years in various senior leadership roles at A&O, I feel it is a good time to explore new chal-

llen & Overy on Monday December 2nd 2019 announced that Andrew Ballheimer has decided to step down as Global Managing Partner at the end of his current term on 30 April 2020 and retire from the firm, after 35 years in private practice including 15 years in senior management roles at A&O. Andrew was elected to his current role in May 2016 and before that was Global CoHead of Corporate. During his tenure as Global Managing Partner (working alongside Global Senior Partner, Wim Dejonghe), the firm has grown strongly, with client revenue growing 26% and profit per equity partner 38% in the first three financial years. The current financial year’s trading continues this trend of significant growth, driven by a strategy focusing on exceptional client service, an integrated network of www.businessday.ng

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@Businessdayng

lenges in the outside world, including in the wider community, before I am too old!”

Wim Dejonghe, Global Senior Partner said: “I have thoroughly enjoyed working with Andrew and I will be very sorry to see him go. I would like to thank him for his huge contribution to the firm, both as Global Managing Partner and in his previous roles.”

Andrew joined the firm in 1987 and became partner in 1994. He has had an award-winning legal career in mergers and acquisitions and capital markets. He has worked in London, Tokyo and New York, where he was Head of International Capital Markets. He was Managing Partner of the London Corporate Department from 2005 to 2010 and then Global Co-Head of Corporate from 2010 to 2016.

—-Allen & Overy News

Thursday 05 December 2019

BUSINESS DAY

INDUSTRYFILE

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LegalBusiness

Yuletide: FCCPC, FRSC commit to safer road transportation

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he Chief Executive officer (CEO) of the Federal Competition and Consumer Protection Commission (FCCPC), Babatunde Irukera has expressed the commission’s commitment to make road transportation safer, better and more pleasurable.

He disclosed this at a joint press conference with the corps marshall of the Federal Road Safety Corps (FRSC), Boboye Olayemi Oyeyemi on Tuesday December 3rd in Abuja.

The FCCPC boss also disclosed that the duo of FCCPC and the FRSC will hold a joint workshop with passengers, fleet operators, the Police & other stakeholders in the road transport ecosystem to discuss passenger safety, security & comfort tomorrow, Friday, December 6th, 2019 at the Shehu Musa Yar ‘Adua Centre, Abuja.

“We are committed to everything that will secure lives on our roads and improve passenger experience”

Irukera said, while emphasizing the underlying contract between a passenger and a transporter, which according to him was, to be transported from one location to an agreed destination safely, The corps marshal of the FRSC, Boboye Olayemi Oyeyemi, on his part said if consumer rights can be well protected, the job of the FRSC will become much easier, stressing that the forthcoming workshop was aimed at raising citizens awareness of their rights.

According to the Corps Marshall, many Nigerians are not

aware, for instance, that the third party insurance has value, if it is genuine, lamenting however that currently, most third party insurance certificates in the country are fake.

He pledged that the FRSC will partner strongly with the FCCPC in 2020 to stamp out fake vehicle insurance in the country, since the FCCPC boss had earmarked that as the Commission’s first project in the coming year.

“As we are moving towards the end of the year, Nigerians expect a lot from us. They expect a lot from Govern-

ment. Our roads are being rehabilitated & we have had meetings with the Hon. Minister for Works & Housing, & the contractors are back on site”, he said.

Oyeyemi assured that Nigerians would not sleep on the road during the yuletide, stressing that the FRSC had purchased more recovery vehicles & ambulances to ensure access by consumers.

Both agencies are poised towards hosting a successful stakeholders workshop tomorrow, Friday, December 6, just as they are calling on

NMRC, Edo State sign MoU

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n continuation of the drive to remove barriers to housing development, the Nigeria Mortgage Refinance Company (NMRC) Plc and Edo State Government recently signed a Memorandum of Understanding (MoU) as a prelude to the adoption and passage of a State-wide Model Mortgage Foreclosure mechanism into Law (MMFL) in Edo State.

The agreement was executed by the Edo State Attorney General Professor Yinka Omorogbe on behalf of the state governor, Godwin Obaseki while the Managing Director/ Chief Executive Officer, Kehinde Ogundimu signed on behalf of NMRC. The MoU is a demonstration of the commitment of Edo State Government towards making Edo State a Mortgage and housing market-friendly State.

Part of the benefits of the proposed foreclosure law includes improving the State’s ability to attract investments that will unlock the dead capital in real estate assets in Edo State amongst other innovations. Edo State per virtue of the agreement has joined a growing league of State Governments at the forefront of housing finance transformation in Nigeria.

In the photo below, are NMRC CEO, Kehinde Ogundimu (R) and the Edo State Attorney General Professor Yinka Omorogbe (L) executing the MoU between the Edo State Govt and NMRC Plc. www.businessday.ng

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relevant groups & members of the public to come air their views.

Concerned about the safety of the Nigerian consumer, the commission continues to conduct conducted nationwide quality assessment of products and services. In fulfillment of its statutory mandate, it has deployed several regulatory tools to monitor and modify behaviour of service providers across Nigeria. Some key areas of its operation include complaint resolution, surveillance and enforcement.

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BUSINESS DAY

INDUSTRYFILE

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LegalBusiness

Body of Benchers welcome new wigs into the bar

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he President of the Nigerian Bar Association (NBA), Paul Usoro, SAN and Pioneer Chairman of the Nigerian Bar Association Section on Business Law, George Etomi, were among the distinguished body of benchers who recently welcomed new entrants into the legal profession at the call-to-bar ceremony in Abuja.

Speaking about the admission of 4,458 successful candidates into the bar, the NBA president had this to say, “It was a great pleasure to welcome the new wigs at the ceremony.”

A total of one hundred and forty-seven (147) students made it to First Class, with the Lagos Campus of School producing the highest of this number – 79.

See full breakdown of the results (based on universities) below: 1. Abia State Uni - 1 2. Adekunle Ajasin Uni - 1 3. Afe Babalola Uni - 6

4. Ahmad Bello Uni - 1 5. Ambrose Alli Uni - 1 6. Anambra State Uni - 1 7. Babcock University - 10 8. Benson Idahosa Uni - 1 9. Benue State Uni - 1 10. Bowen University - 1 11. Crescent University - 2 12. Delta State Uni - 1 13. Ebonyi State Uni - 1 14. Ekiti State Uni - 6 15. Enugu State Uni - 3 16. Foreign Students - 7 17. Kogi State Uni - 1 18. Lagos State Uni - 2 19. Niger Delta Uni - 1 20. Nnamdi Azikwe Uni - 5 21. Obafemi Awolowo Uni- 13 22. Olabisi Onabanjo Uni- 4 23. Osun State Uni - 2 24. Rivers State Uni - 3 25. University of Abuja - 2 26. University of Benin - 7 27. University of Calabar - 1 28. University of Ibadan - 26 29. University of Ilorin - 6 30. University of Jos - 4 31. University of Lagos - 9 32. University of Maiduguri- 2

Chief Justice of Nigeria, Ibrahim Tanko Mohammed (L) with the NBA President, Paul Usoro, SAn during the Call-to-Bar ceremony in Abuja last week.

NBA President, Paul Usoro, SAN with other Body of Benchers

NBA President, Paul Usoro, SAN with other Body of Benchers

33. University of Nigeria - 10 34. University of Uyo - 2 35. Usman Dan Fodio Uni - 2

George Etomi (L) with his son, Hanoba Body of Bencher, George Etomi flanked by his wife, Efe (Far Right) and Governor Nyesom Wike and who was called to the Nigerian Bar last Wife (L) during his son’s Call-to-Bar last in Abuja last week. week.

Justice Akon Ikpeme sworn in as acting Chief Judge of Cross River State

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he governor of Cross River State, Ben Ayade has sworn in Justice Akon Ikpeme as the acting Chief Judge of the state.

This followed the retirement of the former chief judge, Justice Michael Edem. Ayade said: “I have full respect for Section 153 of the 1999 Constitution as amended, which provides for the setting up

of the National Judicial Council to safeguard the judiciary from the executive.”

He said that the National Judicial Council was the final authority on matters involving the appointment of the Chief Judge of the state.

“I also recognise the role of the governor as well and the right

thing to do at this point is what the state has done by swearing in an acting chief Judge,” Ayade said.

The governor maintained that the beauty of the law is that it is derived from morality, ethics and norms of the people.

Ayade, who was impressed at the acting Chief Judge’s curwww.businessday.ng

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riculum vitae, said that he had no doubt on her intellectual capacity to drive the judiciary of the state to greater heights.

“Let me congratulate you for this great feat because I know as a woman you have higher ethics and higher morals and I believe that as a mother, all of those qualities will

come to bear,” the governor stated.

Responding, Justice Ikpeme thanked God for the opportunity to serve and pledged to work with sincerity during her tenure. Applauding the Ayade, Ikpeme also called on the governor to continue to uplift the judiciary for the advancement of the state.w

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Thursday 05 December 2019

BUSINESS DAY

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BUSINESS TRAVEL IATA boosts efforts to tackle unruly passengers as MP14 set to come into force Stories by IFEOMA OKEKE

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he International Air Transport Association (IATA) looks forward to the entry into force of Montreal Protocol 2014 (MP14) on 1 January 2020.

MP14 enhances the capacity of states to curb the escalation in the severity and frequency of unruly behaviour on board aircraft.

This follows the 26 November 2019 ratification of MP14

by Nigeria, the 22nd state to do so.

MP14, properly named the Protocol to Amend the Convention on Offences and Certain Other Acts Committed on Board Aircraft, is a global treaty that strengthens the powers of states to prosecute unruly passengers.

It closes a legal gap under the Tokyo Convention 1963, whereby jurisdiction over offenses committed on board international flights rests with the state where the aircraft is registered. This causes issues when unruly passengers are delivered to the authorities upon landing in foreign territories.

Unruly and disruptive passenger incidents on board flights include physical assault, harassment, smoking or failing to follow crew instructions. These incidents may compromise flight safety, cause significant delays and operational disruption and adversely impact the travel experience and work environment for passengers and crew.

“Everybody on board is entitled to enjoy a journey free from abusive or other unacceptable behaviour. But the deterrent to unruly behaviour is weak. About 60percent of offenses go unpunished because

of jurisdictional issues.

“MP14 strengthens the deterrent to unruly behaviour by enabling prosecution in the state where the aircraft lands.

The treaty is in force. But the job is not done. We encourage more states to ratify MP14 so that unruly passengers can be prosecuted according to uniform global guidelines,” Alexandre de Juniac, IATA’s Director General and CEO said.

States should also review the effectiveness of the enforcement mechanisms available to them in line with ICAO Guidance on Legal Aspects of Unruly and Disruptive Passen-

gers (ICAO Document 10117) which gives information on how civil and administrative fines and penalties can be used to supplement criminal prosecutions.

In addition to strengthening jurisdiction and enforcement, airlines are working on a range of measures to help prevent incidents and manage them more effectively when they do happen. These include enhanced crew training and raising awareness with passengers of the potential consequences of unruly behaviour on board.

LAA awards scholarships to cabin crew contestants

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agos Aviation Academy (LAA), Nigeria’s top aviation, travel, and tourism school has awarded scholarships to study the Cabin Crew Ab-Initio course to two contestants at the just concluded Cabin Crew Contest organized by the Crew Training Institute (CTI).

Focused on being the Best Aviation School in Nigeria and West Africa, LAA is actively involved in grooming seasoned aviation professionals in the Nigerian industry and West Africa in the near

future, hence the purpose of the scholarship.

While addressing the recipients of the scholarships, Dickson Odikwue and Bolaji Omosipe who were contestants in the Cabin Crew Contest, Chinasa Mbene, the General Manager, Lagos Aviation Academy, who was representing Bankole Bernard, the Academy’s Director, remarked: “On behalf of the management and staff of Lagos Aviation Academy, Nigeria’s top aviation, travel, and tourism school, we are pleased to present this schol-

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arship award to you. Lagos Aviation Academy is passionate about building careers and developing young talents in this industry.

“We are proud to present you this opportunity and happy to support you as you begin your journey into aviation. We are sure you will have a great time, training and learning from our seasoned instructors at Lagos Aviation Academy.

Congratulations!” she added.

Katheryn Lademo, the organizer of the contest noted that the purpose of the Cabin crew contest was to educate

the flying public on what a flight attendant does, the rigorous process involved in becoming one and most especially to give wings to the dreams of many young people who want to tread this path.

Lagos Aviation Academy (LAA) is an IATA Authorized and NCAA Approved Training Organization situated in the central district of Lagos Mainland. The Academy commenced operations in the year 2017 with the objective of raising competent aviation professionals in the industry.

Bankole Bernard, the Academy’s Director a seasoned professional with proven track records as an industry leader.

He is a two-term President of the National Association for Nigerian Travel Agencies (NANTA) after four years of meritorious service as its Financial Secretary (2010 – 2014).

Bankole is also the Group Managing Director of Finchglow Group comprising of the following subsidiaries: Finchglow Travels, Finchglow Holidays, FCM Travel Solutions, Travel Den, Prysm Investments and Lagos Aviation Academy.

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British Airways rolls out Black Friday deals, partners The Diana Award

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ritish Airways, a fullservice global airline offering year-round attractive fares with an extensive global route network, launches Black Friday deals with special offers to London, Europe and North America.

As part of its Black Friday sales, British Airways hereby announces great return fares for as low as $659 and $809 to London from Abuja and Lagos respectively, in World Traveler Economy.

Fares in World Traveler Economy class to New York starts from as low as $1199 and $929 from Abuja and Lagos respectively. There are specials available in all cabins for flights from both Abuja and Lagos.

Kola Olayinka, British Airways Regional Commercial Manager for West Africa said, “Your dream trip can soon become a reality, with our Black Friday sales on flights.”

Giving more details, he said “We will be offering attractive great offers to London, Europe and North America, across economy, premium economy, business and first cabins.”

The Black Friday fares are available from November 28 to December 5, ensuring travelers enjoy savings on fares within this period.

However, customers are advised to book early to avoid disappointments, the airlines also pointed out that fares are subject to availability and may fluctuate due to changes in exchange rates, surcharges

and taxes. Fares are inclusive of taxes, terms and conditions apply.

This is also as the airline recently partnered The Diana Award for 2019 Legacy Award’s, hosted by Earl Spencer and held at the Old Royal Naval College.

As the official travel partner, British Airways flew Diana Legacy Award winners from around the world to London for the bi-annual Legacy Award ceremony.

This unique accolade celebrates the achievements of 20 outstanding young leaders, visionaries and role models from across the world, that have demonstrated their ability to inspire and mobilise new generations to serve their communities.

Established in memory of Diana, Princess of Wales, and her belief that young people have the power to change the world for the better, The Diana Award aims to recognise and inspire the next generation of young leaders who are creating positive social change in their communities.

It is one of the most prestigious accolades a young person aged 9-25 years can receive for their social or humanitarian work.

In addition to meeting with HRH Duke of Cambridge at Kensington Palace and being presented the award by Princess Diana’s brother Earl Spencer, the Legacy Award recipients will have access to a unique development programme.

Northern youths condemn conspiracy against Air Peace chairman, Onyema

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orthern youths on the platform of Arewa Youth Patriotic Front has said that the alleged indictment of Allen Onyema, Chairman and Chief Executive Officer of Air Peace,

by United States Department of Justice is a conspiracy to tarnish the image of an innocent and upright citizen.

Onyema was accused by the United States Department of Justice for allegedly laundering over $20 million from Nigeria through United States bank accounts in a scheme involving false documents based on the purchase of airplanes.

Addressing a press conference on Sunday in Kaduna, Bagudu Joseph, National Coordinator of the group, and the Secretary, Yusuf Adamu, alleged that the Air Peace Chairman, was being framed up in collaboration with some Nigerians to undermine his business interest across Africa.

Joseph noted the Air Peace Chairman was an upright man who believed in the unity of the country.

He threatened to unveiled the names of those Nigerians who were collaborating with @Businessdayng

foreign partners to tarnish the image of the Air Peace Chairman.

He also said the group had concluded plans to hold a peaceful rally at the US embassy in Nigeria to prove that Mr. Onyema was not guilty of the conspiracy.

Joseph said, “The indictment was hasty and ill-motivated as there have been conflicting statements on the saga coming out of the United States.

“This sudden purported indictment of Barrister Allen Onyema who has been doing business for decades in the US, and for many years he has never been found wanting until now, raises fundamental questions about the bad timing and the growing suspicion of many Nigerians over the motive behind targeting our own distinguished Allen Onyeama.

“Onyema has over the years built a reputation of integrity, a promoter of peace and a hard-working man, and cannot be allowed to be dragged in the mud by a western conspiracy.”

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Thursday 05 December 2019

BUSINESS DAY

UNDERSTANDING NIGERIA’S

DAIRY VALUE CHAIN

The growing disparity in women’s financial agency in Nigeria: The dairy sector case study Ify Umunna

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ccording to the Bill & Melinda Gates Foundation’s 2018 report on Women’s Market Inclusion there are over 92 million women in Nigeria, yet only 23% of them have access to formal financial services - the vast majority living in urban areas.

While cell phone ownership is high at over 75%, less than 2.6% of women in rural areas have access to mobile money. Additionally, only 10% of women have access to credit and 6% have access to extension services.

Hauwa, a 26-year-old Fulani farmer, is one.

Hauwa is the first wife of a smallholder dairy farmer in Fashola LGA, Oyo State. A mother of two children under 5, she splits her time between domestic, reproductive and farming labour. Hauwa’s husband is the owner of about 90 cattle at any given point, however, she has none. While she has a cell phone, she does not have a bank account, no access to credit or land, and no real means of saving or earning money in an efficient way.

Hauwa’s story is not unique. While Nigeria is moving towards an enabling environment with mechanisms such as cashless payment channels, microfinancing, and specialized institutions aimed at community-based finance, these vital interventions tend to only reach those in urban areas and those with some form of financial history.

It is those that arguably need it the most, young rural illiterate women, that remain marginalized.

54% of women live in rural areas, compared to 46% of men and women contribute to the agriculture sector in unique ways in Nigeria. Comprising of 30% of the agriculture labour force and dominating the informal processing, they are the primary producers of domestically consumed foods and the drivers of food processing, marketing and preservation. Despite

the fundamental roles they play in the landscape, they continue to face major challenges that impede their productivity and the overall sustainability of agriculture in the country.

