BusinessDay 05 Jul 2019

businessday market monitor FMDQ Close

Everdon Bureau De Change

Bitcoin

NSE

Foreign Exchange

Biggest Gainer Nascon N15

Biggest Loser

Presco 4.90 pc N46.8

-10.00 pc

Foreign Reserve - $45.03bn Cross Rates - GBP-$:1.26 YUANY-N52.43 Commodities

29,300.09

Cocoa

Gold

Crude Oil

US$2,433.00

$1,418.00

$63.30

news you can trust I **friDAY 05 july 2019 I vol. 15, no 347 I N300

₦4,161,195.74

+2.90 pc

Powered by

g

Buy

Sell

$-N 358.00 361.00 £-N 457.00 463.00 €-N 404.00 410.00

www.

Market I&E FX Window CBN Official Rate Currency Futures

($/N)

fgn bonds

Treasury bills

Spot ($/N)

3M

360.76 306.95

0.15 10.85

NGUS sep 18 2019 361.03

6M

0.28

10 Y 0.03

20 Y 0.13

12.29

14.31

14.31

14.41

5Y

NGUS dec 24 2019 361.48

@

g

How CBN’s new lending guidelines will reshape banking sector

-0.32

NGUS jul 29 2020 362.53

g

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

Banks may need to create additional N1.3 trn in credit assets

LOLADE AKINMURELE & HOPE MOSES-ASHIKE

A

new lending directive in Nigeria holds the promise of boosting commercial bank credit to cash-strapped businesses but puts the loan book quality of the lenders at risk.

The Central Bank of Nigeria (CBN) on Wednesday said it was mandating deposit money banks to have a Loan to Deposit Ratio (LDR) of 60 percent by the end of September 2019 in an effort to force banks to lend in an economy still reeling from a contraction in 2016 that caused bad loans to surge.

The new directive means banks

must use at least 60 percent of their deposits for loans, 150 basis points higher than the industry average of 58.5 percent as at May. According to the apex bank, a failure to meet the minimum LDR of 60 percent by the specified date will result in a levy of additional Cash Reserve Requirement (a specified minimum fraction of the total de-

posits of customers, which commercial banks have to hold as reserves with the central bank) equal to 50 percent of the lending shortfall of the target LDR. The LDR is a ratio between a bank’s total loans and total deposits, and is generally expressed in percentage terms. A high loan to deposit ratio means that the bank is issuing out more of its

deposits in loans and vice-versa.

“On one hand, this is a good development that should encourage banks to increase their lending, especially to the private sector,” said Taiwo Oyedele, an economist and head of tax and regulatory services at PricewaterhouseCoopers (PwC).

“On the other hand, the risk Continues on page 34

IHEANYI NWACHUKWU

T

Nwabueze leads Atiku’s counsel to tribunal on P. 2 wheelchair

P. 33

Airtel to begin trading today on NSE at N363 per share

…becomes 3rd largest firm with N1.3trn market cap

Inside

CULINARY DELIGHTS

MARKETS

L-R: Aigboje Aig-Imoukhuede, founder/chairman, AIG/committee co-chair; Wonu Adetayo, NESG Board member, and Udeme Ufot, group managing director, SO&U Group, at the inauguration of the NESG Steering Committee on Governance and Institutions Policy Commission (GIPC) in Lagos.

elecom giant, Airtel Africa, will be listed on the Nigerian Stock Exchange (NSE) today, July 5, at the price of N363 per share.

The secondary listing will mark the conclusion of a price discovery through a book building process that ended on June 28, 2019. Further price discovery is expected to continue on the floor of the Exchange, the NSE said at a pre-listing media briefing in Lagos Thursday.

The listing will add about N1.36 trillion (about $4.44bn) to the market cap. This will make Airtel the third-most capitalised Continues on page 34

2

Friday 05 July 2019

BUSINESS DAY

news How FG plans to reform the power sector

…directs NERC to institute cost-reflective tarif , promote competition …NBET, BPE to enforce performance contracts of operators ISAAC ANYAOGU

T

he Federal Government has directed the Nigerian Electricity Regulatory Commission (NERC), the electricity sector regulator, to review tariffs to make them reflect the cost of production and compel operators to fulfil their performance contracts.

The policy directives and timelines issued in June by the Federal Ministry of Power, Works and Housing also directs NERC to abide by the requirements for periodic major and minor reviews and processing of valid claims for deficits in tariff as provided for in the rules.

Absence of a cost-reflective tariff is one of the most contentious issues in the power sector.

Despite changes in the factors upon which the tariffs were based including exchange rate, gas prices and inflation rate, NERC has compelled electricity distribution companies (DisCos) to price power around N32 per kWh (kilowatt) while DisCos say they are compelled to pay over N60 kWh since 2016.

According to the Power Sector Recovery Plan (PSRP), a reform plan for the sector, Nigeria should have reviewed tariff upwards by 50 percent between 2017 and 2021. The review was meant to address accumulated deficit attributed to sculpting of the retail tariffs under MYTO 2015. Sculpting is a policy that compels DisCos to under-recover now by charging less than the cost of producing power and recover losses in the future.

Shortfalls in the sector were dimensioned to tariff arising from pricing power below cost of production, volumetric shock in energy supplied and the costs of interest on non-financed shortfalls through retail tariff sculpting.

DisCos are now in a dire situation, reporting accumulated losses of N713.63 billion since the 2013 privatisation exercise while payables to both the Nigerian Bulk Electricity Trading Company (NBET) and the Central Bank of Nigeria (CBN) would now be approximately N2 trillion.

•Continues online at www.businessday.ng

Why adoption of ‘Eco’ may not be possible by 2020 …as Euro points lessons Endurance Okafor

D

espite the approval by Economic Community of West African States (ECOWAS) to adopt the ECO (ECOWAS single currency) from January 2020, the odds against the implementation of the currency seem higher than mountain Kilimanjaro.

The new medium of exchange was approved by the authority of ECOWAS Heads of State and Government in Abuja, Nigeria’s capital on June 31st 2019. The leaders endorsed the currency at their 55th Ordinary Session and signed a road map towards the currency’s issuance.

The roadmap was set up to ensure that all member countries meet certain criteria for the adoption of the currency. Some of the primary convergence criteria needed from each member state include; a budget deficit of not more than 3 percent, a single-digit inflation rate at the end of each year, with a long-term goal of not more than 5 percent by 2019.

It has been two decades

since the idea of a single West African currency was hatched, however, issues including the lack of needed legal framework and achieving a criteria like a single digit inflation of 5 percent or less have delayed the implementation process.

Single digit inflation is a difficult requirement to meet, especially for Nigeria, the largest economy in the region, whose in inflation rate averaged 11.92 percent between 2003 and 2016; Ghana experienced an average inflation rate of 16.92 percent between 2000 and 2016, rates which by far exceed the 5 percent requirement.

Nigeria’s inflation rate rose by 11.40 percent on a year-onyear basis in May. The highest so far in 2019.

Nigeria’s CBN Governor, Godwin Emefiele, said in his five-year policy that he projects double-digit growth, single-digit inflation, $12 billion non-oil exports by 2023.

Three years more than the estimated 2020 for the adoption of the ECO.

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

Faruk Agoro, founder/director, Viathan Group; Chinua Azubike, chief executive officer, InfraCredit; Sola Adeeyo, chairman, Viathan Group; Babatunde Raji Fashola, former governor, Lagos State/immediate past minister for power, works and housing; Habib Alebiosu, co-founder/ managing director, Viathan Group, and Bukola Badejo-Okusanya, managing director, GasCo Marine, at the commissioning of GasCo Marine CNG Plant at Abeokuta, Ogun State, an infrastructure project financed by Pension Funds on the back of InfraCredit guarantee.

Nwabueze leads Atiku’s counsel to tribunal on wheelchair

…respondents claim they were not ready MAURICE OGU

E

ighty-seven-yearold constitutional lawyer, Ben Nwabueze, appeared on wheelchair on Thursday as lead counsel for Atiku Abubakar, the People’s Democratic Party’s presidential candidate at the February 23, 2019 election, at the Presidential Election Petition Tribunal sitting in Abuja.

Atiku and the PDP are challenging the victory of President Muhammadu Buhari and his All Progressives Congress (APC) at the poll. They started calling their witnesses at the tribunal on Thursday.

Nwabueze, a professor of law, who was earlier wheeled into the courtroom, appealed to the court to be allowed to be seated while addressing the bench, and his request was granted.

Having challenges pronouncing the names of his colawyers as he (Nwabueze) was barely audible, Livy Uzoukwu (SAN), who had been leading the counsel, came to the rescue.

Nwabueze eventually handed over the role to Uzoukwu to continue with the presentation.

After the announcement on appearance was over, Nwabueze spoke briefly, thanking the tribunal for granting him his first request.

He said despite his age, he attended the proceedings to show how the case was important to everyone.

Nwabuezesaidtheoutcome of the election tribunal would have a memorable influence on future elections in Nigeria.

While describing his submission as “short remarks”, Nwabueze prayed the court to allow justice to prevail as the determination of the case

would be impactful on Nigeria’s democracy.

“The determination of the petition will certainly impact on future elections and constitutionalism in the country,” he said.

After asking for permission to leave the courtroom on his closing remarks, Nwabueze left the Court of Appeal, venue of the tribunal sitting.

Recall that Nwabueze had endorsed Atiku in the buildup to the 2019 elections, saying in one of his remarks that he would not die until Atiku becomes the president.

Meanwhile, Uzoukwu, who took over the leadership of the petitioners’ legal team, announced that his team would be starting the case with Niger State.

On the defendants team were Yunus Usman (SAN) who announced his appearance as the lead counsel for

the Independent National Electoral Commission (INEC), Mike Igbokwe (SAN) for President Muhammadu Buhari, and Yakubu Maikyau (SAN) for the All Progressives Congress (APC).

About 50 boxes containing electoral materials from Niger, Jigawa, Kebbi, and Yobe States have been brought into the court.

Earlier, the respondents had objected to the admissibility of some of the documents presented by the PDP. The respondents argued that they were not expecting documents from four states in the hearing on Thursday.

Mohammad Garba, the tribunal chairman, overruled the objection on the ground that the parties had agreed to start hearing on Thursday, more so that the documents were already listed in the court processes.

OPEC+ new Charter of Cooperation buys it some time …and Nigeria needs to seize the moment STEPHEN ONYEKWELU

A

new Charter of Cooperation among the Organisation of Petroleum Exporting Countries and 11 nonmember oil producing nations (OPEC+) may create a new window of opportunity for Nigeria amid concerns that the cartel’s influence in the global oil market is waning.

Khalid Al-Falih, Saudi oil minister, was reported to have said that OPEC has agreed on a draft cooperation charter with

Analysis the OPEC+ and is still working on which inventory metric to be used in the charter. The oil cartel had sought the buy-in of other big non-OPEC member countries, such as Russia, the world’s third-largest oil producer after the United States of America and Saudi Arabia.

This was intended to stabilise the global oil market by cutting production.

The charter “has created one of history’s strongest producer partnerships, spanning

https://www.facebook.com/businessdayng

the entire world from east to west”, Al-Falih said Tuesday. “Our objectives related to market stability are now matched by the horsepower needed to deliver them,” he said.

Since the initial production cuts were agreed upon in late 2016, non-OPEC members like Russia have bolstered the Organisation’s ability to influence the global oil market. While OPEC controls less than 50 percent of the world’s crude oil production, the expanded coalition, known as OPEC+, controls a majority. @Businessdayng

On July 1, OPEC and other allied major oil producers agreed to extend crude oil production cuts for nine months, a move designed to keep oil prices from falling as the US production increases and concerns grow about global demand.

For Nigeria with economic fortunes tied to movements in oil prices, higher oil prices are a boon. This is so because Nigeria earns 95 percent of its dollars from selling crude oil. Anytime oil prices fall,

Continues on page 34

Friday 05 July 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

3

4

Friday 05 July 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Friday 05 July 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

5

6

Friday 05 July 2019

BUSINESS DAY

NEWS Banks can now offer mobile money wallet services without prior approval – CBN … releases modalities for implementation of CIFI HOPE MOSES-ASHIKE

D

eposit Money Bank (DMBs) can henceforth offer mobile money wallet services without prior approval from the regulator, the Central Bank of Nigeria (CBN) said in a circular on Thursday.

However, banks are expected to notify the CBN before commencement of these services and are required to operate within the extant regulation on regulations of mobile money operations.

The move is to complement recent growth in agent banking services under the Super Agent andSharedAgentNetworkExpansionFacility(SANEF)initiativeand in recognition of the increasing demandforno-frilsmobilemoney services.

The circular with the reference number PSMDIR/GEN/ CIR/01/011, dated on June 4, 2019 to all DMBs, titled ‘Operation of Mobile Money Wallets by Deposit MoneyBanks’wasreleasedonthe website of the Bank.

The circular was co-signed by Sam Okojere, director, payment system management department and Ahmad Abdullahi, director

banking supervision department.

The CBN remains committed to deepening financial inclusion in line with its objective to achive the national financial inclusion target of 80 percent by 2020.

Also, the CBN on Thursday released another circular to all DMBs on the ‘Modalities for the Implementation of the Creative IndustryFinancingInitiative(CIFI).

The CBN in collaboration with the Bankers Committee introduced CIFI to improve access to long-term, lo-cost financing for entrepreneurs and investors in the Nigerian creative and Information Technology (IT) sub-sector, as part of efforts to boost job creation in the country, particularly among the youth.

The circular with the reference number FPRD/DIR/GEN/ CIR/07/031 was signed by Joseph Gana for director, financial policy and regulation department, CBN. According to the circular, the initiative shall be funded from the Agri-Business/SmallandMedium Enterprises Investment Scheme.

(AGSMEIS), an initiative of the bankers committee with a seed of N22.9 billion.

Inaugurated members of EDHA swell to 12, with swearing-in of Agbaje

C

onceding to the wishes of his constituents and citing his commitment to their welfare and interest, Emmanuel Agbaje, representing Akoko Edo Constituency II, has been inaugurated as a honourable member of the Edo State House of Assembly, swelling the number of members in the House to 12.

Speaker of the Edo State House of Assembly, Frank Okiye, swore him in on Wednesday, noting that the House reconvened for the swearing-in after Emmanuel had completed the required documentation.

Meanwhile, Justice M. G. Umar of a Benin Federal High Court has barred the Inspector General of Police and the National Working Committee of the All Progressives Congress (APC) from obstructing the constitutional duties of membersoftheEdoHouseofAssembly.

The judge also gave an interim order of injunction restraining “the 1st defendant, agents, from further publishing in any newspaper or other media, any inciting publications concerning the election of the Speaker and Deputy Speaker which took place on 17/6/2019 in the Edo State House of Assembly.”

At the sitting, the Speaker announced the compulsory retirement of the Deputy Clerk of the Assembly,

Samuel Efeizokhae.

Addressing journalists after his inauguration, Agbaje said, “Sincerely I would say that there comes a time when one would put his personal interestasideand consider theinterest of the people. I was elected to serve my people, so their interest comes first.”

He added: “I may have some reservationsaboutmyearlierdecision, having reviewed my position and the position of my people, I have decided to toe the line of the masses. That is whyIcameforwardtobeinaugurated.

My people need to be represented. I was elected to serve them. I did not come on my own. Which ever way you view the situation, I must have to toe the path of my people.”

He assured to uphold the confidence his constituents reposed in him, noting, “I think they will also appreciate that I listened to them. I will provide that representation which I have received the mandate to do.”

Agbaje appealed to the other 12 members-elect yet to be inaugurated to complete necessary documentation to be inaugurated as members of the assembly, noting, “My message to my colleague is this; I urge them to sheath their sword. I granted an interview and said this is a family matter. For intra-party issues there must always be disagreements.

Invent Alliance unveils virtual receptionist service, targets 100, 000 SMEs OBINNA EMELIKE

I

nvent BPO, a business unit of Invent Alliance Limited, has unveiled a first of kinds virtual receptionist service for small and micro enterprises (SMEs) and individuals in the country.

Speaking during the inauguration in Lagos, Patrick Chukwudi Ogbonna, managing director, Invent Alliance, reveals that Invent BPO is a firm that focuses on using technology as an enabler for solving business and social issues.

According to Ogbonna, “The Virtual Receptionist Service was created to provide virtual assistant to clients without having them in house. This is a business to business (B2B) service targeted at SMEs.” The target is to reach 100,000 SMEs in five years, Ogbonna notes, saying the Virtual Receptionist Service will help clients maintain contacts with their customers round the clock.

All calls, he notes, are recorded so the clients can listen to them whole or to relevant

portion as required.

The technology enthusiast says the service is available in English and the major Nigerian languages - Hause, Igbo and Yoruba. There are also options for two foreign languages - French and Spanish.

“What we have done essentially is to create a platform where people can work from our call centres. Also, there are three categories: Bronze, Silver and Gold. It is a flexible service, so clients can upgrade or downgrade,” he states.

For the next one month, the Virtual Receptionist Service would be offered free for the first 100 customers to sign up regardless of the category, he says. This is to enable them experience the innovative service at no cost.

He describes the Virtual Receptionist Service as a bespoke service that can be customised to suit the client’s every taste. It also has the Telephone Conference element, which can be used for meetings and interviews with up to 20 participants connected simultaneously.

Access Bank bags award for improving value for women

A

ccessBankplchasemerged winner of the 2019 GBA Women’s Market Champion Impact Award for its efforts towards providing opportunities for women.

Organised by the Global Banking Alliance for Women (now Financial Alliance for Women) in Paris, the award contributes to a growing list of recognitions for the bank, including the National Women in Finance Magazine’s Outstanding Banking Initiative Awards; the Global Banking Alliance (GBA) Women’s Market ChampionAward;CBNExcellence in Women Economic Empowerment Award; National Council for Women Society Nigeria’s Dedication to Women Entrepreneurship Award;CBNExcellenceinWomen Economic Empowerment Award, among others.

Speaking after the announcement, Herbert Wigwe, Access Bank group managing director, called for more efforts in women empowerment, adding that the bank would not relent in its efforts in creating more success stories

for women.

“Forsustainabledevelopment, womenempowerment,including support to improve their socioeconomic status, remains a practical, highly-important endeavour,” Wigwe said.

“Over the years, Access Bank has enshrined women empowerment into its corporate ethos, the recognition by a prestigious body such as the Financial Alliance for Women and the testimonials of our beneficiaries highlight the success of the bank in this area.

Furthermore,wepromisetointensifyoureffortstobuildcapacityand support women globally with the resources and expertise needed to improve their lives,” he said.

With over 35 percent women in its growing customer base, the bankhasconsistentlyofferedinnovative solutions and unique products which include the W Power Loan a discount offering that gives friendly loans to female-owned businesses, and the W Academy, where series of networking and capacity-building programs are held to train and mentor women.

Yinusa, NECA president dies Joshua Bassey

T

he Nigeria Employers’ Consultative Association (NECA) has confirmed the death of its president and chairman of council, Muhammed Yinusa.

Timothy Olawale, director-general of NECA, confirmed the death to BusinessDay in a telephone call, just as he expressed shock at the sudden passage of Yinusa.

“We just recently returned from Geneva, Switzerland, where we attended the ILO conference together.

Last week Thursday, he presided over the meeting of council, and he was healthy,” Olawale said.

An obituary announcement also confirmed by NECA said Yinusa died yesterday, July 4 and would be buried today at 3pm at

Lekki Vaults and Gardens, LekkiEpe, Lagos.

Yinusa was NECA’s representative in the Nigeria Social Insurance Trust Fund board before his death.

The deceased was also the CEO, DN Tyre and Rubber plc, chairman of Pamol Nigeria Limited, the Group’s Natural Rubber plantations subsidiary and also chairman, Vono Products plc.

He was a Fellow of the Institute of Chartered Accountants of Nigeria (FCA) and a member of other professional bodies.

He was an alumnus of the Lagos Business School and attended strategic management and leadership programmes at Cranfield University and Oxford University, both in the UK, and the Harvard Business School, USA. www.businessday.ng

L-R: Sule Ugbonna, director, C&I Leasing; Henry Okolo, chairman, C&I Leasing Group; Emeka Notu, vice chairman, C&I Leasing; Dinesh Rehgni, CEO, OCS Services, and Andrew Otike-Odibi, MD, C&I Leasing plc, at the joint venture between OCS Services and C&I Leasing, in Lagos

NNPC’s N125bn pipeline repair costs set to soar with Ijegun fire ISAAC ANYAOGU

T

he fire incident at Ijegun, Lagos,onThursdayfollowing attempts by vandals to steal petroleum products brings to the fore the failure of security agencies to curb the scourge of sabotage that allows the Nigerian National Petroleum Corporation (NNPC) claim over N125 billion in one year as repair cost.

Sabotage of petroleum pipelines gained notoriety after Niger Delta militants began blowing up pipelines as a form of protest againstwhattheyperceiveasunfair treatmentfromtheFederalGovernment, but now organised crime syndicates are making an industry out of the vice.

According to the NNPC, product theft and vandalism have continued to destroy value and put

the corporation at a disadvantaged competitive position. In the last one year, a total of 2,278 vandalised points have been recorded across various pipelines running through Nigeria.

The NNPC in its January 2019 financialandoperationsreportsaid a total of 230 pipelines points were vandalised. Mosimi- Ibadan pipelines accounted for a quarter of all sabotage cases. Strangely, pipelines in the Niger Delta between Warri and River Niger axis accounted for 10 percent or the least number of pipeline breaks.

Theseattacksonpipelineshave often come at a steep cost.

“On arrival of Lagos Rescue Team (LRT) at the scene of the incident, it was gathered that some vandals were engaged in bunkering activities at Fire Junction, Ijegun within the vicinity where an NNPC

https://www.facebook.com/businessdayng

pipeline was buried,” said Femi Oke-Osanyintolu,generalmanager, Lagos State Emergency Management Agency (LASEMA), referring to Thursday’s fire in the state.

“The vandals had already siphoned petrol into a 33,000 litres tanker while a second tanker of the same capacity was being loaded when security agencies suddenly intercepted the vandals. While tryingtoescape,someofthesiphoned fuelspilledintothedrainageandthe vandalswereallegedtohavesetthe spilledfuelonfireinabidtodeterthe securityagenciesfromapprehending them,” he said.

Over 30 vehicles were reportedly burnt and at least two people were confirmed dead.

Beyond the human and material cost, Nigeria is losing billions in oil revenue as the NNPC has been accusedofburyingexpenditurethat @Businessdayng

cannot be easily explained under the heading.

“Anytime NNPC cannot find anywhere to hide expenses that theyhaveincurred,theyjustrecord them as losses under pipeline repairswhichisverysad,”Ademola Henry,teamleaderattheFacilityfor Oil Sector Transformation (FOSTER), told BusinessDay. Henry said it really makes no sense for the government to operate the pipelines when the cost centres are too high.

“The major question to be asked is, who are the buyers of the petroleum products stolen?” he said.

HenryadvisedthattheFederal Government should “deregulate the sector and commercialise the pipelines and allow it operate on a tariffmodelwhichwillfurtherblock leakages”.

Friday 05 July 2019

BUSINESS DAY

7

news Kogi/Bayelsa Guber: INEC rules out electronic transmission of results

… Commission to prosecute electoral offenders in their states Iniobong Iwok

T

heIndependentNational Electronic Commission (INEC) has ruled out electronic transmission of results in the forth-coming KogiandBayelsaStategubernatorial elections, while insisting that manual transmission would be adopted in both elections.

The commission have come under increased pressure from political stakeholders, to jettison manual voting and adopt electronic transmission of results for future elections in the country, due to alleged widespread flaws, which characterised the 2019 general elections.

But speaking in an interview with BusinessDay Thursday, Rotimi Oyekanmi, Chief Press Secretary to the INEC chairman, Mahmood Yakubu, said the commission was not considering electronic transmission of results for both governorship elections

because it was not ready for it.

According to him, “There would be no electronic transmission of result in the Kogi and Bayelsa governorship elections; it would still be manual because we are not ready for it.”

Oyekanmi, however, assured that the commission would strive to conduct a credible election that would be accepted to all stakeholders.

“We have released guild lines for both elections. I can tell you that there would not be postponement and the commission would conduct a free and fair election.

INEC doesn’t rig elections; it is not true,” Oyekanmi said.

Stakeholders are of the view that electronic voting and transmission were necessary to check thecontroversyandelectoralfraud in the nation’s electoral system.

Inthepresidentialelection,the candidate of the main opposition, the People’s Democratic Party (PDP), Atiku Abubakar, said that

results of the 2019 presidential election were electronically transmitted to a central server, which showed that he won the election.

This claim has, however, been refuted by INEC which insisted that the commission had no server, while 2019 general elections results were not transmitted electronically.

Speaking further, Oyekanmi saidthecommissionwouldpartner withtheNigeriaPoliceForcetoprosecute electoral offenders, adding that 58 suspects had been arrested in connection with several offences in the 2019 general elections.

“We are working with the police authorities to prosecute all those arrested in the last general election; don’t forget that it is the police that made these arrests.

“But they would be prosecuted in their states, where they committed the crime. We would notbringthemtoonecentrallocation, contrary to what people are saying,” Oyekanmi added.

Visa boosts Nigerian brand, sponsors 5 children for AFCON 2019 Player Escort Programme Daniel Obi

V

isa, a player in digital payment and official sponsor of the 2019 Total Africa Cup of Nations, says it sponsored five children as player escorts at AFCON 2019, under its Unstoppable Stories campaign. The selected escorts will lead some of the world’s best football players onto the pitch during the quarterfinal match on July 11.

The five children - Basil Okpara, 9yrs; Ibrahim Tijani, 9yrs; Osidele Mayowa, 10Yrs; Adebayo Oluwaseun, 9yrs, and Olubowale Oluwaferanmi,10yrs, along-

side a parent or guardian, will embark on a three-day trip to Cairo, Egypt. Three of the children were identified through #VisaUnstoppableStories campaign for AFCON, which called upon children from Nigeria to share their stories and inspirations of what makes them or their heroes unstoppable.

The other two were selected at the finals of the Channels International Kids Cup, held in Lagos.

Kemi Okusanya, country manager/vice president, Visa West Africa, said, “Congratulations to the lucky winners who will get the once in a lifetime opportunity to take

part in the Player Escort Programme at the 2019 Total Africa Cup of Nations. For a young footfall fan, it is an unforgettable experience to escort a world-famous player onto the pitch in front of millions of spectators.

“The entries we have received for the Unstoppable Stories campaign have shown us the scale of talent, passion and determination that Nigerian children possess. We are thrilled to be able to offer this experience and witness the happiness and joy that the campaign has brought to the winning children. We wish them the best of luck in Cairo.”

Rotary District 9110 announces plan to tackle cervical cancer, heart diseases, poverty Seyi John Salau

R

otary International District 9110 has concluded planstowagewaragainst the spread of cervical cancer,CongenitalHeartDiseases and also reduce Poverty among the people of Lagos and Ogun States.

This was stated Thursday by thenewDistrictGovernor,JideAkeredolu,atamediaparleypreceding his official installation where funds shall be raised to undertake key humanitarian projects for the 2019-2020 Rotary year.

According to the District governor, the District, under his watch shall mobilise funds from volunteers within and outside the Rotary Circles in order to bring the projects to fruition.

Speaking further, Akeredolu hintedthatthecervicalcancerprevention programme has become aprioritytohisadministration,going by the alarming rate at which lives are being lost to the deadly disease in recent times. World health Organisation statistics show that 26 women die of cervical cancer in Nigeria every day.

www.businessday.ng

https://www.facebook.com/businessdayng

That translates into one cervical cancer death every 55 minutes!

Cervicalcancerisuniquebecause itisacancerthatiscompletelypreventable by vaccination against the Human Papilloma Virus.

Another project being planned is the treatment of Congenital Heart Diseases which has continued to claim lives of many children, especially those from indigent families who cannot afford the costs of open heart surgery.

Also, the District Governor said that a significant proportion of funds raised during his tenure shall be devoted to addressing the needs of people who are in extremepovertythroughempowerment programmes, using the existing Rotary Vocational Training Centre in Igbogbo, Ikorodu as a pool from where beneficiaries would be sourced.

This, he said will be in fulfilment of Rotary’s commitment to giving hope to the vulnerable people around the world.

Whilereflectingonfunding,he noted that a total of N200 million is required for the various projects and programmes in his tenure. @Businessdayng

Part of this he said, is hoped to be raised via grant from the Rotary Foundation while well-meaning individuals and corporate bodies are expected to partner by donating cash or providing materials and logistic support.

“We hope to achieve a lot throughmedicalmissionsindriving the Congenital Heart Disease project,” he said, adding that each mission is open for sponsorship for the sum of one thousand dollars.

Akeredolu also stated that as part of its fund raising initiative, the District has launched a One million dollar challenge, which gives Rotarians and their friends the opportunity of winning a brand new saloon car and other juicy prizes by just donating to the Rotary Foundation. The Rotary Foundation is the arm of Rotary, which collects and manages voluntary donations from around the world. Districts and clubs across the world access funds of the Foundation to implement impactful projects around the world.

8

Friday 05 July 2019

BUSINESS DAY

NEWS

Lumumba, Abah seek alignment of Africa’s democracy with current realities OLUWASEGUN OLAKOYENIKAN

… advocate for strong institutions

atrick Lumumba, a former director of Kenya Anti-Corruption Commission, said it was important for African countries to allow the current circumstances surrounding their nations inform how democracy is viewed.

According to Lumumba, Africa has got to a stage it appears it can no longer handle elections as suggested by its colonial masters, stressing that time has come for the continent to ask itself if it could handle elections the manner that was prescribed by the west.

The legal luminary, who made this known while sharing his thoughts as the guest speaker at the 2019 edition of Aelex Annual Lecture in Lagos on Wednesday, joined other discussants at a panel to chart ways for strengthening democracy in the continent.

The lecture themed “Strong men vs. Strong Institutions: Strengthening Democracy in Africa” was chaired by Justice Aloma Mariam Mukhtar, a former Chief Justice of Nigeria, and other discussants including Joe Abah, former Director General of the Bureau of Public Service Reforms, and Fola Arthur-Worrey, a former Director of Public Prosecution (DPP) and SolicitorGeneral of Lagos State.

Lumumba noted that time has come for African nations to think of a method of putting their leaders into office in a manner that is unique to their circumstance, adding that these methods must constantly evolve as their realities change.

One must be alive to the diversity of Africa and the fact that various African societies have a system of governance working, the Kenyan Professor said. ”Most

P

were also organised in various unique ways.”

He pointed out that these would help the countries build strong institutions in their lands, which would ultimately aid the success of their leaders while in office.

“Time has come Africa must redefine ourselves, redefine our democracy, recognize that good strong men are useful in any institution,” he said. “Those strong men and women must be subject to the law and they must be under institutions because men and women have short lives, institutions can exist in a time.”

Lumumba further explained that even though Nigeria gained independence many decades ago, the nation still depends on the dictates and the definitions of its colonial masters, thereby impacting negatively on it and its masses.

AfDB to meet Nigerian business leaders ahead of investment forum HOPE Moses-Ashike with agency report

A

fricanDevelopmentBankGroup (AfDB) and the Africa Finance Corporation will meet industry and business leaders in Abuja, Nigeria on Monday, July 9, 2019 as part of a roadshow to woo investors ahead of its second Africa Investment Forum (AIF) in November.

AIF, the continent’s biggest invest-

ment marketplace for accelerated economic transformation - is slated for November11-13,2019inJohannesburg, South Africa.

Itisdedicatedtoadvancingprojects throughout Africa to bankable stages, raising capital, and accelerating the financial closure of deals.

The Abuja roadshow targets chief executive officers, captains of industry, Stategovernmentsandotherkeyplayers

www.businessday.ng

that will re-affirm Nigeria’s investmentready status. The event will build on the quantity and quality of deals brokered in 2018, as well as explore investment opportunities across the continent.

By convening Nigeria’s premium projectsponsors,borrowers,lendersand investors, the roadshow will showcase bankableprojects,attractfinancing,and provide platforms for investing across multiple countries.

https://www.facebook.com/businessdayng

@Businessdayng

Friday 05 July 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

9

10

Friday 05 July 2019

BUSINESS DAY

comment

comment is free

Send 800word comments to comment@businessday.ng

Osinbajo, Umahi, RUGA and Southern Nigeria The Public Sphere

CHIDO NWAKANMA

T

he audacious attempt to grab lands across the 36 states of Nigeria for the Fulani is unravelling for its brazenness, thoughtlessness and selfishness. The idea of Ruga settlements for herders came into public consciousness in the last week of June 2019 with The Presidency claiming that it would solve the herder-farmers crisis that has characterised the Buhari government.

The narrative has changed from dayto-day.

More significantly, the bullying and avariciousness of Ruga are clearing cobwebs that have blocked the sights of political leaders of Southern Nigeria. They can see the manipulations and intent of persons with whom they thought they were on the same journey. The Igbo proverb speaks of two persons who set out on a ghosthunt only for one of the parties to realise that he was the target of the hunt.

After obfuscating in Washington on behalf of the Federal Government on the matter of increased criminality in the land, Vice President Yemi

Osinbajo returned to Abuja to the unveiling of the Ruga manipulation. The professor of law played the trapeze artist. Osinbajo washed his hands off the scheme, insisting instead on the National Livestock Transformation Plan (NLTP) approved by state governors under the National Economic Council on January 17, 2019.

Osinbajo’s spokesman Laolu Akande clarified, “The National Livestock Transformation Plan (NLTP) 2019-2028 is a programme to be implemented in seven pilot states of Adamawa, Benue, Kaduna, Plateau, Nasarawa, Taraba and Zamfara as decided by NEC in January, being states in the frontlines of the farmer-herder crisis. Afterwards, six other states have indicated readiness to also implement the plan; they are Katsina, Kano, Kogi, Kwara, Ondo, and Edo states.

“The plan has six pillars through which it aims to transform the livestock production system in Nigeria along market-oriented value chain while ensuring an atmosphere of peace and justice. The six key pillars include-economic investment, conflict resolution, justice and peace, humanitarian relief and early recovery, human capital development.

Others are cross-cutting issues such as gender, youth, research and information and strategic communication.

In all, the Federal Government will not impose on any state government regarding its land.”

The Osinbajo denial of involvement in the policy and implementation of Ruga Settlements was the first crack in the wall. The crack widened

with Ebonyi State Governor David Umahi adding his voice to the disclaimer. Umahi is central to the NLTP as chair of the technical committee that propounded the idea. He is also chair of the South East Governors’ Forum.

Umahi asserted that governors of the South East and South-South would not give their lands for any Ruga Settlement but would be part of mutual exchange of value between North and South. “The way it works is that the herdsmen will bring down their cows to the South-East and sell us as meat while they will load the grass which is grown here in the same trailer with which they transported their cows to feed their cattle in those grazing reserve which should be made comfortable for them. With this proposed deal, herdsmen are expected to embrace anti-open grazing by returning to the ranches in the north and do their business on the trade-by-barter basis of selling cows to the south and buying grass to feed their cows in the north.”

Garba Shehu, speaking for the Presidency, insisted that the Federal Government conceived the Ruga Settlements scheme for charitable purposes. It would stop open grazing of cattle, resettle the Fulani and all herders and increase productivity in animal husbandry. He then disclosed that the Federal Government had gone beyond its constitutional remit by gazetting lands in all 36 states of the Federation for the purpose.

However, in blatant contradiction of itself, the Federal Government would

‘

More significantly, the bullying and avariciousness of Ruga are clearing cobwebs that have blocked the sights of political leaders of Southern Nigeria

only establish Ruga Settlements with our money for states who choose to be part of it.

From Governor Kayode Fayemi through Arakunrin Rotimi Akeredolu, Godwin Obaseki to Prof Wole Soyinka, a strong Nay has resounded. The evolving concerted Southern resistance to the land grab called Ruga Settlements should remain firm. There would be a few misguided persons who would offer the lands of their people in sacrifice.

Hear Akeredolu: “A lot of our land is already earmarked for forest reserves. The FG must understand why we need to be strategic in our decision making. We implore the FG to revisit the proposal based on feedback from the different States & act accordingly.”

The hubris attending the proclamation of the Ruga Settlements also speaks to the lack of sensitivity, even intelligence, of its evangelists. It is rude and unintelligent in the face of modern approaches to the same matter and given the abundance of land and favourable ecological factors in the North. It also lacks coherence.

The same Federal Government had declared that these terrorists masking as herders are foreigners. Why should the people of Nigeria give up their lands to foreigners?

Nwakanma is a Visiting Member of the BusinessDay Editorial Board and serves on the Adjunct Faculty at the School of Media and Communication, Pan Atlantic University, Lagos. Email chidonwakanma@gmail.com.

The recruitment strategy (1)

G

ood morning trusting that the last two weeks have been very interesting but not futile. Are you living life deliberately or are you coasting through life.. Today we’re going to be talking about recruitment strategies.

A few years ago, my organization at the time organized a team-building retreat. During the retreat we played a lot of team-building games.One of them was the fact that you had to run and pair- up with somebody whenever the command was given. You were out of the game if you were left standing on your own.

There was a young man who always paired-up successfully with another person immediately the command was given. He looked very unassuming but won the game without much of a fuss. I was intrigued as to how come he always paired up with somebody else immediately the command was given.

When I asked him, he told me that before the command was given he would target exactly the next person he wanted to pair up with.He wouldn’t let the command come firstbefore he would start running around trying to find somebody. This strategy invariably led him to win the game. What this quickly taught me was that strategy is extremely important in anything you want to achieve.

With this mindset it is clear that selection and recruitment needs strategy just to ensure that the right person is recruited into the right position at the right time in the right vicinity and at the right cost.

Strategy is a plan of action designed to achieve a long-term or overall aim. Recruitment is the action of enlisting new people into the work force. Therefore a recruitment strategy is a plan of action designed to achieve a long-term aim and objective in the act of enlisting new people into the workforce.

Over the past few weeks we have spoken extensively on the things you need to put in place so as to ensure the success of the organisation both externally and internally.

Once you have an organogram, a job description, a personality profile and people specification , a manpower plan, not to mention your systems and processes, it is time to design a recruitment strategy.

This strategy , like the process maps should also be flow charted especially as it is also a process.

At the start of the flow chart should be your organogram,that already details every position with the people specifications attached.

People specification is not only skills and qualifications and experience even though this is of such great importance. Like I said before we usually hire for skills but we fire for attitude. The personality profile analysis is of great importance but is usually the most overlooked.

Remember that the manpower plan is putting the right number and right kind of people in the right place at the right time doing the things they are best suited for to ensure that the organization achievements her goals. I got this precise definition from the internet.

This ensures we are not just employing” Oga at the top’s “niece when we are told to, even though we don’t need her. We will not recruit her into a department where her skills and profile don’t work.

Each line manager will know when to start the process for new staff according to the manpower plan. However sometimes when people leave suddenly the departmental head has to make a request for new staff and flag off the process.

In instances of key staff, whose expertise and knowledge are core to the business of the

www.businessday.ng

organisation. I advise that you have what we call a” pipeline recruitment”where you have already identified and interviewed replacements andyou don’t start from the beginning of the process as this will take time.

If the departmental head believes he wants to fill a position that is not a core one that will require the pipeline recruitment and also the position is not on the manpower plan, she will have to create a business case that will buttress this requirement of such a position.

Once this is approved by the appropriate people, the next stage kicks in. Which ever way it goes the HR department must be involved.

There was a time when the HR department did all the recruitment process from beginning to the end. These days however the line managers can also identify people, carry out the recruitment process with HRM just overseeing the process that is project managing the process.

The strategy should also define how the position will be advertised. Is it going to be an internal advert then a public advert. Are you going to advertise on the company website or a job site. Are current staff going to be asked to inform their friends and family. Are you going to go to linked-in or are you going to use a recruitment consultant? This is important because which ever method will determine how the advert should be worded. Always bear in mind that even the wording and the look and feel of your advert and the vehicle you use, plays a very important role in the quality of people you attract.

Depending on the level of the position, this will determine how you shortlist and then interview. Which personality profiling tool are you going to deploy?

There are many different types of interviews, the weeding interview which could be a

https://www.facebook.com/businessdayng

Olamide Balogun test/presentation to reduce the numbers. Then you could have a group interview, a panel interview and then a one on one interview to mention a few.

All the interviewers and those conducting the interviews have to be trained in properly evaluating the prospective employee. Remember that any employee worth his/her salt will also be assessing whether or not they want to work with you. Be on time when you invite them. Don’t invite 10 people to come at the same time except if it is a group interview.

Ensure the front desk is expecting them.

Before they come ensure they know the job description of the job they are interviewing for.

Be prepared with the right questions and evaluation sheets to capture the answers.

Proper etiquette during the interviews must be observed. For example, you can’t use your phone during the interview.

All of this forms your recruitment strategy strategy and more, and has to be decided before you need to do it. I will complete this process in the next article. In the mean time keep living deliberately.

Balogun is the founder of Box & Cedar Ltd a boutique Recruitment and HR Consulting firm Www.boxandcedar.com

@Businessdayng

Friday 05 July 2019

BUSINESS DAY

comment

11

comment is free

Send 800word comments to comment@businessday.ng

And Busola Dakolo stepped forward Tales from the main road

Eugenia Abu

M

any years ago a staff of the international humanitarian body, The Red Cross, gifted me with a small pamphlet on the trauma of war as recorded by red cross volunteers and staff around the world. I read about men in great pain from years of starvation, amputees from wounds of war and men tattooed with hot iron metals for identification. The book also talks about the pained look of prisoners of war tortured by their captors in such discomforting detail.

But a whole chapter was dedicated to the women captured by warring men on either side used as cooks and shields and water fetchers.

More importantly, the volunteers said the women looked physically okay and had no tattoo marks or amputated limbs so he recorded them as in good health but recommended psychological evaluation due to trauma. But when he returned the following day with two other colleagues, he saw a hollow in the eyes of the women, a different sorrow from the men, deeper and more intense, pleading eyes and a haunting look he will never forget. He described it as akin to a shell staring past him. He said when he looked at the women a second

time, they all seemed to have emptied themselves deliberately to remain sane.

It was the look, he said, of people who no longer had the will to live and yet they had seemed okay the day before.

On the visiting team was a psychiatrist who had requested a fast track psychological profile of the women as their look was disturbing. In the end, after several weeks of talking to the women, the result of the interviews returned multiple cases of rape across all the women, the youngest being 14 and the oldest, 65. All had been gang raped by their captors.That look, that emptiness, that trauma that can last forever.

Rape is not a pretty word and no matter the perpetrator, it is beyond just the physical torture, it is a power game, a mind game with the intention of dominance. Rapists take away everything that belongs to their victim and erode her self-esteem. Most perpetrators are cowards who will take without consent and threaten and blackmail and instil fear and condemn their victims to the dungeon of emptiness and continuous trauma. Shameless lechers who use sex as power relations over someone who they believe should be silenced. Dirty rotten scoundrels, authority figures, family members pretending to be who they are not, whose shame should trail them for the rest of their lives. Slippery, highly deceitful predators with evil charm, seeking to devour.

Rapists are among us, from religious leaders to teachers, to step fathers to policemen entrusted to look after us all.

Rapists are highly protective of their own daughters and for fear that someone else might abuse them, may begin to sexually abuse their daughters. As a caregiver and counsellor, I have met many

children abused by their own fathers and others by trusted persons, uncles, houseboys, sister’s husbands, drivers who damage the girls for life while the rest of the world is looking the other way.

Enter Busola Dakolo, our heroine of the month, blazing a trail like no other woman in Nigeria. As a teenager, she tells how she was taken advantage of

by Pastor Fatoyinbo, Head Honcho of the COZA church. Although we are still awaiting investigations and formal complaints etcetera, Busola has stepped forward and spoken for all women worldwide who have ever been raped.

Her story has gone viral and Fatoyinbo’s other alleged victims have all being coming out with the most bizarre stories which seem to play into the same pattern. Pastor grooms you to believe you are a good church worker and before long begins to masturbate his own ego and believe that his position means he owns you. Self-entitlement becomes a norm and they line up the women, some feeling powerful by giving their bodies but most deceived and defiled. As theBusola/Fatoyinbo discourse rages, a pastor feels you should be grateful that he deposited his elevated sperm in your body even while committing the heinous crime of rape.

I am incensed by the reaction of many warped Nigerians to this allegation. First there are those who typical with rape cases are concerned about how big the person in question is. Then there are those who dare to play God. They say whether it is true or not, the man is anointed. Really? So that is a licence to rape, kill or defraud? Listen to yourselves. Wow! I do not believe being anointed means you should go against every word in your anointing,

‘

Only strong women survive rape with a heavy dose of counselling and family support.

Many women are emotionally and physically destroyed and turn to drugs or easy living to deaden their pain

in the bible, in the moral compass of life. Please let us all become Pastors, so we can get away with murder. Then there are others who have reduced it to a religious matter. No Muslim will do this kind of thing, pull down their religious leaders. This is beyond belief. Someone says she has been raped and we reduce it to a religious matter?

I can see why we have too many fake men of God. We give them permission by these kinds of incendiary nonsense.

So he has permission to take the life of another because rape is literally murder, a psychological destruction of another, an erosion of another, the diminishing of another, a complete destruction of someone’s life. Just because he is a religious, he is free to kill? Only strong women survive rape with a heavy dose of counselling and family support. Many women are emotionally and physically destroyed and turn to drugs or easy living to deaden their pain. In all of this is Timi Dakolo, one of Nigeria’s most beloved singers, a hero in every sense of the word, ready to defend his wife’s honour in spite of the pain and the shame. We salute you!

We stand with Busola and all women who have ever been raped. Their pain is immeasurable. I am ashamed of Nigerians who have called them all sorts of names. What if it happened to your daughters? Remember the Red Cross story. I have said in an article in this paper before that the punishment for rapists, although unlawful, is to hang them by their balls. Enough said!

Eugenia Abu is a broadcaster, writer, trainer, band and multimedia strategy expert and media consultant. Contact. abu_eugenia@yahoo.com

Creating a business that runs without you

H

ere’s a quick question, “for how long can you get the result you get, for how long can you afford the things you can now, or the lifestyle you live if you stopped doing what you currently do?”

You can divide your effort for multiplied results. It’s possible to do more with less time.

Anything less than that is hustle; too operationally working “in” your business than working “on” your business. There’s a huge difference between hustling to get by, between even success, significance, achievement and truly building sustenance (structure/system). Anyone can succeed, as a one off. But to keep it going, there are steps to it.

Achievement comes to someone when he is able to do great things for himself.

Success comes when he empowers people to do great things with him.

Significance comes when he develops people to do great things for him, but legacy, institutions and a system is created only when a person puts his organization into the position to do great things without him.

An institution is a system designed to outlive the founder. And systems run on processes. A system is a set of processes that can run without you. As your business grows, you’ll need to build systems and processes that can be automated as much as possible. You’ll need to build distribution systems, investment systems, marketing systems, customer relationship and support systems, research and development systems, effectiveness and performance measurement and improvement systems, accounting and hiring systems, and many others.

Systems are rules, policies, and procedures that on boarded and trained individuals can repeat as your company grows and run independent of you.

A system is a set of processes that can run without you. A system in one word is interdependence.

It is a set of independent units working to achieve a common goal. As your business grows, you’ll need to build systems and processes that can be automated as much as possible. You’ll need to build production, inventory, marketing sales and distribution systems for consistent supply. You’d need to brand, identify and know your market while keeping up with the times and competition through research and development systems. To manage revenue, expense and cash flow, you’d need to have an accounting system. In the middle of all of these comes people. This means that you’d have to have a human resource system with the functions of HR Planning and people management through selection and recruitment of the right people with the right roles. That is putting people in the right positions. If you don’t train them, you can’t blame them so there has to be a process for training and development. And you’d have to measure their performance through appraisals. That funnels into their compensations like salary, rewards, sanctions etc.

It’s not out of context to bear risk in mind; identify, know and attempt to mitigate where it cannot be avoided. You’d need a set of templates for crisis management, you also need to keep your team in loop with it, to notify customers when your product is not working, to review the operations of your business, to gain and collect feedback on your product, to do expense planning and financial planning and pay for purchases; to pay salaries through payroll, to determine how happy your customers are; to implement a net promoter score for your customers, to handle vacation requests for your employees, to manage requests for proposals (RFPs); and so on. You’ll need systems for setting up your hardware, for providing tax documentation, legal contracts,

www.businessday.ng

and full 360 feedback to your employees, for communicating internally and externally. These are just a few examples of the hundreds or thousands of systems that will be running in complex, large organizations.

In the startup or entrepreneurial phase, avoid bureaucracy, try to be light on formal systems.

You just need to have the minimal necessary amount of efficient systems that run smoothly.

As you grow, you can put in place more complex processes.

During your first year in business, your success is really about what you personally do and the product you build. After the first year in business, your success is determined more by the people you hire than by you. After the first year, or even the first few months, stop trying to do everything. None of us is as smart as all of us. Delegate. Hire smart people and help them put systems in place so that things happen even when you’re not there. Let’s look at a few key things you must set in place on your way to building a system.

1. Define your purpose, vision, mission and objectives of the organization. Define and have a set of core values (you can use key words) that everyone lives by and funnels all their actions through that will form the culture. Immerse yourself and others into it. Create experiential touch points for this, it will form what drives everyone and much later the identity and culture.

2. Narrow the services you offer. Less is more.

3. Brand appropriately. Let your brand be inspired by your target market. Start from market identification, and the. segmentation, to specialization and then concentration in that order.

4. Define the tasks and operations per product line/service and create departments for each.

Get each department to be manned by a head.

From here you can draw up a more effective

https://www.facebook.com/businessdayng

EIZU UWAOMA organogram.

5. Break each operations into tasks, and document each operation into a series of steps. Each of these documents forms your S.O.P (Standard Operating Procedures) per task.

6. Create a good communication management plan. Let daily reports be sent through the heads of each departments from bottom up.

And then an executive summary weekly with a monthly appraisal based on the achievements and shortcomings. For the sake of structure and organization, let no one break this. Ensure there are laid our rules on penalties and actions for any broken accord and institutionalize it.

Don’t sweaty the petty things and don’t pet the sweaty things.

7. Now to you, begin to train new sets of new talents. Then pair them up with heads off department while you mentor them.

8. Create specific roles and delegate as much as you can (be aware they may make mistakes at first, but if they have aptitude and you believe in them, they’ll get better).

Note: The rest of this article continues in the online edition of Business Day @https:// businessday.ng Uwaoma is a start-up, corporate restructuring and strategy consultant. He writes via contacteizu@gmail.com

@Businessdayng

12

Friday 05 July 2019

BUSINESS DAY

Editorial Publisher/CEO

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

The ghost of 2016 economic lull

A

cross the country, from Alaba, the largest electronics market in West Africa to outlets of Shoprite, the South African supermarket chain, the story is the same: consumer demand is weakening.

Businesses that make bread, alcoholic and non-alcoholic beverages, soap, cereals, seasonings, electronics are struggling to keep costs from outrunning their profit.

Income per capita, which was $3,268 in 2014, has shrunk to $1,994 in 2018. As a result, Nigerian consumers, afflicted by the twin enemies of weak purchasing power and a slow economic recovery, now buy less of the same, buy cheaper brands or don’t buy at all.

Goods sit on store shelves and discounts, which used to woo customers, don’t work their magic anymore. Throngs of people seen at the malls today are either window shopping or shopping for the perfect selfie backgrounds.

Thos e long queues for bread at Shoprite have dwindled. The price of bread, a

beloved Nigerian staple is set to rise. Flour prices have gone up five percent as millers struggle to stay in business. In 2018, cost of sales grew faster than revenues for four flour millers quoted on the stock market.

Even the newly approved minimum wage, however welcome, is in real terms lower than the previous N18,000. It can’t buy the same amount of goods today as it could eight years ago when inflation was benign and N160 exchanged for a dollar; today it’s N360.

Full year revenues (for 2018) of the eight quoted Fast-Moving Consumer Goods (FMCGs) listed on the Nigerian Stock Exchange (NSE) further paints a dismal picture. Their combined revenue shrunk by 4%, the lowest in 5 years. Profits dropped by 26.74% from N94.28 million to N69.07 million. The combined operating costs of five of them soared by 7 percent. Data from the National Bureau of Statistics (NBS) backs Alaba traders’ lament about the drop in patronage; the electrical electronics sector declined in five years to 3.75% in 2018 from 6.47%.

We’ve been here before; not

25 years but three years ago.

When Nigeria hobbled out of the recession, it was despite government policies. Oil prices and relative peace in the Niger Delta gave the Central Bank of Nigeria (CBN) a sizable foreign reserve with which to maintain multiple exchange rates while barring 41 items from getting dollars.

According to the Manufacturers Association of Nigeria (MAN), a trade body representing 2,500 companies, “The confidence level of CEOs in the sector, though not negative, is dwindling.” Though capacity utilisation rose by almost 2 percent in the first six months of 2018 compared to the same period in 2017, current business condition and employment prospects are limiting manufacturers’’ ability to operate at full capacity.

In its maiden MAN CEO Confidence Index, a quarterly survey that measures the sector’s pulse, CEOs of manufacturing companies say it’s easier to source for raw materials locally but access to foreign exchange has not improved.

One-quarter of the 200 CEOs surveyed agree that getting local raw materials has improved

while one-quarter disagree that access to foreign exchange has improved. A little over threefifth say bank lending rates discourage productivity (the combined loans of Nigeria’s 12-largest banks dipped in the past year).

More than over half aren’t impressed with government’s capital expenditure on infrastructure (particularly power & roads); majority say excessive regulation, multiple taxes, and inaccessible ports, are major deterrents to productivity.

Overall, the sector is struggling.

Data on manufacturers’ and consumers’ confidence are long overdue in Nigeria. The MAN CEO Confidence Index is most welcome. In Kenya, for example, mSurvey, a start-up and Africa’s integrated customer experience company, has help track consumer feedback and experience trends.

For the willing and able, current or prospective, CBN Governor, Ministers of Finance; Industry, Trade and Investment, and Works, Power and Housing, the MAN CEO Confidence Index is handy guide for exorcizing the ghost of recessions past.

Bashir Ibrahim Hassan

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

EDITORIAL ADVISORY BOARD Dick Kramer - Chairman Imo Itsueli Mohammed Hayatudeen Afolabi Oladele Vincent Maduka Keith Richards Opeyemi Agbaje Amina Oyagbola Bolanle Onagoruwa Fola Laoye Chuka Mordi Mezuo Nwuneli Charles Anudu Tunji Adegbesan Eyo Ekpo

Enquiries NEWS ROOM 08169609331 08116759816 Lagos 08033160837 Abuja

}

ADVERTISING 01-2799108 08034743892 08033225506 SUBSCRIPTIONS 01-2799101 07032496069 07054563299 DIGITAL SERVICES 08026011296 www.businessday.ng The Brook, 6 Point Road, GRA, Apapa, Lagos, Nigeria.

01-2799100 Legal Advisers The Law Union

OUR Core Values

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

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

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

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

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Friday 05 July 2019

BUSINESS DAY

comment

13

comment is free

Send 800word comments to comment@businessday.ng

Ebola in the Congo HumanAngle

Femi olugbile

T

he phone began to vibrate just as you commenced your morning exercise.

The caller’s name leapt up in bold letters on the screen.

‘I am Dr Adadevoh, Consultant Physician at First Consultant.’

‘I know.’

Perhaps it was the time of day, or the interruption of your exercise that made you short. You reasoned it was something to do with the Ministry, and she was not aware you had left the system two months ago.

‘Could you please give me the phone number of Professor Omilabu’s lab at LUTH? I think I may have a case of Ebola on my hands…’

A bolt of electricity shot across the atmosphere.

No, she did not get the Professor’s number. Instead, she got a link to Disease Control, and Disease Control got a hotwire link back to her. A jangling of alarm bells rose quickly to a din.

Irrespective of what the Hollywood movie ’93 Days’ or any other accounts would say later, that was the real beginning of the Lagos Response to Ebola, a response that would ultimately put Lagos, and Nigeria, in World News, for a good purpose for a change.

Having played her part in setting off the trip-wire, Ameyo Adadevoh would

bravely resist the importunities of the headstrong Liberian Patrick Sawyer who had brought his fever-ridden body into Lagos, Nigeria despite warnings not to travel. Even after landing in hospital, and obviously used to throwing his weight around, he demanded to leave and mobilized his rich and powerful connections to evade quarantine.

Dr Adadevoh stood firm as the Liberian Ambassador to Nigeria threatened fire and brimstone, demanding that his countryman be ‘freed’ from hospital.

It was not a glorious day for Liberia, but it was a glorious day for Adadevoh and Nigerian Medicine.

Potentially thousands of Nigerians were saved from infection, and a grisly death.

Still, it was not entirely without a price. Twenty people were infected with Ebola. Eight of them died, including Ameyo Adadevoh.

There are five recognized strains of the dangerous virus, which is alleged to have been passed to human beings from infected animals in the forests of East and Central Africa, and spread by human-to-human contact.

The first recorded mass infections occurred in Sudan in 1976.

The largest recorded attack of Ebola was the one that ravaged West Africa, including Nigeria, from December 2013. Though the Nigerian incursion was effectively seen off within a few months in 2014, the epidemic did not end until 2016. At the final count, 28,646 people were infected. For the general public who got infected and did not make it to hospital, about 70% died. For those who were able to receive treatment in hospital, whether in Liberia or Sierra Leone or elsewhere, the survival rate was higher.

After a short reprieve, when the world was beginning to think it had heard the last of the deadly scourge, Ebola is in the news again, in the Congo.

This time it is a very pathetic story of failure in governance.

In May 2018, a few cases of Ebola infection were reported in the North West of the Democratic Republic of Congo. It was the 9th reported outbreak of Ebola in the country. The world appeared ready to fight the virus with Science. For the first time, a vaccine – rVSV-ZEBOW was deployed by the WHO to stem the outbreak. It seemed to work, and the outbreak was declared over in July 2018.

Unfortunately, one month later, a fresh outbreak was reported in Kivu Province, in the much-troubled East of the country.

To say that there is war in some parts of the Congo is to make a massive understatement. Apart from the undisciplined Congolese Army (the FDLR) which is a menace in its own right, there are over seventy armed militias fighting for various causes.

There are over a million internally displaced people, living in precarious circumstances, trying to escape the fighting and the rapacity of the various armed groups.

The largest United Nations ‘PeaceKeeping’ Force in the world– 21,000 soldiers, has been stationed in the Congo for several years. Their mission is a misnomer. There is no peace to keep in the Congo.

At the heart of the conflict is a failure of society itself that has seen a line of grasping incompetent thieves and robbers holding the reins of power in the capital Kinshasa, and not bothering much with the rest of the country.

There is a new President now – Felix Tshisekedi – who is just trying to find his feet. Observers can be forgiven if they are cynical about the prospect for positive change.

Underpinning all the violence is money. Western (and increasing lately, Chinese) companies mine precious minerals – Cassiterite, Coltan – used in cellphones, and Gold in the troubled areas and pay large sums of money ‘under the table’ to militias and ‘government’ forces. The money substantially finances the endless war.

To date, 2518 Congolese have been infected by Ebola in the latest epidemic. 1509 of them have died. In May this year, WHO reported that there have been 42 attacks on health facilities, and 85 health workers have been wounded or killed. Some Aid organizations have withdrawn their staff from the field.

There is a massive war of disinformation, going back to the period before the recent elections. Many local people have been fed lies by opposition groups and made to believe the Ebola outbreak was a hoax fostered by government.

There was even a widespread public resistance to vaccination.

WHO, at its latest expert meeting in Geneva, in June, decided that Congo’s Ebola does not meet the criteria for declaring an international crisis. In effect, Congo is on its own.

More than ever before, the Congo needs effective, decisive, and empathic leadership, which, sadly, it has never had. It is the only thing that can make this sad story go away.

The rest of Africa can only wring their hands in anguish.

‘

At the heart of the conflict is a failure of society itself that has seen a line of grasping incompetent thieves and robbers holding the reins of power in the capital Kinshasa, and not bothering much with the rest of the country

Femi Olugbile is a Writer and Psychiatrist. Comments to synthesiz@ gmail.com’

In defence of the house-help

I

come from a very funny neighbourhood where house helping is very common. On a daily basis, the house-help is blamed for everything that happens in the home.

When the children misbehave the house-help is held responsible for not correcting them – and when he/she corrects them, a reprimand follows; often with slaps and beating.

I remember once a case of a full-time housewife saying at a Parent Teachers Meeting (PTA) that her children often come late to school, because her house-help is so lazy and does not wake up on time to prepare the children for school (you can guess the comments and reactions that followed). This is the same house-help that wakes up first in the morning and sleeps last at night after the madam of the house finish watching Telemundo to early hours of every morning.

These kinds of women bring up indolent children without virtue; a situation in which they end up training the house-help to the detriment of their children.

In recent times in Nigeria, I have seen a dangerous new trend that does not befit adults who have any virtue he/she might want the children to imbibe. A situation you blame others for your laxity, action or inaction, is likened to the case Late Archbishop Benson Idahosa described by saying, “Anyone that refuses to take responsibly for his action becomes inconsequential.”

Let’s consider the following recent scenarios.

On May 18, 2019, Governor Babajide Sanwo-Olu of Lagos State at the Executive Master of Business Administration class, University of Lagos with the 1998/2000 set, said, “The Apapa trailer

issue; it’s a campaign issue; it’s very serious; I’m going to take it very seriously.

“I believe that it is something that we are going to solve in the first 60 days of our government. Whatever is going to be required of us, we will take them out.’’

“There is a lot of politics being played around there. But no, it cannot be the way we’ll continue to live. We cannot continue to give excuses.”

This stand drew a lot of applause from all stakeholders, believing hope was in sight for the Apapa neighbourhood.

But Nigerians, especially the Apapa stakeholders, were shocked to the marrow on June 18, 2019, Governor Sanwo-Olu said, “Interestingly, some media houses are already counting down to the day. They said that I mentioned during the campaign train that I was going to clear it (the gridlock) in 60 days.

“I have mentioned it before; what I said was that in 60 days, we would review what was done; but that does not take the fact that even if people give you datelines, it is because they want you to do well and they want you to be accountable for those datelines.”

The media was blame for the misconception, and nobody could stand for the media.

Same month, June 18, 2019, Chief of Army Staff, Lieutenant General Tukur Buratai, attributed some recent operational setbacks suffered by the Nigerian Army in recent times to insufficient willingness and lack of commitment by commanders to perform assigned tasks.

“It is unfortunate, but the truth is that almost every setback the Nigeria army has had in our operations in recent times can be traced to insufficient willingness to perform assigned www.businessday.ng

tasks,” Buratai said at a military-organised event in Abuja.

The alleged laziness of soldiers could also be traced to “simply insufficient commitment to a common national/military course by those at the frontlines,” Buratai was quoted as saying by the Nigerian media.

Sadly, barely a week later, June 24, 2019, Buratai said, “Some journalists have even gone beyond that by saying that I said troops are cowards. This is far from the truth and it is unfortunate the way some journalists and newspaper houses will go to the extent of distorting fact,” describing the media publications as “mere propaganda.”

The Nigerian media was blamed here also with no one standing in defence of the media.

Read this also: “With respect to general kidnapping, which we have seen in parts of the country, again, this is not entirely new. In fact, some of the kidnapping stories you read or listen to are simply not true anywhere, some are fuelled by politics,” Vice President Yemi Osinbajo was reported as saying by the state-run News Agency of Nigeria.

On June 25, 2019, this followed: “Our attention has been drawn to misleading reports in a section of the media purportedly made by and attributed to Vice President Yemi Osinbajo on the security situation in Nigeria, in New York.