Some of these challenges include the lack of capital and credit support that stifle their ability to buy quality inputs and products, their limited access to control and ownership of resources such as farms, land, livestock and inputs, further limiting their ability to build sustainable agricultural produce and businesses. In addition to these, more women are uneducated, lack financial literacy, are untrained in good agricultural practices and lack extension services in comparison to men. They face stigmatization, cultural, norms and traditions that impact their decision-making capabilities both inside the household, within their communities and in their trade. Compounding this, smallholder women farmers often struggle to enter male dominated professions such as distribution, transportation and logistics, and at times, women are forced to participant in the retail end of the value chain which usually

L-R: Hauwa, Fisayo (Sahel Consulting), Deborah (SMAP, the only female extension officer available for NDDP) www.businessday.ng

NDDP Focus Group Discussion with Rural Women Smallholder Farmers.

has lower margins. According to the World Bank, currently, rural women farmers on average earn only 10% of the income from production and own 1% of the land they use. These challenges continue to hamper the growth of women’s productivity and agency in agribusiness.

Take dairy for instance, women produce 95% of the raw milk in the Nigerian dairy sector, most of which is traded and processed informally.

Despite the numerous challenges, they are responsible for feeding and taking care of the calves and smaller animals, milking the cows or receive the milk from men who own the cows, and process the milk for local open markets, household consumption or commercial processors.

These acts alone cannot and will not lead to financial upliftment and attained agency by these women.

Government and private sectors have fundamental roles to play in ensuring this the barriers that women face are alleviated in order for them to maximize their potential. The Nigerian Dairy Development Program (NDDP) is a fitting example of how this can be done. NDDP was a processorled program implemented by Sahel

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Consulting Agriculture and Nutrition in partnership with dairy processors FrieslandCampina WAMCO and L&Z Integrated Farms, the Federal Ministry of Agriculture and Rural Development and the Kano and Oyo states governments. NDDP aimed to enhance the livelihoods of participating smallholder dairy farmers by improving their productivity and integrating them into the formal dairy value chain. With five out of the seven objectives directly linked to gender, NDDP had a clear mandate to uplift the rural smallholder women dairy farmer. With this directive, NDDP begun by conducting a study that examined gender relations, norms, beliefs, knowledge, attitudes, and practices among participating smallholder dairy communities in order to inform the design of program interventions to improve the inclusion and empowerment of women dairy farmers. Through robust interviews and focus group discussions with Hauwa and other smallholder female farmers in Kano and Oyo states, NDDP formulated key strategies to mitigate some of the issues they faced. These interventions included integrating women farmers into the formal value chain so they could sell their milk di@Businessdayng

rectly to commercial processors, providing government female extension agents to communities for women to have the opportunity to participate in trainings and extension services without conflicting with traditional norms and building boreholes in rural communities so that women did not have to travel long distances to fetch water.

At the end of the three-year program, the women’s income had increased by an average of 108%.

In the second phase of the program, Sahel in partnership with more private sector stakeholders and Government will expand this program to encompass female financial inclusion that will provide awareness of the benefits of formal savings to the women and assist in the development of a robust mobile banking solution for women to begin independent savings and increase their income decision-making power. Moreover, the program will explore various mechanisms of providing access to credit to smallholder women farmers and mechanisms of income diversification through their ability to obtain small livestock and the production of nutritious crops such as vegetables and cereals which they can sell at local markets.

Solutions to ensuring equity and empowering women have to be multipronged and comprehensive. At the Federal and state levels, Government must hire, train and deploy more female extension officers to the rural communities that will then be able to train rural smallholder women.

The private sector must provide the technical capacity, financial backing and implementation support. Lastly, NGO’s must prioritize gender-sensitive programs within their funding frameworks.

Through thoughtful action, access, and change, the average rural smallholder woman dairy farmer like Hauwa will have the opportunity to financially contribute to her family while efficiently saving and building her financial profile – giving her a greater chance of financial agency and independence.

Ify Umunna Sahel Consulting Agriculture & Nutrition Limited

Thursday 05 December 2019

BUSINESS DAY

RESEARCH&INSIGHT A WEEKLY PUBLICATION OF BUSINESSDAY RESEARCH & INTELLIGENCE UNIT(BRIU)

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In association with briu@businessday.ng

08098710024

At what threshold does Nigeria’s public debt become unsustainable?

AMAMCHUKWU OKAFOR

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or developing countries, debt accumulation is inevitable for national governments. Government spending is typically financed by government borrowing – externally and domestically – and by raising taxes. However, it is equally vital to have a sustainable debt management framework so as to avoid over-borrowing.

National and sub-national governments must incorporate some kind of inter-temporal framework in their borrowing strategy such that consumption today does not mean liability for tomorrow’s generation.

In Nigeria, the Debt Management Office (DMO) is the institution saddled with the responsibility of managing the nation’s sovereign debts. Periodically, it conducts stress tests to ascertain the sustainability of the debt stock against the prevailing macroeconomic environment and the scenarios in the domestic (debt) market.

The last Debt Sustainability Analysis conducted in 2017 by the DMO adopted the latest version of the joint World Bank/IMF Debt Sustainability Framework for Low-Income Countries which provides indicative debt thresholds that reflect the quality of a country’s policies and institutions. It is based on the World

Total Public debt stock (H1 2019) Table 1 Nation debt 2018 - 19

Bank/IMF’s Country Policy and Institutional Assessment (CPIA) index ranking which classifies countries into one of the three policy performance categories: Weak Policy (CPIA<3.25); Medium Policy (3.25≤CPIA≤3.75) and StrongPolicy (CPIA >3.75), and applies different indicative debt thresholds, depending on the performance category. Along with such countries as Ghana, Mozambique, Ethiopia and Sierra Leone, Nigeria is classified as a medium performer on the CPIA index with a score of 3.41.

The 2017 DSA included a stress test for the economy under three scenarios: the baseline scenario which hinges on assumptions of the annual budget and the medium term expenditure framework (MTEF) 2018-2020; the optimistic scenario that anchors on the optimism of the Economic Recovery and Growth Plan(ERGP) with a target growth rate of 4.80 percent in 2018 and 7 percent by 2020; while the pessimistic scenario assumes continued shock to the foreign exchange earner – crude

Figure 1 Total Public debt as at June 2019

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oil – at less than $30pbd, deterioration in the external balance and depreciation of the domestic currency.

However, since the GDP growth rate has hovered below 2 per cent which is behind the ERGP optimism of 4.8 percent, but global oil price has hovered around USTable 2 External debt H1 2019

The DMO also adopted a strategy to increase the ratio of domestic to foreign debt as a cushion to external (foreign currency) shocks.

Table 1 shows, however, that the rate of change of domestic debt is lower (11 per cent) in terms of foreign currency than in domestic currency (N43.1 per cent). This would be due to the exchange rate effect.Should the DMO revise or revisit its debt strategy?

Sinking Funds In the first half of 2019, the total amount of external debt servicing and interest payment on domestic instruments amounted $609.56 million and N800.11 billion respectively. These values are 2.2 per cent and 4.6 per cent of their corresponding total. Commercial papers and Eurobonds took 62.2 per cent of the total debt service funds while bilateral debts got

done in the first quarter of 2019 valued at N610.3 billion – representing 76.3 per cent of the total.

And the FGN bond took N480.85 billion.

Conclusion The year 2019 has been an interesting time. Macroeconomic indicators are not impressive: inflation is above 11 per cent, GDP growth rate less than 2 per cent, unemployment is high above 25 percent and debt and debt servicing continues to hover over the bars.

Increased government presence in the debt market would crowd-out private sector investments and matters would be debilitating. Recently, the Central Bank of Nigeria restricted the purchase of its OMO bills to banking institutions and Foreign Portfolio Investors (FPI) in a bid to re-channel funds away from risk-free assets to real sector

Table 3 External Debt H1 2019 ($’

D60pb, and the naira exchange rates have been stable at N359/$; it may be objective to evaluate based on the baseline scenario since the scenarios in the other extremes have not been experienced.

As of June 30 2019, the Debt Management Office (DMO) reported that the debt stock (both national and sub-national) stood at N25.7 trillion ($83.9 billion)— this represents a 14.6 per cent increase from the preceding year. Of this total, domestic debt accounts for 67.6 per cent (N17.38 trillion), while external debt standing at N8.32 trillion ($27.16 billion) accounted for 32.38 per cent.

In 2018, the Debt Management Office (DMO) effected an extension of the borrowing threshold from 19.39 per cent to 25 per cent.

With an addition of N10.7 trillion in 2019, Nigeria already surpassed the 25 per cent threshold (see Table 1). Figure 1 shows that sinceafter the Paris Club debt write-off, the nation’s public debt stock has risen by over $65 billion – more than twice the debt written off.

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Table 4 Domestic Debt H1 2019

the least – 3.4 per cent in Q2 2019.

For domestic debts servicing, FGN bonds claimed more than half of the total interest repayment in the first half of 2019; whereas FGN savings bond had the least with N658.54 million. From the table, most of the repayments were

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investments. This is expected to moderate yield environment and reallocated resources to growth sectors. However, monetary institutions have to be strategic going into the New Year to hedge against external shocks and other fundamental uncertainties.

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Thursday 05 December 2019

BUSINESS DAY

Retail &

consumer business Luxury

Malls

Companies

Deals

Spending Trends

consumer spending

Second consecutive contraction in retail industry validates consumer goods firms’ woes BALA AUGIE

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he importance of retail sales cannot be overemphasised because it is pivotal to economic

growth.

When people have money in their pockets to shop, manufacturers and retailers thrive as sales spikes, prompting them to expand operations and employ more staff.

The United States of America would have slipped into recession save for strong consumer spending, adding impetus to President Donald Trump’s campaign ahead of next year election.

Consumers spending also helped Germany avoid a recession in the third quarter as the as the largest economy in the Euro area economy continues to struggle with a weak export, especially in its automobile industry.

The reverse is the case in Nigeria, where the trade industry recorded its second consecutive contraction, thanks to constrained consumer wallets, tough operating environment, partial closure of the border, and lack

of economic stimulus The trade industry, which has slipped into a recession, contributes 15.20 percent to the GDP, but the country’s GDP expanded by 2.28 percent in the third quarter, from 2.12 percent in the 2.12 percent in the second quarter.

The more consumers refuse to open their purse string, the more it hurts earnings of Fast Moving Consumer Goods Firms (FMCGs) that are find-

ing it difficult to cover their expenses due to weak sales.

The revenues of these firms no longer cover cost, which means they are inefficient, as combined average net profit margin of the 10 largest firms fell to 2.25 percent in September 2019 from 6.31 percent the previous year.

A declining profit margin means that the firm is making less money per Naira of sales.

Perhaps more worrisome

is that operators in the industry may not be able to transfer rising cost in form of price increases to beleaguered consumers. They had hike the price of products in 2017 to fend off the effects of rising cost of production brought on a severe dollar scarcity that hindered them from importing raw materials to meet production.

The chart showed margins were at all-time high in 2017, a period that was concomitant

with the introduction of a new foreign exchange regime by the central bank that helped ease the flow of foreign exchange.

“The new minimum wage would have spur consumer spending but only Lagos and Kaduna had agreed to pay,” said an analysts who prefers to remain anonymous.

“There woes will likely persist till next year as their cost may go up with the hike in taxes by government. “But the border closure could be positive for Nestle and Unilever because they produce stable foods.

Dangote Sugar could also be a beneficiary of border closure as it had complained about smuggling across the borders,” said the analyst.

Analysts say it is difficult for companies to thrive in an environment where the vast majority live in abject poverty and that government have limited time to reflate the economy.

A gloomy report by the World Bank said Nigerians living in extreme poverty could increase by more than 30 million by 2030, pushing the country to account for 25 percent of the world’s extremely poor population if government doesn’t quickly embark on needed reforms.

Today, an estimated 100 million Nigerian live on less than $1.90 per day. Close to 80 percent of household are in northern Nigeria, while unemployment creation and income gains have been concentrated in the central and South Nigeria.

Nigeria’s population growth is estimated at 2.60 percent, outpacing economic growth in a context of weak job creation, while per capita income is falling.

Expert say the country’s consumer landscape is set for multiple shift and that manufacturers and retailers will have to adjust to the new dynamics.

By 2025, 55 percent of Nigerians will live in cities or towns, and the country will experience a 50 percent urban growth – the fastest urban growth, globally, according to a recent report by Nielsen, a global measurement and data analytics company.

“Everyone is fighting for growth and competition for consumers’ wallets has never been tougher. In a challenging environment, finding opportunities with the right insights becomes key to help beat the odds,” said Ged Nooy, managing director of Nielsen.

consumer spending

Stakeholders suggest ways to halt poor performance in consumer goods sector OLUFIKAYO OWOEYE

T

o address the current dismal performance of consumer goods companies in the country, and given the critical role, the sector plays as a core component of real sector and part of the employment generating sectors in the economy, stakeholders in the industry have suggested ways to restore the sector on the path of profitability.

At the NSE-CEO Consumer Goods Sector Interactive Session, organised by the Nigerian Stock Exchange (NSE) players in the industry lament the current tepid performance of the sector.

At the event, suggestions were made on how to halt the woeful trend some of which include tax incentives--to create long-term and sustainable value creation in tax collections, consolidating efforts in the public-private partnership, especially as regards

infrastructure, more emphasis on de-risking the consumer goods sector to drive down costs of production to improve margins of companies.

Consumer goods companies are currently feeling the heat of a sluggish economy coupled with harsh operating environment, multiple tax regimes, weak consumer spending and poor infrastructure.

Sadly, the inability of these companies to pass the surging cost of operation to cashstrapped consumer means they would have to bear the cost in their books.

This year alone, the consumer goods sector index has declined by 29percent, worse than the overall NSE-ASI Index decline of 14percent, and even worse than the Mainboard index of 22percent.

Currently, retail and wholesale sales make up 16.1percent of Nigeria’s GDP, making retail and consumer goods sales the second largest contributor to the nation’s GDP. Although, informal trade still accounts for the vast majority of consumer www.businessday.ng

spending. Nigeria’s massive youthful population coupled with the rapid urbanisation rate remains its selling points for consumer goods companies.

Consumer goods companies such as Unilever, PZ Cussons, Nigerian Breweries, Guinness, Flour Mills of Nigeria, UACN and a host of others are facing difficult times

as shown in their financial results.

For beer makers, performance remained underwhelming worsened by the government excise duties, amid tight consumer wallets and intense competitions, with players recording massive growth in net finance cost.

Food maker, Nestle Nigeria plc saw its revenue

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for the third quarter surged 2.35percent to N69.4bn from N67.83bn in Q3 2018, this was however below analysts’ expectations given that the third quarter has been a strong quarter for the company. Profit before tax dropped 0.6percent to N16.11bn and Profit after tax plummeted 9.1percent to N10.59bn dragged by rising

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production and operational expenses.

Nestlé’s slower quarterto-quarter revenue growth is linked to the Beverages segment where revenue declined for the first time in three quarters, by 8.1percent quarter-onquarter but grew 8.3percent when compared year-on-year.

This is similar to the corresponding period of the previous year, wherein Beverages revenue declined by 7.1percent quarter-on-quarter, which can be linked to weaker demand in the absence of the Ramadan and Easter festivities, which boosted volumes in Q2.

Unilever Plc’s third-quarter revenue slumped 62.9percent y/y which according to management was linked to tighter credit terms with key distributors in a bid to minimize nonperforming receivables. Sadly, its two segments, food, and Home Personal Care (HPC) businesses lost sizeable market share and were down 56percent and down 70percent respectively.

Thursday 05 December 2019

BUSINESS DAY

Retail &

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consumer business

company

Huawei to lure consumers with its newly bagged digital economy promotion award

H

uawei Technologies Company Nigeria Limited at the E-Nigeria 2019 conference awards night on the 29th of November was awarded by the National Information Technology Development Agency (NITDA) for driving digital economy among other private sector companies in the Information and Communications Technology (ICT) industry.

The 2-day E-Nigeria Conference 2019, hosted by the National Information Technology Development Agency (NITDA) under the guidance of the Federal Ministry of Communications and Digital Economy and in collaboration with public and the private sector as well as Non-Governmental Organizations and the academia, focused on digital transformation as a tool for achieving a productive national economy.

Discussions at the conference centered on creating new job opportunities and economic development through technological innovation, harnessing indigenous innovation and creativity for poverty reduction in Nigeria.

The first day of the E-Nigeria 2019 conference was graced by the presence of the President, Federal Republic of Nigeria, Muhammadu

L-R: Liubin, Robin, manager, Huawei Nigeria public relations; Abayomi Olurishe, MD/CEO, technical director, Huawei Nigeria Enterprise, Galaxy Backbone, Yusuf Kazaure, senior account manager, Huawei Nigeria Enterprise, Steven Fang.

Buhari, GCFR, who gave the opening ceremony address on Nigerian Digital Economy and unveiled a strategy document aimed to galvanize the nation’s digital economy on Thursday, November 28th, 2019. Some of the highlights of the President’s speech during the conference focused on the need for government offices and agencies to utilize digital innovation to enhance efficiency and effectiveness in its service delivery, and for

creating seamless synergy across board.

President Buhari, GCFR, was noted to have said “Our recent introduction of the Nigerian E-government Masterplan will further consolidate our successes to date and increase interoperability among the different Ministries, Departments and Agencies of government” He added stating that “A key requirement of the e-government Master plan is for all

company

government institutions to create a Digital Transformation Technical Working Group that will work with the Ministry of Communications and Digital Economy to ensure seamless and coordinated implementation of projects, programs and policies…Furthermore, the Nigerian e-Government Interoperability Framework, the Enterprise Architecture and the Nigeria Data Protection Regulation are in place and all Ministries, Departments

and Agencies are expected to comply with these policies,’’ Other dignitaries at the event were the Minister of Communications and Digital Economy, Isa Pantami; Director-General, NITDA, Kashifu Abdullahi; the Chairman, Senate Committee on Communications, Senator Oluremi Tinubu, Representative of the Senate Speaker, Honourable Lado, among other honourable guests.

While awarding Huawei Technologies Company Nigeria Limited, NITDA commended and recognized the organization stating that “Huawei established in Nigeria since 1999, has made progressive achievements and contribution to the significant development of ICT in Nigeria through collaboration with the great Nigerian government and efforts of industry players. In the past twenty years, Huawei has been working with operators and other partners in building backbone networks spanning over 8000km, connecting 36 states and FCT, and developed over 24000 mobile base stations, covering half of the country’s population.”