“For the purpose of clarity, and the records, it is pertinent to state that Osinbajo was entirely misquoted and his words taken out of context in the said media reports, especially those that quoted him as saying that kidnapping in Nigeria is exaggerated and not entirely new,” Laolu

https://www.facebook.com/businessdayng

OSA VICTOR OBAYAGBONA Akande, Osinbajo’s spokesman, said on behalf of the Vice President.

Again and again here nobody stood in defence of the media, as the media keeps taking the blame for every after-thoughts of our senior citizens.

It has become a new slogan – I have been misquoted by the media. As media communicator, at every major event like the ones above there should be not less than 50 journalists.

Can it always be the case that all will write same thing, same time and ageing with same statement?

Often also, these events are recorded – both audio and video – and no one is saying let’s replay these evidences. Why? Say what you have to say and later blame the media, as nobody is interested to know who is wrong or right.

When men become inconsequential and blaming it on the media is likened to the case of the defenceless house-help doing his/her best to salvage the ruins of a home without the occupants even recognising the sinking points.

Osa Victor Obayagbona is assistant News Editor, BusinessDay

@Businessdayng

14

Friday 05 July 2019

BUSINESS DAY

cityfile 50 get Kellogg Superstars scholarship DAVID IBEMERE & JONATHAN ADEROJU

F Members of staff of the National Commission for Mass Literacy Adult and Non-Formal Education (NMEC) protesting over alleged “Removal of their Executive Secretary due to vehement refusal of staff to join the Integrated Payroll and Personnel Information System (IPPIS) platform, in Abuja. NAN

Why LSWC is unable to bridge Lagos’ huge water supply gap JOSHUA BASSEY

A

n advocacy group, Water is Life, says the Lagos State Water Corporation (LSWC) has been unable to bridge the huge gap between demand and supply of potable water in the state because of inadequate funding over time.

Convener of the group, Tunde Ogunbiyi, who is launching a campaign for the appropriate funding of the sector, alleged that the last four years had been particularly difficult for the corporation to meet

the water need of the ever growing population of Lagos, leading to intermittent cut in supply to homes and offices.

There have been series of complaints by the residents of Nigeria’s former capital, as staff of the water corporation struggled in vain to meet the demand of the over 21 million residents.

Statistics from t he LSWC shows that Lagos runs with about 326 million gallons shortfall in daily supply, which leaves millions of people sourcing water from boreholes, wells and broken pipes

running through the gutters.

While the current production capacity of the corporation is put at a little over 214 million gallons per day, the state actually requires at least 540 million gallons to make any meaningful impact in homes and offices.

It is estimated that an investment of about $3.5 billion would be required to execute additional water schemes to cover the state. According to the water master plan being executed by LSWC, some measure of stable supply ought to be achieved by

2020 if the $3.5 billion investment is made.

Pundits, however, believe that this huge investment would require not only appropriate pricing of water in the state, but also the buy-in of the private sector through a Public Private Partnership (PPP) arrangement, a move said to have been slowed, as a result of delay in approvals from the immediate state administration.

Although the state government over the years had invested billions of naira in the sector, Ogunbiyi, the convener of the advocacy group, believed that much

Erosion: Edo reclaims 284,143 hectare from gully sites IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin

E

do State government says it has reclaimed about 284,143 hectares of land from gully erosion sites, with 46, 68 hectares remediated in target subwater shed.

The state governor, Godwin Obaseki disclosed this at the 10th environmental outreach public lecture/awards organised by the Environment Outreach Magazine in Benin, with the theme, “managing land degradation in Nigeria: The challenges, actions and remediation”.

The governor, represented by his commissioner for environment, Omua Alonge Oni-Okpaku noted that the reclamation was carried out in collaboration with the Nigerian Erosion and Watershed Management Project (NEWMAP), a World Bank project.

Obaseki listed the gully sites to include Queen Ede, Auchi, Ekehuan, Ewu and Ibore. He said the government has also established nurseries to plant first seedlings into forest reserves and also partnered with individuals and organisations in programmes relating to www.businessday.ng

tree planting.

According to Obaski, the state government has also activated the Benin Storm Water Project to ensure the control of flooding and erosion as well as reduce the destruction of life and property.

Chairman of the occasion, Lawrence Ezemonye, called on the public to lend their voices to the passage of the bill of the institute of environmental practitioners of Nigeria.

Ezemonye, who is the vice chancellor of Igbinedion University, said the bill would ensure that the Nigerian environment is protected in line with

global practices.

“That is very important because it will provide competent, talented expert that will manage the Nigerian environment”, he said.

Noble Akenge, publisher of the environment outreach magazine, said gully erosion has become so widely spread that if nothing is done to halt it, large portions of arable land and even roads, private and other major infrastructure would be lost to the scourge in the next few years.

“While the desert is advancing at a very disturbing rate in the north,

https://www.facebook.com/businessdayng

ifty young winners have emerged in the Kellogg’s Superstars competition. Kellogg is leading Nigerian breakfast cereal.

At the award presentation in Lagos, Ronke Soyombo, a director in the Lagos State ministry of education, commended Kellogg Tolaram Nigeria, for the scholarship awards.

She said “I want to commend Kellogg for a rare foresight aimed particularly at making the whole child, by not only rewarding pupils through scholarships but by also investing heavily in educational infrastructure, educational partnerships, literacy commitment and all other primary needs that ensure brighter opportunities for the Nigerian child.

“It is clear that Kellogg’s Tolaram essay competition and reward initiative were borne out of passion and will no doubt contribute to the ever-expanding educational status of Lagos State and Nigeria.”

Kellogg’s Superstars contest is a school-based essay writing competition designed for primary school pupils to sharpen their writing skills while also bringing out the creative uniqueness in them.

The contest which began in March 2019 reached out to more than 1.8 million pupils at approximately 12,000 schools in Rivers, Lagos, and Oyo States.

The pupils were tasked

to exhibit their writing talent on the topic ‘What Makes You a Kellogg’s Superstar’ from which 50 outstanding pupils emerged.

The major highlight of the ceremony was when the young Kellogg’s superstars read their essays to the audience which comprised of parents, representatives of their schools, ministry of education officials, and other dignitaries.

A member of the Federal House of Representatives, Tolu Akande-Sadipe, said, according to UNICEF, one in every five of the world’s out-of-school children is in Nigeria. She also noted that even though primary education is officially free and compulsory, about 10.5 million of the country’s children aged 5- 14 years are not in school and only 61 per cent of 6 – 11-year-olds regularly attend primary school.

The general manager, Kellogg Tolaram, Vani Malik, said the country was still battling with the challenge of out-of-school children, noting that it was why they initiated the Kellogg’s Superstars scholarship by way of the brand contributing its quota to Nigeria’s economic growth.

“Kellogg’s Superstars programme follows a holistic developmental approach, which begins with making sure children have the best start to their day by getting a complete breakfast option through Kellogg’s various cereal variants while also encouraging them to identify and improve their inherent academic skills in the area of writing,” she stated.

Man charged with kidnap of housewife

T

he police in Lagos have arraigned a 21-year-old driver, Innocent Rufus, before an Ikeja Magistrate Court for allegedly kidnapping a woman and demanding N1 million ransom.

Rufus, whose address was not provided, when he appeared in court on Wednesday, is charged with conspiracy, kidnapping and threat to life.

The prosecution counsel, Victor Eruada, told the court that the defendant committed the offence on May 21 at about 9 p.m. at Kofoworola Street, Okupe Estate Maryland, Lagos.

He alleged that, the de@Businessdayng

fendant conspired to kidnap a housewife, Margaret Barovbe and demand N1 million from her family.

Eruada also alleged that Rufus threatened to kill Barovbe’s husband if he failed to pay the ransom.

The offence, he said, contravened the provisions of sections 411, 271 and 56 of the Criminal Law of Lagos, 2015. The defendant pleaded not guilty to the charge.

The magistrate, M.I. Dan-Oni, admitted the defendant to bail in the sum of N100, 000 with two sureties in like sum. DanOni adjourned until July 11 for further hearing.

Friday 05 July 2019

BUSINESS DAY

COMPANIES & MARKETS

15

Access Bank sensitises creative industry players on CBN’s N21.9bn CIFI fund

COMPANY NEWS ANALYSIS INSIGHT

Pg. 16

CONSUMER GOODS

Inside how international breweries made N3.9 billion loss in Q1 OLUFIKAYO OWOEYE & GBEMI FAMINU

T

he impressive surge in the revenue of International Breweries has failed to reflect in its bottom line growth, as the beer maker’s rising expenses made sure of that.

International Breweries made a loss of N3.98bn in the first quarter of 2019, further widening the brewer’s loss from the previous year when it posted -N3.8bn in full-year 2018.

The first quarter loss came despite strong revenue growth by 35.1percent in the quarter to N35bn against N26.0bn in Q1 2018.

The firm’s loss is traceable to a 43percent increase in its cost of sales to N22.6bn in Q1 2019 from 15.8bn, a spike in operating expenses which put pressure on margins as marketing and promotion expenses ballooned 63.9percent to N7.7bn in Q1 2019 from N4.7bn in Q1 2018.

Meanwhile, administrative expenses during the period climbed 11.2percent to N3.3bn from N3.0bn in Q1 2018.

Source: Company financials BusinessDay International Breweries also reported a net foreign exchange loss of N364 million, a 429 percent increase from the previous year.

The brewer’s revenue surge evidences the company’s success in undercutting competitors’ market share with Nigerian Breweries recording flat revenue growth of 0.4 percent in the same period while Guinness saw revenue tank 17.3 percent.

However, the company’s debt book continues to pressure earnings with the finance cost soaring 41.1percent to N5.1bn in Q1 2019 from N3.6bn in Q1 2018.

Its Q1 2019 performance shows no sign of the brewer deleveraging its balance sheet as no borrowings were repaid during the period while the company took on more debt; it took additional debt of N8.7bn as revealed in the cash flow statement.

The brewer’s aggressive brand promotion which has seen it incur more marketing cost may continue to drag performance in the short to medium term. The company’s recent campaigns evidence the company’s plan at aggressively promoting its brands particularly the Budweiser Premium beer as it

attempts to fight for market share in the Premium beer market.

International Breweries recently completed the construction of a new brewery in Sagamu, Ogun State in 2018 at an initial cost of US$250m.

The global CEO of AB InBev, its parent company, while commenting at a recent media briefing in South Africa said that its capacity expansion in the new Sagamu brewery, which is being expanded in phases, is likely to raise the cost to US$400m, noting that Nigeria is becoming a more and more important market.

“I mean we’re growing double digits, we didn’t grow in the past as fast because we were lacking capacity and now that we have the capacity, strong brands, and a great group of people we are challenging the status quo there,” Brito said.

International Breweries Plc shares drop 7percent in two days since the announcement of the result. While its one year return was down by 59.74percent.

International Breweries beer brands include Budweiser, Hero Lager, Trophy lager, Beta malt, among others.

Deals

54gene seals $4.5m deal as investors bet big on Africa healthcare …VC-backed healthtech start-up to build world-first biobank for African DNA datasets JUMOKE AKIYODE-LAWANSON

5

4gene, a Nigerian health technology start-up with focus on healthtech genomic and artificial intelligence, has raised $4.5million seed round with participation from Y Combinator, Fifty Years, Better Ventures, KdT Ventures, Hack VC and Techammer.

This is definitely a busy time in Africa’s healthtech space, as the funding round for 54gene, a startup that was only founded this year was closed on Tuesday July 2, only a few weeks after MDaaS, another Nigerian healthtech startup raised $1million in seed funding.

For 54gene, the early-stage investment will allow the sixmonth old start-up to pioneer and build the world’s first African DNA biobank, install electronic data capture systems in the leading tertiary hospitals in Nigeria and expand its worldclass teams both in the US and Nigeria, ahead of the company’s expansion plans on the conti-

nent, as it scales to As of 2018, only 2 percent of the data used in Genome-wide Association Studies [GWAS] were of African ancestry. 54gene is now positioned to build the largest database of genomic and phenotypic consented data of Africans. The unique data sets will be used exclusively for research; to proactively address the significant gap the genomics market currently poses for Africa, using African DNA to focus on drug discovery opportunities that will improve access.

Following a successful pilot in three of Nigeria’s largest academic tertiary hospitals, the YC alumnus is strategically expanding its biobanking activities to 10 of the country’s academic tertiary hospitals. The biobank’s focus has also expanded from oncology to include cardiology, neurology, endocrinology and sickle cell disease. The company expects to secure 40,000 biobank samples by the end of this year and is working closely with research institutions on the continent,

pharmaceutical companies, technology partners and healthcare regulators, to achieve this.

Abasi Ene-Obong, founder and CEO of 54gene says; “The genomic revolution has taken place everywhere except for Africa; home to more than 1 billion people, and the very birthplace of humankind.

What many people don’t realize is how genetically diverse Africa is, and that Africans have married within their tribes for thousands of years, which makes our DNA ideal for studying loss-of-function type mutations that can be replicated into new drugs. We believe this will be done through partnering with pharmaceutical industry players to drive groundbreaking research and layering a data science capability on the data being collected.

“This capital infusion allows us to move swiftly. We are delighted to welcome like-minded, highly experienced investors, who will embark on this journey with us, to secure Africa’s pharma future and to impact millions of people’s lives through improved health-

care and drugs provision. We are committed to curating one of the most interesting genomic and phenotypic datasets in the world that will power the development of new drugs that benefit people of all races.”

The global pharmaceutical industry is expected to reach $1.34 trillion by 2020. 54gene says it will focus its attention on Africa and the African Diaspora, charting new territory for the global pharma industry.

Seth Bannon, founding partner at Fifty Years said; “It’s a dirty secret that the world’s genomic datasets are overwhelmingly caucasian. By building datasets that are more inclusive, 54Gene will help democratize molecular medicine while unlocking insights that will lead to better therapeutics for everyone.”

According to Mack Healy of KDT; “KdT is thrilled to partner with Abasi and 54gene as they unlock insights from an underexplored genetic data layer. The subsequent diagnostic and therapeutic insights will be invaluable

in the advancement of the quality of healthcare and well being of an increasingly large and underrepresented population.

Speaking on why the startup company was birthed, Ene-Obong said, “today, it takes 10 to 15 years after an innovative drug has been launched in the US or Europe for it to get to Africa. If we understand the genetic profile of diseases that are prevalent amongst Africans, we can deliver population health management strategies to people of African origin all over the world, helping equilibrate medical care for all. Technology will allow us to achieve this, at scale and we plan to reach some impressive and unique milestones in 2019.”

Wes Selke ofBetter VC said, “we’re thrilled to be working with Abasi and the team at 54Gene as they unlock the potential of the African genome to benefit global health and democratize access to molecular medicine. Abasi is the quintessential mission-driven founder we seek to back who is using breakthrough technology to solve a big problem.”

Editor: LOLADE AKINMURELE (lolade.akinmurele@businessdayonline.com) Graphics: David Ogar

16

Friday 05 July 2019

BUSINESS DAY

COMPANIES&MARKETS

Business Event

Company

Access Bank sensitises creative industry players on CBN’s N21.9bn CIFI fund HOPE MOSES-ASHIKE

A

ccess Bank plc on Tuesday engaged the players in the creative industry in understanding the benefits, features, terms and conditions of the N21.9 billion funds set aside by the Central Bank of Nigeria (CBN) and the Bankers Committee for Creative Industry Financing Initiative (CIFI).

The creative industry players to benefit from the fund after meeting the requirements include those in fashion, music, Information Technology (IT), entertainment as well as student loans.

The CBN and the Bankers Committee had commissioned Access Bank and GTBank as the lead banks in the CIFI proj-

ect, which runs into phases, being piloted in Lagos and would be replicated in other areas.

Consequently, Access bank is the first to have submitted applications to the CBN for the disbursement of the fund.

“The CBN CIFI is to support creative industry so that we can create more jobs, empower people and save foreign exchange. Every bank can access this fund on your behalf”, Chizoma Okoli, executive director, business banking said in her opening remarks.

She explained that the reason for the engagement was to get information from the players in this industry and be able to present it well.

Part of the consideration in the project is to build a fash-

ion facility, a tech-hub and an entertainment city for the industry.

Abidemi Adeboye, Zonal head SME, banking, Lekki, explained that the objective is to create jobs, develop capacity, build and nurture talent and also see how the country can improve its foreign exchange earnings.

“The loans have not been disbursed. They are being reviewed by the CBN. In fact the review process was very fast, under a week it was reviewed so they came back to us with a list of additional requirements which were not communicated of front. We are putting those documents together and we are sending them back this week,” Adeboye said.

L-R: Darkey Ephrain, Africa, consul-general, South Africa Consulate General; Jerome Pasquier, French ambassador to Nigeria; Ademola Abass, CEO, Link Legal Consulting, and Pat Utomi, founder, Centre for Value in Leadership (CVL), at the official launch of Link Legal Consulting in Lagos.

Pic by Olawale Amoo

Company

PayPorte kicks off omni-channel stores across Nigeria, flags off new store in Lekki DAVID IBIDAPO

P

ayPorte, one of Nigeria’s large web based application which allows for e-commerce, bills payment and money transfers has disclosed plans to open more brick and mortar stores across Nigeria.

This development is coming at a time when the company just rebranded with focus on fashion.

Speaking during the launch of its new store in Lekki, Eyo Bassey, founder and CEO of PayPorte said the company is now a complete omni-channel business and this comes with a lot of cost because it has had to open brick and mortar stores across the country with Abuja, Ibadan, Port Harcourt opening very soon.

According to Bassey, PayPorte

is entering into partnerships with key players in the country to provide it space, adding that going forward, people must be able to transact with PayPorte at every touch point.

“There is no difference between our physical stores and what you have online. If you buy a dress online and you have complains, you can come to its physical store and it will be addressed.

We have invested a lot of money into technology to support this new omni-channel strategy.

“We have strategic partnership with top suppliers outside the country. Also, we have not only decided to stay online, we are also staying offline. We expect to open stores in Ghana and Kenya before the year runs out. The new website we launched is already

programmed for Kenya, Uganda, South Africa, UK and US. Once we have customers come from any of these countries with currencies denominated in these countries, we will serve them. By fourth quarter of 2020, we would have physical footprints in at least 10 countries in Africa,” he explained.

Shedding light on its new omni-channel approach, he said, “We are bringing a complete omni-channel, which means we are doing online, offline, newspaper, TV; we have TV programmes where you can order directly from TV and we are also doing by post. That means if you have a newspaper, you can take out the coupon and take all what you want to order based on what you see in the newspaper and send it to us by post and we will deliver.”

Company

Advans La Fayette microfinance bank expands its presence to Lagos

L-R: Agnes Shobajo, vice president, Lagos Chamber of Commerce and Industry (LCCI); Muda Yusuf, directorgeneral, LCCI; Babatunde Ruwase, president, LCCI; Toki Mabogunje, deputy president, LCCI, and Micahael Olawale-Cole, vice president, LCCI, at a Press Conference on the state of the Nigerian Economy organised by the LCCI recently in Lagos.

L-R: Femi Gbajabiamila, speaker of House of representatives; Rotimi Agunsoye, celebrant, member, representing Kosofe Federal Constituency, his wife, Yinka Agunsoye, and Ibijoke Sanwo-Olu, wife of Lagos State governor, at the Thanksgiving service in honour of Rotimi Agunsoye in Lagos.

...promises increase capital for small, medium scale businesses ANTHONIA OBOKOH

A

dvans La Fayette Microfinance Bank has AdvansLa Fayette Microfinance Bank on Tuesday 2nd of july, announced the opening of its newest branch out of Oyo state - the bank’s first branch in Lagos promises to increase capital loans for small and medium scale businesses in the state.

Over the years, the bank had grown to be one of Nigeria’s leading microfinance banks, fully committed to responding to the needs of micro, small and medium-sized enterprises .the bank’s vision is to build a model group of financial institutions which contribute to strengthening local businesses, creating and sustaining jobs and improving clients’ living standards in order to foster private sector-led economic and social development in Africa, the Middle-East and Asia.

Speaking at the grand opening of the Lagos one branch

in Victoria Island, Guillaume Valence, managing director, Advans-La Fayette MFB said Micro, Small and Medium Enterprises are the major contributors to growth and economic development as well as the first employer in Nigeria.

“SMEs still lack both the necessary business and financial support to develop their activities. By supporting this population, Advans-La Fayette MFB is contributing to the national objective to reduce financial exclusion rate to 20 perecnt by 2020,“ said Valence.

He further explains that the micro finance will be willing to give out loan facilities on basis of no collateral to sustainable businesses.

“One of the things we will be doing differently is that you can get a loan without savings. If you look at the micro finance base, you have to own an account and save for certain months before access the facility. We know people who run businesses don’t

need money in months’ time.

“Advans is coming into the market with a different way to handle the business bringing more efficiency operations.

What matters is that the working capital of people we are working with is actually growing which is what is paramount” Valence said.

Also spaeaking at the launchObinna Ukachukwu , the Chief executive Officer, said that we are thrilled to be expanding our footprint into the vibrant Lagos market stating that ‘‘I am assuring SMEs here in Lagos that we are about sustainable impact, As a client-oriented financial institution, we believe our core values and relationship-based banking philosophy meet the personal and business banking needs of Lagos MSMEs, We look forward to supporting the thriving commercial and small business enterprises, we invite everyone to stop by today to discover a better way to bank,“ he said.

www.businessday.ng

L-R: David Norris, vice chancellor of the University of Botswana, and Pule Mphothwe, ambassador of Botswana to Nigeria, after a Press Briefing on strategic educational cooperation and partnership between Nigeria and Botswana in Abuja

https://www.facebook.com/businessdayng

@Businessdayng

Friday 05 July 2019

BUSINESS DAY

17

MONEYINSIGHT ‘We are optimistic and enthusiastic about growth in Africa’ HABIB MAHAKIAN, vice president, Emerging Africa, Dell Technologies in a recent chat with some journalists in Lagos, including GBEMI FAMINU, discussed the company’s plans to contribute towards digital transformation Nigeria, and Africa at large.

H

ow would you assess the growth of digital transformation in Africa?

Africa presents unique growth opportunities. If you look at developed markets, they have a lot of IT legacy and that can be a disadvantage when it comes to modernizing, transforming and moving forward with digitizing their business.But in Africa, many organizations are starting out fresh or their IT legacy is not that old.

For instance, when you talk mainframe computing, you don’t see much in Africa. So, because the IT legacy is least in Africa, that creates this opportunity for companies here, to leapfrog and advance by deploying and benefiting from advanced technologies.

Again, if you look at it from a business perspective, many businesses in Nigeria are already digital. Many of these businesses are already engaging their customers through mobile apps and definitely through web presence.

Banking is a great example of this.

Every bank has a mobile app or some sort of interface through WhatsApp or Facebook. I think the reason they are doing this is to be able to connect, not just with their local and regional stakeholders, but also with the rest of the world. These global connections are facilitated by having a solid digital transformation strategy in place.

Another huge opportunity in Africa is to look at how digital transformation can enhance people’s livesand one example of this is enabling people to easily create and access a bank account.

There are many people in Nigeria who don’t use a bank account, so we need to ask why? The way I see it, it is because they don’t see the value in the bank account. But with digital, through mobile application, through modern ways of

closely with the government, telcos, financial institutions, to come up with solutions that drive economic growth and help create jobs. Today, we have an office of 35-40 Nigerians working here. In Morocco, we have aCenter of Excellence in IT, where we have 1,800 people, the same number we have in Egypt. Our talented workforce have the right experience, knowledge and skills and because of this, they’re often asked to be part of large project teams across the world. We are cross-pollinating, we are supporting Africa and are invested in empowering businesses and communities through technology.

banking and other digital channels they will see value. The opportunities are vast.

How is Dell Technologies helping the African Market to take advantage of Digital Transformation?

To start with, I would say through events such as Dell Technologies Forum, Lagos. These forums aim to provide a blueprint for digital success and insight into how digital transformation initiatives can positively impact businesses and communities.

For instance, we hold a session called ‘Women in Technology’ where we talk about why inclusion of women in the

global workforce is a business imperative, especially in the technology sector. And the message of Michael Dell and the company is to focus on how technology can drive human progress, which is interpreted in different ways from helping our customers succeed to harnessing technology to positively impact communities.

From a social impact perspective, we invest in training. We are helping many countries to educate the younger generation as well as empowering women to become technology literate.

Again we open offices in many of the countries where we operate to be closer to our customers and be able to provide them with what they need. So, we work

What are some of the challenges confronting business in the African region?

In Africa, each region is different.

Nigeria’s ICT sector has faced several challenging years, but has turned a curve and is today a critical non-oil growth driver and major contributor to the economy, supported by a sizeable young population and the rapid adoption of mobile internet services. With this comes challenges, especially with youth who are mobile and want a digital lifestyle where they are not interested in filling out forms for example. So, the way they engage is different and organizations must adapt their businesses to shift towards data- driven growth models to succeed in a digital era.

How Has Dell Technologies fared In Africa?

Africa is a diverse, culturally rich continent that is undergoing significant shifts as far as the business and technology landscape is concerned.

While I cannot share numbers, I can say that we have been seeing double digit growth in Africa which has led to us investing in local talent and expanding

our local presence. For example, we are holding the Dell Technologies Forum in six key locations in Africa this year.

In my role as the VP, Emerging Africa, I am also charged with the responsibility of moving all the expertise of Africa and to invest more in this continent and help communities grow across various aspects from leveraging technology for social benefit to educating youth and enabling them to join the workforce.

So, today there are a lot of initiatives underway. As part of this, education and healthcare remain key pillars that we support. Furthermore, even during difficult economic times, we are among the few companies that continues to invest across Africa. And this is because we truly believe in the potential this region holds and that technology is key to unlocking growth for both businesses and communities at large.

Can you share more around Dell Technologies’ expansion plan in Nigeria and the African continent?

Nigeria is our central hub for West Africa. So we are not only serving Nigeria from the Nigerian office, we are serving several other countries from here. For me that speaks volumes. We are always hiring and as we hire, we continue to progress. We are working with our partners to build an ICT knowledge eco-system. Let me also say that we prioritize Nigeria when it comes to launching products, solutions and services. The technologies we bring here sometimes are ahead of others. For us Nigeria is an important market as government and businesses continue to accelerate their digital transformation agendas, putting technology at the heart of driving economic growth while ensuring that it positively impacts people and communities.

Start-ups need clearly defined business plan to attract angel investors STEPHEN ONYEKWELU

I

t is important as a start-up to ask yourself whose money you will use in the process of making your business idea a reality.

Would you fall back on your own nest egg to fund your start-up, this means you have saved up some money over time. It appears not many young entrepreneurs have nest egg to fund their start-up.

Now, will you go the route of debt financing? In other words, will you take out loans and pay them back with interest? This is an option to be considered with great care.

One of the benefits of using your own money is that you retain the profits and all control of your business if it succeeds. Your other option is to seek equity financing from angel investors, venture capitalists and others. In this business model, you owe less money, but you will share the profits with your investors. You are basically trading equity in your company for cash.

Going this route enables you to raise large sums of money for your start-up without going into debt. You will lose a bit of your control, giving your investors a “say” in your company. After all, they

do expect a return on their investment.

There is catch.

Intending entrepreneurs brimming with confidence in their business ideas tend to believe all they need to take-off is see capital from venture capitalists.

For venture capitalists the story is different because they are aware that www.businessday.ng

nine out every ten start-up fails, they understand that funding is usually not the most important thing to consider when starting a business but structure.

Venture capitalists want clear answers to questions about who the business targets as customers, market size and how the business plans to grow

https://www.facebook.com/businessdayng

and expand.

David Tele, managing director at Seedstars Academy, a seed capital venture firm at a Career Fair organised

by BusinessDay in 2017 said that they evaluate start-ups approaching them for seed capital based on the Content, Process and Results (CPR) method. The content dimension of the evaluation is data driven: customer, market size and projected revenue.

Process entails setting clear specific, measurable, ambitious, and time bound goals. It starts with setting annual goals, broken into monthly goals, then down to weekly and actionable daily goals.

Results comprise outcome from the two preceding phases and the cycle is repeated. Therefore, a start-up needs to do substantial due diligence before it approaches a seed venture capitalist.

Below are a few things a start-up must do to attract seed capital.

Have a Business Plan The first item on your list is to create a business plan. Venture capitalists deem this your most important task, because without a business plan, they are flying blind. You must create a plan that presents your overall business @Businessdayng

summary and a description of how it will make money.

In addition to your business plan, your investors will appreciate seeing one, three and five year plans. They want to see your goals and strategies for growth. They are looking for your “staying power.”

Conduct Market Research Your investors want to see your market research. They want validation that the market can sustain your business and that your start-up is viable. This is the “proof” that your business plan is sound and provides you with numbers to back up your claims that your startup will be successful.

Prepare Financial Models Venture capitalists and angel investors are smart, and they know how to drill through your materials to the proof that your business can actually make money. Your financial models should include spread sheets of projected costs, acquisitions, sales and revenue, profit margins and growth rates. Bottom line: they want to know when they can start seeing a return on their investment.

18

Friday 05 July 2019

BUSINESS DAY

FINTECH News

Products Review

In association with

Technology Review

Personality Review

Company Review

Technology Review

Customer error, acquirer banks remain weakest links to POS transactions Stories by FRANK ELEANYA

M

any days monitoring of Point of Sale transactions on the Nigeria Inter-Bank Settlement System (NIBSS) website have shown that customer error and the acquirer banks continue to be the biggest bottlenecks to attaining 100 per cent success rate.

Total volume on the last day of June, 2019, was at 535,733 with successful transaction reaching 86.76 per cent at 464,790. Volume of failed transactions was at 70,704 representing 13.2 per cent of total volume. Customer error claimed the largest share at 35,700 to represent 6.66 per cent while acquirer bank error was second with 20,168, representing 3.77 per cent.

Failed transactions on the morning of Tuesday, 2 June 2019 went up to 117,954, representing 17.88 per cent of total transactions at 658,740.

Customer error jumped to 10.08 per cent at 66,546 failed transactions while acquirer bank error stood at 31,463, claiming 4.76 per cent.

As at March this year, 270,111 POS had been registered and 221,056 deployed across the country. This is coming from a paltry 10,000 terminals deployed in 2011.

However, it still falls short of South Africa which has over 380,000 POS terminals.

In a January guide, NIBSS noted that the failure rate of card transactions on POS

terminals ranges between 13 per cent and 15 per cent.

This means that in every 100 attempts to process card payment on POS terminals, 13 to 15 would fail. NIBSS Instant Payment (NIP) on the other hand has a 0.7 per cent failure rate, meaning that only about 7 NIP fund transfer transactions will fail out of 1,000 attempts.

A POS transaction goes through several hoops (about five different parties) before a transaction is confirmed.

POS card acceptance services stakeholders include merchant acquirers, card issuers, merchants, cardholders, card schemes and card associations; switches; POS terminals owners; payment terminal service aggregators

www.businessday.ng

(PTSA); payments terminal service providers (PTSP); and processors.

Usually, once a card is used at any POS in any business, the payment is then authorised through the acquiring bank.

The acquiring bank refers to the bank where the merchant has an account. The acquiring bank will then issue an authorization request to the card issuing bank. Once authorization is confirmed, the

approval code is sent back to the POS. In many cases, this should take mere seconds so the payment can be taken for goods and services. The average processing time in Nigeria often depend on the quality of the network available. On Tuesday, 2 June, for instance, on the NIBSS POS live board, the average time was 3.27 seconds.

Customer error essentially involves the efficiency and the

https://www.facebook.com/businessdayng

level of training handlers like salespersons and merchants bring to bear on the terminal.

Often the error occur at the current and savings account stage, where the salesperson attempts verify the correct account the payment should be made from.

Usually, the salesperson will ask the customer whether he or she should select either current or savings account.

No matter what the customer

@Businessdayng

decides on, as studies have shown, the salesperson goes ahead to select the wrong account. Inevitably, the transaction would be declined, the customer is debited without his or her knowledge, and significant amount of time is wasted on a simple transaction. In very rare cases the money would be reversed before the customer leaves the business location or same day.

The norm however is that the card issuing bank would take five to eight working days to reverse the money.