A management representative for the company in a goodwill message at the E-Nigeria 2019 conference

said “Nigeria has embarked on a journey to reposition itself as the heartbeat and reference point in Africa and Huawei is committed to being a part of this journey to boost availability, accessibility and affordability of ICT services to turn digital inclusion to social and economic inclusion.

Thank you!”

The Deputy Managing Director and Head of Public Relations, Huawei Technologies Company Nigeria Limited, Kelvin Yangyang noted that to effectively achieve a digital Nigeria, capacity building of Nigerians in ICT cannot be left out. He stated that “Huawei has been investing strongly in digital skills in Nigeria. Huawei has upskilled more than 20,000 ICT professionals in the industry in the last 20 years. Huawei Trained 2000 Nigerian youths in core ICT skills and empowered 1000 civil servants in 2019 under the ICT for Change partnership with the Federal Government. Beside the ICT industry, Huawei is working with more than 60 Nigeria universities in Nigeria to establish the Huawei Authorized Information and Network Academy, providing the industrial recognized ICT certification including networks, clouding computing and big data.”

CONSUMER SPENDING

as local chicken hits market Nestle Nigeria removes over 100m wrappers of Respite for retail stores border, saying that it would local chicken price increased to BUNMI BAILEY avert Nigeria from becoming N1300-N1400 from N800-N1, packaging waste from the environment a dumping ground for im- 000. Usually in retail stores,

A

s part of its continued efforts towards environmental sustainability, Nestlé Nigeria reiterates the need for continued consumer education on collection and proper disposal of packaging waste. This is in line with the company’s commitment towards ensuring that none of its product packaging, including plastics, should end up in landfills or as litter in the environment, in the seas, oceans and waterways.

Waste pollution is one of the biggest sustainability issues the world is facing today. Its impact can be seen across many urban cities, oceans and waterways across the world. Nigeria generates more than 32 million metric tonnes of waste annually with Lagos alone producing about 10,000 metric tonnes which end up in landfills and

in waterways, exacerbating the challenges of flooding and traffic gridlocks.

Tackling this menace requires multi-sector and multistakeholder collaboration to accelerate progress towards a sustainable solution. The recently concluded MAGGI MEGA MILLIONS was therefore a welcome intervention to sensitize the general public on the need for proper waste management. Over 100 million Maggi wrappers – over 7 tonnes, were collected and returned by participants across Nigeria.

Speaking at the end of Maggi Mega Millions in Lagos, Nwando Ajene, Category Manager Culinary, Nestlé Nigeria said, “We believe that this activity has helped encourage proper collection, sorting and disposal of pack-

aging materials to help ensure a cleaner environment. With the success of this initiative in retrieving this volume of wrappers in only six weeks, we believe that with all stakeholders working together, we can ensure a sustainable waste-free environment”.

Participants at the closing event included members of the Nestlé Nigeria’s management team and the Executive Secretary of the Food and Beverage Recycling Alliance (FBRA), Agharese Lucia Onaghise, who said, “This is a great initiative by Nestlé in line with their commitment to recover their post-consumer waste from the environment. It is interesting to see the amount of Maggi wraps collected from this program that would otherwise have been disposed indiscriminately.

T

he scarcity of local chicken being faced by top retail stores in Nigeria like Spar, Shoprite and Hubmart may be over as these stores now say they are now getting supply.

According to BusinessDay conversations with the officials of these stores, the limited supply of local chicken which was attributed to border closure is gradually fading away as their vendors are now supplying them chicken.

A top official at Shoprite said, “About two months ago, it was hard for our suppliers to give us chicken due to the border closure. But now, it is readily available and I am positive that we will still have enough for Christmas.”

In August 2019, President Muhammadu Buhari announced the closure of the

ported products, and would also boost patronage of locally made products.

Prior to the border closure, local farmers could only meet 30 percent of local consumption while 70 percent of poultry products consumed in the country were imported.

The closure of the Nigeria’s borders which has led to a spike in the prices of imported frozen poultry like turkey and chicken has forced consumers to switch to local substitutes including for frozen fish and chicken.

“It is very available now unlike before where we had chicken coming but in limited quantities. What we received from the vendors was lesser than what we ordered for,” Kayode Oseni, a supervising officer at Spar said.

Since the closure of the borders, the price of a kilo of

Team Lead: Bala Augie, Olufikayo Owoeye; Analyst: Bunmi Bailey; Graphics: Fifen Eyemisanre Famous www.businessday.ng

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the type of chicken usually patronized by consumers is the broiler. It is bred and raised specifically for meat production.

Akin Akanni, the supervising manager at Hubmart said that some months ago, they were experiencing some issues trying to get local chicken but now it has been resolved.

With consumers’ growing preference for local chicken, Nigeria’s poultry farmers who have before now suffered huge losses owing to their inability to sell their poultry products are now smiling to the bank as demand for local chicken rises and the price surges.

The situation has made poultry farmers ramp up production to meet the increasing demand for chicken by the country’s 200 million people due to the recent government border shutdown.

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news Women’s low inclusion in governance...

Continued from page 1

21 (5.8 percent) in 2003. It further increased to 23 (6.4 percent) in 2007, then 26 (7.2 per cent) in 2011.

But in 2015, the number decreased to 19 (5.3 per cent) and further reduced to 11 in 2019.

In 1999, there were only 3 women out of the 109 members representing 2.8 per cent of the members of the Senate. In 2003, it increased to 4 representing 3.7 percent of the members. In 2007, the number increased to 8 (7.3 percent).

However, it decreased to 7 in 2011, which is 6.4 percent but increased to 8 (7.3 percent) in 2015, it then reduced to 7 in 2019.

For the ministerial cabinet, from 1999-2003, only 7 out of 47, were women.

In 2007, the number however, remained the same.

In 2011, it rose to 12 out of 42, but declined to 5 in 2015 and increased to 7 in 2019.

Tinu Mabadeje, a politician and gender advocate, however, blamed the current administration for not making the political climate friendly for women to participate and win elections in the country.

“There is no doubt about it that we are in a replicated era of the military where women do not have opportunity to display their abilities and capabilities. We hope and pray that very soon “when another regime comes in, that it will take us back to the era of the Yar’Adua and Jonathan administration where they gave women the room to flourish and to display their abilities,” Mabadeje further said.

This is however, coming at a period when other African countries like Rwanda, Ethiopia and South Africa are making serious inroad and push for gender parity in politics by ensuring that women made up half of their countries’ ministerial cabinet and significant number in the legislature.

In 2006, a National Gender Policy was formulated to promote a 35 percent affirmative action for women, a policy that demands 35 percent involvement of women in all governance processes.

For close to eight years, the gender equality bill which is designed to eradicate gender inequality in politics, education and employment has been sitting in the Nigerian Senate.

And so far nothing has been done about it. According to the 2018 Global

Gender Gap report by the World Economic Forum (WEF), Nigeria ranked 139th position out of a total of 149 countries in political empowerment.

Zainab Marwa Abubakar a politician and lawyer said, “It is a statement of fact that where there is no woman, there is no nation, because for you to progress, you need women. So, the importance of women to governance can never be over emphasized. Hence, there is need to, as a nation, bring women on board.”

“The number of elective posts held by held by women is low. Zero percent governorship.

How can we move on like this as a nation without mainstreaming women in governance?” Abubakar asked.

Presently, Nigeria, Africa’s most populous country has continued to lag among its African peers in women inclusion in both elective and appointive political positions.

On October 16, 2018, Ethiopia became the first country in Africa to have gender-balanced cabinet with 50 percent of its members being women. Out of a total of 20 members, 10 were female. Two days after Ethiopia followed suit by also announcing 50 percent of its cabinet to be women. And in June 2019, South Africa also made such announcement too.

Mabadeje said that she is hopeful that before the present administration end that the president will come to the realization that he has not given women enough room in political appointments in the country.

Has a way out, stakeholders have, however, advocated for a reform of the nation’s electoral system, while the political parties should be more transparent in selecting their candidates for elections.

Ebere Ifendu, Chair women in Politics Forum in Nigeria (WiP), said, “If we can have internal democracy and legislation for affirmative action, we will start having women with quality and capacity contest under their platforms.

Let them also give us the opportunity of independent candidacy so that you don’t have to struggle to go through any platform.”

“Because of the tokenism of the free forms that the political parties give women, when it comes to consensus, it is the woman that is often asked to step down,” Ifendu further added.

Nigeria’s macro indices set to...

Continued from page 1

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formed a country, it would be as populous as Canada and two times the population of the Netherlands.

More Nigerians were probably rendered jobless in 2019, with unemployment rate likely to have topped 30 percent, going by the trend over the past two years.

That will set a record for the highest unemployment rate in over a decade and pushes the country’s misery index to a new high.

The misery index is an informal measure of the state of an economy generated by adding together its rate of inflation and its rate of unemployment.

Inflation rate will probably average 12 percent by the end of the year which is hardly an improvement from the 12.1 percent average last year. Going by this, the misery index could be 42 percent at the end of 2019.

Nigerians are the biggest losers of an underperforming economy that is not able to create opportunities for them and has seen them grow progressively poorer since 2016, as evidenced by declining

per capita GDP. “Nigerians have been getting poorer because we have had an uncompetitive and largely unproductive economy [with] poor infrastructure, poor human capital and education and poor welfare,” said Amaka Anku, Africa head for the Eurasia Group consultancy.

“It would be great to see longstanding [infrastructure] projects completed, such as the [Lagos — Kano] railway that has been in the works since the early 2000s,” Anku added.

In what is hardly new counsel, Nigeria must seek more investment as a way to get back to strong growth, even though it is unclear where that will come from.

A surge in oil revenuedriven investment is unlikely. Other investments, besides short-term portfolio flows, continue to be hampered by the difficult operating environment and uncertainties in the foreign exchange market.

However, to break out of this trap, Nigeria will need to show it is a serious investment destination, for example by enacting legislative-driven reforms to attract capital to infra-

New TIN registration system could...

Continued from page 2

that the Federal Road Safety Corps (FRSC), Vehicles Inspection Officers (VIOs) and other agencies would enforce the presentation of Taxpayer Identification Number (TIN) as a requirement for the resolution of a road traffic offence.

Given the development,

the FIRS is collaborating with the state internal revenue services to make the presentation of TCC a requirement for processing of drivers’ license and number plates.

The Lagos State Internal Revenue Service (LIRS) is among the first states in the country to indicate that it in-

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structure.

For another indication that the economy stuttered through 2019, look no further from the stock market.

The stock market could close the year with a loss of 14 percent, a streak that has now lasted two years on the bounce. In 2018, the market dipped 17.8 percent as political uncertainty and a lack of market reforms saw foreign investors pull back.

That effectively suggests Nigerian stocks have shed about 30 percent of their value on average in the last two years.

An investor who staked N10 million in stocks in 2018 would have lost N3 million if he chooses to sell today.

That market risk is a big dampener on investor appetite and has contributed to the lull in the market in 2019 with local and foreign investors preferring a safe bet in government bonds.

The 42 percent stock market return in 2017, which ranked Nigeria among the top three best performing stock markets in the world, now look a distant memory, with the government failing to build on that momentum to catalyse further growth.

The stock market has largely reflected the state

of the economy, with outlook constrained by a weak macroeconomic policy environment.

“We see little scope for the economy to expand above 2.3% in Q4-2019,” said Omotola Abimbola, an investment researcher at Chapel Hill Denham.

tends to integrate the existing Taxpayers Identification Digit (PID) into the nationwide TIN system with the JTB. The state revenue service plans to use the existing Bank Verification Number (BVN) operations to achieve its objective. In other words, access to LIRS electronic platform for all transactions, such as registration and creation of Payer ID for new taxpayers, payment of

taxes and validation of taxpayers’ profile will compulsorily require BVN validation.

Hence, every self-employed individual in the state is expected to provide their BVN to the LIRS for creation of their unique PID, while corporate organisations are to ensure that their employees provide their BVNs for processing of their tax clearance certificates (TCCs).

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Abimbola implied that there were headwinds ahead for economic growth, with the oil and non-oil sectors faced with separate challenges.

“The increased focus of OPEC on compliance with the oil production cut agreement by members led to a decline in Nigeria’s oil production (excluding condensates) by 2.0% mom in October to 1.81mb/d. Against this backdrop, we expect the oil sector to slow to 6.22% yoy from 6.44% yoy in Q32019,” Abimbola said.

“We expect the nonoil sector to benefit from expansion in domestic credit, although the border closure remains a drag on trade while the telecoms sector will likely slow to single digit due to high base effect. “Nonetheless, we expect non-oil sector growth to accelerate to 1.95% yoy, driven by further recovery in agriculture,” Abimbola added.

Thursday 05 December 2019

BUSINESS DAY

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39

Gas explosion injures 7, damages12 vehicles at Four Points By Sheraton Hotel Joshua Bassey & Dipo Oladehinde

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t least seven persons were confirmed injured and about 12 vehicles damaged on Wednesday when an explosion rocked Four Points

By Sheraton Hotel, Oniru, on Victoria Island, Lagos.

The blast which was traced to a gas cylinder was said to have occurred at about 11:45am. It happened barely a week after a similar incident at a gas refilling shop led to the death of four persons and left 23 others injured in the Ajegunle area of Apapa.

Oluwafemi Oke-Osanyintolu, managing director of the Lagos State Emergency Management Agency (LASEMA), who confirmed the incident to BusinessDay, said some

of the vehicles parked within the premises of the hotel had their windshields completely shattered.

In-house Doctors at the hotel were seen by BusinessDay giving First Aid treatment to the victims of the accident.

The gas explosion came as a shock to residents of the hotel who were earlier informed by the hotel management of a planned fire drill by 3pm.

Oluwafemi Oke-Osanyintolu, managing director of the Lagos State Emergency Management Agency (LASEMA) said multiple vehicles had been damaged by the explosion.

Oke-Osanyintolu said his team found out at the scene of the incident that a gas cylinder was said to have exploded within the vicinity of the hotel.

“Further investigation re-

vealed that the gas cylinder used by welders working in the yard of the hotel premises exploded due to a leakage of one of the gas cylinder hose,” he said.

A total of seven people sustained severe injuries as a result of the blast and were rushed to Lagos Island General Hospital for intensive care by LASEMA Ambulance Unit while one was rushed to a nearby private hospital,” said Oke-Osayintolu.

He further confirmed the damage of cars and shattering of hotel room windows as a result of items flying objects due to the blast.

The welders, it was gathered were putting finishing touches to the last two pipes needed to complete a borehole project in the hotel when the blast occurred.

“They were drilling a borehole and perhaps ran into a gas line which caused the explosion,” a staff of the hotel simply identified as Emmanuel told BusinessDay at the site in a hurry, while trying to reach out for help.

There was a blowback when the welding equipment was restarted, leading to a burst pipe and eventual explosion of the welder’s gas cylinder and the subsequent disaster that followed.

Aside shattered hotel room windows, there were damaged walls and other yet to be detected physical damage to the structure of the hotel by flying objects.

Meanwhile, Oke-Osanyintolu has appealed to residents of Lagos to remain calm and collected, as the agency is looking at the situation ho-

listically, with a scientific approach to ensuring that there’s no more gas explosions in Lagos State again.

Oke-Osanyintolu said that the state was people-centric with the best interest of Lagosians at heart, and has put all necessary structures in place to mitigate against disasters in the state.

According to him, the Lagos State Material Testing Laboratory has been duly informed of the development and will conduct stability/ non-destructive tests to ascertain the status of the hotel, its beams and columns.

However, LASEMA has

End attacks by bandits now, Lawan tells service chiefs Solomon Ayado, Abuja

S

enate President, Ahmad Lawan, on Wednesday tasked security chiefs to quickly end incessant attacks by armed bandits in the country.

Lawan said he was disturbed that attacks by armed men across states in the country were rampant and it seemed the security agencies were not effectively containing them.

Lawan gave the charge after consideration of a motion on the security challenges, moved by Senator Sani Musa (APC, Niger East).

Musa in his motion reported of a recent gruesome attack on Madaka wa rd , Bu r waye, Tag i na, Gaude, Ungwar Sarki Noma, Gyaramiya, Maganda, Samunaka, Kur mi villages of Alawa, all in Rafi and Shiroro Local Government Areas of Niger State.

He stated that scores of persons were killed and abducted including the District Head of Madaka.

“These attacks continued

without any presence of Security Personnel in the Communities leaving them in the hands of the bandits.”

Consequently, the Senate tasked Service Chiefs and relevant security agencies to quickly deploy troops and materials to tackle the insecurity to foster peace.

Also, it directed the National Emergency Management Agency (NEMA) to provide relief materials to the affected areas.

Lawan said that “the motion we have just taken is a very serious one and I would urge the security agencies to act as quickly and expeditiously as possible to repel the attacks and assaults by the bandits.

“The essence of any government is the protection of lives and properties, and this is what we have to do for our citizens as an administration and as a government.

“We hope that this situation will be brought to an end and we will do everything possible, working with the executive to ensure that we secure the lives of our citizens and their properties.”

Over 40% Nigerians deprived of healthy diet due to poverty - NBS Cynthia Egboboh, Abuja

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h e Ni g e r i a n G e n eral Household Survey (GHS) report has revealed over 40 percent household in Nigeria cannot feed on healthy diet due to poverty.

The GHS report, which was released by the National Bureau of Statistics (nbs) on Wednesday, shows that 31.6 percent of household experienced food shortage in the past 12 months with July and August being the peak months for most household.

“Increase in the price of food items, increase in price of inputs. Theft of crop, cash, livestock and flooding that caused harvest losses were

the most common shocks reported.

“The Nigerian General Household Survey is implemented in collaboration with the World Bank Living Standards Measurement Study (LSMS) team as part of the Integrated Surveys on Agriculture (ISA) programme.”

According to the report, Southern zones and urban areas show a greater vulnerability to food insecurity and shortages than the northern zones and rural areas. “The south-east recorded the highest percentage of household unable to eat healthy and nutritious foods, followed by South South, while the north central had the least percentage of household that went without eating.” www.businessday.ng

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effectively brought the situation under control with the combined efforts of officers of the Nigeria Police, fire service with assistance from staff of the hotel in ensuring a swift recovery.

In compliance with international best practices in emergency situations, the entrance of the buildi ng a n d t h e e nt i re a re a surrounding the incident point, has been cordoned off, while the agency has n o t i f i e d o t h e r re l e v a n t agencies of the incident, and now waiting to conduct necessary post-disaster assessment.