Stakeholders including NIBSS, commercial banks and payment service providers had flown a kite in March, with a remedial measure that would see that reversals for any business day are retransmitted to cardholders between 10pm and 12pm mid-night through their banks or processors. The measure was supposed to have kicked off on 22 March, 2019, but is yet to.

Myriads of complain still trail every POS transaction failure.

Last year, stakeholders also resolved that as from January 2019, salespersons should desist from asking cardholders about current and savings account. Rather the salesperson should just select the default account option on the POS terminal during card payment on the POS terminal during card payment processing.

Cardholders are also expected to tell the salesperson to use the default account whenever they are confronted with the question.

Friday 05 July 2019

BUSINESS DAY

LEADINGWOMAN

19

Folasade Okoya, the quintessential industrialist par excellence KEMI AJUMOBI

F

olasade Okoya is an entrepreneur and wife of the billionaire industrialist, Razak Akanni Okoya, Founder of Eleganza Group of Companies and RAO Property Investment Company. Considered as a woman of immense dimension and ebullient personality, she was a banker and sociologist before handling the affairs of her husband’s business empire.

She has interest in many areas of business including the Managing Director of Eleganza Fashion Products Limited, Eleganza Cruise and Travels Limited as well as member of board of Eleganza Group and RAO Investment Property Company Limited.

As a leading figure in the African entrepreneurship space, she has carved out a niche as an intelligent and hardworking wife and mother, showing that a woman can have it all. Her success in business continues to inspire a new generation of millennial women to follow in her footsteps.

Folasade Okoya’s passion to see a better society has led her to establish the SADE OKOYA FOUNDATION (SOF) which caters to the needs of impoverished children in Nigeria. The initiative (SOF) serves as an empowerment platform where people, especially women and youths seeking support are catered for, thereby giving them the opportunity to achieve their full potential in their various vocations/calling.

She is also passionate about women empowerment and helping Nigeria’s millennials to identify their passion in order to create tomorrows leading industries.

Childhood memories My childhood memories are still very fresh in me, I could remember in most cases when I came back from school and my granny would go through my books to check my homework to ensure that they are answered and complete.

Although she wasn’t educated, she still embraced education passionately and watched me grow throughout my educational sessions. I learnt from an early age to be tidy and organized, having to finish chores given to me on time was a must. I am happy for my strict up bringing, it made me who I am today and I can confidently say I am a disciplined and cultured Nigerian.

Gaining Business Experience and Knowledge I studied banking and finance for two years before going to university to complete my education in sociology. As a woman, I understand the importance of gaining business experience and knowledge to help you to achieve whatever dreams or aspirations you set out to get.

We do not have to be victims of men who may take advantage of us because we do not have our own way of supporting ourselves.

We are to add value to our men with our intelligence and drive and not just beauty. My husband Chief Rasaq Okoya CON has inspired me a lot over the years and the most useful business lesson I have learnt from him, is the ability to be able to plan, implement and execute decisions and challenges without failing.

He has trained me professionally on the manufacturing business as well as the property sectors.

Being Managing Director of Eleganza Fashion products and Eleganza cruise & travels limited Since I assumed office as the Managing Director (MD) of Eleganza Industrial

City limited, I have done a lot in terms of restructuring, transitioning, leadership, growth and cost saving. It is my objective to be outstanding in the business world and manufacturing organisation at large. I have repositioned the company positively. Eleganza industrial city limited had suffered a major setback over the past years, but as my husband Chief Rasaq Akanni Okoya has passion for the industry, we have been able to come back bigger, stronger and better with high quality products at very affordable prices.

The new direction of Eleganza city is to be the foremost producer of most household items we use in Africa. I oversee the day to day planning and management (both old and new plant). It’s a massive project with the vision to have all households’ items in one location.

Work and life balance I love my job as an industrialist and being a wife and a mother makes me fulfilled as an individual. Proper planning is all I need to balance my daily life. I have a wonderful family and we always try to make ourselves happy and comfortable in each other’s company, we never compromise on our family time together.

My marriage has been very peaceful, enjoyable and full of happiness that attending to the needs of my husband and children as well as daily business needs has become a moving train on an even rail. I thank God for everything.

Love for charity Eleganza industrial city Ltd, under the chairmanship of my husband and I has a yearly calendar of charity commitment we perform. Sponsorship of student in higher institutions, yearly pilgrimage of www.businessday.ng

Muslims to the holy land, rebuilding of dilapidated schools and furnishing them to modern habitable stage, weekly feeding of over 1,000 people every Friday to mention a few.

Passion for women empowerment and millennials No woman should feel relegated in today’s society, irrespective of being submissive to one’s partner, all women should rise up to get formal education or acquire a skill or trade in something to contribute their own quota and adding value to the society.

I think we need programs that promote the role of women and give them a platform to showcase their talents, value and their worth. This really needs to be initiated by the Nigerian government; the reform needs to start from the macro level. Also, we need initiatives that will serve to mentor and recognize women while also leading research efforts tackling the importance of the topic. Ultimately, to attract top female talent, there needs to be a way of showing the amazing opportunities the country has to offer, that bolster attractiveness to women and we can begin by setting up more technical and tertiary institutions. In short, more women should be empowered so they won’t be relegated.

Personal and professional challenges For professional challenges, it’s the running of the day to day activities in the manufacturing business world. A lot has to be done in Nigeria as a whole to see that the industry doesn’t collapse and more are set up by both

https://www.facebook.com/businessdayng

government and private individuals.

More policies to help and support the industry has to be implemented.

So many challenges we face daily.

Poor power supply, issues of transportation, logistics and network. Poor access to funds for the small and medium scale industry, they need support to start off.

Success story of Eleganza despite the storms Eleganza has been under the storm in the recent past trying to survive in the industrial sector as a result of past mismanagement and planning which led to the factory not running efficiently, with lot of debts and liability; we had to diversify into property investment in large scale just to keep our staff in employment. My husband wants his legacy of Eleganza to live on and that is the path we are on now by God’s help. Passion and drive takes priority in all our endeavors. I love what I do and as a result, I don’t see myself working because when you enjoy your job it becomes a hobby. But to be successful and able to maintain market leadership over the years, you must be intelligent on how to diversify as and when necessary.

Advise to the federal government I will love to advise the Federal government to stop the importation of goods that can be produced locally into the country and increase the custom duties on imported finished goods, they should also ensure that goods are fully monitored at the port of entry, because some importers are involved in sharp practices, denying the government the @Businessdayng

required revenue and also killing the local manufacturers. Smuggled goods into the country are also killing the manufacturing industries. No country can survive with the invasion of foreign goods ( similar to what we have here) into the country. Government should also improve on power supply and promote more technical schools to help curb the rising rate of youth unemployment

Weathering the storms in your business There are lots of factors to consider in terms of getting the social amenities right, trained and experienced staff, access to reliable power to run the business (we run majorly on generators Mondays through Saturdays daily), we address the economic challenges in our own way by providing our own infrastructure namely water supply, power and transportation, and we have been able to survive without outside investment or loans since our inception as a company.

Logistics is a big problem, transporting from one point to the other takes time and costs double expenses because of bad roads and other related problems.

Also, most companies struggle to survive, no thanks to the economy of the country which I believe will look up soon because if you have a positive mind-set, despite the challenges, your company will survive the test of time. Eleganza has survived without any bank loan since its establishment in the 70s. We have been blessed using our own funds to expand our business and we were able to venture into other businesses such as the real estate, fashion products and so on.

Your inspiration My husband inspires me a lot in business, the most useful business lesson I have learnt from him is the ability to plan and execute ideas without failure.

He tutored me from cradle to maturity in business.

Projections for Eleganza The new Eleganza industrial city is a massive project on 35 hectares of land.

It is called an INDUSTRIAL CITY for the production of all kinds of household items and more. My chairman, my husband is so passionate about the project and God has been so kind and good to him in terms of giving him the strength and health for achieving his dreams and goals in the new Eleganza extension site.

He is known as an industrialist over the years and he enjoys what he does.

No outside commitments are involved in Eleganza industrial city limited, all our growth have been solely financed by the chairman and we intend to keep it that way as God has been providing for him till date.

Influence of your husband’s mentorship on you I resume early to the factory daily Monday to Saturday. Everything I know in business is what my husband has taught me and I continue to develop on those principles on a daily basis. I have gained a lot from his wealth of experience in business and building and that can’t be taken for granted at all. We have different types of products being produced in Eleganza industrial city limited and many more still under planning.

Read the concluding story of Folasade’s inspiring story on our website www. businessday.ng as she graces our Women’s Hub cover for this week. You are just a click away!

20

Friday 05 July 2019

BUSINESS DAY

HEALTH BUSINESS&LIFE

Nigeria’s capacity to improve healthcare hangs on priority based budgeting, mindset - Experts

Four big issues needing attention from NHIS new executive secretary

ANTHONIA OBOKOH

A

A

dvances in health and technology is revolutionising health systems and changing the business of health care services. For technology adoption in Nigeria, experts opine that there must be a collective change in philosophy among individuals. The government should also amend its approach towards budget disbursement if it hopes to impact positively on Nigerians.

These views were expressed by experts in an interview with BusinessDay. Nigeria has a large and growing infrastructure gap in healthcare.

However, these experts say getting medical equipment into the country is a major challenge for investors willing to positively impact the health sector and making this equipment available will save lives and reduce the foreign exchange losses to medical tourism.

“We do not have a shortage of budget in Nigeria’s healthcare spending; the problem is prioritising the budget to specific areas where the impact will be greatest” Ike Onuoha, certified nuclear medical technologist said.

“The problem in Nigeria’s healthcare is not allocations of funds, there are funds; neither is there a problem of available knowledge resources.

But the solution needs to begin from within the individual - a change in mind set, to adopt a national philosophy for health; because your thoughts controls your feelings and your feelings controls your actions or put in another way your philosophy controls your ideology, your ideology controls your behaviour. We need to start from this first and we will see a massive change in the Nigerian healthcare system,” Onuoha added.

He stated that the Nigeria’s healthcare sector has a long way to

go, lamenting the country has well trained healthcare professionals but with limited resources to practice what they know how to do best.

“Well, just like in most developed countries, the government can really subsidize healthcare almost to the point where citizens can obtain the needed healthcare,” said Onuoha Speaking also on closing infrastructural gaps to improve healthcare service delivery Onuoha said that one major challenge that is hindering investors from doing business in Nigeria is the customs clearing process and immigration system for getting skilled workers.

According to him, these Medical devices are related article designed by the manufacturer for diagnosis, prevention, monitoring, treatment or alleviation of disease burden.

“We experience delays in bringing in medical equipment because of bribery. This is a big challenge he lamented.

He added that the mindset which controls the government has to be changed. The people in the customs are making life miserable. Those who occupy key positions to change policy and allows this equipment come in should note that the current climate is hindering the opportunities of bringing medical equipment’s into the country.

Similarly, Hammed Ninalowo a Vascular and Interventional Radi-

The biggest challenge facing Nigeria’s health insurance scheme borders on what the new executive secretary needs to do differently in order to sustainably expand the Scheme. ANTHONIA OBOKOH highlights four issues that Mohammed Sambo has to address.

dvances in Nigeria’s health insurance scheme (NHIS) and practice would have led to greater health benefits, wellbeing, longevity and universal health coverage for every Nigerian. But, not everyone has been able to take advantage of the scheme.

Health insurance in Nigeria has had many challenges compared to its peers in Africa including Rwanda and South Africa. Nigeria ologist said that adoption of new still struggles to meet the committechnologies in Nigeria is challeng- ment it signed-up to with other ing. “One of the biggest obstacles is members of African Union 18 the supply chain that brings value to years ago – the Abuja Declaration the use of new medical advances; I – to allocate at least 15 percent of its budget to improve the health bring in supplies and bags when I am sector. travelling which is not really ideal in Almost sixteen years after the a sustainable environment” he says. inception of the scheme, at pres“I have talked to a lot of manu- ent, less than 1 percent of Nigerifacturers in America and Europe to ans are covered under the NHIS, set up sales points in Nigeria, but even this number is only a conserthey basically say we cannot come vative estimate, and the true figure to Nigeria because your country is still unknown. is too corrupt and the process of The scheme has been conregistering products is opaque full tinuously bogged down by policy of bottlenecks. It is almost impos- somersaults, ineffective operasible to do business in Nigeria,” tional guidelines, corruption, inefficiency and bureaucratic Ninalowo said.

Ninalowo expressed that until bottlenecks in the registration when Nigeria starts looking at gov- process. Regrettably, the quality of ernment regulations and policies care received under the scheme is that favours growth and develop- questionable with accusing fingers ment, especially for field of medicine pointed at major stakeholders where selected products are unique including the NHIS, Health Management Organisations (HMOs) and not locally available for now. and the hospitals.

“Let the Government put regulaAlso the gaps in standards of tions in place to give us dedicated care and shortage in enrolees covpathways to bring these products, erage persists, and for many they get these manufacturers, and make have worsened without access the regulations more favourable for and affordability leading to a large these manufactures to come into the number in the populations paying country for the benefit of our own out of pocket for healthcare. people. The incompetence of cusMeanwhile, Nigeria suffers toms clearing systems and regulatory from high rates of infectious dispolicies are contributory to medical eases increasingly and have to deaths in Nigeria. We must identify cope with growing rates of chronic these people who are unwilling to diseases with no mature health make things easier for us,” he urged. care systems finding it harder to deliver effective, timely care in malaria, mental health, cancers for example which makes conditions worse.

The demand for health insurance care as we currently understand it continues to grow. The NHIS had in 2013, proceeded to Technology Officer at MeCure implement a set of recommendaSmartBuy. tions which were to see compulApart from free doctor tele- sory health insurance coming into consultations, the app also offers effect, and this included; the need heavy discounts on almost all for state governments to set up medicines and even daily essential the State Supported Health Insurhealthcare products. Also, users ance Schemes (SSHIS) through a receive incentives for making National Council of Health memo purchases on the app in the form approved in March 2014 by the of Naira credits which they can use federal government. for utility services such as mobile As at today, states that have recharges, electricity bill pay- passed laws establishing SSHIS ments and a host of other services. are Lagos, Abia, Kwara, Delta, These incentives seem to be Ekiti, Kano and Bauchi. Ogun, very lucrative to users as well and Enugu, Anambra , Ebonyi among have helped grow the user base in others are reported to be at ada very short span. vanced stages with enabling laws The app is easily available in the process of being passed. through their website www.meJide Idris, former Lagos State’s curesmartbuy.com and users can Commissioner for Health, said to also search for “MeCure Smart- achieve Universal Health Coverage Buy” on the Android and iOS in Nigeria, we must improve the stores through their phone to quality of our healthcare services. download it. The app uses a geo“Mandating health insurance fence to only allow registrations in the various states of Nigeria will from Lagos at the moment; how- enhance accessibility of people ever a top company executive to healthcare as it would also beconfirms that they intend to roll come more affordable than havout the service to most parts of ing to pay out of pocket,” he said.

Nigeria in a phased manner to To address these gaps, the new ensure a smooth and consistent executive secretary will need to customer experience.

MeCure SmartBuy mobile app for healthcare, crosses 34,000+ registrations in 3 months

I

n less than 90 days after going live, MeCure SmartBuy - a complete healthcare mobile app that offers free tele-consultation with doctors along with home delivery of medicines and healthcare products anywhere in Lagos, has clocked more than 34,000 registrations already.

As the numbers suggest, the app which is available on both Android and iOS smartphones is generating massive interest from consumers in Lagos as it aims to provide easy access to healthcare, which has been a big pain point for Nigerians.

Launched on 25th March this year, MeCure SmartBuy offers tele-consultations with its panel of doctors completely free of cost.

“Our vision with SmartBuy is to provide access to primary healthcare services in the most affordable and convenient way possible.

Traditionally, access to top quality doctors has been the very first problem for all of us. We are resolving this by removing barriers using technology. If you are sick today, just download the app and book a tele-consultation with our

panel of qualified doctors.

“They will give you a call, assess your health condition and advise on the way forward. In case a physical examination is needed, they will refer you to a qualified doctor closest to you. For simple ailments that can be treated with over-thecounter medication, consumers can get it home delivered within 2-3 hours anywhere in Lagos.” said Adekunle Megbuwawon, chief medical officer at the company.

With 1000+ tele-consultations booked and 1200+ medicine orders already placed by users on the platform, the traction it has gathered is very interesting indeed.

“To be honest, we did not expect this kind of interest at such an early stage. It is quite overwhelming considering the fact that we have not spent a Naira yet on marketing the product. All credit goes to our team of doctors, in-house pharmacists and delivery agents who are working very hard to ensure quality consultation is provided and the required medicines are delivered within the shortest possible timeframe to our customers.” said Adil Shaikh, Chief www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

deliver the NHIS in a fundamentally different way tackling these issues.

Four Issues to Address Four big issues need to be addressed by the new NHIS executive secretary in order to build on the success of this scheme and make progress in addressing gaps.

First, there must be wider recognition that mandatory health insurance is essential. Expand its coverage of the health insurance plans both in formal and the informal sector and scope of coverage to cover more services.

Many places—including in rural regions in states — still simply lack awareness of the benefits of health insurance plans. However, environmental, biological and social conditions are creating new sources of gaps in achieving the Universal Health Coverage.

Second, health is on the concurrent list, there is a minister at the federal level, commissioner at the state level; there is a supervisory health at the local level.

Health policymakers must recognise that quality care depends on more than bringing people to a clinic or hospital when they are ill. To keep costs down and to meet demand, care needs to be delivered independent of location, even “practically,” and often determined by consumers themselves.

Third, reviewing of the NHIS Act had become necessary in view of the poor coverage and so far the national Assembly has not passed the new NHIS Act. The three ties of government should review the NHIS Act with a view to addressing various aspects of the Act that were obstacles to attaining UHC in the country. The new Act must make NHIS compulsory for us to move forward.

Finally, improving the health of citizens and the country’s UHC is increasingly about addressing the social determinants of care, and not simply medical interventions. This in turn demands the participation of government, HMOs, industry and civil society, not just health care providers.

And also partnership with others is essential. NHIS and HMOs organisations, alone, cannot solve these problems of the scheme; it takes at the very least, a system.

Addressing Nigeria’s health insurance gaps is a function that can unite citizens and governments, industry watcher say Nigeria can set in quality at the core of universal health coverage, through improving the National Health Insurance coverage, implementation of national policy and having an ideal clinic with good infrastructure spaces, needed equipment, information and communication technology, adequate staff numbers, adequate medicines and supplies, good administrative processes, guidelines, and collaboration support to ensure the provision of quality health services to the public.

Also, these industry experts have raised concerns stating that this singular act is majorly responsible for the systematic slowdown of expansion of health insurance in Nigeria.

Friday 05 July 2019

BUSINESS DAY

21

HEALTH BUSINESS&LIFE

Why Africa’s efforts at tackling malaria are failing ANTHONIA OBOKOH

M

alaria has proven to be the most horre n d o u s p u b l i c health challenge confronting countries in sub-Saharan Africa, including Nigeria; despite billions of dollars spent yearly in tackling the scourge on the continent, which still accounts for nearly half of global malaria cases.

In Nigeria, according to the National Malaria Strategic Plan (2014-2020), malaria is responsible for 60 percent of outpatient visits to health facilities, 30 percent of childhood death, 25 percent of death in children below one year of age, and 11 percent of maternal death.

Direct use of Long Lasting Insecticidal Nets (LLIN) and Insecticide Treated Nets (ITNs) has been promoted as control measure to eradicate malaria in Africa has been associated with significant reductions in malaria morbidity and mortality, particularly among pregnant women and children less than 5 years.

Tanzania has been on the fore front in the promotion of the use of Insecticides Treated Nets from research project in the 1980s and 1990s and from validations in large field trials in early 2000 it escalated to a nationwide programme through a discount voucher scheme through a public private partnership approach (WHO, 2005).

Malaria is one of the most severe global public health problems, particularly in Africa, LLIN and ITN are meant to be highly effective means of preventing malaria infection and majority of the burden falls to the poorest and most rural populations which indicate poverty, poor sanitation, significant or decrease the in the distribution of nets coverage.

The National Malaria Control Strategic Plan (NMCSP, 2011) in Nigeria includes universal access to Long Lasting Insecticide Nets, increased indoor residual spraying, and environmental management to decrease mosquito breeding places (The Global Malaria Coordination, 2011).

The Long Lasting Insecticide Nets distribution strategy in Nigeria included a “scale–up phase” (2009-2010) of free Long Lasting Insecticide Nets distributions through mass campaigns (2 LLINs per household ); and “a keep -up

Malnutrition: Kwara approves N232m for primary health care SIKIRAT SHEHU, Ilorin

K

wara State Governor AbdulRahman AbdulRazaq has approved immediate payment of N232million in counterpart funding to deepen access to primary healthcare, health insurance and nutrition for underthree children in the state.

According to Rafiu Ajakaye the Chief Press Secretary to the governor, in a statement, Abdulrazaq said that the N232m includes N100m counterpart funds for Basic Healthcare Provision Funds (BHPV); N50m for Accelerating Nutrition Results in Nigeria (ANRIN); and another N82m to access global grants for malaria.

The statement said further that the release of the counterpart funds for BHPV would grant Kwara access to the World Bank/ Federal Government’s grant to cater for health needs of pregnant and nursing women and children.

“Access to such funds will help combat maternal mortality rate and other basic health challenges related to women and children. Apart from this, the funds will help to fix facilities for primary health care and reduce the pressure on secondary and tertiary health institutions,” said Abdulrazaq The counterpart funds for ANRIN will grant Kwara access

HBL TEAM

to donor funds to boost nutrition needs of children, in what is a practical step to end the menace of stunting and wasting among young children.

UNICEF has said stunted/ wasted children --all of them victims of malnutrition -- are at risk of early death or becoming liabilities to the society as they are unable to cope in school or contribute to economic growth.

“Experts have decried malnutrition rate among children in the North Central, where Kwara falls. Because these children are so key to the bright future that this Governor envisions for Kwara, it is important to urgently key into any initiative that would boost their nutrition and give them a brighter chance at life.

“The N82m counterpart funding for malaria is to ensure that Kwara also benefits from Global Funds set aside by donor agencies to combat malaria,” the governor added.

The release of the counterpart funding for healthcare late Monday came almost simultaneously with the payment of the N450m Universal Basic Education Commission (UBEC) which the agency insisted was diverted by the last administration. That diversion had led to the blacklisting of the state from the funds meant to boost access to primary health care, according to UBEC officials.

phase” of replacing torn or worn nets and providing Long Lasting Insecticide Nets to new households members and new families (National Malarial control programme).

Mass distribution of Long Lasting Insecticide Nets started in Kano State in May 2009 (The World Bank, 2009) and more than 24 million Long Lasting Insecticide Nets were distributed in 14 out of the 36 States in Nigeria by August 2010 (The US Global Malaria Coordination, 2011).

The scale up phase Long Lasting Insecticide Nets distribution strategy was through stand-alone mass distribution campaigns led by the state in collaboration with partners, using common methodology and tools (Amajoh, 2011) However, access does not always result in usage due to sociocultural and logistical reasons. The low rates of ownership and usage exist in Nigeria.

Many Nigerians judge that the treated nets cannot protect mosquito bites, which occasion malaria and the reasons for not using nets include discomfort resulting from heat, smell of the net, and difficulty in hanging the net.

However, there have incidents where mosquito nets have been reported as sub-standard and do not actually, prevent mosquitoes from biting an individual.

The recent rise in malaria incidence has been attributed to the use of substandard bed nets. Millions of ‘insecticide-treated’ bed nets in Africa are less efficient because they do not have enough medicine to kill mosquitoes.

This is a setback to the effort of eliminating malaria; as a result, hundreds of millions of Africans are exposed to malaria, one of the leading killer diseases on the continent.

This is why a recent report from the World Health Organisation (WHO) showed that five countries accounted for nearly half of all the malaria cases worldwide: Nigeria (25%), Democratic Republic of the Congo (11%), Mozambique (5%), India (4%) and Uganda (4%).

The top 10 highest countries with malaria burden in Africa recorded increases in 2017 compared to 2016. Of these, Nigeria, Madagascar and the Democratic Republic of the Congo had the highest estimated increases, all greater than half a million cases.

Recently, Rwandan’s Ministry of Health has blamed the rising rate of malaria incidences in the country on substandard bed nets. The nets were procured in 2013 from Netprotect, a firm based in Denmark.

According to the Minister for Health, Agnes Binagwaho, said three million mosquito nets currently in use in the country are less efficient because they do not have enough chemicals elements to kill mosquitoes explaining that the World Health Organisation (WHO) had certified the bed nets that Netprotect supplied but later due to a high increase of malaria cases, the ministry carried out its own study, which indicated that the bed nets were less efficient.

However, there is a need to scaleup utilisation, accountability and responsibility to achieve the malaria elimination targets; if the targets of the World Health Organisation general assembly target of zero death from malaria and complete eradication of malaria in 2030 have to be achieved.

Effective systems of accountability are powerful tools to improve the prevention, control and awareness of eliminating malaria in Africa.

Promoting accountability involves identifying who is to be held accountable for what. In the field of malaria and health generally there are many possible answers to these questions, so accountability must continue to stand for many different things.

FRSC, old mutual prioritises wellbeing of road users ANTHONIA OBOKOH

T

he Federal Road Safety Corps (FRSC), in partnership with a Old Mutual, a premium financial services company, has joined forced to ensure road users and vehicles owners health safety while plying on public roads are protected.

Speaking with journalists at the FRSC Zone RS2 (comprising of Lagos and Ogun state) second quarter retreat themed ‘ Towards a Better Road Safety Administration and Management in Nigeria’, held recently in Lagos, Samuel Obayemi, Assistant Corps Marshal Zonal Commanding Officer, RS2 Lagos, noted that the lives or every Nigerians on public roads are FRSC first priority.

He said it’s important that the corps dialogue on improvement on quality service delivery, communication and education on how safely the public roads can be used by vehicle owners conforming to the rules and regulations.

He said: “RS2 is made up of Lagos and Ogun state. What we are doing is a retreat for all commanding officer within the zone.

In Rs2 we have 21 units. We need to come together once in a while like this , once in quarter to appraise what we have been able to do in the past quarter to see

our areas of strength and weaknesses and see what we can do to further improve our service delivery to members of the public.

It is something we do quarterly basis and we held the second quarter retreat. From observation, all commanding officers within the zones are present.

“At the end of the retreat, our projections are; we all being on the same page and plan ahead to see exactly what every commanding officer needs to do so that at the end of the day we will collectively raise the bar.

As at today, Lagos command is rates the best in the federation and we need to maintain that position, by seeing what we are doing correctly and wherever weaknesses are, we proffer solutions which was the take home to go back to their command to implement”.

On the part of Old Mutual, Olu Okunnu, the Learning Manager, Old Mutual Nigeria, said

the company is in partnership with FRSC and other agencies on not only on financial needs but to see how they can support agencies to ensure Nigerians maintain health safety while driving and boarding.

“Old Mutual was established over five years ago in Nigeria. We are part of a strong and expanding global group with head office in South Africa. The group is spread over 14 countries and was founded in South Africa back in 1845. We are happy to partner with the FRSC because we see an opportunity to support our law enforcement officers.

“We already partner with the Civil Defense Corps and government agencies. We realize that most of your officers have dependents and financial needs and this is an opportunity to share information with them about how to protect their loved ones and the things they care about” Okunnu said.

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

22

Friday 05 July 2019

BUSINESS DAY

FEATURE Securing the future of loved ones with Islamic Estate Planning Seyi John Salau

W

Kunle Awojobi

preserve harmony by avoiding dispute. Based on the teachings of Prophet Mohammed (SAW), every Muslim should have an AlWasiyya – an Islamic Will which contains instructions on wealth distribution to heirs.

Estate Planning is considered imperative for everyone, as it remains a smart way to structure preservation and transfer of one’s assets – houses, cars, investments, insurance etc. By properly planning your Estate transfer in a timely fashion, you reduce Estate taxes when transferring assets in later years, or by family members,

upon your demise. By planning ahead you also protect your assets from becoming part of public record.

The first step to take, on your journey to planning your Estate is seeking the services of a professional competent Estate Planner, who can provide professional advice to ensure a comprehensive and well-thought through plan is developed on your behalf. This Trustee may also be in charge of gathering your assets, investing them conservatively while your Estate is being administered.

Engaging a Trust company like

gramme – the Legacy Series, both on radio and in press. The Trustee has also established relationships and partnerships with key players in the Islamic Finance space.

It currently has been working arrangements with Scholars who are vast in Islamic Jurisprudence and Legal Partners seasoned in Islamic Finance.

The Islamic Estate Planning business is a relatively new one in this part of the world.Development of the market is fallout from the recent prominence of Islamic Finance, catalysed by the successes of the FGN N100bn Sukuk Bonds, to which FBNQuest Trustees was also Delegate.

“To have a proper structure, a prospective Client will have to speak with one of our Trust Experts so that their unique situation is understood and a clear understanding of their objectives is outlined. This is a critical first step because each client has a unique need, which cannot be replicated for another individual,” said AdeKunle Awojobi, managing director.

“Therefore, to get the best solution each person will have these one-on-one sessions with the experts and the output of these would guide drafting of the Estate Plan and subsequent recommendations of the most appropriate structure,” said Awojobi.

About FBNQuest Trustee

“

Estate planning is a subject we must all face sooner or later. Plan for today and tomorrow so you can retain full control of your wealth, and ensure its value is preserved for your household

“

hen planning for the future, we focus on life goals such as getting married, getting an education, buying a house, and over the course of our lives, accumulating wealth.

However, we often do not plan for the preservation of assets that we spend years growing. The savvy career person and/or entrepreneur needs to start considering wealth preservation and transfer in his/her financial planning and the good news is that one need not go against Faith and personal values to plan wealth preservation and transfer.

For Muslims, The Qur’an provides explicit procedures on how to distribute two-thirds of a Muslim’s assets to family - parents, spouse(s), children and other family members; after which freedom is given on how the remaining one-third should be managed.

Also, if preferred, the one-third can be spread over generations or could be used to create and manage the activities of foundations, make Zakat distributions, and take care of the less privileged in the society, but this will require a Charity Trust.

Islamic Estate Planning is very important for Muslims, as it is considered an act of purifying or cleansing, which involves voluntary and compulsory distributions made to family and charity after a person’s passing. It is as a fulfilment of the responsibility of ensuring that beneficiaries are well taken care of and helps to

FBNQuest Trustees, who are pioneers in Islamic Estate Planning in Nigeria, ensures that you get expert support in preserving and executing your Estate Plan in line with Islamic guidelines while you’re alive and after your demise. Services offered include delivery of income and assets to your Beneficiaries, asset management and debt settlements, as well as complex decision-making on your behalf.

Estate planning is a subject we must all face sooner or later. Plan for today and tomorrow so you can retain full control of your wealth, and ensure its value is preserved for your household. FBNQuest Trustees provides continuous education and support for individuals and organisations through Estate Planning Clinics, Seminars, its Legacy Series programs and one-to-one consultations.

Challenges of Islamic Estate Planning The major impediment of Islamic estate planning is education, especially in the Northern part of the country.

According to a recent data from the National Bureau of Statistics (NBS), the literacy level in Yobe State stood a 7.23 percent, the dismal record of Yobe is followed by Zamfara (19.16 per cent); Katsina (10.36 per cent); Sokoto (15.01); Bauchi (19.26); Kebbi (20.51); and Niger

(22.88) respectively. Only Taraba is an exception with 72 per cent literacy rate.

While some believe that Estate Planning is paramout for Muslims based on the teachings of Propeht Muhammadu (SAW), others are of the conviction that a muslim is not expected to keep a will.

In order to solve this problem, FBNQuest Trustees , in 2017, began actively disseminating valuable information and educating Muslims on Islamic Estate Planning through its flagship prowww.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

FBNQuest Trustees is a subsidiary of FBNQuest Capital. Our distinctive heritage as an organisation allows us to leverage specialisation of the subsidiaries of our parent company to enhance delivery and provide world-class client solutions.

We assess your needs and provide tailored solutions for the safekeeping of assets. From estate planning to government bond issuance, we hold a solid market position as a leading trustee services provider.

Friday 05 July 2019

BUSINESS DAY

AGRIBUSINESSINSIGHT Market Insights

Analysis

Commentaries

Experts/Industry Views

Commodities watch

Policy Reviews

23

Send in Commentaries to caleb.ojewale@businessdayonline.com

With RUGA ‘laid to rest’, grass production business can make a difference Stories by CALEB OJEWALE Twiiter: @calebtinolu

I

f indications from the presidenc y at the time of writing this article are anything to go by, the RUGA initiative that generated some controversy in recent weeks may have been put to rest (temporarily or not). What is more important, however, is devising new and sustainable ways to get the cattle business thriving in Nigeria.

As reported by BusinessDay, with an estimated 19 million heads of cattle valued at over N1.9 trillion, the cattle business has potentials for significant growth, if cattle owners can develop independent ranches where they can commit their own funds to invest and meet international standards. At present, herdsmen, popularly of the Fulani extraction move cattle across thousands of kilometres from the north to the south, in search of pasture to graze. The north-south movement, and later the south-north movement in search of pasture, consistently leads to losing whatever weight has been gained during grazing periods, according to experts.

“When your cow in Nigeria marches from Adamawa to Lagos that is a little more than exercise, therefore we have to confine Nigerian cows in ranches,” remarked Audu Ogbeh, immediate past Minister of Agriculture and Rural Development at last year’s BusinessDay Agribusiness and

Food Security Summit. Advocating what would be private sector-led and with full business intentions, Ogbeh explained that for a young person with just 20 milk cows behind the house, well secured, and fed with at least 10kg of fodder per day, and 40 litres of water, one can collect enough milk to be a very comfortable Nigerian without looking for a job.

The prospect of readily available grass to feed cows across the country has the potential to curb recurring violent clashes in different parts of the country between farmers and herdsmen. It will also see the value of cattle improve as better feed implies improved beef and milk quality.

“That is the only thing we need in Nigeria if we want to improve cattle, dairy and beef production in Nigeria,” said Ayoka Adebambo, a professor of animal breeding and genetics, at the Federal University of Agriculture, Abeokuta, in a phone interview with BusinessDay. “We have the land required and instead of going to places like Brazil to import grasses, many places in the north can be used to produce adequate high quality grass,” Adebambo explained in a previous interview with BusinessDay. S o j i A p a m p a , C E O, t h e Convention on Business Integrity, an organisation, which says it introduced cultivation of Napier

grass in the Laduga grazing reserve in Kaduna state, where cattle owners are reporting significant improvements in their livestock, believes provision of fodder and water is the solution to the crisis.

Apampa told BusinessDay that before introduction of the grass in the grazing reserve, milk production hovered around 1 litre (and usually less) per cow, but within weeks of feeding on the Napier grass, cows could produce as much as 3 litres of milk in a day.

He also explained that the business of grass production is gradually gaining traction as rural dwellers around the reserve sold N6 million worth of Napier

Technology tracking herdsmen attacks records violence every week

E

very week since June this year (2019), Resolute 4.0, a new technology deployed to track attacks by herdsmen on farmers and the resulting clashes, has been buzzing with alerts and records of violent clashes.

“Since launching it, alerts have come in every week, sometimes multiple reports,” said Rotimi Williams, who told BusinessDay he developed and deployed the technology. “What we are now beginning to work on is the response time and accountability measures to ensure no lives are lost anymore.”

Rotimi Williams, an agriculture entrepreneur whose 45,000-hectare rice farm has had (production) activities suspended for one and half year because of insecurity, developed the technology because of how insecurity has affected his own farm operations. Even in other locations with smaller land expanse within the area, production has been suspended. The reason is not farfetched. Rotimi’s farms are surrounded by communities where one form of herdsmen-farmer conflict or the other frequently take place.

“When you are surrounded by conflict, people use your farm as IDP camp basically because they will come and seek refuge,” said Rotimi in a recent interview. “They know it is a matter of time before

that conflict spills over.”

Since the farms are surrounded by conflict, it increases the risk profile of the business and as such, Rotimi stated, “Nobody is going to give you funding.” He further explained, “If anything happens, your staff are on the move or you lose all your crops.”

For a big farmer like him, the insecurity is equally a big problem, but for small farmers, it also remains a big problem and not to be considered small in any way. “If we are going to talk about agriculture in any sense, security is the first thing that must be tackled,” he said, “These communal conflicts have to end. This farmer-herders issue honestly has to be brought to a stop.” www.businessday.ng

It is off the back of this that he founded ‘Resolute 4.0’, a technology solution to the farmer herder crisis. It focuses strictly on conflicts that affect food security, economic development, and national security.

What was supposed to be a pilot launch in June, ended up becoming the live launch of the platform. The launch is currently active in Plateau state but for security reasons, says he cannot be specific about the communities or people that it was launched with.

In launching the project, 10 smart phones were distributed with the technology on it, and according to Rotimi, they have been getting live panics within two minutes of an attack. Following

https://www.facebook.com/businessdayng

the receipt of an attack, his team then investigates and notifies the military of the situation.

“There are pictures,” he says, and “we are getting live information from the communities, we know the response time, and the lag between responses.” Considering the level of impact being recorded from just 10 devices, Rotimi wonders how much more impact is possible if the system is scaled across different communities. “If we distributed 10 phones and we have this effective response, then imagine what a thousand phones will do in an entire state,” he said.

According to Rotimi, the first panic recorded on the platform came in on June 15, 2019, involving a school in Bassa LGA, Plateau state. The second came in on June 17; in-fact two came in almost simultaneously from Riyom LGA (in a two-minute interval), in an attack where one soldier was killed, as well as two civilians and 60 houses burnt.

“It was meant to be just a pilot, but has now been rolled out as the main project,” he said, explaining it was developed for the farmerherder crisis but is scalable to other communal conflicts. All alerts gotten so far are farmer-herder conflicts, with one side attacking the other and then reprisal attacks follow. @Businessdayng

seedlings (as at last year). This, he said can improve if deliberate efforts are made to encourage increase in production, and making it a structured business to attract the right investments.

Napier grass, also known as “elephant grass”, “Sudan grass” or “king grass”, is a fodder grass that produces a lot of high-protein forage. It is not entirely new in Nigeria, but now holds prospects of a profitable industry that could as well end years of violent conflicts between farmers and herdsmen.

The grass is suited to high rainfall areas, but is drought-tolerant and can also grow well in drier areas.

For a cow to produce well, it needs feed of about 15 kg a day. Impliedly, Nigeria’s estimated 19 million heads of cattle will require about 285,000 metric tonnes of feed in a day. As many nomadic herdsmen may be unable to produce the grass required to feed their cattle, this opens an opportunity to grow grass in commercial quantity to meet the needs of this market, and improve cattle quality in the country.

An industry created around the business of grass growing, is likely to resolve conflicts that arise when cattle herders migrate and graze. It will provide an alternative source of feed which and improve the quality of cattle in the country. The increase in cattle productivity as experts have observed, will not only be for beef production but also dairy production where Nigeria currently lags global averages.

Agric investment opportunities on Nigerian Agritech platforms (JULY)

A

t the time of going to press, Agribusiness Insight surfed through three digital agriculture platforms in Nigeria; Thrive Agric, Agrorite, and Farmcrowdy, for any open investment opportunities.

Please note that this is not a recommendation to invest, rather, for information purpose and individuals should carry out independent due diligence. All information reproduced below is extracted as provided by each platform.

THRIVE AGRIC - Maize farm in Kaduna Units left (at publication): 17,876 Cost per unit: N62,000 Returns: 20 per cent after 9 Months Insured by Leadway Assurance - Soybean farms in Kebbi and Niger Units left (at publication): 9,437 Cost per unit: N47,600 Returns: 20 per cent after 9 Months Insured by Leadway Assurance AGRORITE - Maize Farm Units left (at publication): 407 Cost per unit: N60,000 Returns: 18 per cent after 6 Months Insured by Leadway Assurance FARMCROWDY No open farm cycles at the time of publication but it indicated Two Ginger cycles are scheduled for this month (July).

24

Friday 05 July 2019

BUSINESS DAY

Hotels

Radisson Blu Hotel & Convention Centre Kigali, Africa’s most expensive building OBINNA EMELIKE

Top BusinessDay Partner Hotels Four Points by Sheraton Hotel (Oniru Chiefatancy Estate,Lekki) Tel: +234 1 448 9444

W

ith a reported price tag of US$300 million, the Radisson Blu Hotel & Convention Centre Kigali, in Rwanda, is by far Africa’s most expensive and impressive building. But beyond holding that title, the convention centre is also a shining example of how Rwanda has not only managed to come back from one of the darkest chapters in Africa’s history, but how it has flourished to become one of Africa’s fastest growing economies.

The landlocked country’s economy grew at 8.4 percent in the first quarter of 2019 and has reduced its reliance on donations and domestically funds by around 84 percent of its budget, up from about 36 percent two decades ago.

Not rich in natural resources, Rwanda has had to look to other avenues to drive its growth. One of these has been by placing a strong emphasis on developing MICE (meetings, incentives, conferences and exhibitions) business tourism.

Launched in 2016, the Radisson Blu Hotel & Convention Centre is a lynchpin of the Rwandan focus on developing MICE tourism.

Just five kilometres from the bustling city centre and Kigali International Airport,

Transcorp Hilton Abuja 1 Aguiyi Ironsi Street Maitama, Abuja Tel: +234-708-060-3000

The Wheatbaker #4 Onitolo(Lawrence Road), Ikoyi, Lagos.

Tel: 01 277 3560

the Radisson Blu Hotel & Convention spans more than 80 000m². The convention centre alone can accommodate more than 5 000 delegates, and its world-class business and conferencing facilities have hosted regional and international conventions, exhibitions, festivals and meetings. The hotel itself has 291 rooms and with two restaurants, dedicated bar, a spa, fitness centre, and outdoor swimming pool, leisure travellers or business travellers looking to unwind are also well catered for.

In as much as the convention centre is representative of Rwanda’s future, the country’s rich history is also represented in its design. When you first look at the centre, your eye is immediately drawn to the iconic dome-shaped

conference centre auditorium. Its design duplicates the traditional shape of huts, which would be found in Rwanda’s past king’s palaces.

The façade of the hotel itself also harks back to Rwanda’s history with its architectural replication a traditional and colourful weaved basket. The hotel’s design has won numerous awards, including a continental award in Best Architectural Design and Best Hotel Development at the Africa Property Investment Summit in 2018.

Now in its third year of operation, the Radisson Blu Hotel & Convention Centre Kigali is already running at a profit and has become a landmark in the city, according to William McIntyre, regional director, Africa, Radisson Hotel Group.

“However, things like this do not happen in a vacuum,” notes McIntyre. “This year, the Rwandan government is building a new airport outside the city. For the past three years, they have invested in jets for Rwanda Air, because if you do not have the air access, you cannot get anyone interested in the convention centre. You can now fly from Kigali to China, Europe, UK, South Africa and the USA. “In other words, you cannot talk about the Radisson Blu Hotel & Convention Centre Kigali in isolation, without putting what the government has done into context to facilitate everything. They have created the access and the facility, and worked hard through the convention bureau to build capacity and grow the pipeline.”

Chef Quarmyne takes charge at Four Points By Sheraton Lagos

T

he Four Points by Sheraton Lagos has announced the appointment of Chef Leslie Quarmyne as the executive chef of the hotel and the latest addition to its associate family.

Chef Quarmyne, who hails from Ghana, is a seasoned chef with a track record of delightful meals and creative food presentation. He is a culinary expert with 22 years of practice in five star hotels and resorts across two continents.

“We are excited to bring Chef Leslie onboard,” says Jonathan Patterson, general manager, Four Points

by Sheraton Lagos. “He possesses an incredible mixture of experience, education and culinary background. We are con-

fident that our customers are going to appreciate him and what he creates for them.”

www.businessday.ng

Chef Quarmyne comes with a knowledge base from different trainings; he holds professional

Hawthorn Suites by Wyndham Abuja 1 Uke St, Garki, Abuja.

Tel: +234 9 4603900, +234 805 7522500

Lagos Continental Hotel Plot 52, Kofo Abayomi St, Lagos Tel: 01 236 6666

Radisson Blu Hotel Ikeja #38/40 Isaac John St, Ikeja GRA100271, Ikeja Tel: +234-908-780 5555

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

certificates from the University of Maryland Eastern Shore USA, College of Professional Management UK, and Management Development and Productivity Institute Ghana, to mention but a few.

He previously worked as the executive chef at the Golden Tulip Hotel Accra, Ghana. He is a member of Chef Associations in Nigeria, Ghana, Kenya and South Africa chapters.

He speaks English and French.

At the Four Points Lagos, Chef Quarmyne will support and add versatility and creativity to the kitchen team operations, while offering wide ranging and tasteful delicacies to the dining experience of customers.

https://www.facebook.com/businessdayng

Radisson Lagos Ikeja #42-44 Isaac John Street, GRA Ikeja, Lagos

Southern Sun IkoyI Hotel Address: 47 Alfred Rewane Road, Ikoyi, Lagos Tel: +234 1 280 5200 / +234 1 280 0630 Email: ssikoyi.reservations@ tsogosun.com

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

Friday 05 July 2019

BUSINESS DAY

Harvard Business Review

25

MANAGEMENTDIGEST

Nimble Leadership W.L. GOREOME, DEBORAH ANCONA, ELAINE BACKMAN AND KATE ISAACS WALKING THE LINE BETWEEN CREATIVITY AND CHAOS. n our research at the Massachusetts Institute of Technology, we’ve sought to understand how tension between leadership and innovation gets resolved in organizations with a strong track record of continuous innovation. We looked in-depth at two organizations that have been around a long time and have also maintained an entrepreneurial spirit and a first-class innovation capability: PARC, Xerox’s famous research and development company in Silicon Valley, and W.L. Gore & Associates, the privately held materials science company.

We identified three distinct types of leaders. Entrepreneurial leaders, typically concentrated at lower levels of an organization, create value for customers with new products and services; collectively, they move the organization into unexplored territory. Enabling leaders, in the middle of the organization, make sure the entrepreneurs have the resources and information they need. And architecting leaders, near the top, keep an eye on the whole game board, monitoring culture, high-level strategy and structure.

Both PARC and Gore integrate cultural norms that support innovation and resilience. The most important of these might be a shared belief that “leadership” should rest with whoever is best positioned to exercise it, regardless of title.

The three leadership roles, along with the cultural norms, have allowed the two organizations to become self-managing to a surprising degree. Let’s look at the three types of leaders and the cultural norms they embody.

ENTREPRENEURIAL LEADERS Entrepreneurial leaders “sense and seize” growth opportunities, lobby for early-stage resources, pull colleagues in with their vision for moving forward and fully exploit the opportunities that pan out. Most of those we observed exhibited three qualities.

— SELF-CONFIDENCE AND A WILLINGNESS TO ACT. These leaders believe in themselves. They experiment, and they’re resilient in the

I

face of failure.

— A STRATEGIC MINDSET. Entrepreneurial leaders understand the goals of their organization, business unit and team at a very deep level.

When they take action, they do so to advance those goals. Often that deep understanding exists because the organization has formulated and communicated simple rules of operation.

Many of these leaders have so fully absorbed their organization’s strategic goals that they are adept at deciding which investments of time meet multiple goals. Absorbing cultural norms — “how we do things here” — is as much a part of developing a strategic mindset as is understanding the business model.

— AN ABILITY TO ATTRACT OTHERS. Leaders at PARC and Gore aren’t handed followers; they must earn them. Many new product-development projects aren’t started at the behest of a high-level manager; they happen because an individual or a group gets interested in an opportunity, does some digging and figures out whether it’s worth further investment. At that point, the initiators must be able to pull people (and financial resources) onto a team.

That takes persuasiveness, confidence and (often) a good productinnovation track record.

ENABLING LEADERS Leaders who have more experience than their entrepreneurial colleagues focus on helping project leaders develop as individuals, navigate organizational hurdles, connect with others and stay in touch with larger business shifts. Certain skills are key.

— COACHING AND DEVELOPMENT. Enabling leaders often act more like coaches or mentors than a traditional boss would. They tend to ask questions rather than offer explicit direction. A key part of coaching is helping teams navigate the product-development process — and in that context, an enabling leader may become a more active problem solver.

— CONNECTING. While coaching supports entrepreneurial leaders in their individual growth, connecting helps them experience “creative collisions.” Enabling leaders typically have a broader view than do team leaders of what’s happening around and outside the organization, so they can see opportunities to create value and can spot “structural holes” that need to be filled. In some cases they connect entrepreneurs to end users; in others they provide connections to similar or complementary projects within the firm.

— COMMUNICATING. Enabling leaders put a great deal of energy into keeping that understanding up-todate by sharing information about emerging opportunities and changes in the external environment. The simplest form this communication takes is making sure one part of the organization knows what the other parts are doing (and that it all adds up to something coherent). Enabling leaders also keep an eye on maintaining the organization’s values in new business contexts.

ARCHITECTING LEADERS Senior leaders focus most of their attention on big-picture issues that require changes in organizational

culture, structure and resources. Architecting leaders not only respond to external threats and opportunities but also serve as caretakers of internal operations. They might fill holes no local unit had perceived. They might find ways to make the company more effective or efficient.

Changes might be called for because individual groups are making decisions that are sensible locally but are suboptimal for the company as a whole. If big changes are in order, senior managers may need to make top-down decisions, which of course flies in the face of collective decisionmaking. When that happens, leaders need to spend time explaining — and listening. Even so, some employees will resist the change, while others wish senior leaders would just “rip the Band-Aid off” and move decisively ahead. Facing such inflection points, architectural leaders probably won’t succeed unless they have an excellent personal reputation within the firm — and the company has an equally good reputation with external stakeholders.

A WHOLE GREATER THAN THE SUM OF ITS PARTS The cultural touchstones we’ve discussed support all three types of leadership, and together they create a system that’s adaptive and selfreinforcing. Three aspects of the system are worth highlighting.

— DISTRIBUTED LEADERSHIP. Different types of leaders interact with one another all the time, of course, and their tasks are certainly not 100% distinct. We don’t believe one person can fill all three leadership functions simultaneously, but

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

Partnership our core value

through 125 years

As your trusted advisor and business partner, we stay true to our promise to always deliver the ultimate ‘gold standard’ of value and excellence.

Let’s journey to the next 125 years together.

the roles are more fluid than we’ve made them sound.

— THE POWER OF THE MANY. Academics use the word “emergence” to describe a process whereby order at the system level arises from individual interactions at lower levels of aggregation. Time will tell whether a crowdsourced strategy combined with architecting leadership works better than decisions handed down by the CEO, but the track record so far is good.

— PROCESSES THAT BALANCE FREEDOM AND CONTROL. When we speak with leaders about this kind of system, most agree that power, decision-making and resource allocation should be distributed. But making that happen is another matter.

Their fear is that the organization will fall into chaos. But PARC and Gore show it’s possible to build processes that, taken together, can maintain order better than any bureaucratic regulations while also supporting innovation.

W.L. Gore covered some research costs for this project under a legal agreement protecting the researchers’ independence.); Deborah Ancona is the Seley distinguished professor of management, a professor of organization studies and the founder of the MIT Leadership Center at the Massachusetts Institute of Technology Sloan School of Management. She is a co-author, with Henrik Bresman, of “X-Teams: How to Build Teams That Lead, Innovate and Succeed” and a co-author of “In Praise of the Incomplete Leader.” Elaine Backman is a research affiliate at the MIT Leadership Center. Kate Isaacs is a research affiliate at the MIT Leadership Center, a partner at Dialogos Generative Capital and an executive fellow at the Center for Higher Ambition Leadership. She helps companies and multistakeholder collaboratives create social and economic value through trust-based relationships. Dr. Isaacs holds a doctorate in organization studies from the MIT Sloan School of Management and an M.S. degree in technology and policy from the MIT Engineering Systems Division.

26

Friday 05 July 2019

BUSINESS DAY

entertainment

‘There is more to the music industry than just making music’ Since 2010 when he launched his music career, Owoh Chimaobi Chrismathner has been on the rise. The hip hop artiste, songwriter and producer, who stages as Zoro Swagbag has also released singles that won him more fans, as well as, recorded huge commercial success.

In this interview, the rising music artiste tells Obinna Emelike his passion, inspiration, and quest for stardom.

Congratulations on following your passion, but how has it been since you started doing music professionally? hank you. It has been an amazing experience amid ups and downs. Just like in every other profession, the bigger you get the bigger the challenges. But the consolation is that when the going gets tough, the tough gets going.

T

What will you describe as your biggest challenge and achievement since then?

It is the finesse because with a lot of inexperience and having to pilot my movement myself, I learn everything the hard way.

It is challenging but it prepared me ahead.

How has it been combining the roles of a hip hop artiste, songwriter, and

producer, did you take any professional training in these roles?

Not really. I trust my instincts and they never fail me. So, I do all these things as they come to me, which leaves me with room for uniqueness.

As a songwriter, how do you get your inspiration, and how does such inspiration translate into songs?

Most times it comes like jokes and freestyle. My inner self helps me capitalize on good ideas anytime one comes up and exploit it into a proper song.

You have featured Flavour and Phyno in your singles, especially Ogene, how did that impact your music afterwards?

God has been good because a lot of other folks have featured Phyno and Flavour and nothing changed, but my case has been very

do you feel challenged because in the era of PSquare, 2-Face, D’Banj, among others, it was more competitive. Do you think artistes of these days are not as creative as their predecessors?

There is more to the music industry than just making music, and all these guys mentioned understand it with very huge fan base.

So, you can be the most creative and still not get on to their level. I feel like these days it is mostly about who is most ready, and Wizzy and David have got everything it takes.

Zoro Swagbag

different, because God is great. I will not put it solely on the features, my people have been very supportive too.

Comparing singles you did all alone and those you featured other artistes, which of them is better appreciated by

fans, marketers and even you?

Of course, it is Ogene, which featured Flavour, the very popular highlife musician.

The likes of Davido and Wizkid have been ruling the Nigerian music industry for some time now,

Can you explain your attachment to Enugu the Coal City, which is often reflected in your music?

Well that is because I am from Enugu and I spent some good years of my life there.

have the tours impacted your career and what are the upcoming ones?

The idea is to bridge the gap between the beautiful African culture and pop kulture and the tours abroad have helped shape up this quest.

You just dropped your first single of the year “Iheanacho”. How has the acceptance been?

Iheanacho is a hit song and the reviews we have been getting since we dropped the music and visuals have been overwhelming. We are not there yet but we are giving the song time to entertain people and soar on its merit.

You have also been on some tours abroad, how

How do your fans connect with your movements?

You can find me on all social media platforms on-Twitter: ZoroSwagBag; Instagram: ZoroSwagBag; Facebook: ZoroSwagBag1 and www.zoroswagbag. com.

Information was also shared about the programmes for the annual continental awards to effectively engage music talents and content creators from Cameroon who are key stakeholders and beneficiaries of the awarding process.

Among key attendees were Cameroonian artistes; Wax Dey, Leo, Ewube, Mic Monster, Sango Edi, Wams, Divine Verjika, Awu and media personalities such as CheChe Elvis, Miss Gina Promotions, Fon Felix, Emmanuel Asafor and many other stakeholders in Cameroon’s culture and music industry.

Speaking at the conference, Cameroonian music star and AFRIMA 2016 winner, Best Male Artiste in Central Africa, Wax Dey, stated that being an artiste and a business executive, a strategic collaboration between the Cameroon culture industry and AFRIMA and the AU would further aid the development of music and arts in the country.

Later on Friday evening, Las Vega VIP hosted AFRIMA

to a “Night with the Stars” with top Cameroon celebrities and artistes including Cameroon Music Producer Salatiel; star artiste, Mr. Leo; breakout Cameroon music star, Blaise B amongst others who came to party with AFRIMA. Prior to the conference in Douala, on June 27, AFRIMA officials had hosted media and music industry stakeholders in Yaounde, the Cameroon capital to a meet and greet to give insights into the 6th AFRIMA programme of activities.

Meanwhile, from August 3 to 5 submitted entries will go through a ‘Pre-Screening’ process by the Screening Committee of AFRIMA, followed by the ‘AFRIMA Adjudication’ process from August 6 to August 12 conducted by the International Jury of AFRIMA comprising a 13-man panel of experienced and respected African music experts and practitioners who will carefully and painstakingly assess and select the very best amongst submitted entries to occupy the AFRIMA 2019 Nominees’ List.

Cameroon music industry pledges support for AFRIMA 2019 …as stakeholders’ conference holds in Douala, Yaounde

T

he music and entertainment industry of Cameroon has pledged its support and commitment to the African Union Commission, AU, and the 2019 All Africa Music Awards, (AFRIMA), in the actualization of the vision for an integrated, prosperous and unified Africa through the continental awards platform.

This was made known during the AFRIMA 2019 Cameroon Stakeholders’ Conference and meeting held on June 28, 2019 at the Las Vegas VIP, Sable, Bonamoussadi, Douala and attended by media personalities, record label owners, Cameroonian music stars and past AFRIMA winners and nominees.

Representing the International Committee of AFRIMA at the conference were; Ernest Ewane, AFRIMA regional director, Central Africa; Adenrele Niyi, AFRIMA associate producer, and Sola Dada, AFRIMA head of media.

Delivering the opening address, Niyi said the decision

to hold the Stakeholders’ Conference in Cameroon was as a result of the growing impact of Cameroonian music and culture across Africa. “Cameroon has shown that it is a powerhouse of music in Central Africa, especially with Cameroonian artistes featuring prominently on the annual AFRIMA nominees list. An appreciable number of Cameroonians have won AFRIMA trophies

in past editions including the legendary Manu Dibango who has been honoured by the AU and AFRIMA for his influence on Africa music. However, the African Union and AFRIMA are also interested in examining ways we can use the 6th AFRIMA programme of events to engender greater unity and peace in all regions of Cameroon working with all relevant stakeholders in the country”.

The team revealed details of the 6th AFRIMA ‘Call for Entry/ Entry Submission’ process, which opened on May 15 to end on August 2, where African music professionals from across the continent submit their musical works, songs and recordings via the official AFRIMA website www. afrima.org for a possible shot at nomination in one or more of the 36 categories of AFRIMA.

Wax Dey, winner, Best Male Artiste in Central Africa, AFRIMA 2016, addressing the media at the end of the conference. www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Friday 05 July 2019

BUSINESS DAY

27

entertainment Riding in the elevator Business etiquette

Janet Adetu What is your experience riding in an elevator? he real estate industry keeps surprising us each day with state of the art buildings that just keep getting bigger and better by the moment. The more you look the more you see, the higher they get. I recently had an appointment to see an important client for the forest time at their office. I was intrigued when I got to the address and found it to be one of the latest modern office complexes, I was heading for the 12th floor. I had seen them abroad now surprised to see them at home, that is elevators that you operate from the outside whereby the system tells you which elevator to board based on your desired floor.

I also realized that when it comes to elevators or lifts people really do react differently, from running after the lift before the doors close, to attempting to squeeze through not wanting to miss that particular opportunity to cramping an already filled elevator to finally displaying the lack of manners and politeness when in a limited confined space.

Are you indifferent, very specific or claustrophobic when you enter an elevator?

T

Riding an elevator on a daily basis can have its implications, unfortunately if your office is high up you may have no choice but to go with the flow. Many take the elevator for granted, they do not know that there is something termed “Elevator Etiquette” that is your conduct, behaviour and mannerisms around the everyday elevator.

Let me share some of the concerns that need to be addressed and adhered to as best as possible.

Entering the Elevator There are times when you approach an elevator and see many people waiting to get on at the same time. You make a judgement call as to which lift appears to be on its way down or up the fastest. Suddenly the doors open, there is a rush to enter, at this point there is simply no need to rush along as it can only take a specific number at a time, after which you are required to wait for the next to arrive. It is important enter in a sequential style and position yourself as comfortably as possible. It is also smart to allow those on to get off first. Courtesy speaks to orderliness when entering an elevator to maintain

proper consideration for others as well as to avoid chances of disputes.

Hold it!

Many times, I have been in an elevator where the doors are about to close, you hear shouts of “hold it!” You are expected to forcefully hold the doors

for someone who really wants to get on that particular elevator. At times you are able to do this by pressing the right button, other times you are not so successful. We know that the elevator is electronically operated so is also not advisable to use your foot, body or object to hold the doors. The only time this may seem appropriate is when you are holding doors for an elderly person, a pregnant woman or for those with small children.

Packed to the Brim On many occasions you may find yourself in a hurry without the usual patience to wait for a free elevator, so you attempt to squeeze in a very packed elevator. Here you automatically enter the intimate space of others, indicating you are now too close for comfort that lift is obviously too packed. All elevators have signs that specify the capacity acceptable in terms of passenger loading.

I agree this may look impossible when you look around the confined space you are in. A packed elevator subjects passengers to health hazards, theft and discomfort. Once the doors are unable to automatically it is a warning for one or more passengers to get off, be ready if it concerns you, do not try to readjust by force. Once again once you find yourself in a very packed elevator your positioning needs to be one directional, that is facing the same as all others.

Say Hello or Not Typically, the elevator is the last place you may want to have a conversation, at least not a meaningful one as you are limited by the distance you intend to travel up or down the lift. A common greeting is polite and maybe sufficient when meeting strangers.

Conversations are not confidential, or convenient on an elevator so is easier

‘

Riding an elevator on a daily basis can have its implications, unfortunately if your office is high up you may have no choice but to go with the flow

to get on politely and off politely. An empty lift provides better opportunities, but this depends on the circumstances to avoid unsolicited talk or being a nuisance to another passenger. In a place where you know fellow passengers remember that what you say is exposed to others so again avoid spilling confidential information.

Getting Off How many times have you found yourself literally positioned at the back of the elevator simply because you were one of the first to get on? Once you arrive your desired floor you have to excuse your way out just to get off. Not everyone sees the need to be polite so barge their way through at the inconvenience of fellow passengers. The best way is to position to the right to allow others to get off with ease.

Keep it Safe It is imperative you keep all your belongings closely to yourself, possibly on the floor by your feet for ease and comfort. Watch your pockets, purses and bags. Remember if you have extra bags not to forget them in the elevator.

Pockets are the first place to watch and keep safe don’t make any assumptions but be careful.

Phone Phobia Finally, yes that alert or ring tone that goes off is a prompt for you to pick the phone and respond immediately.

Just like conversations, that telephone conversation is not advisable in such a confined space. Being in a lift also affects reception and connectivity, I would say just keep your phones safe.

Please share your experience with me by sending an email to or janet.adetu@jsketiquetteconsortium.com. / jtadetu@gmail.com Follow and like @janetadetu @jsketiquetteconsortium I look forward to hearing from you.

The Next Titan sets to excite with Season 6

…reality TV show kicks off July ending

O

nce again, The Next Titan, popular TV reality show, is set to excite the viewing public with its Season 6.

In its tradition, the platform designed to ignite entrepreneurial spirit among young Nigerians, will see the winner going home with a cash of prize of N7million and a brand new car.

The Season 6 was flagged off recently at Radisson Blu Hotel, Lagos, where guests; including winners of the previous seasons of the reality show were present.

The Next Titan is a platform designed to ignite entrepreneurial spirit of generality of young Nigerians who may not have opportunity to participate directly through the shows regional auditions, but who can watch the TV show, and who can as a result take a decision to ply the route of entrepreneurship as a viable career option.

Speaking at the flag off ceremony, Mide Akinlaja, executive producer of The Next Titan and managing director, Bravopoints International Ltd, said in the last five years his organisation had sustainably hosted the initiative on yearly basis with the support of its corporate collaborating companies.

“We are excited again to inform you that we are set for the new Season Six as we have already received thousands of entries from young aspiring entrepreneurs. This will give these young ambitious entrepreneurs another opportunity to showcase their business ideas and battle one another for a cash prize and brand new car to start their own business”, Akinlaja said.