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Thursday 05 December 2019

BUSINESS DAY

Live @ The STOCK Exchanges Prices for Securities Traded as of Wednesday 04 December 2019 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 330,570.60 9.30 0.54 191 5,972,108 UNITED BANK FOR AFRICA PLC 237,685.98 6.95 -1.42 172 12,961,732 ZENITH BANK PLC 587,114.43 18.70 -0.53 369 15,859,641 732 34,793,481 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 244,087.99 6.80 1.49 198 5,404,063 198 5,404,063 930 40,197,544 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,422,187.05 119.00 - 22 376,018 22 376,018 22 376,018 BUILDING MATERIALS DANGOTE CEMENT PLC 2,436,792.56 143.00 - 40 146,877 LAFARGE AFRICA PLC. 223,898.36 13.90 0.36 78 1,212,208 118 1,359,085 118 1,359,085 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 323,467.98 549.70 - 18 15,111 18 15,111 18 15,111 1,088 41,947,758 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,710.00 85.50 - 0 0 10,175.81 40.70 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) UPDC REAL ESTATE INVESTMENT TRUST 11,873.80 4.45 - 8 46,680 8 46,680 8 46,680 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 0 0 0 0 8 46,680 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 51,988.10 54.50 -0.09 48 1,060,166 OKOMU OIL PALM PLC. PRESCO PLC 37,850.00 37.85 - 21 141,722 69 1,201,888 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 8,520.00 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,530.00 0.51 2.00 9 797,400 9 797,400 78 1,999,288 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 953.02 0.36 - 0 0 JOHN HOLT PLC. 217.92 0.56 - 1 1,000 S C O A NIG. PLC. 1,903.99 2.93 - 1 1,000 TRANSNATIONAL CORPORATION OF NIGERIA PLC 40,241.51 0.99 -1.00 59 4,111,249 U A C N PLC. 21,753.79 7.55 0.67 87 1,916,820 148 6,030,069 148 6,030,069 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 25,080.00 19.00 - 7 10,480 ROADS NIG PLC. 165.00 6.60 - 0 0 7 10,480 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 2,598.40 1.00 - 6 39,532 6 39,532 13 50,012 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 7,281.43 0.93 - 4 8,684 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 63,521.10 29.00 - 29 82,616 INTERNATIONAL BREWERIES PLC. 86,818.21 10.10 1.00 15 224,633 NIGERIAN BREW. PLC. 408,241.85 51.05 - 61 759,629 109 1,075,562 FOOD PRODUCTS DANGOTE SUGAR REFINERY PLC 164,400.00 13.70 - 58 762,133 FLOUR MILLS NIG. PLC. 77,907.21 19.00 - 74 244,217 8,485.31 1.07 -2.73 23 1,605,038 HONEYWELL FLOUR MILL PLC MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 0 0 NASCON ALLIED INDUSTRIES PLC 37,092.14 14.00 - 11 25,645 UNION DICON SALT PLC. 3,321.07 12.15 - 0 0 166 2,637,033 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 18,594.20 9.90 - 14 92,384 NESTLE NIGERIA PLC. 1,070,085.94 1,350.00 - 51 47,839 65 140,223 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 4,878.29 3.90 - 12 129,018 12 129,018 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 20,845.00 5.25 - 28 330,996 UNILEVER NIGERIA PLC. 108,580.60 18.90 2.44 64 564,357 92 895,353 444 4,877,189 BANKING ECOBANK TRANSNATIONAL INCORPORATED 128,446.86 7.00 - 39 484,864 58,529.09 2.02 0.50 75 7,447,474 FIDELITY BANK PLC GUARANTY TRUST BANK PLC. 890,293.17 30.25 -0.17 169 6,086,386 JAIZ BANK PLC 20,624.97 0.70 1.45 26 1,891,096 STERLING BANK PLC. 55,277.60 1.92 -6.34 40 1,500,871 203,845.27 7.00 - 18 160,478 UNION BANK NIG.PLC. UNITY BANK PLC 7,598.07 0.65 - 6 162,000 WEMA BANK PLC. 27,387.87 0.71 -1.39 43 3,410,865 416 21,144,034 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 1 2,000 AIICO INSURANCE PLC. 5,128.35 0.74 2.78 20 694,898 AXAMANSARD INSURANCE PLC 18,900.00 1.80 - 4 11,205 CONSOLIDATED HALLMARK INSURANCE PLC 3,170.70 0.39 - 0 0 CONTINENTAL REINSURANCE PLC 22,820.04 2.20 - 0 0 10,310.66 0.70 - 8 371,250 CORNERSTONE INSURANCE PLC GOLDLINK INSURANCE PLC 909.99 0.20 - 0 0 1,228.00 0.20 - 1 1,000 GUINEA INSURANCE PLC. INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 1,830.86 0.25 - 6 286,788 2,792.61 0.65 - 5 26,747 LAW UNION AND ROCK INS. PLC. LINKAGE ASSURANCE PLC 4,080.00 0.51 - 0 0 2,234.55 0.20 - 1 2,000 MUTUAL BENEFITS ASSURANCE PLC. NEM INSURANCE PLC 10,561.01 2.00 5.26 9 184,350 NIGER INSURANCE PLC 1,547.90 0.20 - 5 627,478 2,745.10 0.51 - 0 0 PRESTIGE ASSURANCE PLC REGENCY ASSURANCE PLC 1,333.75 0.20 - 1 5,000 SOVEREIGN TRUST INSURANCE PLC 1,668.16 0.20 - 0 0 4,483.72 0.48 - 0 0 STACO INSURANCE PLC STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 1 2,000 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 2,773.33 0.20 - 1 36,000 WAPIC INSURANCE PLC 5,219.27 0.39 - 28 2,682,015 91 4,932,731 MICRO-FINANCE BANKS NPF MICROFINANCE BANK PLC 2,538.17 1.11 - 4 109,276 4 109,276

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MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,200.00 1.00 - 1 50 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 INFINITY TRUST MORTGAGE BANK PLC 5,796.93 1.39 - 0 0 2,265.95 0.20 - 0 0 RESORT SAVINGS & LOANS PLC UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 1 50 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,400.00 4.20 2.94 74 1,499,057 CUSTODIAN INVESTMENT PLC 35,291.19 6.00 - 9 92,374 DEAP CAPITAL MANAGEMENT & TRUST PLC 660.00 0.44 - 0 0 FCMB GROUP PLC. 35,644.88 1.80 -3.23 143 15,168,980 ROYAL EXCHANGE PLC. 1,337.80 0.26 - 4 107,617 STANBIC IBTC HOLDINGS PLC 385,423.03 36.80 - 16 54,259 UNITED CAPITAL PLC 13,560.00 2.26 -1.74 64 1,895,796 310 18,818,083 822 45,004,174 HEALTHCARE PROVIDERS EKOCORP PLC. 1,994.40 4.00 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 852.75 0.24 - 1 10,500 1 10,500 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 494.58 0.50 - 2 2,008 2 2,008 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 7,823.85 3.75 - 1 2,000 GLAXO SMITHKLINE CONSUMER NIG. PLC. 7,175.26 6.00 - 22 108,583 3,692.00 2.14 9.74 25 723,020 MAY & BAKER NIGERIA PLC. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1,386.38 0.73 - 6 163,221 NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 PHARMA-DEKO PLC. 325.23 1.50 - 0 0 54 996,824 57 1,009,332 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 959.04 0.27 3.85 4 600,000 4 600,000 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 NCR (NIGERIA) PLC. 486.00 4.50 - 3 20,002 TRIPPLE GEE AND COMPANY PLC. 316.77 0.64 - 4 3,390 7 23,392 PROCESSING SYSTEMS CHAMS PLC 1,549.70 0.33 -5.71 33 2,727,304 E-TRANZACT INTERNATIONAL PLC 10,962.00 2.61 - 0 0 33 2,727,304 TELECOMMUNICATIONS SERVICES AIRTEL AFRICA PLC 1,123,311.48 298.90 - 8 15,138 8 15,138 52 3,365,834 BUILDING MATERIALS BERGER PAINTS PLC 2,173.68 7.50 - 4 3,714 CAP PLC 16,800.00 24.00 - 22 106,673 CEMENT CO. OF NORTH.NIG. PLC 252,355.22 19.20 1.05 39 399,292 313.43 0.59 - 2 4,275 MEYER PLC. PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,769.32 2.23 - 0 0 PREMIER PAINTS PLC. 1,156.20 9.40 - 0 0 67 513,954 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 2,606.76 1.48 3.50 11 329,493 11 329,493 PACKAGING/CONTAINERS BETA GLASS PLC. 26,898.49 53.80 - 0 0 GREIF NIGERIA PLC 388.02 9.10 - 0 0 0 0 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 78 843,447 CHEMICALS B.O.C. GASES PLC. 2,539.09 6.10 - 0 0 0 0 METALS ALUMINIUM EXTRUSION IND. PLC. 1,781.64 8.10 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 83.60 0.38 - 0 0 0 0 0 0 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,377.79 0.22 10.00 33 3,675,201 33 3,675,201 INTEGRATED OIL AND GAS SERVICES OANDO PLC 45,001.71 3.62 -2.16 67 3,073,689 67 3,073,689 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 53,332.04 147.90 - 12 1,363 CONOIL PLC 12,838.11 18.50 - 14 34,480 ETERNA PLC. 3,651.61 2.80 - 7 17,747 FORTE OIL PLC. 23,574.91 18.10 - 27 73,275 MRS OIL NIGERIA PLC. 4,663.23 15.30 - 8 7,258 TOTAL NIGERIA PLC. 37,652.97 110.90 - 38 20,679 106 154,802 206 6,903,692 ADVERTISING AFROMEDIA PLC 1,509.28 0.34 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 17,551.17 1.80 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 270.56 0.23 - 3 10,200 3 10,200 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,623.26 4.45 - 4 7,150 TRANS-NATIONWIDE EXPRESS PLC. 431.34 0.92 - 0 0 4 7,150 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,259.15 2.75 - 1 20 IKEJA HOTEL PLC 2,120.37 1.02 - 5 103,000 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 41,042.18 5.40 - 1 100 7 103,120 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 1 20,000 1 20,000 PRINTING/PUBLISHING ACADEMY PRESS PLC. 223.78 0.37 - 2 8,000 964.31 1.25 - 4 10,254 LEARN AFRICA PLC STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0 UNIVERSITY PRESS PLC. 629.86 1.46 - 5 98,498 11 116,752 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 679.66 0.41 - 0 0 0 0 SPECIALTY INTERLINKED TECHNOLOGIES PLC 757.44 3.20 - 0 0 SECURE ELECTRONIC TECHNOLOGY PLC 1,126.31 0.20 - 0 0

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BUSINESS DAY

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41

42

Thursday 05 December 2019

BUSINESS DAY

news

Lifemate appreciates customers in grand banquet

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t was a day to remember for customers of the company on Saturday, November 24, as Lifemate Furniture rolled out plans in stock to celebrate and appreciate their customers with an evening of so much to eat, drink and a giving spree of assorted furniture products for both old and young.

The merrymaking was top notch and customers could not hold their excitement as they enjoyed good food, music, a lot of dance and even discount on offer for all furniture sales. The event held at the head office showroom in Oregun, Ikeja – Lagos.

Upon arrival, customers were treated to presentation by the Huaxing Art Troupe and a Lion dance performance. The event was anchored by Nigerian standup comedian, M.O.G Akpors, who thrilled the audience all through the event with rib cracking jokes and comedy.

Starting with the Nigerian national anthem and an opening prayer, the manag-

ing director, Ade Li, opened proceedings with an opening address. In his address, Li talked about the company’s achievement in recent years, something he attributed to be possible with the help of the ever faithful and supporting customers who help the company stay relevant and in business, with a challenge to get better in the services on offer, and a spur to greater things.

He appreciates the customers for their patience in times of misunderstanding and continued patronage while he admonishes that they anticipate greater things in plan for coming years.

Since their launch few weeks ago, electrical appliance arm of Lifemate, Vimate made an official presentation to integrate and familiarise with the customers present, showcasing services rendered by the brand and give an insight of what customers should anticipate in the coming year.

Ornua expands business scope in Nigeria with new filled milk brand

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rnua, global dairy firm with headquarters in Dublin, Republic of Ireland, has expressed its confidence in the Nigerian economy by its recent decision to expand its business scope in the country through the unveiling of a new filled milk brand, Kerrygold Avantage. This is in addition to the whole milk variety, Kerrygold full cream milk, already being enjoyed across the country.

This new product launch is a bold step and a proof of the willingness of Ornua to invest in Nigeria, creating wealth and making jobs available for the Nigerian citizens. Over the last five years, Ornua has partnered Fareast Mercantile Company Limited to jointly own a multimillion-dollar packaging facility, Eagle Industries Int’l Concepts Limited, with the

L-R: Washington Mosadioluwa, Iyunola Sanyaolu, Wahab Saheed, Michael Larbie, CEO, RMB Nigeria and regional head, West Africa, Duke Asidere, a renowned artist, Chioma Ekpetorson, and Akin Aluko, at the RMB Nigeria Client Appreciation Event which included the RMB Nigeria Custody Launch and Art Exhibition in Lagos.

FG introduces new electricity distribution policy, puts aside Eligible Customer policy Olusola Bello

capacity to employ and engage both directly and indirectly over 5,000 Nigerians.

The product unveiling was held last at Golden Gate Restaurant. The newly launched Kerrygold Avantage is a filled milk with difference. It boasts the renowned Kerrygold quality, emphasising the uniqueness of rich milk from grass-fed cows.

Kerrygold Avantage is nutrient rich affordable milk with stable shelf life. it has functional benefit for Tea/ coffee creamer, Ice cream and yogurt manufacture and it’s a high source of major minerals particularly Protein, Vitamins A&D, Calcium, Phosphorous, Magnesium, Potassium and trace elements. The product is available in 12g Sachet, 380g Pouch, 400g Tin, 850g Pouch, 900g Tin and 2.5Kg Tin.

Access Bank named Most Outstanding Company in Sustainability in Africa

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ccess Bank has cemented its position as the leader in Sustainability in Nigeria, winning its third consecutive ‘Most Outstanding Company in Sustainability in Africa’ award at the SERAS CSR Awards Africa.

The bank was recognised for its efforts in promoting sustainability in its business operations and contributing to positive development across the various communities it serves.

Receiving the award, Omobolanle Victor-Laniyan, Access Bank’s head of sustainability, credited the leadership of the bank for its sustainability vision and unwavering support in the development and execution of ground-breaking projects.

“We are delighted to be recognized as the ‘Most Outstanding Company in Sustainability in Africa’ for the third consecutive time. This award speaks to the effort of our team and the support we receive from the leadership of the Bank, starting at the Board

level. We feel motivated to sustain this level of excellence, knowing our efforts in conceptualising and implementing groundbreaking sustainability projects will go a long way in helping us achieve the 2030 Sustainability Development Goals,” she said.

Other award recognitions received by the Bank include the ‘Best Company in Partnership for Development’,‘Best Company in Climate Action’, ‘Best Company in Sustainability Reporting’, and ‘Best Corporate Communications Team Award’.

The annual SERAS CSR Awards Africa, now in its 13th edition, has grown to become the prime corporate awards promoting and measuring corporate social responsibility and sustainability in Africa. Key industry stakeholders rate it as the industry gold standard recognition for impactful investment in CSR and sustainability. It is the biggest event on the CSR & Sustainability calendar in Nigeria and Africa. www.businessday.ng

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ederal Ministry of Power has introduced a new electricity distribution policy called “willing seller, willing buyer.” This policy however overrides the policy of former minister for power, works and housing, Babatunde Fashola on Eligible Customers.

In this case, if you have your money you can approach the generation firm for what you. Under the new differential Power Distribution Policy, electricity would be wheeled directly from the generation companies to willing consumers who are ready to fully settle their bills.

The willing consumers

may include community and commercial clusters, industrial areas and hospitality sectors.

Speaking on a Freedom Radio phone in programme in Kano, the minister of power, Sale Mamman, said the policy was designed to save energy losses in the power sector and assist generation companies who have not been getting full payment for their generated power. The policy has already taken off as a pilot scheme in two states.

The minister revealed that DisCos had not been distributing all the power wheeled to them on the pretence that the consumers were unable to pay for the power. This, he said, necessitated the huge Federal Government’s subsi-

CBN, EFInA launch new evidence about addressing gender gap in financial access SEGUN ADAMS

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cross Nigeria, women are dealing with money – saving, borrowing, making payments, and sending and receiving money. Yet, Nigerian women are significantly more likely than men to be financially excluded, meaning that they do not have access to bank accounts, microfinance bank accounts, insurance, pension, or other financial services such as mobile money.

When financially excluded women save, they save at home; if they borrow, they borrow from family members or friends. Without insurance, they are financially vulnerablewhencrisesoccur.The death or serious illness of a family member, a change in market prices, or a natural disaster can wipe out a woman’s savings and put her family at risk.

In order to understand and address the gender gap in access to financial services, the Central Bank of Nigeria’s Financial Inclusion Secretariat and Enhancing Financial Innovation & Access (EFInA)haveconductedin-depth researchaboutwomen’sfinancial

inclusion in Nigeria. Based on a nationwide survey, in-depth discussions with women and men,andinterviewswithfinancial service providers, this research has identified significant factors associatedwithwomen’sfinancial exclusionandopportunitiestoaddress the gender gap in financial access.

These findings will be shared at the EFInA Financial Inclusion Conference, which takes place on Monday, December 9. The CBN’s deputygovernorforFinancialSystemsStability,AishahAhmad,will share insights from the research, in a session opened by the British DeputyHighCommissioner,Harriet Thompson.

Thetopicofwomen’sfinancial inclusion and economic empowerment will be further discussed

by Joseph Attah, head, Financial Inclusion Secretariat; Mayowa Kuyoro, associate partner at Mckinsey & Company; Bunmi Lawson, managing director of EdFin MicrofinanceBank;IniAbimbola, CEO of ThistlePraxis Consulting; Zino Afiegbe, senior relationship manager at Women’s World Banking, and Ashley Immanuel, head of Programmes at EFInA.

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dy intervention in the power sector by paying the GenCos for undistributed power.

Mamman lamented that last year the Federal Government approved an intervention fund of N700 billion to the GenCos, and just recently another N600 billion was approved for the same purpose.

He explained that this subsidy was an overbearing burden on the government, adding that over 2,000mw of electricity was not being distributed due to the failure of the distribution chain.