The season six, according to him, promises

Fela Ibidapo, chief marketing officer, Heritage Bank Plc; Mide Akinlaja, executive producer, The Next Titan; Jumoke Oduwole, senior special assistant to the president on Trade and Investments; Adekunle Oyinloye, GMD, Sifax Group; and Kyari Bukar, immediate past chairman, Nigerian Economic Summit Group at the dinner for the commencement of the Season 6 recently in Lagos.

to be more exciting as auditions for the season will start towards the end of July in four major cities in Nigeria including Abuja, Port Harcourt, Enugu and Lagos. Thereafter, 50 contestants will be selected for the 50 booth camp in Lagos prior to the 16 final contestants with brightest ideas, which would be unveiled at the premiere show in September.

The 16 shortlisted finalists will live together and compete by carrying out weekly business tasks and challenges around the city of Lagos for 10 weeks on television, and with weekly preview in the boardroom by the judges.

He explained that the major objective of the show is not the prizes, which winner of the contest goes home with, but the inspiration and stimulation to young people to own and

www.businessday.ng

implement their own business ideas, adding that the youths should be determined to take their destiny into their hands in order to live their dreams.

Akinlaja said he has established an institution, a registered subsidiary of his organisation with the aim of training undergraduates on entrepreneurship and business startups.

The founder identified lack of collaboration as a major challenge to the implementation of private initiatives in the country and urged the government to take the future of the youths seriously in terms of job creation and empowerment.

Winners of the previous edition were present to share their ideas of entrepreneurship.

The included Irogama winner of the Season

https://www.facebook.com/businessdayng

1; Marvies Marshal Idio, winner of Season 2; Kennedy Iyeh, winner of the Season 4, and Oge Oba, winner of Season 5.

Judges of The Next Titan who were selected on integrity and experience, include; Kyari Bukar, founder, Trans Sahara Investment; Tonye Cole, founder, Sahara Energy, Chris Parker, chairman, CPMS Africa, and Lilian Olubi, CEO, EFG Hermes Ltd. Others are; Fela Ibidapo, chief marketing officer, Heritage Bank Plc., and Adekanle Oyiloye, GMD, CIFAX Group, Live videos of each winner of the show since inception was played to enable audience share their experiences on their journey in entrepreneurship.

Out of the N4 million Irogamah, winner of the season 1, won, she said, “I used N3, 700 million as seed capital and had N300,000 left.

That seed capital helped me to bring in the startup brand product of my company. The half of the job was done. It gave me the push that I needed because I was no longer running round looking for where to seeking for funds.”

She said.

For Marvies Marshal Idio, winner of Season 2, “It is more about the journey because I believe from the beginning I saw myself as a businesswoman. My experience from the show has really helped to push my business ideas.”

Jumoke Oduwole, Senior Special Assistant to the President on Trade and Investment, who was one of the judges of the TV show before her appointment, said young people need to discover their dreams in order to make impact both at the national and global scenes, but should not be afraid to face challenges, which are inevitable.

@Businessdayng

28

Friday 05 July 2019

BUSINESS DAY

Sports Why players’ strike actions may derail the excitement at AFCON 2019 Stories by Anthony Nlebem

J

ust as football fans are enjoying the beautiful and exciting football actions at the ongoing Africa Cup Of Nations (AFCON) in Egypt, the news about teams boycotting the event over unpaid bonuses and allowances seems to take away the beautiful headlines from the tournament.

Just recently, Nigeria senior national team, the Super Eagles boycotted a training session in protest over unpaid bonuses owed them. The players had initially refused to train after not receiving a $10,000 match bonus that had been promised after winning Burundi in their opening game at AFCON. Reports also have it that the Nigerian team were not financially motivated against their game with Madagascar, where the lost 2-0.

This development did not go down well with Nigerian government, who frowned at the incessant protest by Nigerian players over non payment of bonuses and allowances, even after financial provisions have been made to the Nigeria Football Federation (NFF).

Nigerian President Muhammadu Buhari on Monday expressed surprise that allowances of Nigeria’s national

team, the Super Eagles had not received their allowances.

Plateau state governor Simon Lalong, disclosed that this despite the fact that the President had approved payment of the team allowances.

“Defeating Guinea and allowing Madagascar to defeat us is a surprise, but I think with good motivation, these boys would bring back the cup.

The government also warned against playing politics with football, which he described as “ a unifying factor in Nigeria” “We should not joke with it, if they bring back the cup it will cement our relationship and that is one of it.

“Well, many of the concerns raised were that their allowances were not paid and Mr President expressed surprise that signed these allowance and wondered why they are not paid to them.

“I was a footballer, it’s not like before when you play football out of patriotism, now it’s combined with the economic aspect. When you bring people, definitely from the ministry, you must ensure that their allowances are paid. ” Also, the Cranes of Uganda are the latest team at the Africa Cup of Nations to get embroiled in a dispute over payments.

The Cranes are through

to the second round after finishing second in a group containing hosts Egypt and DR Congo. But their players boycotted training on Tuesday.

The country’s FA has said the players are trying to “renegotiate” their remuneration.

It is the fourth pay dispute to hit the tournament so far.

Recalled that the indomitable Lions of Cameroon arrived in Egypt late after an unresolved row over bonuses.

The players had refused to travel for this year’s Africa Cup Of Nations, the same tactic they employed at the 2014 World Cup. There were concerns that

the opening game would not even happen after suggestions came from the Zimbabwe camp that the players had threatened to boycott the match against the hosts Egypt.

The argument here is that why do these strikes continually occur at every major football tournaments in Africa?

The way that payments work in tournaments is that the further a team goes, the greater the amount of money they receive. Thus, success in major championships has the potential to bring revenue to a country’s football federation.

In theory some of that money should end up with the players as bonus payments they should also receive some money for qualifying.

For players based in major European leagues, those tournament payments are not necessarily a huge amount in comparison to their club wages.

England players donated their bonuses for their surprise run to the semi-finals of the 2018 World Cup to charity.

But for players based in African leagues, those payments constitute a great deal of money.

Last season in Cameroon, not only bonuses, but also basic wages from the clubs were not being paid, forcing players across the country’s top divisions to stage a series

of strikes.

Former captain Geremi Njitap filed a complaint direct to FIFA, which resolved the matter.

But the episode highlighted the important role that international appearance bonuses have for some players.

Some football associations have little accountability; others are opaquely managed - and even end up being suspended by FIFA. Over time, players have grown deeply distrustful of the very football federations they are picked to represent.

By threatening not to play, players create a double bind for their countries. Not only would it be damaging for their image, it also would dramatically reduce any money that the FA would be looking to get themselves.

The tactic has proved effective over the years - having been employed by at least one African team at every World Cup since 1990.

In some cases, the country’s president has had to personally intervene in order save the nation from global embarrassment.

In Brazil in 2014 FIFA World Cup, $100,000 payments for Ghana were flown in, in cash in briefcases, and unloaded at the airport in Rio - where the Brazilian authorities took a 17% cut, before the money was sent out across the city to the players.

Court adjourns SPIP case against NFF officials till September

AFCON 2019: Super Eagles to play Cameroon in Round of 16

A

N

Federal High Court sitting in Abuja on Monday adjourned till September 26th, 2019, a case brought against some top officials of the Nigeria Football Federation (NFF) by the Special Presidential Investigation Panel (SPIP). The NFF officials have continued to deny any wrong-doing and have insisted the case brought

by SPIP is baseless, mere persecution and an abuse of court process, as the Federation has a pending matter in the same court challenging SPIP’s jurisdiction.

The NFF has also clarified that there is no bench warrant issued against NFF President, Amaju Melvin Pinnick as being wrongly peddled in a section of the media.

At the resumed hearing of the case on Monday, lawyer to the NFF officials, namely Amaju Melvin Pinnick (NFF President); Barrister Seyi Akinwunmi (1st Vice President); Mallam Shehu Dikko (2nd Vice President); Alh. Ahmed Yusuf Fresh (Chairman of Technical and Development Committee) and; Dr. Mohammed Sanusi (General Secretary), informed

www.businessday.ng

the court that his clients were on national assignment in the Arab Republic of Egypt, where Nigeria’s Super Eagles is one of the 24 nations participating in the ongoing 32nd Africa Cup of Nations finals.

The NFF chieftains have since petitioned the Office of the Attorney General of the Federation for an independent review, for which the Office of the AGF has directed the SPIP to submit the files for review.

The court however failed to hear the application of the NFF officials against the SPIP with regards to the panel’s jurisdiction and the court’s order for substituted service, despite the insistence of the NFF defence counsel.

The NFF legal team will also review the entire ruling to determine if there is need to appeal on the face of the fact that the court has delved into substantive matter without resolving the NFF objection on SPIP jurisdiction pending since January 2019.

igeria’s Super Eagles will do battle against the Indomitable Lions of Cameroon in one of the Round of 16 matches of the 32nd Africa Cup of Nations (AFCON) finals ongoing in Egypt at the Alexandria Stadium on Saturday, 6th July.

The match will kick off 5pm Nigeria time.

Cameroon who played a 0-0 draw with Benin Republic, and Ghana’s 2-0 defeat of Guinea Bissau, condemned the Cup holders to second place in Group F, and a direct confrontation with the second –placed team in Group B, being Nigeria.

Cameroon defeated Nigeria in the final of the Africa Cup of Nations in 1984, 1988 and 2000, but most painful for the Super Eagles was that agonizing penalty shoot-out loss in front of home fans at the National Stadium, Lagos on 13th February 2000.

In 2004, Jay Jay Okocha

https://www.facebook.com/businessdayng

spearheaded a sweet 2-1 defeat of then Cup holders (as they are now) Cameroon in a quarter final match at the Stade Mustapha Ben Jannet in Monastir, Tunisia and in the 2018 FIFA World Cup African qualifying series, the Super Eagles lashed the Lions 4-0 in Uyo and were forced to a 1-1 draw in Yaounde.

Nigeria and Cameroon share eight African titles be@Businessdayng

tween them. While the Indomitable Lions have won five times (1984, 1988, 2000, 2002 and 2017), Nigeria were champions in 1980, 1994 and 2013.

Saturday’s game is indeed a titanic battle, and the Super Eagles would be expected to pick themselves up from Sunday’s stunning defeat

by Madagascar and battle the bitter rivals the way they should.

Friday 07 July 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

29

30

Friday 05 July 2019

BUSINESS DAY

Live @ The STOCK Exchanges Prices for Securities Traded as of Thursday 04 July 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. 234,598.49 6.60 -0.76 265 23,263,303 UNITED BANK FOR AFRICA PLC 206,906.50 6.05 -0.82 274 20,190,913 ZENITH BANK PLC 612,231.63 19.50 1.30 329 12,003,533 868 55,457,749 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 226,140.34 6.30 0.79 169 5,854,487 169 5,854,487 1,037 61,312,236 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,625,732.18 129.00 -0.04 96 907,027 96 907,027 96 907,027 BUILDING MATERIALS DANGOTE CEMENT PLC 3,016,169.81 177.00 2.20 149 966,796 LAFARGE AFRICA PLC. 218,260.63 13.55 2.26 298 40,964,910 447 41,931,706 447 41,931,706 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 311,875.62 530.00 - 13 30,851 13 30,851 13 30,851 1,593 104,181,820 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,710.00 85.50 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,175.81 40.70 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 14,408.66 5.40 - 0 0 0 0 0 0 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 0 0 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 59,142.42 62.00 - 15 116,011 OKOMU OIL PALM PLC. PRESCO PLC 46,800.00 46.80 -10.00 32 289,411 47 405,422 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 8.51 20 504,942 20 504,942 67 910,364 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 794.19 0.30 - 0 0 JOHN HOLT PLC. 182.90 0.47 - 2 10,891 S C O A NIG. PLC. 1,903.99 2.93 - 2 200 TRANSNATIONAL CORPORATION OF NIGERIA PLC 43,899.83 1.08 0.93 79 11,520,475 U A C N PLC. 17,864.04 6.20 1.64 64 919,607 147 12,451,173 147 12,451,173 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 26,334.00 19.95 - 21 191,871 ROADS NIG PLC. 165.00 6.60 - 0 0 21 191,871 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 3,637.75 1.40 - 6 5,276 6 5,276 27 197,147 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 13,231.85 1.69 - 1 500 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 104,043.18 47.50 -0.63 20 1,016,633 INTERNATIONAL BREWERIES PLC. 146,559.45 17.05 - 21 790,466 NIGERIAN BREW. PLC. 483,812.57 60.50 - 35 112,380 77 1,919,979 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 86,250.00 17.25 -1.43 75 2,264,368 DANGOTE SUGAR REFINERY PLC 137,400.00 11.45 4.09 67 1,242,959 FLOUR MILLS NIG. PLC. 57,405.31 14.00 - 70 2,515,858 HONEYWELL FLOUR MILL PLC 8,326.71 1.05 2.94 31 672,290 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 1 100 NASCON ALLIED INDUSTRIES PLC 39,741.58 15.00 4.90 10 148,611 3,321.07 12.15 - 1 10,000 UNION DICON SALT PLC. 255 6,854,186 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 20,190.67 10.75 0.47 19 381,245 NESTLE NIGERIA PLC. 1,066,122.66 1,345.00 - 39 67,925 58 449,170 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 2 200 VITAFOAM NIG PLC. 4,803.24 3.84 - 12 75,192 14 75,392 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 27,396.29 6.90 - 23 62,011 UNILEVER NIGERIA PLC. 183,840.17 32.00 - 25 84,756 48 146,767 452 9,445,494 BANKING ECOBANK TRANSNATIONAL INCORPORATED 190,835.33 10.40 4.00 33 1,599,159 FIDELITY BANK PLC 46,649.42 1.61 -1.83 96 7,059,217 GUARANTY TRUST BANK PLC. 868,219.79 29.50 -1.67 224 8,360,567 JAIZ BANK PLC 12,964.27 0.44 -6.38 22 3,405,608 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 66,217.96 2.30 4.35 359 7,617,275 UNION BANK NIG.PLC. 203,845.27 7.00 - 17 119,356 UNITY BANK PLC 7,013.60 0.60 - 6 100,714 WEMA BANK PLC. 24,687.66 0.64 - 17 345,984 774 28,607,880 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 4,712.54 0.68 3.03 9 1,069,653 AIICO INSURANCE PLC. AXAMANSARD INSURANCE PLC 21,000.00 2.00 - 10 268,526 CONSOLIDATED HALLMARK INSURANCE PLC 2,439.00 0.30 - 8 96,000 CONTINENTAL REINSURANCE PLC 19,811.94 1.91 - 0 0 CORNERSTONE INSURANCE PLC 2,945.90 0.20 -4.76 88 253,500 GOLDLINK INSURANCE PLC 909.99 0.20 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,123.80 0.29 - 0 0 LAW UNION AND ROCK INS. PLC. 2,320.02 0.54 - 2 20,002 LINKAGE ASSURANCE PLC 5,680.00 0.71 - 3 13,070 MUTUAL BENEFITS ASSURANCE PLC. 2,346.27 0.21 5.00 52 371,000 NEM INSURANCE PLC 12,039.55 2.28 0.44 19 744,597 NIGER INSURANCE PLC 1,547.90 0.20 - 0 0 PRESTIGE ASSURANCE PLC 2,691.28 0.50 - 2 850 REGENCY ASSURANCE PLC 1,333.75 0.20 - 1 50 SOVEREIGN TRUST INSURANCE PLC 1,751.57 0.21 -8.70 11 4,001,980 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 4 17,100 516.46 0.20 - 0 0 UNIC DIVERSIFIED HOLDINGS PLC. UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 2,773.33 0.20 - 2 110,000 5,754.58 0.43 -8.51 29 1,572,864 WAPIC INSURANCE PLC 240 8,539,192

www.businessday.ng

MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 2,469.57 1.08 - 3 2,240 3 2,240 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 3,780.00 0.90 - 3 410 7,370.87 0.50 - 0 0 ASO SAVINGS AND LOANS PLC INFINITY TRUST MORTGAGE BANK PLC 5,796.93 1.39 - 0 0 RESORT SAVINGS & LOANS PLC 2,265.95 0.20 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 3 410 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 7,140.00 3.57 - 28 322,159 CUSTODIAN INVESTMENT PLC 36,761.65 6.25 7.76 52 1,645,009 DEAP CAPITAL MANAGEMENT & TRUST PLC 660.00 0.44 - 0 0 FCMB GROUP PLC. 31,882.36 1.61 0.63 55 4,175,116 1,131.98 0.22 - 0 0 ROYAL EXCHANGE PLC. STANBIC IBTC HOLDINGS PLC 412,182.26 40.25 - 14 8,493 UNITED CAPITAL PLC 13,500.00 2.25 -2.17 35 576,998 184 6,727,775 1,204 43,877,497 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 1 790 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 852.75 0.24 - 4 1,118,000 5 1,118,790 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 534.15 0.54 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 9,492.94 4.55 - 1 190 12,197.94 10.20 - 29 306,710 GLAXO SMITHKLINE CONSUMER NIG. PLC. MAY & BAKER NIGERIA PLC. 3,968.04 2.30 -2.13 15 572,671 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 987.56 0.52 - 5 80,959 556.71 3.62 - 0 0 NIGERIA-GERMAN CHEMICALS PLC. PHARMA-DEKO PLC. 325.23 1.50 - 3 305 53 960,835 58 2,079,625 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 745.92 0.21 - 4 10,105 4 10,105 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 1 100 648.00 6.00 - 0 0 NCR (NIGERIA) PLC. TRIPPLE GEE AND COMPANY PLC. 346.47 0.70 - 0 0 1 100 PROCESSING SYSTEMS CHAMS PLC 1,220.98 0.26 -7.14 9 952,845 9,996.00 2.38 - 1 2,000 E-TRANZACT INTERNATIONAL PLC 10 954,845 15 965,050 BUILDING MATERIALS BERGER PAINTS PLC 2,028.76 7.00 - 14 50,124 19,250.00 27.50 - 13 24,761 CAP PLC CEMENT CO. OF NORTH.NIG. PLC 197,152.51 15.00 3.45 18 447,345 FIRST ALUMINIUM NIGERIA PLC 844.14 0.40 - 0 0 313.43 0.59 - 0 0 MEYER PLC. PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,959.74 2.47 - 1 5 1,156.20 9.40 - 0 0 PREMIER PAINTS PLC. 46 522,235 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 2,712.44 1.54 9.22 30 881,152 30 881,152 PACKAGING/CONTAINERS BETA GLASS PLC. 33,173.14 66.35 - 3 602 GREIF NIGERIA PLC 388.02 9.10 - 0 0 3 602 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 1 151,208 1 151,208 80 1,555,197 CHEMICALS B.O.C. GASES PLC. 1,889.75 4.54 - 8 12,826 8 12,826 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 - 2 10,005 2 10,005 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 92.40 0.42 - 0 0 0 0 10 22,831 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,440.42 0.23 -8.00 10 188,999 10 188,999 INTEGRATED OIL AND GAS SERVICES OANDO PLC 47,860.94 3.85 -2.53 85 1,239,484 85 1,239,484 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 56,974.05 158.00 - 8 3,089 CONOIL PLC 15,024.06 21.65 - 0 0 ETERNA PLC. 4,760.13 3.65 - 10 67,217 FORTE OIL PLC. 35,166.99 27.00 - 51 377,888 MRS OIL NIGERIA PLC. 6,354.80 20.85 - 20 849 TOTAL NIGERIA PLC. 50,249.23 148.00 - 27 12,740 116 461,783 211 1,890,266 ADVERTISING AFROMEDIA PLC 1,820.01 0.41 - 1 500 1 500 AIRLINES MEDVIEW AIRLINE PLC 17,551.17 1.80 - 1 166 1 166 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 341.14 0.29 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,918.01 4.95 - 6 506 TRANS-NATIONWIDE EXPRESS PLC. 342.26 0.73 - 4 60,475 10 60,981 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,723.78 3.05 - 1 100 IKEJA HOTEL PLC 2,972.68 1.43 - 5 1,010 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 6 625 TRANSCORP HOTELS PLC 41,042.18 5.40 - 4 1,919,940 16 1,921,675 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 2 3,000 2 3,000 PRINTING/PUBLISHING ACADEMY PRESS PLC. 223.78 0.37 8.82 2 140,000 LEARN AFRICA PLC 1,126.32 1.46 8.15 16 301,869 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0 UNIVERSITY PRESS PLC. 798.11 1.85 0.54 7 155,350 25 597,219 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 497.31 0.30 - 1 17,600 1 17,600

https://www.facebook.com/businessdayng

@Businessdayng

Friday 05 July 2019

BUSINESS DAY

31

NEWS Ports remain open for business despite ongoing maritime workers’ strike action … MWUN vows to continue strike as meeting with NPA ends in deadlock AMAKA ANAGOR-EWUZIE

D

espite the earlier announced nationwide industrial action across all nation’s seaports by the aggrieved members of the Maritime Workers Union of Nigeria (MWUN), business activities have, and will continue to take place without any interruption, pending when all the issues raised by the workers would be resolved, BusinessDay learns.

In a telephone interview after the meeting with the Union, Adam Jatto, general manager, corporate and strategic communication of the Nigerian Ports Authority (NPA), said the workers had not embarked on full strike, but only want to make their grievances known to both the government and their employers.

According to Jatto, the ports have been opened since Wednesday morning, and businesses have been taking place as importers and their agents have been taking delivery of their consignments without disturbance while available ships have been berthing without interruption.

Jatto, who disclosed that the ports have not been closed down and activities have been ongoing because the announced strike action is not a full flesh one,

said the Wednesday meeting with the Union, which ended in deadlock, is an ongoing thing.

“We believed that the grievances would be resolved as soon as possible. However, port operations would continue while we keep talking till we reach a common understanding. But we believed the issues raised would be addressed before the end of it all,” he assured.

Meanwhile, the Union has vowed to continue with the earlier announced nationwide strike, as the NPA on Wednesday was not able to wade into all the issues and grievances of the workers.

The Union however confirmed that the NPA, which appoints stevedoring contractors to provide services at various offshore, jetties and onshore locations to the International Oil Companies (IOCs) and other operators, is yet to reach agreement with the parties involved.

“The strike still continues as we were not able to reach agreement with the NPA on Wednesday but the NPA promised to invite the executives of the Union to continue discussions with them and the IOCs on Thursday,” said Adeyanju Adewale, president general of MWUN in a telephone interview with BusinessDay.

Aig-Imoukhuede, Oyo-Ita appointed co-chairs, NESG Governance and Institutions Policy Commission ISRAEL ODUBOLA

A

igboje Aig-Imoukhuede, founder and chairman, Africa Initiative for Governance (AIG), has been appointed private sector co-chair of the Nigerian Economic Summit Group (NESG) Steering Committee for its Governance and Institutions Policy Commission (GIPC), a role he co-chairs with the head of the Civil Service of the Federation, Winifred Oyo-Ita, who was appointed the public sector co-chair. The inauguration ceremony held on July 3, 2019 at the NESG Offices in Lagos.

The Nigerian Economic Summit Group (NESG) is a foremost think-tank organisation in Nigeria that promotes sustainable growth and development in the Nigerian economy. It is a not-for profit/non-partisan organisation with a mandate to champion the reform of the Nigerian economy into an open, private sector-led economy that is globally competitive on a sus-

tainable basis.

NESG has 11 policy commissions, which serve as working groups comprising public and private sector executives that meet regularly to fast-track the adoption and implementation of Nigerian Economic Summit recommendations. The Governance and Institutions Policy Commission (GIPC) is one out of 11 policy commissions, with three thematic groups – Anticorruption, Civil Service Reforms and Institutional Reforms. The Commission was set up to facilitate the overhaul of public institutions, including the civil service and monitor regulators and private organisations with a view to accelerating growth and development of the economy through good governance.

Reacting to his appointment, Aig-Imoukhuede expressed his commitment to achieve the Commission’s mandate.

“Across the world, in many first world countries, the advancement of the private sector, especially with the adoptions

of new-age technology tools, served as a critical source of inspiration for the public sector and for successful government reform. Furthermore, the quality of the leaders of public institutions — their skill set, capability, their approach and their beliefs — always serves as an important determinant of the success of the reform,” he said.

“This combination of factors — strong private sector innovation and entrepreneurship, and effective public sector leadership — is widely acknowledged as the key to the developmental success we see in the world’s most advanced nations. Thus, if sustainable long-term solutions are to be developed and consistent growth and development is to be achieved, a greater level of collaboration must be fostered between the public and private sectors,” he added.

The GIPC, led by Aig-Imoukhuede and Oyo-Ita, have members comprising notable public and private sector leaders. Amongst them are Tunde

Olaopa, executive chairman, Ibadan School of Government and Public Policy; Gabriel Aduda, permanent secretary, Political and Economic Matters, Office of Secretary to the Government of Federation; Joe Abah, country director, DAI International Development; Dasuki Arabi, Bureau of Public Service Reforms (BPSR), and Uyi Akpata, regional senior partner, PricewaterhouseCoopers. The team will be pivotal to strengthening the cords of public-private partnerships in Africa’s governance domain.

The newly constituted GIPC will facilitate the implementation of NES recommendations pertaining to governance and institutions, as well as develop advocacy programmes to engage policymakers and influence public debates through summits, seminars, workshops, position papers, local and international conferences, policy dialogues, public lectures and spearhead initiatives to drive the commission’s mandate.

Barclays Nigeria adopts Absa name, brand SEGUN ADAMS

B

arclays operations in Nigeria has officially re-branded to Absa, in line with parent company Absa Group’s strategic plans on the continent.

Barclays Stockbrokers Nigeria Limited has been renamed to Absa Securities Nigeria Limited, and Barclays Securities Nigeria Limited is now known as Absa Capital Markets Nigeria Limited.

The change comes after parent company Barclays Africa Group was renamed to Absa Group in July 2018, as part of its separation from UK-headquartered Barclays plc, allowing it to embark on a new era as a standalone African banking group with global scalability.

Part of the Absa Group’s separation agreement with Barclays was to remove the Barclays brand from all assets by mid-2020 at the latest. The change in name and

brand for the Group’s Nigerian operations is thus well ahead of schedule.

“Nigeria is one of the first countries outside of South Africa to change to the Absa brand, and we are excited to break new ground under our new brand.

The new brand is an expression of the Group’s new identity as a forward-looking bank in a digital era and will bring refreshed energy and optimism to our local operations,” said Feyi Olusanya, co-head of Investment Banking of Absa Nigeria.

Other Barclays-branded assets in other markets across the continent will change to Absa at a later date that is still to be announced.

Products and service functionality will not be affected by the re-brand, although the visual look and feel will change, and customers are urged to be vigilant about potential fraud.

Nigeria Postal Service records N7.05bn in 2018 Cynthia Egboboh, Abuja

T

he Nigerian Postal Service earned a total sum of N7.05 billion as revenue in 2018, as against N7.04 billion recorded in 2017, National Bureau of Statistics (NBS) report reveals.

According to the report, EMS/Speed post generated the highest amount of revenue of N1.84 billion, representing about 26.16% of the total revenue generated in the year while parcel clearance/delivery fee, stamp proceeds and international mail income followed closely with N1.60 billion, N1.04 billion and

N560.96 million revenues generated, representing 22.76 percent, 14.77 percent and 7.95 percent of the total revenue generated, respectively.

The agency handled a total of 20,117,730 mails domestically and internationally in 2018, representing a drop from 30,099271 handled in 2017.

9,264,957 mails, which represent about 46.05 percent of the total mails, were handled locally while 2,499,631 representing 12.43 percent of the total mails were dispatched abroad.

8,353,142 mails were received from abroad and delivered in Nigeria. www.businessday.ng

L-R: Fubara Anga, partner, Aelex; Fola Arthur-Worrey, former managing director, Lagos State Security Trust; Joe Abah, former director-general, Bureau of Public Sector Reforms; Justice Aloma Mariam Muktar, former chief justice of Nigeria; Patrick Lumumba, former director, Kenya Anti-Corruption Commission; Theophilus Emuwa, managing partner, Aelex, and Funke Adekoya, partner, Aelex, at the 2019 Aelex lecture with the theme “Strong Men vs Strong Institutions: Strengthening Democracy in Africa” in Lagos. Pic by Olawale Amoo

Buhari’s failure to name cabinet creates political void, rattles investors and crimps Nigeria’s stocks - Reuters

T

he failure of Nigeria’s president to appoint a cabinet four months after winning asecondtermhasstymied thecountry’sstockmarket,promptedforeigninvestorstotrimholdings and threatened growth prospects for Africa’s largest economy.

Inaugurated on May 29, Muhammadu Buhari, Nigeria’s 76-year-oldformermilitaryleader, faces a long list of challenges including tepid economic growth, high unemployment and a decade-old Islamist insurgency.

Government activities, which almost ground to a halt ahead of February’s election, slowed furtherafterhisvictory,leavingforeign investors trying to gauge how much of a hit the stock market will take from the hiatus.

“It is massive,” said Andrew Brudenell, lead senior portfolio manager for frontier markets equitiesatAshmoreGroup.“Evenwhen

oil prices were back up at $70 headingto$80again,thestockmarketdid not do anything. They (stocks) just continue to trickle down as people give up on their investments.”

The stock market in Nigeria, Africa’s top oil producer, has failed to keep up with frontier markets peers,asubsetofsmallerandoften riskier emerging economies. The MSCI Nigeria index has dropped more than 15% since the start of theyear,makingitoneoftheworst performing markets in the index, even as the wider MSCI Frontier Market index rallied nearly 10%.

Nigerian politics often move at a glacial pace. Buhari took six months to swear in a cabinet after the 2015 election - a delay critics contendcontributedtotheslowresponsetolowoilpricesthatpushed Nigeria into a recession in 2016.

But some investors said they had hoped that as the incumbent, hewouldmovemorequickly.Sen-

https://www.facebook.com/businessdayng

egal’sMackySallandSouthAfrica’s Cyril Ramaphosa both appointed ministers within days of being sworn in as president this year.

Since the dissolution of Buhari’s first cabinet in late May, senior civil servants, who oversee day-to-day operations but lack authority to approve major decisions, have run Nigeria’s government departments.

Civil servants do not approve capitalexpenditure,whichmeans contractors are not getting paid.

“The process of payments is challenging and extremely time consuming,” said one large government contractor, who asked not to be named.

Civil servants also do not take leading roles in deal-making in the all-important oil sector, a fact that has slowed negotiations with Saudi Arabia, a source close to the talks told Reuters.

Saudi Arabia is considering @Businessdayng

investing millions of dollars into revampingthestateoilcompany’s ailing refineries – a years-long targetforthepetrol-importingcountry. It is also mulling construction of an entirely new refinery and investing in liquefied natural gas (LNG). The political void has affected investors of all types.

“You want to see that: a) people are in control and b) work on behalf of all stakeholders - including foreign shareholders,” said Julian Mayo of Fiera Capital. “I don’t think really any of that applies in Nigeria at the moment.”

Buhari has offered no public explanation for the delay. Some insiders say it stems from a desire to avoid delegating to ministers.

Membersofhisfirst-termcabinetcomplainedtheylackedaccess to Buhari and did not know what was expected of them, said Clement Nwankwo, director of the PolicyandLegalAdvocacyCentre, an Abuja-based think-tank.

32

Friday 05 July 2019

BUSINESS DAY

POLITICS & POLICY

Abiodun defers appointment of commissioners in Ogun over dwindling resources …requests State Assembly to approve advisers instead RAZAQ AYINLA, Abeokuta

T

he current economic realities in Ogun State since Governor Dapo Abiodun was sworn in on May 29th, 2019 for a four-year tenure, took its toll on the executive cabinet appointment on Thursday when the governor wrote to the State House of Assembly requesting for deferment of commissioners’ appointment in favour of senior special advisers and special advisers’ appointment.

BusinessDay gathered that Governor Abiodun settled for the appointment of senior special advisers and special advisers, having considered the current economic realities that have created a sharp disequilibrium between the monthly internally generated revenue accrued to the state coffers and the total monthly expenditure expended on government’s financial obligations.

It will be recalled that the governor declared at an APC Stakeholders’ meeting held in Abeokuta sometime last month that he had to borrow N7billion to pay workers’ salaries for the month of May

and to fulfil other financial obligations of the state which obviously fell short of N9.1 billion state monthly wage bill as claimed by immediate past governor, Ibikunle Amosun.

Former governor, Ibikunle Amosun would always declare that the monthly wage bill of government was N9.1 billion and the state generated between N6 and N7 billion as internally generated revenue in addition to about N3.3 billion constantly drawing from Federation Accounts monthly for which he was able to fulfil all government’s financial obligations.

But, Governor Abiodun, having observed the dwindling resources of state in terms of internally generated revenue and lack of sustainability in borrowing to finance recurrent expenditure, deferred the appointment of commissioners into 20 existing state ministries as part of swift prudent move to maintain his administration pending the rebound of the state’s economy.

Granting the approval at the plenary held at the Assembly Complex on Thursday, the State House of Assembly gave the governor

Dapo Abiodun

the green light to appoint two senior special advisers and 20 special advisers to oversee the affairs of the state pending the appointment of commissioners for various ministries.

BusinessDay reports that approval was consequent upon a motion moved by the Majority Leader, Yusuf Sheriff and seconded by Bolanle Ajayi and supported by the whole House through a voice vote, shortly after the Speaker, Olakunle Oluomo read Governor Abiodun’s

correspondence dated 2nd July, 2019 before the lawmakers at a plenary.

The letter partly read: “ Mr. Speaker, in order to sustain and intensify the momentum for the new administration, pending the appointment of Honourable Commissioners for various Ministries, I write to seek the approval of the Honourable House for the appointment of two (2) senior advisers and twenty (20) special advisers”.

Meanwhile, the House of Assembly has constituted 23

Standing Committees following the passage of a motion moved by Soneye Kayode, representing Obafemi Owode State Constituency, seconded by his Ijebu East counterpart, Adams Isaac and supported by all members through a voice vote, shortly after the Deputy Speaker, Oludare Kadiri read the report of the Selection Committee earlier constituted by the Speaker in the previous week.

The Committee, according to the report are: Works and Infrastructure having Fasuwa Abiodun as its chairman; Committee on Transportation to be led by Elemide Oludaisi; Finance and Appropriation would be chaired

by Sobukanla Olakunle; Adegoke Adeyanju would head Health Committee, and Education, Science and Technology would be chaired

by Adeyemi Ademuyiwa.

Also, Sylvester Abiodun would be in charge of Agriculture and Forestry; Akeem Balogun would head Local Government and Chieftaincy Affairs, while Ajibola Sikiratu would chair Women Affairs and Social Development, Committee. The Committee on Environment has Wahab Haruna as its chairman, with

Committees on Youth, Sports and Employment Generation would be headed by Isaac Adams, and Kayode Soneye would be in charge of Lands and Housing.

In addition, Information, Culture and Tourism has Adejojo Yusuf as chairman; Kemi Oduwole would head Committee on Commerce, Investments and Industries; Bashir Abdul would chair Oil, Gas, Energy, Water Resources and Rural Development ; Adeniran Ademola would head Special Duties Committee, Lamidi Musefiu would oversee Public Accounts and Anti-Corruption, while House Services has Bolanle Ajayi as chairman.

Others are Committee on Establishments and Public Service Matters to be led by Modupe Mujota; Justice, Ethics and Public Petitions has Solomon Osho as chairman; Yusuf Amosun would be in charge of Cooperatives and Community Development; Speaker Olakunle Oluomo would also serve as chairman of the Selection and Fund Management Committees with the Majority Leader, Yusuf Sheriff being the head of Rules, Bills and Resolutions Committee.

Kogi/Bayelsa Guber: INEC rules out electronic transmission of result

US ambassador rallies Nigerians on nation building

… Commission to prosecute electoral offenders in their state

S

Iniobong Iwok

T

he Independent National Electoral Commission (INEC) has ruled out electronic transmission of result in the forth-coming Kogi and Bayelsa State gubernatorial elections, while insisting that manual transmission of result would be adopted in both elections.

The commission has come under increased pressure from political stakeholders, to jettison manual voting and adopt electronic transmission of result for future elections in the country, due to allege wide spread flaws which characterised the just concluded 2019 general election.

Stakeholders are of the view that electronic voting and transmission was necessary to check the controversy and

electoral fraud in the nation’s electoral system.

In the just concluded presidential election, candidate of the main opposition, the People’s Democratic Party (PDP), Atiku Abubakar, said that result of the 2019 presidential election were electronically transmitted to a central server which showed that he won the election.

This claim has, however, been refuted by INEC which insisted that the commission had no server, while 2019 general election result were not transmitted electronically.

But speaking in an interview with BusinessDay, Thursday, Rotimi Oyekanmi, chief press secretary to the INEC chairman, Mahmood Yakubu, said the commission was not considering electronic transmission of result for both governorship elections because it was not ready for it. www.businessday.ng

Iniobong Iwok

According to him, “There would be no electronic transmission of result in the Kogi and Bayelsa governorship elections; it would still be manual because we are not ready for it.

Oyekanmi, however, assured that the commission would strive to conduct a credible election that would be accepted to all stakeholders.

“We have released guidelines for both elections, I can tell you that there would not be postponement and the commission would conduct a free and fair election. INEC don’t rig elections, it is not true,” Oyekanmi said.

Speaking further, Oyekanmi said the commissions would partner with the Nigerian Police Force to prosecute electoral offenders, adding that 58 suspect had been arrested in connection with several offenses in the 2019 general elections.

tuart Symington, United State ambassador to Nigeria, has charged Nigerians to collectively join force to build a more prosperous country.

Speaking during an event to commemorate A m e r i ca’s 2 4 3 rd i n d e pendence, Wednesday, Symington noted that the task of making the country great was a collective action of the leaders and the citizenry.

According to him, “A great asset of Nigeria is for all those who lead and all the subjects they represent, to come together to make this nation one nation bound in freedom with peace and unity and in this process, you can count on the US for we be-

https://www.facebook.com/businessdayng

lieve in your ideas and we profoundly believe in you.

Symington, however, charged the Federal Government to increase access to education for more girls and women across the country, stressing that the empowering of women and girls population was crucial for the future of the country and its unborn generation.

“The education and empowerment of every girl and every woman is vital so that Nigeria sees her future with two eyes and can grab it with two arms and not one,” he said.

Symington further said the heterogeneous nature of the country was a blessing, stressing that the US has been trying to achieve such society since it got independence.

According to him, “Nigeria is not just a country, @Businessdayng

Nigeria is not just a nation, and Nigeria was not just drawn on a map to bind first as a colony and later as free women and men.

This country, Nigeria, is an idea, an idea very familiar to every American,” he said.

“It is an idea that people who speak 497 different languages that are twice as many languages that are spoken on any given day in the United Nations, 497 different tongues coming together, Nigeria is the idea.

“This, by the way, for 243 years, it has been the dream of the United States to take people separated and divided in colonies with different rulers and bring them together as a nation with one governor.

The Nigerian idea is an idea that is absolutely truly shared by the US.,” he said.

Friday 05 July 2019

BUSINESS DAY

33

CULINARY DELIGHTS

T

Eating habits to boost energy and workplace productivity

here are always challenges that go along with being an ambitious hardworking professional. Chances are that you’re always faced with long days at the office, tight deadlines, meetings, and travel.

Have you noticed though that there are some colleagues of yours that still seem to thrive and perform exceptionally well irrespective of any

that such options have little to no nutritional value and may be filled with trans fats, preservatives, additives, salt, and sugars that are quite unhealthy. Eating a lot of these kinds of food, not only contributes to lethargy and fatigue, but it also increases one’s risk for cardiovascular disease and even obesity.

3. Don’t over do it on caffeine — Far too many

kale or spinach.

5. Eat a nutritious breakfast to jumpstart your day— You may think that mornings are too busy to make time for breakfast, however starting the morning with a nutritious breakfast is key. In fact, some research has linked routinely skipping breakfast with an increased risk of cardiovascular related death. So carve out time for breakfast

@lehlelalumiere Lehle works at BusinessDay in Strategy Innovation and Partnerships, she is also a financial inclusion advocate and radio anchor.

Originally from Senegal Lehle has a passion for food and culinary experiences and enjoys discovering new restaurants in Lagos.

GUEST

obstacle or stressors they face at work? Sometimes one key difference between you and that super productive colleague boils down to who is making better dietary choices. Nonetheless, your food choices matter and some dietary habits may be actually zapping you of energy and leading you to be less productive at work.

In order to stay pumped up and energized throughout the course of the work day, keep in mind some habits you will want to eliminate as well as those to incorporate in your life.

1. Avoid Dehydration— Never skip out on drinking water! Water has a critical role in many of the body’s physiological processes. Nonetheless, drinking insufficient amounts of water translates into a lowered energy state, whereby one may feel weak, lethargic, and experience a reduced level of cognitive functioning. Stay hydrated throughout the course of the day and don’t ignore any signs that the body gives indicating that you may be dehydrated.

2. Say no to Ultra Processed Foods/Junk Foods— Processed foods are those that have been industrially packaged or modified from its original natural state such as chips, frozen meals, canned meat, packaged cakes or desserts, candy, etc . It may seem obvious to avoid such items, but the reality is that for so many busy professionals the day is so fast paced that it seems more convenient to just grab a bag of chips or another accessible unhealthy snack when you get hungry. You must realize though

professionals are dependent on coffee to give them the immediate boost of energy they desire to get through the work day. Coffee in moderation does have some health benefits, however, consuming excess caffeine may lead to serious problems with anxiety, insomnia, loss of focus,

and ensure that the meal includes “good carbohydrates” that will sustain your energy levels throughout the day. Some food items to consider include whole grain oats, bananas, apples, sweet potatoes, and even greek yogurt.

6. Always Maintain Good Portion Control— As

NESOCHI OKEKE-IGBOKWE

irritability, and even heart palpitations. You may consider switching to green tea which contains less caffeine than coffee, but still has a sufficient amount to provide some energy. Green tea is also highly antioxidant rich and contains L-theanine, an amino acid that has a calming effect and may aid in reducing anxiety throughout a stressful day.

4. Seek out your “brain food”— This means to indulge more in those power foods that can help nourish the brain and can keep you sharp while on the job. Some foods that have been shown to promote brain health and improve memory include berries, fish with omega 3 fatty acids like salmon, tomatoes, and leafy green veggies like

a hardworking professional you are likely always in a crunch for time, so perhaps you use that brief moment you have available to devour as much food as possible. Don’t fall victim to finishing an entire pack of your favorite snack in one sitting or going for multiple servings of a meal being served at the company event. Remember, the goal is to nourish your body with just the right amount of nutrients to keep you healthy, focused, and productive at work. Avoid over saturating the body with unwanted excess calories, as this can leave you feeling sluggish and tired at work.

Here is the takeaway: You must eat smart and healthy to adequately fuel your body and allow yourself to be as productive as possible on the job.

Brief Bio: Dr. Nesochi Okeke-Igbokwe is a NigerianAmerican medical doctor and health expert. An internal medicine physician, writer, and health contributor, Dr. Nesochi has been featured and interviewed about a wide range of health-related topics by popular media outlets including CNN, Vogue, BBC, Forbes, CNBC Africa, and more.

She received her medical degree from Georgetown University School of Medicine and completed her residency training in internal medicine from New York Presbyterian/Queens. She holds a masters degree in the Clinical Evaluative Sciences with a concentration in epidemiology/biostatistics from Dartmouth College. She completed her undergraduate degree in biology with honors at Boston University. Dr. Nesochi is also a member of the inaugural class of Bill and Melinda Gates Scholars.

Learn more about her on drnesochi.com and her blog supermodelmd.com .

To make recommendations or for collaborations please send an email to lehle.balde@businessday.ng www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

34

Friday 05 July 2019

BUSINESS DAY

news How CBN’s new lending guidelines will...

Continued from page 1

is that the quality of banks’ loan portfolio may deteriorate in an attempt to meet

the target at all cost thereby resulting in relatively high non-performing loan ratio,” Oyedele said. “The CBN therefore needs to ensure a balance between the potential benefits and inherent risks of the new guideline.”

The spate of bad loans in 2016 has left a lingering taste in the mouth of banks and they have been reluctant to lend to businesses in an economy laden with risks of inflation and weak consumer demand.

Instead, the banks have piled cash into risk-free government securities for a healthy return of around 14 percent, 300 basis points

above inflation.

Although bank lending to the domestic economy rose by 8.2 percent YoY to N20.974 trillion (as at April 2019), an increasing need to encourage greater allocation to strategic segments within the private sector necessitated the CBN’s new order.

Before now, Central Bank Governor Godwin Emefiele repeatedly urged banks to boost lending or have access to risk-free assets restricted.

He said at the last Monetary Policy Committee meeting that he would create “a mechanism” to limit banks’ purchases of government securities.

“The new lending measures could be slightly positive from a loan growth standpoint,” said Aderonke Akin-

sola, an investment analyst at Chapel Hill Denham.

“However, we expect these measures to negatively impact banks’ asset quality as loans to the target sectors will likely be of lower asset quality relative to traditional higher quality corporate loans,” Akinsola added.

Non-performing loans as a percentage of total credit in the Nigerian banking industry declined to 11 percent in the first quarter of 2019, from 14 percent a year ago, according to the National Bureau of Statistics.

Five commercial banks currently fall short of the CBN’s new lending guidelines.

Based on first quarter numbers published by the commercial banks, five banks have a loan to deposit ratio lower than 60 percent.

These banks include Guaranty Trust Bank (54 percent), Zenith Bank (56 percent), First Bank of Nigeria Holdings (49 percent), Stanbic IBTC (49 percent) and United Bank for Africa (48 percent).

Assuming deposits are unchanged from Q1’19 levels, these five banks would likely have to grow loans by a mean of 14.3 percent to meet the requirement, according to estimates by the research arm of investment bank, Cardinal Stone.

By implication, these banks may be required to create an additional N1.3 trillion in credit assets by September 2019.

“Our analysis suggests that UBA may likely have to grow loans by 19.4 percent, while Zenith Bank could require the least loan growth of 6.2 percent,” Phillip Anegbe and

Jerry Nnebue of Cardinal Stone said in a July 4 report to clients.

The estimated loan growth that may be required by GTB and Zenith to meet the regulatory requirement already falls within their FY’19 guidance.

Anegbe and Nnebue were of the opinion that the September timeline may be too short for non-compliant banks given the unfavourable macro-economic environment and that may “force the CBN to extend the current timeline”.

Shares of GTB and UBA closed lower on Thursday, while Zenith, First Bank and Stanbic were unchanged from the previous trading day.

Uche Olowu, president/ chairman of council, Chartered Institute of Bankers of Nigeria (CIBN) said banks will comply but they are expecting

a detailed framework to the directive.

He said the reason for the new guideline is that the CBN wants to jump-start exposure to the real sector.

“Bank lending to the real sector has not been sufficient,” Olowu said. He added that the reason for insufficient lending is due to the fact that the risk environment has not been mitigated.

“There should be a winwin situation,” he said.

Nigeria’s banks are some of the most reluctant lenders in major emerging markets, with an average loan-to-deposit ratio below 60 percent, according to Bloomberg.

In Africa, average loan-todeposit is at around 78 percent, according to data compiled by Bloomberg. It’s above 90 percent in South Africa and about 76 percent in Kenya.

Airtel to begin trading today on NSE...

Continued from page 1

company on the NSE, after Dangote Cement (N3.042trn) and MTN Nigeria (N2.626trn).

MTN listed on the NSE in May this year by introduction.

Airtel Africa operates in 14 African countries. In Nigeria it has 45.433 million subscribers, making it the thirdbiggest telecom operator in the country, after MTN with 64.73 million subscribers, and Globacom with 46.38million, according to figures on the website of the Nigerian Communications Commission (NCC), which regulates the industry.

The company will be marked below Listing Requirements to allow it time to increase its number of Nigerian shareholders to at least 300. Its free float is 25 percent, which is reasonably above 10 percent which the NSE requires for cross-border listing.

It was granted a waiver on cross-border listing because it had done primary listing on the London Stock Exchange (LSE).

BusinessDay reported this week that Airtel Africa plc was

able to raise about N14 billion or $38.3 million from its recent initial public offering (IPO) in the Nigerian market.

That underwhelming amount raised from Nigeria, according to a market source, is a reflection of investors’ wariness of emerging market telecommunications firms, for now.

“Investor apathy, the MTNN issue and the governance issues as a result of Oando/SEC crisis are among negative factors affecting new listings,” said a market operator who didn’t want his name in print.

Ahead of Airtel Africa admission for trading on the NSE, analysts at Lagos-based Meristem Securities Limited had in their investment recommendation advised investors to bid between the N363 and N375.53 price range.

Meristem Securities analysts said they used a blend of various valuation methods and arrived at a fair value of N375.53 (83 pence) for the offer.

“The company possesses decent growth prospects across its operating markets,

OPEC+ new Charter of Cooperation buys...

Continued from page 2

they impact Nigeria’s foreign reserves. This is worsened because the Central Bank of Nigeria (CBN) operates a managed floating currency rate and sells dollars in the open market frequently, taken from the foreign reserves.

A foreign reserve is money or other assets held by a central bank or other monetary authority to pay its liabilities if needed, such as the currency issued by the central bank.

“A flexible exchange rate would not favour the poor. I am committed to protecting the naira. We cannot allow the

naira to float freely,” Godwin Emefiele, CBN governor, said last month at an event in Lagos.

Nigeria’s economic growth slowed in the first quarter of 2019 after the oil sector, the country’s biggest foreignexchange earner, contracted.

When oil prices found a floor around $40 in the first quarter of 2016, the Nigerian economy slid into a recession and the CBN began restricting scarce forex for what it considered important items and began to artificially prop the naira to maintain the exchange rate stability. The longterm effect of these controls is an economy with a weak www.businessday.ng

Men of the Federal Fire Service stand helpless at the scene of Ijegun pipeline fire in Lagos.

Pic by Pius Okeosisi

particularly in Nigeria which is the single-largest contributor to company revenue, at 35.9 percent, and is key to the company’s strategy of driving revenue growth. However

various operational risks existing in some of its markets may pose significant risks to the health of the overall business,” Meristem Securities said.

The proceeds from the

issue of the ordinary shares will be directed towards the reduction of debt of Airtel Africa.

The company is the second-largest mobile operator

in Africa by active subscribers, serving an aggregate of 98.9 million subscribers and 14.2 million money subscribers across its subsidiaries as at March 2019.

growth.

“If the oil price falls below $50 a barrel, Nigeria will not be able to balance its books.

We have to contend with negative volume variance,” said Johnson Chukwu, managing director and CEO, Cowry Assets Management Ltd. According to Bloomberg’s market data, Brent crude, the international benchmark for crude prices sold for $63.77 per barrel down by -0.05 and -0.08 percent on Thursday by 1:11 pm local time. The West Texas Intermediate was $57.05 per barrel down by -0.29 and -0.51 percent.

In the third quarter, WTI crude is set to form a solid base to launch another at-

tempt at the $65 per barrel mark provided the global demand outlook does not deteriorate any further.

“The downside for oil appears to have been estimated to be around the mid-$50 per barrel range by the recent announcement of revived US-China trade talks, staving off the risk of an immediate deterioration in ties between the world’s two largest economies,” Han Tan, who is a market analyst at forex-broking firm FXTM, said in a note to BusinessDay, Thursday.

The OPEC+ new Charter of Cooperation is sending out strong signals the oil cartel is determined to maintain market stability and shore

up oil prices, an opportunity Nigeria needs to seize to rake in more oil revenue and use this to fund infrastructure, education, healthcare and other social amenities.

This is a window of opportunity in the sense that OPEC used to shift world oil markets with a single announcement. These days, the Saudi-led organisation needs help from some key partners, most significantly Russia, to exert that kind of influence.

There are no guarantees about how long the new Charter of Cooperation’s influence will last and keep the oil market stable as it shores up prices.

Again, Nigeria needs proper legislation, security in the

northern parts of the country, competitive cost of operations, standardisation of products and high-yield seedlings to take advantage of large export markets for agricultural products such as China. Last month, Namibia made history as the first African country to export beef into China and Nigeria has only to create an enabling environment for export of agricultural products to thrive. There is an urgent need to boost activities in Nigeria’s manufacturing and export-oriented sectors to meet international standards in order to avert Africa’s biggest oil producer’s economy coming down whenever the new Charter of Cooperation’s influence starts to wane, analysts say.

https://www.facebook.com/businessdayng

@Businessdayng

Friday 05 July 2019

BUSINESS DAY

35

news

Nigeria among 40 nations currently in need of external food assistance … as African swine fever threatens livelihoods, food security of millions been culled.

Jonathan Aderoju In addition, the disease has ccording to a FAO report been reported in Vietnam, Camrelease Thursday, 41 coun- bodia, Mongolia, the Democratic tries are currently in need of People’sRepublicofKoreaandthe LaoPeople’sDemocraticRepublic, external food assistance.

The report contains a special affecting millions of pigs.

One of the main drivers of the feature on African swine fever, a contagious disease affecting do- epidemic is the small-scale strucmestic and wild pigs - spreading ture of most of the pig industry in within East and Southeast Asia, the sub region, the report notes. threatening the livelihoods and This hampers the implementafood security of millions of people tion of bio-security standards, an important control measure that dependent on pig farming.

Pork is the most popular meat cancontributetohaltingthespread consumed in the world today and of the disease.

Additionally, intra-regional about 44 percent of world meat protein consumption is derived trade of pig meat products, which may be contaminated, has also from pork and pork products.

Pigs play a major role in the contributedtothehighprevalence. socio-economic life of the people As a result, animal health experts of Middle-Belt state of Benue in believe that the disease will ineviNigeria. The pig population in tably spread farther in the coming months.

Nigeria is about 3.4 million.

This raises concerns regarding The Nigerian economy is mostly dependent on agriculture the livelihood and food security and various types of agribusiness situation of the most vulnerable related venture, which are contrib- subsistence farmers, as they lack utingmuchtothenationalincome. the expertise and funds to proAlongwithtraditionalbusiness tect their herds. Reports from the ideas, pig farming in Nigeria can countries have already indicated play an important role in eradi- that animal losses have caused cating unemployment, poverty, reductions in farmers’ incomes.

Moreover, the decline in pig nutrition lacking and many more.

In China, as of mid-June, the meat production and the deplediseasehasbeenreportedin32out tion of the current frozen stocks of the 34 provincial level adminis- areexpectedtoresultinpricehikes, trative divisions and more than 1.1 straining food security of the most million pigs have perished or have vulnerable population.

A

Insecurity: We don’t have new strategy - Service Chiefs

… say current one is working Tony Ailemen, Abuja

D

espite raging insecurity across the country, Nigeria’s top security chiefs rose from their crucial security meeting with President Muhammadu Buhari on Thursday, expressing strong confidence in the current security strategy put in place to check growing rate of insecurity in the country.

ChiefofAirStaff,SadiqAbubakar, an Air Marshall, who spoke on behalf of his colleagues, while fielding questions from State House Correspondents after the meeting summoned by the President, said there was no need to adoptnewstrategiesasthecurrent one was achieving the desired results.

Askediftheservicechiefswere considering change of tactics, Abubakar, who disclosed that the strategy had already changed, however, said the current strategy was working.

He however charged Nigerians to make intelligence report available to help security agencies fight insecurity, saying, “I think the strategyhasalreadybeenchanged and from what we are seeing, the current strategy is working.

“What we are going to do is to ensure that all hands are on deck and every Nigerian equally has a role to play by passing relevant intelligence to us.

“So far, the strategy that we have on ground is really working and that is the one we will continue to pursue.”

On the outcome of the meeting, he said the meeting was all about the security of Nigerians and Nigeria.

He however assured that the “Armed Forces of Nigeria and other security forces will continue to work much harder to ensure that every Nigerian is secure and the territorial integrity of Nigeria is not undermined by anybody.”

The meeting was attended by the Chief of Defence Staff, Gabriel Olonishakin; Chief of Army Staff, Tukur Buratai; Chief of Naval Staff, Ibok-Ete Ibas, and the Chief of Air Staff, Sadiq Abubakar.

Others include the directorgeneral of the National Intelligence Agency, Ahmed Abubakar, National Security Adviser, Babagana Monguno, director-general, Department of State Service, Yusuf Bichi, and the InspectorGeneral of Police, Mohammed Adamu.

Edo okays N100m to 40 entrepreneurs, as Facebook, FATE train SMEs

E

do State governor, Godwin Obaseki, says N100 million from the Central Bank of Nigeria’s (CBN) N2 billion credit facility for Micro, Small and Medium Scale Enterprises (MSMEs) in the state have been made available to 40 young entrepreneurs to scale their businesses.

The governor disclosed this when he met with 40 young entrepreneurs taking part in the Aspiring Entrepreneurs: Digital Benin Edition organised by FATE

Foundation and Facebook, at the Edo Innovation Hub, in Benin City, the Edo State capital.

Obaseki said the state governmentwouldserveascollateraland guarantee for the loan, which has a nine per cent interest rate and 3 years repayment period.

The governor noted that in line with his campaign promise to create jobs for youths in the state, the state government is providing the enabling environment for young entrepreneurs to thrive. www.businessday.ng

L-R: Joy Okuna, assistant director, National Lottery Regulatory Commission (NLRC), Lagos zonal office; Nkiru Onuzulu, deputy director/zonal coordinator, NLRC, Lagos zonal office; Knut Ulvmoen, supply chain director, Dangote Cement plc; Abdu Dantata, group executive director, logistics and distributions, Dangote Industries, and Funmi Sanni, director, route to market, Dangote Cement, at the media unveiling of Dangote Cement’s Bag of Goodies Consumer Promo in Lagos, yesterday.

Pic by Olawale Amoo

Dangote enriches 21 million cement consumers through new promo OLUWASEGUN OLAKOYENIKAN

I

n a move to empower millions of itsproductconsumerseconomically,DangoteCementplcThursdaylaunchedajumboconsumer promotagged“DangoteCement BagofGoodies,”designedtoproduce21 million winners across Nigeria.

The promo, which runs between July and September in which prizes worth billions of naira would be won, was formally unveiled to the media at a newsbriefinginLagos.Luckyconsumers are to win 43 cars, 24 tricycles, 24 motorcycles, 550 refrigerators, 400 TV sets, 300,000 Dangote foods goodies packs and recharge cards for all networks worth N200,000,000.00 Whileunveilingthepromo,Joseph Makoju, group managing director of DangoteCement,whowasrepresented by the group executive director of DangoteIndustriesLimited,KnutUlvmoen, said the company decided to run the biggestpromoeverinNigeriaasawayof contributingtotheeconomicwellbeing of the consumers of its products given

the prevailing economic situation.

He said the promo is to reward valuedconsumersfortheirunflinching partnership in ensuring that our range of cement products remains today the first choice for construction purposes across the country, and added that the consumerpromotiongivesopportunities for existing and new consumers to get a step ahead of their struggle for economic emancipation by winning any of the give-away items which has economic value.

“We have made it so transparent that you don’t have to go through any raffle or draw associated with many other promotions in the country. You win instantly because what is revealed in the scratch card is what you win”, he stated.

Explaining why Dangote Cement launched such a humongous promo, Knut explained that Dangote Cement was the largest in Africa with the largest production capacity and therefore decided to reward the consumers in the biggest way ever experienced in

Rainoil opens new retail outlets in Kwara, Gombe

...drive to create jobs, enhance products availability TELIAT SULE

R

ainoil Limited, one of the leading integrated downstream oil and gas companies in Nigeria, has expanded its footprints to Ilorin, the Kwara State capital as well as in Gombe, the capital of Gombe State in north central and northeast Nigeria.

This is in line with its expansion drive, according to information gleaned from its official portal sites. The latest expansion drive by Rainoil is expected to drive commercial activities and create jobs, particularly as Nigeria is currently desirous of endeavours that can create employment opportunities for teeming Nigerian youths.

“Rainoil announces its entry into Gombe and Kwara States as it now operates in 17 states across Nigeria, with immediate plans to expand further into more states.

The company expressed its satisfaction with its investments in these states, with hope that they would drive commercial activity, which will in turn, generate revenue and see indigenous members of the community provided with jobs,” it announced on its official portal.

“We seek to create superior value by increasing market access,

driving socio-economic development and providing easy access to quality products to our loyal customer-base across the country.

With plans to further expand within both states and across the country, Rainoil currently operates over 71 service stations across the country with substantial market share across the entire downstream value chain of logistics, bulk storage, shipping and retail,” it explained.

The two retail outlets were commissioned in the second quarter of 2019. Earlier, the firm also commissioned another retail outlet in Eket, Akwa Ibom State, which brought its stations in that state to three.

According to information available on the company’s portals suggests that the concurrent opening of retail spaces is in line with the company’s aggressive retail roll-out agenda. The official announcement of the expansion agenda will come on the heels of the company’s commissioning of its multi-product depot at Ijegun, Lagos.

Rainoil was incorporated in 1994 but began as a petroleum products marketing company in 1997. The company is into bulk storage, retail services, logistics and marine services.

https://www.facebook.com/businessdayng

the country.

In her presentation on the promo, Dangote Cement Marketing Director, FunmiSannistated,“Consumersareat the heart of what we do; without them there is no business. Consumers are important and a fundamental factor of production without which production process is incomplete and our ability to remain in business becomes impossible.

“To grow our business, we must constantlycreatevalueintermsofquality product and service, competitive pricing and depositing in consumers’ emotional bank accounts in order to becometheirpreferredchoiceofbrand at the point of purchase.”

The Marketing Director said as a business, the management of Dangote Cement recognizes the importance of every member of its value chain, distributors; wholesalers; and retailers, “and as such we have invested in growing their businesses through various empowerment schemes.”

According to her, the new Dan-

gote cement promo bags have been shipped to all distributors and sellers nationwide and therefore there is no fear of scarcity of the new cement product.

She added, “Every promo bag of cementcontainsascratchcardcarrying winningitemscarefullyinsertedineach bag. Consumers need to be educated to scratch gently so as not invalidate their wining card.” She disclosed that the promo cuts across all Dangote Cement’s brands, which include 3X, Falcon and BlocMaster.

Sanniexplainedthattheconsumer promo was in line with the mission of the company which is to touch the lives of the people by providing their basic needs, and pointed out that the consumer promotion is another huge investment to help the customers improvetheirrateofsalesandmakemore profit while at the same time improve the consumers’ quality of life. “We are doingthisforthesakeofourconsumers who have not really benefitted much from our previous promo.”

Lagos rice mill begins production December 2019 … as state promises construction of roads in Ikorodu JOSHUA BASSEY

I

f all goes well, the first production line of the rice mill being constructed by Lagos State in Ikorodu will commence operations by the end of 2019.

Babajide Sanwo-Olu, governor of Lagos State, who said this at a tour of the mill site at Imota, Ikorodu, Thursday, assured of the resumption of construction work on Igbogbo and Ashewo roads, all in Ikorodu, as soon as the rains subside.

He told journalists that the large expanse of land measuring about 26 hectares around the mill, comprising an industrial estate, over 40 small industries would spring upon the completion of the project.

The rice mill is coming with 32,000 metric tons capacity per hour, 16 silos, 800,000 litres per day storage capacity, clinic, staff quarters, guest house, fibre optic network that will allow for phone service and digital broadband internet as well as two 500kva generators for regular power supply, which combined to make it the largest rice mill in Nigeria, when completed. @Businessdayng

It is expected to throw up 1000 to 1,500 job opportunities and positively impact the rice value chain, just as the governor confirmed ongoing discussion with neighbouring states in the southwest as well as rice farmers for unbroken paddy supply to the mill.

Lagos is not as blessed with arable land, but has comparable advantage in market and rice consumption. It will therefore be a win-win for Lagos and its neighbouring states where much of the rice cultivation is being done. The partnership is expected to boost their economies, generate jobs and revenue for rice farmers and states involved.

The construction of the mill started over 12 months ago, under the former governor of the state, Akinwunmi Ambode, and it is being handled by Ciba Construction Limited.