The minister also explained that the DisCos owed the GenCos and other agencies in the sector over N1.3 trillion, and that their collection and remittances had remained below 30 per-

cent or even far less, despite several efforts to make them improve.

He assured that the government was taking various measures including the completion of ongoing power projects to improve generation and distribution in the country, and called on Nigerians to be more responsible citizens by paying their electricity bills.

He noted that in the neighbouring Niger Republic, electricity tariffs were higher but payments were almost 100 percent, saying as part of efforts to improve power supply to the North, a new 330KVA line would be installed for Kano and other cities to balance the distribution in the country.

Flour Mills commits to SDG plans to end HIV/AIDS epidemic by 2030 KELECHI EWUZIE

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lour Mills of Nigeria plc says it is committed to continuously raise awareness about the scourge of HIV/ AIDS as plans are on the way towards its complete eradication.

The management of the firm also noted that to achieve our collective objective as a family in FMN in line with the world Sustainable Development Goals (SDG) to end the AIDS epidemic by 2030, we must recognise the importance of collaboration across our various departments and businesses.

Paul Gbededo, group managing director, Flour Mills of Nigeria, while speaking at an enlightenment and sensitisation walk organised by the company in commemoration of the World AIDS Day in Apapa, Lagos, emphasised the need to always work together in order to achieve great success.

“Applying that same mentality to the reason we are gathered here today, it is essential to note that there is a part for @Businessdayng

individual and collective actions in the fight against HIV/ AIDS,” he said.

Gbededo while addressing workers at the event on the theme “Communities make a difference assure the workers that Management will continue to ensure that employees have access to the right medical care when the need arises.

“Remember that we have a workplace policy on nondiscrimination in FMN. I am sure the HRD will inform you about the tenets of that policy shortly, but I can assure you that our employees will not suffer any form of stigmatization or discrimination. Instead, they will get the right kind of support needed to help them live meaningful lives,” Gbededo said.

According to the United Nations Programme on HIV/ AIDS, in 35 percent of countries with available data, over 50 percent of people report having discriminatory attitudes towards people living with HIV/AIDS. And because of stigma and discrimination, roughly one in eight people living with HIV are being denied health services.

Thursday 05 December 2019

BUSINESS DAY

news Nigeria’s future oil revenues shaky on Russia’s pending oil cuts consent STEPHEN ONYEKWELU

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rganisation of Petroleum Exporting Countries (OPEC) wants to deepen production cuts later this week to prevent looming oil glut next year but Russia’s consent may throw spanners in the work, if it does not come.

OPEC meets on Thursday in Vienna followed by a meeting with Russia and others, a grouping is known as OPEC+, on Friday.

Since 2017, OPEC+ has been curbing to counter oversupply as a result of booming output in the United States, which has become the world’s biggest producer and is not taking part in the cuts.

By 2020, rising production in non-OPEC countries such as Brazil and Norway threaten to add to the glut.

OPEC’s actions in the past have angered US President Donald Trump, who has repeatedly demanded OPEC’s de facto leader Saudi Arabia to

bring oil prices down if it wants Washington’s to provide Riyadh with military support against arch-rival Iran.

In the past few months Trump has remained silent on OPEC but he faces re-election in November next year when the issue of gasoline prices is likely to become a hot political topic again.

Washington’s ongoing trade dispute with China has also clouded the economic and therefore oil demand outlook for 2020. OPEC’s second-largest oil producer Iraq said on Tuesday key members supported deepening cuts for OPEC+ from the current level of 1.2 million barrels per day, or 1.2 percent of global demand.

“My understanding is that they (Saudis) do (prefer it),” Iraqi oil minister Thamer Ghadhban told reporters in Vienna.

The current deal expires in March and two OPEC sources have said it would be extended at least until June. Oman’s oil minister Mohammed al-Rumhi said

on Wednesday his delegation would recommend extending cuts until the end of 2020.

Saudi energy minister Abdulaziz bin Salman, the crown prince, declined to comment on policy matters upon arrival in Vienna.

Saudi Arabia needs higher oil prices to support its budget revenue and the pending share sale of state-owned oil giant Saudi Aramco with the pricing of its initial public offering (IPO) expected on Thursday.

OPEC’s actions have supported oil prices at around 50 to 75 dollars per barrel over the past year. Brent crude futures LCOc1 were up by around two per cent near 62 dollars per barrel on Wednesday.

Iraq’s Ghadhban said new cuts could be expanded to 1.6 million bpd while OPEC sources have also said Riyadh was pressing fellow members of Iraq and Nigeria to improve their compliance with quotas, which could provide an additional reduction of up to 400,000bpd.

$50,000 in grant seed capital while All On provides $50,000 in convertible debt. In addition to funding, the winners will also receive technical assistance from USADF’s local Nigerian technical partner Diamond Development Initiatives (DDI) and governance support from All On. The winners include Sholep Energy Limited, Protergia Nigeria Limited, Entric Power Systems Limited, and Acob Lighting Technology Limited which will deploy solar-powered mini-grids in underserved areas of the country.

Pirano Energy Limited and ICE Solar Commercial Power Limited will deploy standalone Solar Energy Systems. Sosai Renewable Energies Company Limited and Nexgen Energy & Allied Services Limited will focus on energy for productive agricultural use. Finally, Greenage Technologies Power Systems Limited will provide locally made power storage and invertor solutions.

“We are proud to partner with All On to advance our off-grid and renewable energy efforts in Nigeria,” said C.D. Glin, USADF’s President and CEO. “This partnership pioneers a blended finance model combining philanthropic grant capital with private sector investment funding to support selected Nigerian energy enterprises in growing their businesses, increasing access to power, and impacting people’s lives.”

According to Wiebe Boer, CEO of Nigeria-based All On, an off-grid energy impact investment company backed by Shell, “The 2019 Challenge built on the success of the 2018 edition with a larger and more competitive applicant pool. The companies that have emerged went through a rigorous review, due diligence, and business planning process.

We are confident these emerging indigenous companies will all succeed and over time provide clean, affordable, and reliable energy at scale to unserved and underserved Nigerians.”

were interviewed by our expert judges: Tosin Durotoye of FilmoReality/PropLab. Africa, Victoria Fabunmi of CcHub, Derin Adebayo of Endeavor Nigeria and Oluwatoyin Emmanuel-Olubake of Acumen West Africa, via a series of in-person presentations during which the candidates showcased their business offerings.

UUBO awarded the grand prize to Ibrahim Oredola of SkillNG, a solution based business which helps young people learn global in-demand digital skills by connecting learners to professional skill tutors and critical learning materials through a peer to peer learning network.

Oredola received $1000 and 20 hours of free legal advisory services as his prize, while Fela Akinse of Salubata received the second place prize of $1000 and 15 hours of free legal advisory services. These two entrepreneurs, working in tech and fashion respectively, impressed the expert judges with the uniqueness and viability of their ideas in the Nigerian marketplace.

Every year, the UUBO Black Friday Legal Clinic and Pitch Competition brings together some of the most innovative emerging entrepreneurs in Nigeria. The firm is proud of its continued contribution to the success of SMEs across the country.

Five start-ups win $.5m in All On/USADF 2019 Nigeria off-grid energy challenge

ISAAC ANYAOGU

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ive start-ups have emerged winners of the 2019 joint All On and United States African Development Foundation Nigeria Off-Grid Energy Challenge. The winners who were announced yesterday at the Solar Future Nigeria conference which took place at the Eko Hotel in Lagos were awarded $100,000 each in grant seed capital and convertible debt.

The Nigeria Off-Grid Energy Challenge is a joint effort by the U.S. African Development Foundation (USADF), a U.S. Government’s independent African enterprise development agency and All On to develop, scale-up, or extend the use of renewable off-grid energy technologies to reach communities not served by existing power grids.

Through the Challenge, USADF provides each of the selected energy enterprises

Udo Udoma & Belo-Osagie hosts inaugural Black Friday pitch for SMEs

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do Udoma & BeloOsagie (UUBO) ha s a n n o u n c e d the success of its inaugural Black Friday Pitch Competition, held November 29, 2019, in conjunction with the third edition of the annual UUBO Black Friday Legal Clinic.

The Black Friday Pitch competition was a strategic effort by UUBO to recognise and reward the value, innovation and sustainability brought by emerging entrepreneurs to the creative, tech, fashion and logistics industries.

From the 216 applications sent in nationwide, a shortlist of 14 candidates was drawn. These candidates

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@Businessdayng

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Thursday 05 December 2019

BUSINESS DAY

POLITICS & POLICY Makinde appoints special adviser on Health …Names Kano indigene as special assistant community relations REMI FEYISIPO, Ibadan

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overnor Seyi Makinde has announced the appointment of Olufunmilayo Salami and a Kano State indigene, Ahmed Murtala as special adviser Health and special assistant Community Relations I, Arewa Community, respectively.

The governor also approved the appointment of Jacob Adetoro as chairman, Federal Constituencies Liaison Officers, while naming 14 Constituency Liaison Officers, representing each of the state’s 14 Federal Constituencies.

A statement signed by the Special Assistant (Print Media) to Makinde, Moses Alao, indicated that the governor also approved

the appointments of Femi Josiah as Special Assistant on Community Relations II for other communities.

The governor charged the new appointees, whose appointments took effect from November 27, to see their appointments as a call to service, charging them to discharge their duties with absolute loyalty, dedication and diligence.

Salami, a medical doctor, who until her appointment as Special Adviser on Health to Governor Makinde, was a Consultant to the Government on Health, is a United States of America-based Pediatric Emergency Medicine Physician.

The new Special Assistant on Community Relations for the Arewa Community, Murtala, hailed from Nasarawa Local Government of Kano State and had his

Seyi Makinde

primary and secondary school education at St. Brigid Boys School, Mokola, Ibadan and Community

Grammar School, Mokola, Ibadan, respectively.

He will serve as the bridge between the Oyo State Gov-

ernment and the Hausa/ Fulani community as well as other Northern groups scattered across the state.

Governor Makinde had, at a recent forum, while receiving a contingent of the Niger State Youths, which were in Ibadan to present him with a white horse and an award in recognition of his excellent service delivery in the first six months in office, promised to appoint a Special Assistant from the Hausa/Fulani community to serve as the link between the government and the community, especially in the face of farmer-herdsmen crisis.

The appointments were communicated through letters signed by the Secretary to the State Government, Olubamiwo Adeosun.

The 14 Liaison Officers appointed by the Gover-

nor were: Ajibike Osuolale Lateef (Iseyin, Itesiwaju, Kajola and Iwajowa); Salami Lukman Adisa (Saki East, Saki West and Atisbo); Afees Tijani (Orelope, Irepo and Olorunsogo); Ganiyu Laaro (Oriire, Ogbomoso North and Ogbomoso South); Sanjo Akintola (Ogo-Oluwa and Surulere) Wale Ogunmola (Afijio, Oyo West, Oyo East and Atiba); Monsuru Oduola (Ibarapa North and Ibarapa Central).

Others were: Julian Nwachukwu (Ibadan North); Olumide Akinlade (Oluyole); Kafilat Olayiwola (Ido and Ibarapa East); Labule Ishola (Ibadan South-West &North-West); Yahaya Akinbile (Ibadan South-East and North-East); Wulemot Ibitoye (Akinyele/Lagelu) and Adegboyega Akinlolu James (Ona-Ara and Egbeda).

Agbakoba calls for cooperative federalism to end Nigeria’s woes

Group canvasses support for Obaseki’s second term bid

…Casts doubt on realisation of political restructuring

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Iniobong Iwok

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lisa Agbakoba, human rights lawyer and activist, has urged Nigerians to adopt cooperative federalism rather than political restructuring to solve the nation’s numerous challenges.

In recent years, agitation for a political restructuring of Nigeria has been rife among political leaders, mostly from the Southern part of the country. The proponents blamed the current political system for the nation’s woes, while seeking restructuring and constitutional reforms which they believe would return the country to a parliamentary system of government which was operated in the First Republic.

However, the incumbent President Muhammadu Buhari and some leaders in the North have kicked against such plan. Buhari had recently said that the problem of the country was not about the structure of the country but the way of doing things.

But speaking in a media chat in his office in Ikoyi, Wednesday, Agbakoba said the country should rather focus on initiating strong trade

policies which would encourage strong internal trade, and create jobs for the citizenry, boost small and medium scale enterprise rather than focus on restructuring which had become divisive.

Agbakoba, a senior advocate of Nigeria (SAN), therefore cast doubt on the realisation of political restructuring in Nigeria because of the opposition of President Buhari and the Northern region to the idea, stressing that the country needs to adopt new macro-economic policies

Olisa Agbakoba www.businessday.ng

and strong business and legal regulations to ensure development of the country.

According to him, “Political restructuring is a divisive issue; rather, the question of restructuring has brought us back. We need to suspend it; the President does not believe in it, so there would be a clash of the heads of actors.

“Let look for a new economic method of developing the country, the new economic advisory panel set up would put smiles on the faces of Nigerians.”

IDRIS UMAR MOMOH, Benin

“Restructuring is causing us problems between the North and the South; let us adopt cooperative federalism, which would replace agitations for restructuring for now, until we are mature enough to understand what restructuring is all about,” Agbakoba further said.

He also supported the border closure, saying that the nation had become a dumping ground for inferior products from China and other nations which had affected local industries negatively, while equally seeking a new comprehensive institutional development design to transform the country.

“It is crucial to design a comprehensive institutional development design which is like an architectural plan to transform Nigeria. It is important that the design takes into account development law as it is a vital element of any successful model.

We can’t grow the economy until political leaders speak with one voice. I support border closure, but may be, it should have been called border enforcement.

We need to check ECOWAS countries bringing in goods without obeying rules,” he added.

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non-governmental organisation under the aegis of Initiative for Developing Entrepreneurship and Advancing Human Potentials in Edo State on Wednesday urged the people of the state to support Governor Godwin Obaseki’s quest for a second term in office.

The group said the support will enable the governor cons olidate and sustain his good works, policies and programmes.

Mentor E xcel Osamw enyobo, president of t h e g ro u p, i n a s t a t e ment made available to journalists in Benin City, noted that the governor deserves second term in office as a result of his performance and commitment to the development of the state.

Osamwenyobo also lauded achievements of the governor in the last three years, saying they stand him out as a performing governor.

According to her, the governor’s achievements speak volumes and it can be seen in infrastructure, human capital, educa@Businessdayng

tion, internally generated revenue (IGR), Foreign Direct Investment (FDI) and industry, agriculture, among others.

“Governor Obaseki has pioneered a number of policy reforms that saw the state restructure its public finance, secure funding for infrastructural development and improve the business climate to attract investment in power, agriculture and other critical sectors,” she said.

She explained that the g overnor had als o launched the Edo Basic Education Transformation (Edo BEST) programme, an initiative designed to train and equip public school teachers with requisite skills and expertise for deploying Information and Communication Technologies (ICTs) in classrooms to improve learning outcomes.

“The governor, also revamped the Government Science and Technical College (formerly Benin Technical College) to train workforce in a bid to solve the problem of dearth of technical skills and technologically competent hands in the state,” she said

Thursday 05 December 2019

FT

BUSINESS DAY

45

FINANCIAL TIMES

World Business Newspaper MICHAEL PEEL AND HELEN WARRELL

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at o c ou nt r y l e a d ers will hold talks on Wednesday on the militar y alliance’s strategic priorities after a barrage of disagreements overshadowed the start of its 70th birthday summit.

Presidents and prime ministers from the 29 Nato member states are set to gather at a hotel outside London, after spats over Syria, Turkey and the modern purpose of an organisation founded as a cold war counterweight to the Soviet Union.

Diplomats are anxious over the potential for further rifts, after France’s President Emmanuel Macron clashed on the eve of the meeting with Donald Trump, US president, and Recep Tayyip Erdogan, president of Turkey.

Leslie Vinjamuri, head of the US and Americas programme at Chatham House, said: “There’s a fundamental question about whether the leaders can keep the channels of communication open at a time when relations are so difficult. There’s a danger things may escalate in a way that can’t be controlled.”

Exacerbating tensions ahead of the event, a video recorded at Buckingham Palace on Tuesday night appeared to show Canadian president Justin Trudeau making fun of Mr Trump’s lengthy and rambling press conferences earlier in the day. In conversation with Mr Macron and UK prime minister Boris Johnson, the Canadian premier does not identify the US president by name, but can be seen discussing a press confer-

Nato leaders gather for talks after spats on eve of summit Barrage of disagreements overshadows start of 70th birthday celebration

Donald Trump, right, with Jens Stoltenberg, Nato secretary-general, in London on Tuesday ahead of the summit © Evan Vucci/AP

ence which over-ran, saying “you just watched his team’s jaws drop to the floor”.

Leading European powers met Turkey ahead of Wednesday’s gathering in an attempt to lower tensions over Ankara’s military incursion into northern Syria against Kurdish militias that have aided the Western-led fight against Isis.

Turkey sees the Kurdish groups as a terrorist threat. It has refused

Brussels urged to rein in state-backed foreign rivals

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he EU should receive sweeping extra powers to stave off an unfair competitive threat from state-supported companies in China and elsewhere, the Dutch government has said in a further sign of rising intent in Europe to defend the region’s economic interests.

In a position paper seen by the Financial Times, the Netherlands has called for an overhaul of European competition law that would allow Brussels to intervene if it found that state-backed businesses were distorting markets.

Under the proposals, the European Commission could stop such companies buying EU competitors at inflated valuations or undercutting them with artificially low selling prices. Brussels would also be able to demand greater transparency in foreign companies’ accounts.

The revamp would be aimed at groups owned or supported by non-EU governments, to address concerns that their financial muscle gives them an unfair advantage over EU rivals inside the single market.

The Hague is discussing its ideas privately with officials in Brussels

Sundar Pichai will also take on chief executive position at tech holding company

and national capitals. The proposals come as Ursula von der Leyen, the new commission president, has been vowing to turn the EU into a stronger “geopolitical” actor capable of asserting its common interests “We want to give the European Commission extra competition tools to enforce a level playing field,” said Mona Keijzer, the Dutch state secretary of economic affairs.

“Companies, regardless of their home base, are welcome to do business here. All we are saying that if you want to enter our arena, you have to play by the rules we set to ensure fair competition.”

Any overhaul would mark a radical attempt to level the playing field after years in which companies have complained about the favours done

by Beijing and other governments to their preferred businesses.