Ademola Amure, managing director of Ciba Construction, who corroborates the governor, said construction works at the mill and adjoining industrial park were over 60 percent complete, and would hopefully wrap up by end of this year.

Friday 05 July 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

31

Friday 05 July 2019

FT

BUSINESS DAY

37

FINANCIAL TIMES

World Business Newspaper BENEDICT MANDER

G

eneral Juan Domingo Perón, one of the most successful populists of the last century, once claimed that all Argentines are Peronists. While his many fierce detractors might shudder at the idea, the way Argentina’s presidential race is shaping up suggests he may have had a point.

Perón, a fervent nationalist with authoritarian tendencies, highlighted three guiding principles of his party: political sovereignty, economic independence and social justice. Peronism has also had a strong connection with trade unions and patronage-based politics.

But it is an ideologically versatile party that has swung abruptly from the freewheeling neoliberalism of Carlos Menem in the 1990s when Argentina boasted of “carnal relations” with the US, to leftist nationalism and virtual autarchy under Cristina Fernández de Kirchner, who left power in 2015.

Peronism has also had an intimate relationship with the economic crises that have hit Argentina roughly every decade since its founder first came to power in 1946. The very term strikes fear into the hearts of many investors, who are painfully aware that Argentina has agreed more than 20 programmes with the IMF in that period — almost all of them ending badly.

With a presidential election due in October that could decide the fate of the IMF’s biggest bailout programme ever — a $56bn package agreed only last year — the stakes could hardly be higher.

In a campaign full of unexpected twists, many Argentines were surprised by Mr Macri’s choice of an influential Peronist senator, Miguel Angel Pichetto, as his run-

Peronism returns to the forefront of Argentine politics The amorphous populist movement is set to play a major role in October elections ning mate. It was seen as something of a backhanded compliment to the continuing strength of the Peronist movement.

“Macri needs all the help he can get,” said Steven Levitsky, a professor of government at Harvard University and a respected authority on Peronism, who said that Peronism may be diminished, but it was still in “good shape”.

Markets, meanwhile, welcomed Mr Macri’s choice of a Peronist as his running mate. Analysts believed it would bolster the president’s chances of re-election and contribute towards governability should he win.

“Here we have a Peronist that is joining [the ruling coalition], not the other way around,” said Fernando Iglesias, a congressman for the ruling coalition and author of It’s Peronism, Stupid, a book that blames the party for Argentina’s inexorable economic decline over the past 70 years.

He explained that Mr Macri was merely making “reasonable” overtures to “an electorate that needs to be won over”. Argentina is in the grip of a recession, with high unemployment and galloping inflation, and Mr Macri is struggling to convince voters that his painful economic policies will bear fruit.

Whether Mr Macri succeeds in October’s presidential election depends partly on the strength of

The political movement started by General Juan Domingo Perón, left, is still a major force in Argentina today. Some of the Peronists in the October presidential election include Cristina Fernández de Kirchner, second from left, Miguel Angel Pichetto, centre, Alberto Fernandez, second from right, and Roberto Lavagna © Getty; Bloomberg; Reuters

another similarly unexpected slate.

Former Peronist president Cristina Fernández surprised Argentines by announcing that she would run this time for vice-president, and had chosen Alberto Fernández, her little-known former cabinet chief and no relation, to run for president in her place.

There is also a group of so-called “moderate” Peronists led by former economy minister Roberto Lavagna, which polls suggest will come third

in the polls.

Peronism is so kaleidoscopic that even Mr Macri’s coalition, renamed “Together for Change” since Mr Pichetto joined, has some roots in the party. Mr Levitsky pointed out that not only was Mr Macri’s father, a businessman whose fortune was earned through public sector contracts, closely connected to Peronism, but Mr Macri himself spent 12 years leading a “pretty Peronist” institution — the legendary football

club, Boca Juniors.

“Macri differs from other nonPeronists in that he has always recognised that it is politically useful to blur the lines between Peronism and anti-Peronism, to not be perceived as a ‘gorila’,” said Mr Levitsky, using the derogatory Argentine term for staunch anti-Peronists. “He uses Peronist symbols and practices, and has always intelligently developed an image and a brand that is not so hardcore anti-Peronist.”

seizes tanker suspected of carrying oil to Syria US private-sector job gains miss Britain Royal Marines and Gibraltar police act after possible breach of EU sanctions Wall Street estimates in June ANJLI RAVAL, DAVID SHEPPARD AND CHLOE CORNISH

Investors predict renewed stimulus from ECB under Christine Lagarde MICHAEL HUNTER

G

ermany’s benchmark Bund yield touched a fresh record low on Thursday, as fears about a global economic slowdown and the prospect of renewed eurozone economic stimulus drew investors into government bonds.

Demand for the debt sent its yield down to as low as minus 0.403 per cent, taking it deeper into negative territory, meaning any investor holding the paper until maturity faces a loss.

Weak economic data and concerns about underlying world growth also boosted demand for safer assets, and there was sustained momentum from the nomination of Christine Lagarde as the next president of the European Central Bank. Ms Lagarde is seen as likely to sustain the dovish approach to monetary policy taken

by Mario Draghi, the incumbent.

“By the end of 2019, we expect the ECB to have reintroduced an easing bias into its forward guidance, delivered two 10 basis point cuts to the deposit rate, introduced tiering and announced a resumption of quan-

titative easing,” said Luigi Speranza, BNP Paribas’ chief global economist.

The milestone for Germany’s benchmark yield was passed with US bond markets closed for the Independence Day holiday, which left the yield on 10-year US Treasuries at 1.9532 per cent, a level it last touched in November 2016, just before the election of Donald Trump as US president.

Chris Jeffery, asset allocation strategist at Legal & General Investment Management, said: “The minus 40 basis point yield on ten year Bunds needs to be understood in the context of negative short-term yields.

“The market is now pricing additional rate cuts from the ECB as a near certainty. That implies longerdated yields still carry a premium to short-dated yields: two year German yields are all the way down at minus 75bp.”

Italian debt also continued to rally, with the supportive policy outlook from the ECB adding to the appeal of its relatively high yield. Demand for Italy’s benchmark 10-year bond pulled the yield down by a further 5 basis points to 1.563 per cent. www.businessday.ng

B

ritish Royal Marines and Gibraltar police have seized a supertanker suspected of carrying oil to Syria in breach of EU sanctions.

Shipbrokers and tanker-tracking data indicate that the oil on board Grace 1, a Panamanianflagged vessel with a capacity of 2m barrels, is from Iran.

The government of Gibraltar said on Thursday it had “reasonable grounds” to believe the vessel, which was seized to the east of the British overseas territory, was carrying crude oil to the Banyas refinery in Syria.

“We have detained the vessel and its cargo,” chief minister Fabian Picardo said in a statement, making no reference to the source of the oil.

“That refinery is the property of an entity that is subject to European Union sanctions against Syria.”

Iranian state TV said that the British ambassador in Tehran had been summoned over the “illegal seizure” of the tanker carrying Iranian oil — confiming the origin of the supply.

https://www.facebook.com/businessdayng

According to a person familiar with the operation, the chief minister of Gibraltar requested assistance from the UK’s Ministry of Defence on Tuesday. Thirty Royal Marines were dispatched from Devon to help with the operation.

Shortly before 2am local time the first group of marines boarded the tanker from a Royal Navy Wildcat helicopter. They were followed by the rest of the marines task force, who approached the vessel in fast boats alongside 16 members of the Gibraltar police, who were directing the operation.

EU and US sanctions against Syria have been in place since 2011 after President Bashar alAssad’s violent crackdown on anti-government demonstrators, which has since escalated into a prolonged civil war. The sanctions span arms sales, transactions with Syria’s central bank and asset freezes on officials, business people and those accused of developing chemical weapons.

Grace 1 has a history of handling Iranian fuel oil rather than crude, according to TankerTrackers, which monitors vessel move-

@Businessdayng

ments, with some of this making its way to Syria. While fuel oil is usually used in ships, the cargoes to Syria have been refined into other products or used in power stations.

A person familiar with the operation said the decision to take control of the vessel was based entirely on its suspected final destination of the Banyas refinery in Syria, which is under EU sanctions. The fact its cargo may be of Iranian origin did not influence the decision.

“It would have been the same if the cargo was coming from the UK North Sea,” the person said.

“The authorities in Gibraltar were obligated to act.”

Iran, which is closely allied with the Assad regime, is also a target of sanctions by the US, following the Trump administration’s decision to withdraw from the 2015 nuclear deal agreed with a group of world powers. Since restrictions were imposed on big buyers of Iranian oil, such as China, India and Japan, the majority of Tehran’s sales have gone to Syria, which is reliant on Iranian fuel oil.

38

Friday 05 July 2019

BUSINESS DAY

NATIONAL NEWS

FT Americans broaden their July 4 appetites beyond beer and burgers

Sales of meatless products and drink alternatives on the rise for US Independence Day ALISTAIR GRAY AND SAMI VUKELJ

B

eer, barbecue and burgers are as much a part of Fourth of July celebrations as fireworks and the Stars and Stripes. Today, however, meatless sausages, gluten-free pita chips and canned wine are also on the menu — the latest sign that shifting consumer behaviour is upending the global food and drinks business.

Reasons for the changing Independence Day tastes are varied, and go beyond dietary considerations. The rise of social media has made image-conscious young people more reluctant to get loaded on lager, while concerns about agriculture’s impact on the environment are helping fuel demand for alternatives to meat.

David Lee, chief financial officer of Bill Gates-backed Impossible Foods, known for its plantbased burger that “bleeds”, said: “The all-American hamburger is still iconic, but finally there is an entirely plant-based Impossible Burger that can satisfy that craving.”

While industry sales figures for this week have yet to be compiled, data from consultancy Nielsen for the same period in 2018 highlight the shifts, and executives are expecting more of the same this year.

While beer sales dipped 1.6 per cent from 2017 levels, canned wine sales leapt 57 per cent, and so-called hard seltzers — sparkling water infused with alcohol — jumped 150 per cent. In food, sales of fresh beef ticked up 2.1 per cent, while plant-based meat alternatives rose 11 per cent.

Chart showing familiar fare fades on the Fourth as Americans swallow alternatives Not everyone is convinced that the familiar favourites are on their way out. “Hot dogs are Americana — in my opinion, that never has changed and never will change,” said Wayne Rosenbaum, who runs Manhattan hot dog joint Papaya King.

Papaya King is staying open later than usual to mark the occasion, until 1am. Its hot dog sales on Independence Day in previous years have been about a tenth higher than usual.

“We haven’t noticed anything but upticks” on the day, added Hugh Mangum, co-founder of the New York-based barbecue chain Mighty Quinn’s. “BBQ is truly our national cuisine.”

Traditional Fourth of July fare still outsells the alternatives by a considerable margin. Americans bought $874m worth of beef, hot dogs and sausages during the week of Independence Day last year, according to Nielsen, compared to $325m for plant-based alternatives. Beer sales totalled almost $800m in the period, dwarfing the less than $3m for canned wine and about $16m for hard seltzers.

Still, the rising popularity of al-

ternative products throughout the year is disrupting traditional food and drink companies, which have released a series of disappointing financial results. The latest came last week from ConAgra. The company behind Slim Jim beef snacks missed profit forecasts, sending its shares down 12 per cent on the day.

Wider shifts in consumer sentiment away from big brands have given smaller upstarts an edge, argued Jan Livingston Mokhtari, co-founder of start-up Gray Whale Gin. She pointed to Budweiser, long marketed as quintessentially American.

“Young people’s definition of what it means to be all-American is changing. They’re savvy enough to know that Budweiser is a huge corporate machine,” she said.

Now consumers wanted to celebrate local goods, produced by “authentic founders”.

More Americans are also avoiding booze altogether. Sparkling water sales jumped 19 per cent during the Fourth of July week last year. Yumi ClevengerLee, chief marketing officer at Perrier-maker Nestlé Waters, said teetotallers were enduring less social stigma than in days gone by.

“I don’t think there are eyebrows being raised any more,” she said.

Those who are sticking to the booze on the day have a wider choice than ever. In vodka, for instance, Diageo is marketing a “Red, White and Berry” version of Smirnoff — cherry, citrus and blue raspberry — while Pernod Ricard is pushing a limited edition bottle, Absolut America.

Devon Broglie, a senior drinks buyer at Whole Foods, the upscale retailer, said so-called flavoured malt beverages, including brands Truly and White Claw, had been selling particularly well this year. “More than lower alcohol, it is also about clear, refreshing, flavour,” he said.

Makers of traditional food and drink say they are not sitting still in dealing with the challenges. Sean Connolly, ConAgra’s chief executive, told analysts last week that it was poised to capitalise on plant and soy-based meat alternatives after it acquired Pinnacle Foods, behind meatless brand, Gardein, last year.

Anheuser-Busch, brewer of Budweiser, has set its sights on new products such as readyto-drink canned cocktails and recently set a target to increase non-beer revenues in the US to $1bn. “People are expanding their beverage repertoire,” said Chelsea Phillips, a vice-president for the company’s “Beyond Beer” brands.

The trend may not appeal to traditionalists, yet for some the increasing choice of Independence Day fare captures the spirit of the occasion.

“Fourth of July is a moment to celebrate freedom and togetherness,” said Ms Clevenger-Lee. “Freedom to choose what is best for you.” www.businessday.ng

Two tribes: although Mr Trump’s departure would herald a big change in tone, there would be continuities on substance © Drew Angerer/Getty Images

Running down the clock on Trump is a risky bet America’s allies should hope for the best but work far harder to prepare for the worst EDWARD LUCE

U

ntil the day she died, Barbara Bush kept a clock next to her bed that counted the days until Donald Trump was gone. The former first lady’s timekeeping was upbeat: she assumed a one-term presidency. Most of the world is in the late Mrs Bush’s camp. To judge by the absence of diplomatic initiatives, the west is also marking the calendar until Mr Trump leaves office. The same goes for non-Trumpian America. As Joe Biden, the Democratic frontrunner, keeps saying, Mr Trump is an “aberration” — as though time has briefly gone astray. All we need is to wait out the clock then reset it.

There are two problems with this view. The first is that you cannot recapture lost time. The world will not reboot to where it was before Mr Trump took office. A defeat for Mr Trump would be bad news for Saudi Arabia, Russia and North Korea. Mr Trump has licensed Saudi adventurism, validated Vladimir Putin’s world view, and given Kim Jong Un a coming-out party to remember. But it is unclear Mr Trump’s exit would make much difference to China. The most

striking change to have happened since he took office is the speed with which Washington has embraced the so-called new cold war. Mr Trump’s successor would be as likely as he to see China as America’s main rival.

Europe, Japan, Canada and Australia should also be wary. Although Mr Trump’s departure would herald a big change in tone, there would be continuities on substance. Mr Trump’s Democratic successor would be just as impatient with Europe’s low defence budgets. Polls that show most Americans in favour of free trade are misleading because they miss the intensity of opposition.

Decisive factions on both ends of the spectrum are strongly opposed to new deals — with allies or others.

In the past, Democratic presidents could rely on Republican lawmakers to pass their trade deals. Those days are probably over. The logical step for any US president to contain China would be to rejoin Barack Obama’s Trans-Pacific Partnership. Yet even Mr Obama could not persuade Democrats to vote for the TPP. It is doubtful a President Elizabeth Warren or a President Kamala Harris would even try. Ms Warren’s foreign

policy has been called “Trumpism with a human face”.

The exception to waiting out the clock is Iran. Last week its supreme leader, Ayatollah Ali Khamenei, dismissed any thought of negotiating with Mr Trump. The implication should have been that Iran would wait until America elected someone less erratic. Yet Iran is ignoring Europe’s advice to stay within the nuclear deal. It plans to start breaching its enrichment limits this weekend.

Whatever the dangers of a US-Iran conflict, the situation cannot go back to before. Iran will either be at war with the US when the next president takes office, or a year and a half closer to being a nuclear power. Possibly both. That clock cannot be reset.

The second problem with the “aberration” school is that Mr Trump might win a second term. History says US presidents are re-elected if the economy is growing. The only oneterm presidents in the past 100 years were George H.W. Bush, Jimmy Carter and Herbert Hoover. Each was grappling with a recession. Mr Trump may be an exception to that rule. Or the US economy could take a nosedive. Betting on either would be rash.

US yield curve is still inverted, still worrying investors Long-term rates dip further below short-term rates after weak economic data JOE RENNISON

O

ne of the financial markets’ most reliable indicators of a coming recession is spooking investors again, ahead of a new reading on US employment that could determine whether the Federal Reserve cuts interest rates this month.

The yield curve, which shows interest rates on bonds of varying maturities, has now been inverted for a full month, cementing a dour outlook for the US economy, and the extent of the inversion deepened on Wednesday as markets digested a new round of weak economic data.

Sliding long-term interest rates suggest economic weakness is approaching, and the yield on the 10-year Treasury bond has fallen sharply below that on the three-month government debt.

The gap between the two is closely watched by investors and policymakers, and at 26 basis points on

https://www.facebook.com/businessdayng

Wednesday it is back close to its most negative level of the year.

“I think rates are telling us that something is brewing in the economy,” said Tom di Galoma, managing director at Seaport Global Securities. “Any time the yield curve inverts it is a pretty good recipe for a recession.”

The gap between three-month and 10-year yields has been negative before every US recession of the last 50 years. Equity markets, which are still hitting record highs in the US, are typically slower to respond to the potential for an economic downturn.

The S&P 500 equity market benchmark closed at a record 2,995.82 at the end of a truncated pre-Independence Day trading session on Wednesday. “This divergence between stocks and bonds is unsustainable,” said Subadra Rajappa, head of US interest rate strategy at Société Générale.

When markets reopen on Friday, investors will have the benefit @Businessdayng

of seeing the latest monthly jobs report, which is released at 8.30am New York time. The Friday data could strengthen or weaken the case for a cut as soon as its meeting later this month.

The report for June follows a dramatically weaker than expected number for May, which increased investors’ expectations for the Fed to cut interest rates.

The consensus of economists’ forecasts is for payroll growth of 150,000 across the public and private sectors, a rebound from 75,000 jobs in May. The US unemployment rate is expected to be steady at 3.6 per cent.

Data from ADP on Wednesday showed slower than expected jobs growth in the private sector, adding to disappointment of weak manufacturing data from Monday. The gloomy picture pushed the benchmark 10-year Treasury yield down 2 basis points to 1.95 per cent, its lowest level since November 2016.

Friday 05 July 2019

BUSINESS DAY

39

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

UK biotech looks for life beyond Woodford

Healthcare sector has diversified funding since high-profile manager started investing

SARAH NEVILLE

A

s the suspension of Neil Woodford’s flagship fund has shaken the City, the tremors have equally been felt in small laboratories and on large biotech campuses around Britain.

The fund manager’s investments have spanned a range of areas but he has consistently been drawn to the biotechnology sector. Around a quarter of the Woodford Equity Income Fund — which blocked investor withdrawals last month and will remain closed for at least another four weeks — and almost half of his quoted trust, was invested in the healthcare sector at the end of April, according to company data.

The sums raise the question of how big a hole any permanent retreat from the market could leave in the eternally capital-hungry business of developing the medicines of the future.

Steve Bates, chief executive of the BioIndustry Association, which represents UK biotechs, argued that Mr Woodford’s involvement had been a crucial element in the sector’s growth since the mid-2000s, when he was a highly successful fund manager at Invesco Perpetual.

“Neil has been a fundamentally important supporter of the sector over the past decade,” he said, citing companies such as Horizon Discovery, which has become a world leader in the application of gene editing; and Oxford Nanopore, the gene analysis

company. Mr Woodford’s involvement would often draw in other investors, he added.

However several leading figures in the biotech industry judged that any withdrawal from the sector by Mr Woodford — he has already been selling down some stakes, including in Horizon — would not be as damaging now as it would have been a decade ago. Then, few investors were willing to bet on the sector after some highly publicised gene therapy failures.

Recalling “a pretty desolate time” for technology and biotech investment around the turn of the century, Nooman Haque, managing director of life sciences and healthcare at Silicon Valley Bank’s UK branch, said Mr Woodford “spotted an arbitrage which, put quite simply, was that there was still high quality science being done and high quality companies being developed but a lack of funding in place to support them.”

If Mr Woodford, in whose equity income fund Mr Haque is an investor, were to pull back, there would “definitely be a gap in quantum terms for sure, but on the plus side the venture funding market over the last five or six years did return to the UK and the rest of Europe,” he said.

Dan Mahony, a partner at Polar Capital specialising in healthcare, pointed to new investment funds that have launched in recent years, including Syncona, founded seven years ago.

Barclays censured by UK watchdog over treatment of small businesses

UK bank made smaller companies open account to access other products, regulator says SARAH PROVAN

B

arclays must reimburse smaller businesses compensation that amounts to a drop in the ocean compared with the bank’s own income after it broke rules that were designed to protect the companies, the UK’s competition watchdog said on Thursday.

The UK bank must dole out a total of £2,000 to affected business premium account and deposit account holders to make up for payments the smaller companies should not have been obliged to make, the regulator said. The financial services group reported pre-tax profit of £1.5bn in the first quarter.

The Competition and Markets Authority is prevented from imposing fines for breaches of either orders or undertakings. However, in a letter to Greg Clark, secretary of state for business, energy and industrial strategy, CMA chair Andrew Tyrie in February requested these powers to ensure proper deterrence as part of a package of wider reforms to the watchdog’s powers.

Barclays, which had signed up to the rules over small businesses in 2002, must improve its practices, the CMA said. The rules prevent banks from insisting that businesses open or maintain current accounts before they are able to access their other products, the regulator said.

“The bank’s actions led to unnecessary costs to some SMEs who were made to hold accounts they did not need,” the CMA said.

The CMA directed the bank to take immediate action and ensure the problems do not occur again. The regulator also demanded it appoint an independent body to audit its compliance and deliver the independent body’s report.

Barclays admitted to the CMA that it had failed to comply with “aspects of legal undertakings” that were set up to make it easier for businesses to shop around and choose the best accounts for them, the watchdog said.

“We’ve been working closely with the CMA and have corrected a mistake we made which affected a small number of business customers,” a Barclays spokesperson said. “We’ve taken steps to ensure that this does not happen again.”

About 800 clients have been affected and will be reimbursed, the bank said.

Since first reporting the issue to the regulator, Barclays has moved to fix the problem, including allowing affected customers to transfer funds to and from other banks, and by changing their terms and conditions so that businesses who want to open certain deposit accounts are no longer told they have to hold a Barclays current account, the watchdog said. www.businessday.ng

© Charlie Bibby/FT

US capex forecasts plummet as growth jitters resurface Morgan Stanley index of intended expenditure drops to lowest level in two years RICHARD HENDERSON

S

pending by big US companies on plants and equipment is waning as the sugar rush from last year’s tax cut wears off and the trade stand-off with China damps confidence in boardrooms.

Morgan Stanley’s index of intended capital expenditure by US companies dropped to its lowest level in two years last month, while S&P Global estimates that capex growth will weaken to 3 per cent this year from 11 per cent in 2018.

This data paint a picture of eroding faith in the health of the global economy and concerns over the trade spat between the US and China. While a tentative truce was struck between presidents Donald Trump and Xi Jinping at last weekend’s G20 summit, economists say the uncertainty over tariffs is likely to weigh on companies’ willingness to invest.

“Low capex growth is very

worrying,” said Lori Heinel, deputy global chief investment officer for State Street Global Advisors. “You’re starting to see the trade tensions and the macro growth concerns play out in business confidence — companies won’t open a new factory if they think we’re on the cusp of a recession.”

Softening capex growth comes after a strong showing last year, when Mr Trump’s administration overhauled the tax code, chopping the corporate rate from 35 per cent to 21 per cent.

The reduction later triggered a surge in corporate investment.

Easing capex growth “is partly influenced by continuing uncertainty around trade”, added Ellen Zentner, chief US economist at Morgan Stanley. “The latest economic data are pointing to a softer picture for business investment ahead.”

The forecast capex slowdown comes as US companies keep ploughing money into share buybacks.

US groups bought a record $806bn of their own stock last year, a figure that may be topped in 2019 if the current pace of repurchases is maintained. Corporate America spent another $205bn buying back stock in the first three months of 2019, with many analysts expecting another banner year for buybacks.

Second-quarter earnings will begin later this month, giving investors a clearer picture of the health of US companies. Earnings per share contracted in the first quarter and analyst estimates based on companies’ forward guidance predict a further drop, according to FactSet figures.

“Earnings season will allow investors to focus on something tangible and not just all the geopolitical risk we’re seeing,” said Emily Roland, head of capital markets research for John Hancock Investments. “We’re firmly planted in a late-cycle economic environment, so it makes sense for investors to prune risk but to stay invested.”

Labour nationalisations: weedy warriors Some water groups’ shares have rallied as voter preferences fall for opposition party

R

ed tides are algal blooms that suck oxygen from the sea and release toxins. A similar peril is drifting towards the UK’s water companies. Labour, the main opposition party, wants to nationalise them. This is partly a response to the failings of Thames Water, an unlisted group that once dumped raw sewage in its namesake river. On Thursday, the regulator rejected the company’s business plan on the grounds it would raise bills too much. In contrast, Ofwat fast-tracked the business plans of listed rivals at the start of the year, helping shares out of a slump.

A more dovish tone from central bankers has also emboldened yield investors. But it is the slump

https://www.facebook.com/businessdayng

in voter preferences for Labour indicated by polling data that has really driven a rally in shares of Severn Trent, United Utilities and Pennon Group since May. Chances of a Labour government are diminishing, narrowing the nationalisation discount on the shares.

Before nationalisation was mooted, shares in the three water companies traded at an average of 20 times forward earnings. As the party’s popularity grew, the valuation shrank to as little as 13 times in early 2018. The recent rally has taken them back up by a tenth.

Using the 20 times multiple with current earnings estimates suggests the market has consistently discounted the combined equity @Businessdayng

value by about one-third, currently £5bn in market value terms.

If nationalisation were to take place at regulated book value, as proposed, an additional £5bn could be wiped off share prices, according to Bernstein.

Yet Labour would not only need to win an election in the face of falling poll ratings. It would need a parliamentary majority too. Betting site Betfair thinks the odds of that happening are just 15 per cent. The party would also require greater resolve than it has sometimes shown in opposition, for example in dealing with an anti-Semitism row.

The upshot is that UK water utilities look undervalued. Who knew they could be such a zeitgeisty investment?

Women in Business

Judith Obi Founder, Africa Education Aid for Development Network (AFEADEN)

J

udith Obi is an industrial chemist with certification in project management, a member of the United Nations Major Group for children and youths, Education coordinator at Disaster Rescue and Humanitarian International Force and various international organisations She started this movement that would forever transform the lives of children and youths in Africa, redefine and set new benchmarks in the African philanthropic sector and immensely contribute to the quest to educate the Africa children and youth. She is the founder of Africa Education Aid for Development Network (AFEADEN). She believes that education is a critical factor in every child’s physical and intellectual development, and is one of the most effective tools to break the cycle of poverty. This belief is the cornerstone of all the programmatic interventions at AFEADEN. Their approach as an organisation towards providing education for every child majorly involves combating the underlying issues and challenges which prevent them from going and staying in school.

Alongside engagement with international aid and development agencies, they design and implement programmatic intervention that promotes an integrated approach while ensuring longterm and sustainable impact.

Some of their programmatic interventions include: Provision of scholarships and academic materials, The Adopt a child campaign and The Free Summer Literacy School, designed to empower children with various skills in craft and art, ICT, literacy and numeracy especially for underprivileged and displaced children some who have never been to school.

So far, the free summer literacy class which started in summer of 2017 has impacted over 1550 children in Nigeria, Uganda, Cameroon and Ghana. Plans are currently ongoing for 2019 summer school.

BUSINESS DAY Friday 05 July 2019 www.businessday.ng

By Kemi Ajumobi

Anne-Marie Imafidon On challenges in running the organisation, Judith identifies manpower as a major concern among others. According to her, “Asides the challenge of getting people to volunteer, finding people who are committed to the projects and follow up after the outreach and programs is a challenge.”

She also says that funding is a major challenge because with limited grant and funding opportunities accessible to nonprofit, there is need for increased participation and collaboration between Government, private organizations, civil society and individuals.

For Judith, bureaucracy and hassles of project approval especially for interventions in public schools has been another major challenge. In her words, “The process of decision making, applications and long wait for approval can be time consuming and discouraging.

This has also posed a major challenge.

A typical scenario this year was writing to an education board in January for authorization and permits to renovate and provide classroom materials for a school in dire needs of these, only to receive an approval in May (5 months later). Regardless of these, we remain relentless in our pursuit for access to education for every child”. She stated.

Judith’s success story in AFEADEN is captured in the impact they have made as an organisation in line with their objective of tackling underlying challenges preventing children and youth from going and staying in school in the countries and communities where they work in Nigeria, Uganda, Cameroon, Ghana and Kenya.

Since 2014, they have carried out over 50 major projects, reached over 25,000 individuals, donated over 10,000 school kits, carried out free summer classes that has reach over 1550 children and still doing more.

For Judith, the importance of PublicPrivate Synergy cannot be over emphasized in a developing country as ours and especially in the area of education which is a critical area for national development.

CEO of Stemettes

A

nne-Mar ie Imafidon MBE (born 1990) is a British computing, mathematics and language child prodigy. She is one of the youngest to pass two GCSEs in two different subjects while in primary school. Imafidon founded and became CEO of Stemettes in 2013, a social enterprise promoting women in STEM careers.

Imafidon was born in England in 1990. Her father, Chris Imafidon, is an ophthalmologist who emigrated from Edo State, Nigeria, to London, and her mother is Ann Imafidon. She and her three younger siblings, Christina and twins Peter and Paula, are child prodigies, breaking age records in educational attainments.

Imafidon began school at St Saviour Church of England Primary School in Walthamstow, London, she passed two GCSE Examinations (in Mathematics and Information technology) at the age of 11.

At 13, in 2003, she received a British scholarship to study mathematics at Johns Hopkins University. At 15, in 2005, she was admitted a degree programme by the University of Oxford. At 17, she started a master’s degree at Oxford University and, at 19 in June 2010, she became the youngest ever graduate with a master’s degree. She speaks six languages.

Imafidon worked briefly for Goldman Sachs, Hewlett Packard, and Deutsche Bank before launching and becoming CEO of Stemettes in 2013, championing the work of women in STEM. Stemettes runs panel sessions and hackathons supporting girls and young women who are considering a STEM career. In April 2014, Imafidon was the keynote speaker at the BCSWomen Lovelace Colloquium.

She says she got to where she is today because she has always been interested in technology and saw a problem within

the industry and wanted to solve it.

One of the main reasons why she loves technology and why she runs Stemettes is because she is a really creative person and technology allows her to be really creative. The second reason is because technology is all about solving problems and there are a lot of problems to be solved. Whether its huge problems like diseases that we have in the world or small problems like booking train tickets online, For Anne, technology is really great at solving all of them.

Stemettes is a social enterprise that is trying to inspire, support and encourage young women into STEM related fields.

This could be anything from panel events or coding workshops to school trips. Everything that they run is always free, it’s always fun.

She will readily tell you that her confidence comes from her sense of self-worth and her sense of her own value. For Anne, that’s something that she is able to measure in herself and that means that when she is in different situations it doesn’t really matter what other people might be thinking because she knows her own value.

The best piece of advice she has ever been given has been to seek forgiveness, not permission. For her, what that means is that it’s really easy to ask someone if you’re allowed to do things, but life is so much better when you just do it. “And if it wasn’t okay you then ask for forgiveness when you realise it wasn’t okay. If you ask people for permission they’ll say no and most of the time the answer is actually yes.” She says.

It is this wealth of experience and pioneering spirit that led her to cofound the STEMettes, an award-winning social initiative dedicated to inspiring and promoting the next generation of young women in the STEM sectors.

Since its inception, it has exposed more than 40,000 young people across Europe to Anne-Marie’s vision for a more diverse and balanced science and tech community.

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Advert Hotline: 08034743892. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Patrick Atuanya. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.