In a strategy paper on China this year Brussels vowed to examine gaps in its arsenal that make it difficult to deal with the “distortive” effect of foreign state ownership and financing of companies operating in Europe.

“Economic operators with (discriminatory) aid benefits and unregulated market power should be subject to stricter supervision, in order to prevent potentially disruptive behaviour,” the Dutch paper argues. www.businessday.ng

rorism efforts in the Middle East.

The four leaders agreed to work together to create the conditions for the “safe, voluntary and sustainable return of refugees [from Syria]” and stipulated that “all attacks against civilians in Syria, including those in [the northwestern province of ] Idlib, must stop”, a Downing Street spokesman said.

They also emphasised the importance of supplying humanitarian

Google co-founders Page and Brin step down from Alphabet

Dutch call for extra EU powers to defend region’s commercial interests SAM FLEMING AND JAVIER ESPINOZA

to approve a Nato plan to defend the Baltic states and Poland unless other allies brand the YPG Kurdish organisation as terrorists.

Mr Johnson, the summit host, returned from a day of general election campaigning late on Tuesday to meet Mr Macron and Mr Erdogan, together with Angela Merkel, the German chancellor.

They discussed the humanitarian crisis in Syria and counter-ter-

aid across borders to north-east Syria.

But there was notably no mention of the return of Isis fighters to Europe — despite a jibe on Tuesday by Mr Trump to Mr Macron on the failure of Britain, Germany and France to repatriate jihadis who had travelled to Syria.

Mr Macron — who has said he wants Nato to prioritise the fight against terrorism — in turn accused Ankara of sometimes working with “Isis proxies”. He also raised concerns over Turkey’s decision to buy the S-400 air-defence missile system from Russia.

Diplomats say Wednesday’s talks are being kept deliberately brief to minimise the potential for further serious fallouts and prevent the chaos of last year’s summit in Brussels. There, Mr Trump flayed other allies for failing to spend more on their militaries.

The meeting at the Grove Hotel, close to the town of Watford and ‘The Making of Harry Potter’ film studio tour, is scheduled to last just three hours and to end by lunchtime.

Many elements of the gathering have been pre-agreed. These include making outer space an official domain of Nato operations and thus covered by the alliance’s Article Five provision on collective defence.

RICHARD WATERS

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arry Page and Sergey Brin, the Stanford students who founded Google as a research project 21 years ago, are stepping back from their day-to-day roles at technology holding company Alphabet, bringing the curtain down on one of the most successful management double-acts in history.

However, the duo, who between them control more than 51 per cent of the votes in Alphabet through a special class stock, will “continue their involvement as co-founders, shareholders and members of Alphabet’s board of directors”, the company said.

The shake-up will see Sundar Pichai, who took over management of the Google internet business four years ago, also take on the chief executive position at Alphabet. As head of the search business, he already had authority over operations that accounted for more than 99 per cent of Alphabet’s revenues.

As head of Alphabet, Mr Pichai will also take over the running of the company’s “other bets” — a collection of “moonshot” technology

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projects that include the Waymo driverless car unit and Calico, a healthcare company set up to tackle illnesses that are the most common cause of death.

The Google founders had already become a less visible presence around the company they founded, taking increasingly less active roles in the various businesses that operated under the Alphabet umbrella.

Their low public profile — along with by Mr Pichai’s low-key personal style as chief executive of Google — has added to pressure on the internet group at a time when it has come under political and regulatory scrutiny. The failure of any of the top executives to take an active lead in defending the company reached its nadir last year, when Google at a hearing on Capitol Hill was represented by an empty chair.

While head of Google, Mr Page had been notoriously uninterested in day-to-day business realities, leaving that to more junior managers while he spent his time instead on grand plans like the company’s driverless car project. His personal interests were formalised with the creation of Alphabet, cutting him free of direct management in the company’s main money-generator @Businessdayng

to work on the “moonshots”.

Mr Brin, meanwhile, bounced between projects at Google and then, later, other parts of the group.

These included Glass, the augmented reality glasses that could also be used to record video, provoking a backlash over privacy concerns. He has since focused his attention on X, the experimental labs where some of the company’s most ambitious long-term projects were hatched.

In a public letter announcing the management changes on Tuesday, Mr Page and Mr Brin painted their departure as a natural progression for Alphabet as it becomes a more mature company.

With the holding company’s various units operating as standalone businesses under their own chief executives, they said, it was a “natural time to simplify our management structure”. They added: “We’ve never been ones to hold on to management roles when we think there’s a better way to run the company.”

Alphabet A shares rose 0.8 per cent in after-market trading to $1,304 following the succession announcement, against the backdrop of a falling overall market on Tuesday.

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Thursday 05 December 2019

BUSINESS DAY

FT

NATIONAL NEWS

How to reform today’s rigged capitalism We must address weakened competition, feeble productivity growth, high inequality and degraded democracy MARTIN WOLF

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“

t is clear then that . . . those states in which the middle element is large, and stronger if possible than the other two [wealthy and poor] together, or at any rate stronger than either of them alone, have every chance of having a well-run constitution.” Thus did Aristotle summarise his analysis of the Greek city states. The stability of what we would now call “constitutional democracy” depended on the size of its middle class. It is no accident that the US and UK, long-stable democracies today succumbing to demagogy, are the most unequal of the western high-income countries.

Aristotle, we are learning, was right.

(See charts.)

My September analysis of “rigged capitalism” concluded that “we need a dynamic capitalist economy that gives everybody a justified belief that they can share in the benefits. What we increasingly seem to have instead is an unstable rentier capitalism, weakened competition, feeble productivity growth, high inequality and, not coincidentally, an increasingly degraded democracy.”

So what is to be done?

Chart showing that The US and UK are league leaders in inequality.

Inequality of household disposable incomes after taxes and cash transfers (2016) The answer is not to overthrow the market economy, undo globalisation or halt technological change.

It is to do what has been done many times in the past: reform capitalism.

That is the argument I made in a recent debate with former Greek finance minister Yanis Varoufakis on whether liberal capitalism should be saved. I argued, in effect, that “if we want everything to stay the

same, everything must change”, as the Italian author Giuseppe Tomasi di Lampedusa wrote. If we want to preserve our freedom and democracy we need to embrace change.

Here are five policy areas that need to be addressed.

Chart showing the huge spikes in mergers and acquisitions. Number of M&A deals in the US, thousands First, competition. Thomas Philippon’s wonderful book, The Great Reversal, demonstrates how far competition has weakened in the US. This is not the result of inevitable forces, but of policy choices, especially abandonment of an active competition policy. US markets have become less competitive: concentration is high, leaders are entrenched and profit rates are excessive. Moreover, this lack of competition has hurt US consumers and workers: it has led to higher prices, lower investment and lower productivity growth. In a paper on reducing inequalities, in an invaluable collection on “Beyond Brexit: A Programme for UK Economic Reform”, Russell Jones and John Llewellyn argue that concentration and mark-ups have also risen in the UK. Chart showing the steep decline in publicly listed companies. Number of publicly listed companies in the US. Number of publicly listed companies in the US, thousands.

In the past decade, Amazon, Apple, Facebook, Google, and Microsoft combined have made over 400 acquisitions globally. Dominant companies should not be given a free hand to buy potential rivals.

Such market and political power is unacceptable. A refurbishment of competition policy should start from the assumption that mergers and acquisitions need to be properly justified.

Germany says it has ‘sufficient indications’ Russia was behind Berlin murder Two diplomats expelled as killing of Chechen rebel threatens relations with Moscow GUY CHAZAN

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erman federal prosecutors say they have “sufficient indications” that the Russian state was behind the murder of a Chechen rebel in Berlin, in a case that echoes the poisoning of double agent Sergei Skripal in the UK last year.

In a sign of how the case could send relations between Russia and Germany to a new low, the German foreign ministry said on Wednesday it had expelled two Russian diplomats over the killing and Moscow’s failure to help with the ensuing investigation.

In a statement, the federal prosecutors’ office said that there were “sufficient factual indications” to suggest that the killing of Tornike Kavtarashvili on August 23 was “ordered by the state authorities of the Russian Federation or those of the Chechen Republic”.

Kavtarashvili, who was also known as Zelimkhan Khangoshvili, was a Chechen rebel who held Georgian nationality and had been denied asylum in Germany.

The attorney-general’s statement suggests that Kavtarashvili could be the latest in a string of Kremlin political opponents who

have been attacked or assassinated abroad in recent years.

In March last year Sergei Skripal and his daughter Yulia were poisoned in the British town of Salisbury with a nerve agent. In September that year, British authorities identified two Russian nationals, using the names Alexander Petrov and Ruslan Boshirov, as suspected of poisoning the Skripals, and alleged they were active officers in Russian military intelligence.

On Wednesday the German foreign ministry said that despite “repeated high-level and urgent requests”, the Russian authorities had failed to co-operate adequately with the probe into the murder of Kavtarashvili.

It said the latest request for help had been conveyed in a conversation between Andreas Michaelis, state secretary at Germany’s foreign ministry, and Sergei Nechayev, the Russian ambassador to Berlin, at a meeting on November 20.

The foreign ministry said it still expected “serious and immediate co-operation from the Russian authorities”, especially as Germany’s attorney-general, who handles cases involving national security, had now taken over the investigation into the murder. www.businessday.ng

Kamala Harris, right, was never able to recapture the attention she garnered at the second Democratic debate in July © Reuters

Exit of Harris set to benefit Biden campaign most Former vice-president likely to attract African-American Democratic voters LAUREN FEDOR

K

amala Harris launched her presidential bid with a bang in January, as more than 20,000 people attended a rally in the California senator’s hometown of Oakland.

But her campaign ended with a whimper on Tuesday, as Ms Harris told supporters she “simply doesn’t have the financial resources we need to continue” — ending an 11-month effort for the Democratic presidential nomination that started with high hopes but fizzled out due in part to muddled messaging, inconsistent debate performances and disappointing fundraising.

A former prosecutor who was attorney-general of California before being elected to the US Senate in 2016, Ms Harris gained national attention for her grilling of US attorney-general Bill Barr and Supreme Court justice Brett Kavanaugh in their confirmation hearings. Her campaign slogan “for the people” emphasised her legal background, and she repeatedly told voters she was ready to “prosecute the case” against Donald Trump.

She also received a burst of sup-

port over the summer after attacking former vice-president Joe Biden in a televised debate over his record on race.

But Kyle Kondik, managing editor of the non-partisan Sabato’s Crystal Ball at the University of Virginia, said Ms Harris had fallen in a cycle political scientists John Sides and Lynn Vareck call “discovery, scrutiny and decline”.

“For Harris, the debate was discovery, and in the aftermath there was scrutiny, and then she declined,” Mr Kondik said. “She was never able to recapture that moment she had in the first debate.”

“Even though she looked great on paper when she got into the race, and a lot of people saw her as the most likely nominee . . . sometimes candidates look better on paper than they actually are in practice,” he added.

Ms Harris struggled to break through in the polls, languishing behind Mr Biden, Massachusetts senator Elizabeth Warren, Bernie Sanders, the Vermont senator, and more recently, Pete Buttigieg, the mayor of South Bend, Indiana.

Mary Anne Marsh, a Democratic strategist, said Ms Harris’s “uneven performance” had damaged her prospects. “When you look at Demo-

cratic voters who are determined to defeat Donald Trump, they did not want to back someone who is as mercurial as Harris was as a candidate,” she said.

The senator faced criticism for shifting her position on many issues, including healthcare reform.

In the June debate, Ms Harris raised her hand in apparent support for eliminating private health insurance before later saying she thought the question was about whether she personally would give up her private insurance.

The latest average of polls compiled by the website Real Clear Politics showed Ms Harris had the backing of just 3.4 per cent of likely Democratic voters nationwide, and 3.3 per cent and 2.7 per cent in the early voting states of Iowa and New Hampshire, respectively.

Ms Harris also struggled in her home state of California, where she was polling in fourth place with the backing of 8.7 per cent of voters, according to Real Clear Politics. A recent LA Times poll showed 61 per cent of likely Democratic voters in California thought Ms Harris should drop out of the race.

The California Democratic primary will be held on March 3, or “Super Tuesday”, alongside more than

House impeachment report concludes Trump abused his office Democrats detail their conclusions as they push ahead into next phase of inquiry DEMETRI SEVASTOPULO AND LAUREN FEDOR

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ouse Democrats accused Donald Trump of abusing his office for political gain and trying to obstruct the Ukrainegate investigation, in a highly anticipated report that paves the way for articles of impeachment and a trial in the Senate.

In a 300-page report, the House committees pursuing the impeachment inquiry said the “evidence is clear” Mr Trump sought to advance his re-election prospects by pushing Ukraine to dig up dirt on Joe Biden, the former vice-president, and probe debunked claims that Ukraine, rather than Russia, meddled in the 2016 election.

“In doing so, the president placed his own personal and political interests above the national interests of the US, sought to undermine the integrity

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of the US presidential election process and endangered US national security,” said the report which was compiled by the House intelligence, oversight, and foreign affairs committees.

Over the coming weeks, the Democrats are expected to draft articles of impeachment that will almost certainly pass the House, where the party has a majority. Once the House impeaches Mr Trump, there will be a trial in the Senate, where Mr Trump would have to lose the support of 20 Republicans to be convicted and removed from office.

Adam Schiff, the Democratic head of the intelligence committee, which held the public hearings that informed the report, said investigators had documented a co-ordinated effort by the president and his aides to pressure Ukraine to do “his political dirty work”.

“It involves a scheme in which @Businessdayng

Donald Trump withheld official acts, a White House meeting, as well as hundreds of millions of dollars of needed military assistance in order to compel that power to deliver two investigations that he believed would assist his reelection campaign,” Mr Schiff said on Tuesday after the report was released.

The White House said the report was a “one-sided sham” that “utterly failed” to find evidence of wrongdoing.

“Schiff’s report reads like the ramblings of a basement blogger straining to prove something when there is evidence of nothing,” it said.

The impeachment inquiry was triggered when a CIA official filed a whistleblower report about a July 25 phone call in which Mr Trump asked his Ukrainian counterpart, Volodymyr Zelensky, to investigate Mr Biden and his son, Hunter Biden, who served on the board of Burisma, a Ukrainian gas company

BUSINESS DAY

Thursday 05 December 2019

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FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Opening Quote: Fintech Zopa has valuation slashed Your morning City briefing on companies in the news, job moves and what’s happening in the markets CAT RUTTER POOLEY

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as the fintech bubble burst for the peer-to-peer lenders? Not quite, but it has certainly deflated. High profile UK fintech Zopa on Tuesday completed a last-minute fundraising to salvage its efforts to fully launch its bank, raising £140m from US investor IAG Capital. That money came at a cost to existing investors, however, as results from listed fintech investment fund Augmentum Fintech show on Wednesday morning.

Augmentum has written down the value of its shares in Zopa by 47 per cent, cutting the valuation of its 6.2 per cent stake in the peer-topeer lender from £22m at the end of March to just £11.7m six months later.

Previously Zopa was Augmentum’s largest holding by some distance.

Now its stake in Zopa is outweighed by investments in Interactive Investor and Tide.

There had been “significant investor interest” in Zopa, according to Augmentum, but Brexit killed that off.

“Many” asked for the chance to do due diligence once there was “more economic and political stability in the UK”, whenever that might be. But the Prudential Regulation Authority held Zopa to a December deadline and refused a fundraising extension.

Augmentum says its view of Zopa’s prospects has not changed, despite the valuation cut from the latest investment round. But the attitudes of other potential investors in peer-to-peer lenders has changed.

Augmentum acknowledges the Zopa capital raise was “challenging due to the nature of the investor pool the company was targeting”, with many burned by the experience of investing in listed rival Funding Circle (down around 80 per cent since last year’s IPO).

With its efforts to get its full banking licence, Zopa is pivoting away from peer-to-peer lending. It just needs investors to stop thinking of it as a peer-to-peer lender, too.

Briefly M&C Saatchi, the ad agency, issued a fresh profit warning on Wednesday and acknowledged accounting errors may stretch back five years. Full-year profits are now expected to fall up to 27 per cent, rather than the 10 per cent it warned of in September. The agency has been caught up in an accounting scandal since August, when it disclosed the discovery of accounting errors and employed PwC to conduct an independent review. On Wedneday morning M&C said it will have to make £11.6m of adjustments to its results, split between 2018 and 2019, as a result of the review.

Pre-tax profits at broker Numis slumped 61 per cent as revenues in investment banking and equities tumbled in the year to September.

Total revenues fell 18 per cent yearon-year to £112m while pre-tax profits dropped to £12.4m. The industry has had a difficult year with a dearth of equity capital markets deals. Numis also said its equities business had been hit by “weak UK investor sentiment” and lower trading profits, though payments for research — an area that has come under pressure

from Mifid II reforms — were stable.

The company said revenue performance had improved since the start of its new financial year, however.

Gold miner Centamin has set out a more detailed rejection of Endeavour’s hostile bid. The bid is skewed in favour of Endeavour’s shareholders, Centamin argues, and does not justify changes to the investment case for Centamin’s shareholders. Endeavour has failed to demonstrate the logic of a tie-up outweighs the cash returns Centamin gives its shareholders, the company says. But the final line of argument in Centamin’s rejection — that it deserves a bigger premium — reads a lot like a plea for a higher offer. Centamin indeed says it wanted to engage, and that it was Endeavour, not Centamin, that declined to do so.

Wm Morrison is having a management reshuffle. Trevor Strain, chief financial officer since 2013, moves to become chief operating officer, while Michael Gleeson moves up to the finance director role.

Beyond the Square Mile Larry Page and Sergey Brin, the Stanford students who founded Google as a research project 21 years ago, are stepping back from their dayto-day roles at technology holding company Alphabet. The shake-up brings the curtain down on one of the most successful management double-acts in history and will see Sundar Pichai, who took over management of the Google internet business four years ago, also take on the chief executive position at Alphabet.

Bridgewater’s co-chief executive Eileen Murray is exiting the giant hedge fund, leaving former Treasury official David McCormick in charge of the $160bn investment group founded

by Ray Dalio after a longstanding, convoluted succession drama. Bridgewater is the best-performing hedge fund of all time, having returned $57.8bn in net gains since its inception, according to LCH Investments, the fund of hedge funds run by the Edmond de Rothschild group.

The cryptocurrency exchange set up by Cameron and Tyler Winklevoss has hired the co-founder of UK digital bank Starling to kick-start a European expansion. Gemini Trust Company, the US crypto trading and custody group founded by the twin brothers in 2014, has recruited Julian Sawyer in a bid to expand outside America. Gemini has made a string of high-profile hires over the past 18 months to expand its exchange and custody business, bringing in executives from the New York Stock Exchange and the International Securities Exchange (ISE).

Closing Quote — essential comment before you go Grief in the workplace What right did I have to be sobbing in front of my computer when a colleague died suddenly, reflects Katie Martin in the wake of the death of two participants in the University of Cambridge’s Learning Together programme.

Grieving in the office can be hard to navigate.

FT/McKinsey Business Book of the Year Caroline Criado Perez has won the £30,000 prize for Invisible Women, her examination of how designers and developers have perpetuated bias towards men in the data they use. www.businessday.ng

Larry Page, left, and Sergey Brin, centre, are stepping down while Sundar Pichai, right, becomes Alphabet chief © AP/Bloomberg

Google founders’ exit signals end of era at search giant Alphabet share price ticks up as analysts forecast reduced spending on ‘moonshots’ RICHARD WATERS

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he most remarkable thing about the abrupt exit of Google’s co-founders from the top of the tech giant they spent 21 years building was how low-key it was.

The announcement late on Tuesday that Larry Page and Sergey Brin were stepping down with immediate effect marked the end of an era. Like Jack Ma’s departure from Chinese ecommerce giant Alibaba in September, it ushered in a new phase for one of the world’s dominant internet empires.

Not since Bill Gates said in 2006 that he was quitting his day job at Microsoft have the founders of a leading US tech company chosen to simply walk away.

Yet shares in Alphabet, Google’s parent, actually edged up slightly after the announcement, and most investors and analysts barely blinked at the news.

“I think that Larry Page and Sergey Brin kind of stepped away from the business quite a while ago — this probably just formalises what has been going on,” said Kevin Walkush, a portfolio manager at Jensen Investment Management, an Alphabet shareholder.

Nevertheless, their exit came without warning, and at a time when

Google is under considerable internal and external strain. “It certainly surprised me,” said Sebastian Thrun, who started Google’s driverless car project, and more recently has been running Kitty Hawk, a flying car company backed by Mr Page, adding that Mr Page had given no indication he was planning to step down.

The two men painted their departure as part of a logical progression that had already seen them pull back from direct involvement in running the internet business.

On the creation of Alphabet four years ago, they handed management of Google to Sundar Pichai, a top product manager, with Mr Page becoming chief executive of the new tech holding company and Mr Brin its president.

That reflected personal interests that had expanded well beyond Google — even as the internet business continued to generate more than 99 per cent of the group’s revenues, as well as all the cash needed to fund its other activities, from building driverless cars to breaking into healthcare.

Previously chief of the internet group, Mr Page had shown little interest in the day-to-day running of the business. Rather, he was transfixed by the chance to pursue technological breakthroughs across a range of industries — a role he was freer to indulge at the helm of the

holding company.

“In my opinion, Larry is the Thomas Edison of our time,” said Mr Thrun. “He didn’t just invent one thing. He wants to be on the bleeding edge of technology, wherever it is.”

Mr Brin, meanwhile, had been drawn to Google’s flights of tech fancy at X, the “moonshot factory” he helped set up to incubate its most ambitious new ventures.

He took on a freewheeling role in championing different projects — though a privacy backlash against Glass, the augmented reality glasses he was most closely associated with, showed how Google’s obsession with technological advances could sometimes blind it to human considerations.

As they departed, the founders tried to depict their roles since the formation of Alphabet as only temporary: with other business units operating under separate management teams — even, in some cases, with outside investment and their own boards of directors — a layer of managers at the holding company level was no longer needed.

They will nevertheless stay on the company’s board and remain its controlling shareholders, with 51 per cent of a special class of voting stock, so any significant changes under new management are unlikely.

Pound hits 7-month high as traders bet on Tory victory Second day of strong gains as economists see election as ‘Johnson’s to lose’ PHILIP GEORGIADIS

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he pound has risen to its highest level since May against both the dollar and euro, notching up a second day of strong gains as traders bank on a Conservative victory in the UK general election.

Against the dollar, sterling was up 0.5 per cent at $1.3055 on Tuesday, its highest level under prime minister Boris Johnson. The pound was 0.6 per cent weaker against the euro, with £0.8475 needed to buy a unit of the single currency.

Dean Turner, an economist at UBS Wealth Management, said: “As we write, the election is Boris Johnson’s to lose.”

Neil Jones, head of FX sales for financial institutions at Mizuho Bank, said the market was continuing to cut back on sterling short positions and hedges in anticipation of a Tory

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victory.

Markets view a healthy Tory majority as the best outcome for UK risk assets, at least in the short term, as it would lead to an orderly withdrawal from the EU at the end of January following years of uncertainty.

Still, several investors have warned the currency is now vulnerable to any tightening of the polls.

“It is still not a done deal,” said Rupert Thompson, head of research at Kingswood, a wealth manager.

Adam Seagrave, head of global sales trading at Saxo Markets, said traders would now “ponder which way the risks are skewed” ahead of election week.

“With a feeling among some that the easy money has been made and with sterling well above the August lows, the risk to the downside is substantially higher,” he said.

While Labour has begun to close the gap in opinion polls, the lead is @Businessdayng

still 10 percentage points with just over one week to go until polling day, according to the FT’s poll of polls.

Critically, a number of recent polls have shown that Jeremy Corbyn’s advance has stalled.

A YouGov poll released on Tuesday showed both the Tories and Labour down one point at 42 per cent and 33 per cent respectively.

An earlier Kantar poll had the Conservatives increasing their lead by 1 percentage point to 12 points.

Given Mr Johnson’s pledge not to extend the EU free trade negotiations past the end of next year, many investors and analysts have warned that any ‘Johnson bounce’ could be short lived as Brexit risks return.

In a note to clients earlier this week, Lee Hardman, currency strategist at Japan’s MUFG, said: “We suspect more notable sustained gains will prove difficult.”

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Thursday 05 December 2019

BUSINESS DAY

ANALYSIS FT What right did I have to be sobbing in front of my computer?

Grief in the workplace can be hard to navigate when a colleague dies suddenly

KATIE MARTIN

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n the full glare of the world’s press and politicians’ spin operations, the criminology department is mourning two bright souls — Jack Merritt and Saskia Jones, both recent graduates who were taking part in the university’s Learning Together programme.

Merritt was a co-ordinator of the scheme, Jones was a volunteer, both seeking to support prisoners’ rehabilitation. In the most ghastly circumstances, the pair were killed by a man previously convicted of terrorism offences.

These young people, both in their 20s, have left behind parents, extended families and probably huge networks of friends from their college days, many of whom will be experiencing this sort of bolt of grief for the first time. The hearts of decent people everywhere go out to

your life.

Regrettably, I have first-hand experience of this. In September 2017, a bright young Financial Times reporter called Paul McClean was killed while on holiday in Sri Lanka. I was his line manager at the time.

Up until the moment that I received the call to say he was missing, I had only really thought of him as a delightfully bright and fun “kid” (he was 24 — a kid to me), who sat next to me at work, generously laughed at my jokes and cheerfully took my “constructive feedback” on his articles. When he died, we were all upset. I was upset.

And I struggled to shake the feeling that I should not be. His family and friends were going through hell.

What right did I, his boss, have to be sobbing in front of my computer?

Pull yourself together, for heaven’s sake.

UK election: the tactical fight to beat Boris Johnson The electorate is more volatile than ever as voters abandon party affiliations after Brexit vote JOHN BURN-MURDOCH AND WILLIAM WALLIS

W The bereavement charity Cruse helps companies with issues including how to support tearful colleagues and when to clear someone’s desk © Alamy

them for their loss.

But the deceased also leave behind colleagues and tutors, who are left feeling shock and grief with a curious tinge. It comes down to a brutal question: when you die, are your colleagues “allowed” to be sad?

Is it OK to cry for a co-worker?

In thinking about this, two things spring to mind. One is some wellmeaning advice I once received fairly fresh out of university from a jolly elder statesman of the television industry. Chatting about the dramas of workplace drinking buddies, he reflected: “Remember: these people are not your friends.

They look like your friends, they sound like your friends. They are not your friends.”

He had a point. New entrants to the, at times, bewildering world of professional life are well advised to remember that it is a dog-eat-dog world. When people are trying to get ahead, loyalties often go out of the window. It is not always wise to get too close.

The other thing that occurs to me, though, is that keeping up a guard against affection for workmates is just not always possible, or even desirable. When a colleague dies, you can quickly realise just how much you value their role, even if it is a peripheral one, in

Andy Langford, chief operating officer at bereavement charity Cruse*, said this is a common mindset, referring to it as “disenfranchised grief”. Colleagues may feel excluded from, or unworthy of, attending the funeral. They may feel somehow silly if they well up every time they walk past the empty desk for weeks. They may be lost for words when they answer their colleague’s phone. “No, he’s not here right now. Um, are you sitting down?”

Mr Langford said this sense of detachment is not unique to colleagues. Siblings can feel alienated from the grief process if a partner is widowed with small children, for example.

“For a number of reasons, people sometimes don’t feel like they have permission to grieve,” he said.

Cruse works with companies to support employees and give employers advice. They look at a range of things such as when to clear someone’s desk, what to do with their belongings, how to support tearful colleagues or even shocked clients.

“I would commend those companies that contact us,” he said.

For me, grief is grief. It is not a competition about who was closest to the deceased. When a colleague dies, yes, you are allowed to be sad. www.businessday.ng

hen pollsters asked voters in Finchley and Golders Green in early October how they would vote in a possible general election, 41 per cent backed the Liberal Democrats ahead of 29 per cent for the ruling Conservative party. Labour trailed in a distant third.

The constituency — a Conservative-held marginal seat in north London — has been shared in recent elections by the two main UK parties. But the internal Lib Dem polling appeared to vindicate the decision to parachute in Luciana Berger as the party’s candidate. The former Labour MP quit the party in February over its failure to address anti-Semitism within its ranks.

Finchley and Golders Green, which voted overwhelmingly to remain in the EU at the Brexit referendum, has the largest Jewish population of any seat in the UK. Yet five weeks later, by which time the election had been called, a second survey, conducted by a different pollster, Deltapoll for The Observer newspaper, asked 500 constituents the same question. This time the Conservatives led on 46 per cent, the Berger campaign had slipped to 32 per cent and Labour was even further behind.

The two polls graphically illustrate the huge uncertainty surrounding next week’s British general election. They highlight the volatility of the electorate — the 17-point gain for the Conservatives between two surveys just five weeks apart is unprecedented — in a campaign which has been dominated by Brexit and the breakdown in traditional party loyalties it has created.

They also help explain why tactical voting is set to be one of the decisive factors in the election. The latest polls indicate the Conservatives could be on track for a majority because the party has managed to consolidate a large section of voters who supported leaving the EU in 2016 behind its “Get Brexit Done” sloganeering. The final result,

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however, could depend on whether Remain supporters, armed with opinion poll data, will vote tactically for the party most likely to beat the Conservative party led by Prime Minister Boris Johnson — which in most constituencies is either Labour or the Lib Dems.

A graphic with no description Yet the push for more tactical voting will only work if the polls can be trusted — which is especially hard in an environment where voting intentions are so fluid and where every constituency presents its own story.

“It’s hugely difficult to know what’s happening on the ground.

It’s much more acute this year,” says Shaun Roberts, director of campaigns and elections for the Lib Dems. “[There] is a realignment of voters around Brexit as opposed to traditional party factors.”

For a political system once famed for its stability, Brexit is forcing a dramatic sorting out of voters. More than 3m people are predicted to change party allegiance at this election.

Between 1964 and 2017, the number of people swapping their allegiance between parties at UK general elections rose from 13 per cent to almost a third — in 2015 it was 42 per cent. Yet in the 2019 European election that figure jumped massively: 74 per cent switched away from the party they had backed just two years earlier at the 2017 poll.

A combination of Brexit — both main parties have fought their own civil wars over which position they should take since 2016 — and unpopular leaders in Mr Johnson and Labour’s Jeremy Corbyn are expected to produce enormous voter churn. Large numbers of Conservatives who voted to remain in the EU and Labour leave voters have found themselves looking for new homes — providing an opening for much greater use of tactical voting.

Most public polling is done on a national basis and surveying the same seat twice, as happened in north London, is virtually unheard of.

But from Great Grimsby in the north of England to North East Somerset in the west, the parties are doing more of this granular work than ever.

Campaigns @Businessdayng

These constituency-level polls have become integral to campaigns.

By making the information public — something that was very rare in previous elections — the parties hope to shift behaviour and convince voters that they are the best tactical choice.

Yet the recent record of the pollsters is not strong. Blindsided by the Conservative majority in 2015, some polling companies overcorrected in 2017, resulting in an underestimation of the Labour vote share by five points. Add to that the mixed bag of results on the 2016 EU referendum, and it means that the stakes are also high for the polling industry.

Making sense of this blurred, uneven landscape is not just an academic pursuit. Parties use this data to determine where to deploy resources; where to invest the time and energy of volunteers and identify changes that give them an opening. For smaller groups like the Lib Dems, that won just 7.4 per cent of the vote in 2017, such information is critical.

“People look at what the Lib Dems did in 2017 and say ‘there’s no chance’,” says Damian Lyons-Lowe, chief executive at pollster Survation, which conducted the first Finchley survey. “So the party is asking itself what is a good way to convince people that the facts are as they are.

The constituency polls are an effective strategy.”

A graphic with no description The volatility in the electorate is playing out differently across the country. As a result, parties cannot easily apply the lessons learnt in one constituency to another, creating a messier map than at any time in election history.

“A lot of people don’t know [how they might vote],” says Sally, who lives outside Portsmouth on England’s south coast, and asked not to give her surname. “It’s like the thing we want isn’t on the ballot paper.”

That sense of a lack of a choice is widely felt across the UK. Alan Dollery, a former trucker who lives in Birkenhead, near Liverpool, explains his dilemma: “At the last election I struggled but voted for Corbyn.

[But] I’m a leaver — like quite a few of us here. And since the referendum it’s been very confusing.

Thursday 05 December 2019

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Thursday 05 December 2019

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Garden City Business Digest Rivers oil-rich community hails Eroton E&P over sustainable development projects Ignatius Chukwu & Sam Esogwa

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he people of Bille in Degema Local Government Area of Rivers State have hailed Eroton E & P Limited for providing them with what they described as sustainable community development projects.

The projects which were seen by a team of journalists last week in Bille under the auspices of Eroton E&P Ltd include the furnishing of the palace of Amanyanabo of Bille Kingdom, administrative block, renovation and re-stocking of drugs for a six-bed health centre, and installation of 10,000 litres of borehole water scheme at Jike-Ama. Others include installation of 10 solar-panel street lights at Touma, construction of one litre channel at Opu Osia Community and women support scheme under which 50 plastic tables of viva brand and 500 plastic chairs of regency black horse brand were purchased for the Bille Women Forum.

The projects were executed under the GMoU platform which is managed by the Degema Local Government Area (DELGA) 1 Cluster Development Board (CDB).

Thanking Eroton, the chairman of Bille Kingdom Chiefs’ Council, Bennett Okpokiye Dokubo Opu Abekere, welcomed the Eroton team and later commissioned the furniture in the King’s Palace. He later, the team inspected the furniture which included the Amanyanabo’s stool, leather settee, beddings, deep freezers, standing fridges, TVs, conference tables and chairs, air conditioners, repaired buckle tiles and lightings.

According to sources, the edifice was built

Robert O. Obizie, Govt/Public Affairs Dept, representing GGM NAPIMS, Musah Lawan), cutting the tape during commissioning of 6-bed health centre in Bille, flanked on the left by Emmanuel Toby (Community Affaira Eroton), Apaemi Amaye (woman leader, Bille) and on the right by Bennett Okpokiye Dokubo Opu Abekere, chairman of Bille Chiefs Council and Firimabo Bob Ogunga, chairman of DA1 Cluster Dev. Board

by SPDC but was abandoned before Eroton intervened by furnishing it. The next project commissioned was the one-line channel of 245metres at Opu Osia Community completed in phases between 2107 and 2018.

The one-line channel is meant to control flooding in the community, especially during heavy rain fall and high tides.

According to sources in Opu Osia Community, flooding had been a terrible menace in the area, wearing away shore soils and weakening building foundations, most times leading to the collapse of such buildings. It was commissioned

by Comr. Garrick Ibima Firstbury, chairman of IYC, Bille Kingdom, who represented Hon.

Anthony Soberekon, member representing DELGA Constituency in the Rivers State House of Assembly.

The next project commissioned was a 6-bed health centre which Eroton renovated and restocked with drugs.

Executed in two phases, the project was said to be initiated by DELGA 1 Cluster Development Board in 2016 to complement the government health centre in the area. It was commissioned

by Robert O. Obizie, Government and Public Affairs who represented the GGM, NAPIMS, Musah Lawan.

The last project commissioned was the women support scheme for which 50 plastic

tables of viva brand and 500 plastic chairs of regency black horse brand were purchased. It was commissioned by Emmanuel Toby of Community Affairs Department, Eroton.

After that, the team proceeded to the Bille Town Hall where they were welcomed by the people of the area.

In his speech, chairman of DELGA 1 Cluster Development Board, Firimabo Bob Ogunga, thanked Eroton E&P Limited for coming to commission the sustainable community development projects. “I sincerely express gratitude on behalf of the entire membership of DA1 CDB and the Bille Kingdom Community Trust to the chiefs, the elders, youths, women, all the sections and the various communities in the Bille Kingdom for the peaceful and enabling environment accorded the oil companies, Eroton in particular, to carry on production activities.”

Also speaking, chairman of Bille Kingdom Chiefs’ Council, Bennett Okpokiye Dokubo Opu Abekere, lamented that previous operators did not do much for Bille people despite operating in the area for 50 years. “Thank God for divestment.

Today, Eroton has taken part of the responsibility/liability and without saying much, we are seeing the practicability of Eroton. We welcome Eroton and what they have done.”

Responding, Emmanuel Toby of Community Affairs, Eroton, saluted the Bille people and described it as one area that utilize the funds given to them. He promised to act promptly any time Bille made a request. “This women empowerment thing we did, in other communities we don’t accept it because we’re scared that the money will just go off. But for the trust we have in Bille, we have bent because we know you will manage it well. We are very grateful to your people, for the station has been peaceful.”

@70: Is Engr Anthony Akpan kind to a fault?

Port Harcourt

by Boat

IGNATIUS CHUKWU

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ngels still walk the face of the earth. If in doubt, check out around Woji Culvert area where a retired oil engineer, Anthony Akpan, lives. The world watches you as you live your life but one day, they would have a chance to pour their minds. For Akpan, it came on Sunday, December 1, 2019, when, from the church where Paulinus Msirim officiated, to his home later that evening, everyone harped on the extreme kind heartedness of the retired engineer.

It could be this same attribute (kindheartedness) which has attracted multitudes to him that may be what his closest persons (children) fear a bit about him. His wife, Ekama *CEO of Showers) firmly believes that many would want to exploit the retired engineer’s nature. It may also be why he is not a successful business man despite trying many times.

The matter is so noticeable that when he was asked if there is anything in his nature or life he would do differently should he be given another life, he alluded to it. He did not actually say he is kind to a fault or that his kindness is a problem but at least he admits that he has not been successful in businesses despite being keen.

His assessment: “I am not a good businessman but I tend to see myself as an entrepreneur.

I like to initiate things, but am not able to sustain them to the end. I am good in discovering opportunities and I like taking risks. As a younger person, I used to leave Warri by 6pm and drive alone to Calabar at about 10pm.

“Something happened one and I still wonder whether I was mad or something. I took off here in PH to Uyo to buy property and I had N200,000 cash in the boot of my car in an open sac or plastic bag. When I got to a checkpoint at Oyigbo, the police stopped me, opened my boot, saw the money, closed my boot, and asked me to go.”

Also, should he be given another chance, he would have become an entrepreneur earlier. He would not wait to work for another man for 30 years. “I would have struck out in entrepreneurship. I would have tried to build a few more relationships. Harvin Mckay wrote a book called; “Dig your well before your thirst’. It’s about networking. He began the book by saying how another American called him at 2am and reminded how he was a good man, and how they shared a hostel 20 years back. The person now painted a tight financial situation requiring $10,000 immediately and pleaded for a fast IOU of that amount. He said he did not have but had to send $2,000. So, the challenge is, how many people do you know that you can call at 2am and make that kind of request and be sure of a positive response.

“Many said they did not know any such person. They now turned and asked him how many people that would respond to him. He answered that he had 50 such people that could respond at 2am to him. So, if I had another life to live, I would build more relationships that he call by 2am and ask for N5m. It means that

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young persons should strive to build relationships more. It’s important.”

His first son, Joshua, said his father looks like under 50 at 70, probably because he did not allow anything to worry him beyond a day.

It could be true. The retired engineer said he did not feel any difference at 70 but felt the same way physically, spiritually, and mentally.

It may in terms of psychology that he may be getting some burden. “I can say it may make one to begin to have thoughts. 70 is a marker age.

It is the age the Bible promised man in Psalm 90. It would make me to begin to ask; Does it mean I am now on injury time and if I take off, nobody will call it premature death? There is psychological matter.

“On the other hand, I would say, maybe, people would now give me the respect elders get. More importantly, I ask myself, what have I actually achieved? I don’t know. Is it because I built a house, bought a piece of land or a couple of cars? I said well, at the end of the day, the only thing that remains for us is the relation-

Anthony Akpan at 70

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ships we built. The only thing that can endure is impact we made in the lives of people, and the friendships we built. But often, we neglect those relationships.” For instance, he realized only after the church service that he would have invited more persons to the anniversary.

He realized it was the wish of his kids to have a bash but he wanted a quiet deal. All he seems to think about is how to impact more lives. This was what Michael his other son harped on while wishing that his dad could begin to take it easy.

But, the engineer got a surprising revelation at 70. He said he found that the Cross of Jesus Christ stood as a riddle to man. To him, it epitomizes the relationship man has to create and sustain: one with God (vertically) and the other with fellow man (horizontally).

His words: “Vertical is with God, horizontal is with man. But, the horizontal member can only stand on the ground or hang somewhere above the ground, depending on how deep one was with Jesus Christ. Anyone who does not have a relationship with Christ, his relationship with men is on the ground.”

The revelation in this message is that the more one sustains a good relationship with God, the more elevated his relationship with fellow men is high at the intersection point with Christ. His children think his life as a pastor and mentor has tasked him a lot, but they also admit it makes his life vibrant. The only minus could be that it makes some people to take his kindness for granted.

To Anthony Akpan, there is nothing to regret.

Life is about impacting others, not cars, houses, possessions here and there but values and impacts. On this account, he does not see himself having any fault. He is loveable and admirable at 70, and that is all that matters to him.

@Businessdayng

Thursday 05 December 2019

BUSINESS DAY

51

Investing in Rivers State Correspondents Week echoes:

Monarch threatens showdown with security agents that abet bunkering • As environment experts charge journalists to war Ignatius Chukwu

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he Eze and regent of Ekpeye Kingdom in Rivers State, Felix Otuwarikpo, has threatened a showdown with some security agencies whose officers he said were aiding and abetting criminality through oil bunkering. He said such agencies aid the bunkerers and turn round to collect a share.

For this reason, he stated, after the community had arrested the bad boys, the security agents released them and unleashed them back to action. Otuwarikpo spoke with vehemence on Monday in Port Harcourt, the Rivers State capital, during the opening ceremony of 2019 Correspondents’ Week of the Correspondents’ Chapel of the Nigeria Union of Journalists (NUJ) in Rivers State, with theme: “Role of the Media in Protecting the Rivers Environment”.

According to Otuwarikpo, journalists need to investigate the role of security agents in illegal oil bunkering activities in the state that have contributed immensely to the destruction of the environment.

The monarch urged media men to visit the area and see things for themselves, saying: “Sometime in June this year (2019), we held a traditional amnesty programme where 334 cultists and militants surrendered and we received their weapons from them. These weapons were handed over to government.

“Today, as a traditional ruler, I feel very sad because security agents that

The Eze, Felixh Otuwarikpo PhD, at the Correspondents Week event in PH

have the responsibility to help us to check these criminals are the ones encouraging criminality in our area.

I want it to be on record.

“When we disarmed these boys, Ekpeyeland became the most peaceful ethnic nationality in the state and in fact in Nigeria. Today, security agents are the ones encouraging these boys to carry out bunkering in our area. You will agree with me that anywhere you allow bunkering to go on for at least 24 hours, there will be proliferation of small arms in the area.”

The chairman of the Correspondents, Ernest Chinwo, said the Week was dedicated to paying greater attention on the environment in the Niger Delta. In his keynote speech, an environmental right activist, Celestine

Akpobari, urged the media to lead in this campaign to mount pressure on President Muhammadu Buhari to fulfill his promise of ending gas flaring in the country by the year 2020.

Akpobari said gas flaring must have started in Oloibiri at about 1956, just as it has started in Bauchi now even before oil production. He said about eight billion cubic meters of gas is flared annually in Nigeria, being 75 per cent of gas production and when calculated in monetary terms, the country looses about $2.5Bn. He said a court in Benin City had in 2005 declared gas flaring illegal.

The environmental rights activist stated that the environment in Rivers State has been under serious threat since the 1950s when oil and gas

exploration activities commenced in commercial quantity in the state.

Speaking, the chairman of the event, Ibifiri Bobmanuel, urged journalists to join the fight for economic diversification to reduce attention on oil and pollution. Bobmanuel, who is president of the Rivers State Entrepreneurs and Investors Forum (REIF), called for closer ties with journalists practising in the state, saying that existing partnership between the two organizations has attracted more investors into the state and Nigeria in general.

Declaring the Week open, the permanent secretary in the Ministry of Information and Communications, Paulinus Nsirim, called on journalists practising in the state to join in the

campaign for the protection of the environment.

Nsirim insisted that there is collaboration between those responsible for the pollution of the environment and those whose responsibility is to protect lives and property of the people, adding: “Journalists in Rivers State must rise to condemn the assault of Rivers environment by those who are supposed to protect us. The collaboration between the illegal bunkerers and those supposed to protect us is very close.

“We need to begin to interrogate the policies and programmes of the Federal Government as it affects the Rivers environment. What has journalists done about the United Nations Environment Programme (UNEP) report that was released in 2011.”

Reviewing the keynote address, an environmental expert from the University of Port Harcourt, Ferdinand Giadom PhD, said there are several oil spills in the Niger Delta region that were not attended to.

Describing the Niger Delta region as the most sensitive environment on the planet Earth, Giadom stated that journalists have abdicated their responsibility of adequately reporting the environment.

In his remarks, Chairman of Nigeria Union of Journalists (NUJ) in Rivers State, Stanley Job Stanley, represented by the vice chairman, Paul Bazia, said the topic of the Correspondents’ Week serves as a self-appraisal for journalists practising in the state.

Stanley said it is the responsibility of journalists to protect the environment through their reportage.

34 manufacturers in PH groomed as NEPC harps on need for non-mandatory certification Ignatius Chukwu

S

ome 34 budding exporters in the Port Harcourt zone have been groomed on the best ways to achieve certification as well as the benefits of non-mandatory certification as key to the international market.

The selected manufacturers and

producers of exportable goods last week participated in a training workshop on certification organised by the Nigeria Export and Promotion Council (NEPC), in Port Harcourt.

The focus was to open the eyes of the manufacturers who felt all they needed was to achieve the mandatory certifications such as Standard Organsation of Nigeria (SON) while ignoring the international certifications. They were made to realize that

meeting those non-mandatory certifications seem to open the doors to the acceptability of the products outside Nigeria.

In a keynote address presented at the event, the executive director and chief executive officer (ED/ CEO) of NEPC, Olusegun Awolowo, said the training workshop on certification for products and processes is part of NEPC ‘Go Global , Go for Certification Initiatives’ aimed at

NEPC trains over 80 Manufacturers on Value of Certfication in Port Harcourt www.businessday.ng

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enhancing global market access for Nigeria exportable products.

Awolowo who was represented by William Ezeagu , director of NEPC Product Development Department said that penetrating international markets for processed and value-added products such as food items required additional voluntary certification to enable the product access the highly competitive overseas market.

He said that the food sector is more sensitive as consumables, saying such export-intended products must strive to acquire additional non-mandatory certification to enable it compete.

He revealed how the Council is making efforts to boost the ability of Nigerian exporters to meet such certifications by engaging a reputable certification expert based in Bangalore, India, to provide certification awareness training for manufacturers and producers.

He said the company guides companies and organizations certification for ISO , CMMI and other international certifications saying that the organization has successfully executed over 3000 projects across 20 countries.

“The Council with TopCertifier as resource faculty had conducted the first HACCP Certification Awareness @Businessdayng

Training workshop in Lagos for 20 food processing/exporting companies with impact and success. The HACCP system, which is science based and systematic, identifies specific hazards and measures for their control to ensure the safety of food.

It is also important because it prioritizes and controls potential hazards in food processes.

“In recognition of the relevance of these global certifications and further to its ‘Go Global Go for Certification’ campaign, the council is discussing with world bank which has shown interest in the initiative to support Nigerian exporting SMEs in attaining Non-Mandatory Certifications,” he said.

He said that the awareness training will enable the selected manufacturers invited to embrace fully the basic rudiments of products and process certifications as well as food safety for food processors.

Earlier, the resource person and Managing Director of India based TopCertifier, Vinay Kumar, enlightened the participants on the rudiments and importance of product certifications.

Most of the beneficiaries told newsmen they were going headlong into certification drives, saying they had dreaded the idea thinking it was an improbable task.

industry Insight

BUSINESS DAY Thursday 05 December 2019 www.businessday.ng

Nigeria’s non-oil export target: Learning from Vietnam’s reforms Gbemi Faminu

M

ost advanced countries w o u l d a g re e that the nonoil export sector is a major driver of their economies. Any time Japan is mentioned in the global market, most observers think of vehicles, machines, and medical equipment. Talk about France and the global market player begins to imagine computers, vehicles, aircraft and pharmaceuticals.

But talk about Nigeria, and the world discusses oil, minerals and raw materials. According to analysts, no serious country makes much headway when 85 to 95 percent of its foreign exchange comes from one source—oil. Recent experience shows that the country is learning little from the late 2014-2017 experience when the economy became vulnerable owing to low oil prices. Up till now, oil and minerals form over 85 percent of the foreign exchange.

With Nigeria earning just $3.3 billion in 2018 from the non-oil export sub-sector, and Vietnam receiving $244.72 billion within the same period from the same sub-sector, the country can do well to learn what the Southeast Asian country has done to succeed Between January and December 2018, Vietnam exported finished products from garments and shoes to smart phones, according to General Department of Vietnam Customs.

Nigeria, on the other hand, scratched only $3.3 billion in 2018 from more than 25 commodities from cocoa powder to cashew nuts.

The big difference in non-oil export earnings between the two countries exposes the failing state of industrial policies in Africa’s most populous country, as domestic challenges continue to hinder local production.

Today, giant phone makers such as Samsung, Intel and LG produce smart phones in Vietnam and export from there.

In 2018, the country fetched over $50 billion from export of phones and their components— the biggest turnover among export items— according to the country’s General Statistics Office. It has earned $27.3 billion from phones between January and July 2019 already.

The Southeast Asian country attracted Foreign Direct Investment of $16.74 billion between January and July 2019, according to the country’s Foreign Investment Agency. In the whole of 2018, Nigeria’s FDI was $2.2 billion, from $3.5 billion the

An employee working in a thread spinning factory.

previous year, according to the United Nations Conference on Trade and Development.

“The Nigerian economy is in dire need of private investments to move the economy forward,” Babatunde Ruwase, president of Lagos Chamber of Commerce and Industry (LCCI), said in Lagos recently.

“If economic recovery is to be sustained, there must be added drive for domestic and foreign direct investments, promotion of non-oil exports and continued efforts at improving the ease of doing business in Nigeria,” he said.

According to Vo Tri Thanh, a Vietnamese economist, key to Vietnam’s growth was market reforms.

The country worked on private business right ; macroeconomic and social stability, while opening and integrating its economy into the regional and world economy, especially in the areas of trade and FDI. Vietnam sees trade as the most important part of its manufacturing sector. In an article entitled ‘Vietnam’s manufacturing miracle: Lessons for developing countries’, three economists Sebastian Eckardt, Deepak Mishra, and Viet Tuan Dinh said Vietnam has numerous bilateral and multilateral free trade agreements, which dramatically cut tariffs, anchor difficult domestic reforms, and open up the economy to foreign investment.

Vietnam likewise reduced its cost of doing business for enterprises.

The World Bank said in its

2019 Doing Business report that the country made paying taxes less costly for companies by reducing the corporate income and value added tax rates while eliminating the surtax on income from the transfer of land use rights. Taxes, levies and fees paid by Nigerians businesses (state, federal and local governments) today are over 100 and as states go increasingly cash strapped, experts say.

As a serious country open to business, Vietnam made starting a business easier by publishing the notice of incorporation online and by reducing the cost of business registration. It equally made enforcing contracts easier by making judgments rendered at all levels in commercial cases available to the public online, the World Bank added.

It made exporting and importing easier by upgrading the automated cargo clearance system and extending the operating hours of the customs department.

Scanners at the Customs in Nigeria are barely working, with roads to Apapa and Tin Can ports nightmares.

“Of particular concern and importance to us (MAN) are the challenges we face in moving our raw materials and goods to and from the ports,” Seleem Adegunwa, chairman, Manufacturers Association of Nigeria (MAN), Ogun State chapter, said at a recent CEOs business luncheon at Agbara, Ogun State, when referring to challenges faced by Nigeria’s manufacturers at the ports.

Nigeria’s ease of doing business has seen a little improvement, according to the World Bank. The country moved up 15 places to rank 131 in World Bank’s Doing Business, kudos to Vice President Yemi Osinbajoled team. But the statement on the lips of most small business owners is, “We can’t feel the change in doing business.”

Nigeria is yet to initiate reforms at all levels, with statist policies trumping market reforms. The country still pays over $1 billion on fuel subsidies and is yet to reform its outdated gas policies. Manufacturers self-generate over 13,000 megawatts of energy, according to the Manufacturers Association of Nigeria.

President Muhamadu Buhari has shut borders to halt smuggling of fuel and rice, but exporters can’t ship out their goods or import inputs through land borders. This is hurting non-oil export business already.

Ede Dafinone, chairman, Manufacturers Association of Nigeria Export Group (MANEG), said the losses incurred by genuine exporters will further cut Nigeria’s non-oil export projections.

“I am sure the government would not be closing all banks because of the discovery of bank fraud and similarly should not close all land borders to catch those that are smuggling,” he reasoned.

The list of items barred from accessing foreign exchange is getting longer with essential industrial inputs being added from time to time by the central bank.

The Export Expansion Grant has been suspended since 2013, and industries can’t sell because 49 percent of the population is multi-dimensionally poor.

Nigeria and Vietnam have things in common. One is that half of the population in both is less than 35, which provides ready labour force for industries and firms. But unlike Nigeria, Vietnam has well-trained skilled labour who fit into its industrial dream. This began with reforming the education system, paying attention to sciences which are important for industrial growth.

Two, agriculture employs more than half of the population in both Nigeria and Vietnam.

Rice is the most important crop in both countries.

More so, both countries have comparative advantage in leather/shoes and have enormous raw materials in food and agroallied sector.

But Vietnam strengthened access to credit by adopting a new civil code that broadens the scope of assets that can be used as collateral. Most banks in Vietnam, including VietcapitalBank, NamABank and ABBank, lend at between 8 and 8.6 percent, but almost all Nigerian banks lend at above 20 percent, and even up to 30 percent.

Vietnam increased the reliability of power supply by rolling out a Supervisory Control and Data Acquisition (SCADA) automatic energy management system for the monitoring of outages and the restoration of service. According to energypedia. info, 100 percent of Vietnamese have access to electricity.

However, things are different in Nigeria, with over half of Nigeria’s population without access to energy, and firms resorting to diesel or gas to fuel their generating sets.

“Vietnam invested in infrastructure, especially in the power sector and connectivity. To keep pace with rapidly growing container trade (which expanded at a staggering average annual rate of 12.4 percent between 2008 and 2016), Vietnam also developed its connective infrastructure, including seaports and marine terminals,” economists Eckardt, Mishra and Dinh said.

“Vietnam has leveraged its demographic dividend through effective investment in its people. In the latest 2015 OECD Programme for International Student Assessment (PISA)— which tests high school students in math, science, and other disciplines—Vietnam ranked 8th out of 72 participating countries, ahead of OECD countries such as Germany and Netherlands,” they added.

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