BusinessDay 05 Jun 2020 by BusinessDay

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news you can trust I ** friDAY 05 june 2020 I vol. 19, no 578

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icro, Small and Medium Enterprises (MSMEs) in Nigeria are facing their worst nightmares as a result of inter-state restrictions imposed to curb the spread of the deadly coronavirus. Movement of certain types of goods, such as food and medicines, is permitted by the Federal Government, but SMEs claim security agencies insist on collecting large amounts of bribe before allowing passage to their vehicles carrying essential products. “Bringing in a bunch of plantains into Lagos used to cost N800 to N1,000, but you have to spend at least N2,000 now because security agencies insist on being ‘settled’,” said Jon Kachikwu, CEO of Jon Tudy Enterprises, a Lagos-based food processor, in a telephone interview. “Security agencies are simply frustrating us. The Federal Government said we can bring in food, but this is not the case. The government should visit security checkpoints and see how frustrating things are,” he said. Trade comprises over 15 Continues on page 29

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SMEs face nightmares on persisting inter-state lockdown Odinaka Anudu (Lagos) & Harrison Edeh (Abuja)

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Mosques to reopen June 19 in Lagos, churches June 21 … Level 13, 14 workers to resume Monday … registration of religious, social centres begins ahead reopening Joshua Bassey

uslims in Lagos, Nigeria’s commercial capital, will be able to worship in their various mosques from Friday, June 19, while Christians will be able to worship in their churches from Sunday, June 21, Governor Babajide Sanwo-Olu announced on Thursday. The state governor, who made this known on Thursday while giving an update on developments relating to the COVID-19 pandemic, said though given the go-ahead to reopen, the reContinues on page 29

Inside

Edo guber: Obaseki assures residents of adequate security before, during, after election P. 2 COVID-19 patients can now be discharged between 10 to 14 days P. 29 – NCDC

Friday 05 June 2020

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news

Despite RoW fee reductions, hurdles remain for rural broadband penetration … Local operators may need to merge to survive FRANK ELEANYA

hile it may seem like states’ buyin is off to a good start, reducing Right of Way for fibre cables to N145 or lower would not be the last jigsaw to resolving internet penetration in rural Nigeria. Nigeria’s fixed broadband technologies, which are required to drive the 4th Industrial Revolution applications including smart city, IoT, artificial intelligence, autonomous vehicles and other advanced technologies, are currently available only in high net-worth urban areas. Access to fibre networks within 5 kilometres of the population currently stands at an average of approximately 39 percent reach, with a high of 85 percent in Lagos State and a low of 12 percent in Jigawa State. Nigeria’s unique mobile internet penetration which stands at 32 percent or 65 million individual users, against

a total mobile internet subscription base of 125 million, lags behind Ghana, Egypt and South Africa within the region. As of May, six states have complied with the agreement reached with the minister of communication and digital economy to adopt the NECapproved N145 Right of Way fee for one linear metre of fibre cables laid. Ekiti State was the first to announce in May it was reverting to N145 from N5,000. Imo, Plateau and Katsina States soon followed. Kaduna and Kwara States took a different turn, announcing a record zero and N1 fees, respectively. With more states expected to join the N145 or below N145 team, the stage seems set for massive deployment of fibre optic cables across the country. But it is merely the first leg in what could be a very expensive journey, one that only rich operators can navigate profitably. In the new Nigerian National Broadband Plan 20202025, the Federal Government set out an ambitious strat-

egy aimed at delivering data download speeds across Nigeria of a minimum 25Mbps in urban areas, and 10Mbps in rural areas with effective coverage available to at least 90 percent of Nigerians by 2025 at a price not more than N390 per 1GB of data (i.e., 2 percent of medium income or 1 percent of minimum wage). The ambitious plan also comes with a hefty price tag of around $3.5 billion-$5 billion ((N1.3 trillion-N1.9 trillion at current exchange rates). The government acknowledges that successful execution would only be possible if the public and private sectors align and harmonise activities including contributing the needed money. Several factors influence the cost of deploying fibre cables in a city. According to Atlantech Online, these factors may include the distance needed to cover a target location. The farther away a city or street is from a primary provider, the more cost that will attract. If it is a mile or more away, the more

substantial the rates. The price of installation can also rise depending on the type of physical obstacles such as rivers, highways or preserved sites like graveyards, historical monuments and nature preserves. Other factors include availability of telco closets at targeted buildings, layers of bureaucracy, sufficient electricity, among others. To mitigate the cost burden on operators, the Nigeria Communications Commission (NCC) had said it is committed to the counterpart funding arrangement. The plan ensures that the NCC supports the infrastructure companies responsible for deploying broadband with a subsidy of N65 billion counterpart funding. It is also part of a larger plan to raise N265 billion which falls under the State Accelerated Broadband Initiative designed to address the infrastructural deficits in the telecommunications sector. The infrastructural companies would raise the balance of the N200 billion.

Local supply is weak link in Nigeria’s LPG adoption

CHURCHILL OKORO (Benin) & SOLOMON AYADO (Abuja)

head of the Edo State governorship election slated for September 19, Governor Godwin Obaseki has assured residents of the state of adequate security before, during and after the election. Obaseki gave the assurance on Wednesday night at a citizen’s townhall virtual meeting on voting amid COVID-19, with the theme “INEC policy on the conduct of 2020 Edo and Ondo governorship election”. The meeting, organised by Yiaga Africa in collaboration with key stakeholders and Channels Television, had discussants and representatives from the Independent National Electoral Commission (INEC), Civil Society Organisation, Nigerian Medical Association, among others. The governor said the security of lives and property of the people is one of the major priorities of his administra-

Nigerian Bureau of Statistics (NBS)

turing, processing and power supply through generators. The biggest local supplier is the Nigeria Liquefied Natural Gas (NLNG) Limited which supplied 275,000MT of LPG to the domestic market in 2019. This represents about 32 percent of supply. Data from the National Bureau of Statistics indicate that 526,059MT was imported into the country last year, accounting for 62 percent of total supply. This means that the NLNG, the NNPC refineries and some local producers all accounted for 38 percent of supply. Yet operators project that demand could reach over 2 million MT next year. “If we are going to advocate for adoption of LPG, incountry production has to be www.businessday.ng

ramped up from field producers to more LNG producers, to more refineries facilities to bridge this gap, otherwise in a short time, we will have issues with supply,” said Nuhu Yakubu, president Nigeria LPG Association, at a virtual conference organised by OTL. Operators often cite Brazil as a model for increasing LPG adoption in Nigeria. The facts indicate Nigeria should tweak its approach. LPG was first introduced in Brazil in 1937 and became widely used because of their government subsidy for half a century. By the year 2000, the government was spending around US$100 million annually to subsidise LPG in Brazil. The data is not out on how much operators have saved due to VAT exemption, but an

increasingly cash-strapped government scrounging for funds could soon pull the plugs. A study on the lessons and challenges of LPG in Brazil by Oswaldo Lucon, Suani Teixeira Coelho and José Goldemberg from the São Paulo State Environmental Secretariat found that around one-third of the LPG consumed in Brazil is imported and the rest is produced in domestic refineries or natural gas-processing units. Retail prices in Brazil doubled after January 2002 when the government removed subsidies and some in rural areas reverted to fuelwood. Demand slowed but many continue to use LPG and now in modern cities, the government has built infrastructure to pipe LNG directly into homes.

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tion, explaining that the comprehensive security architecture in the state would cascade down to the communities where voting will take place. “We are very cognisant of insecurity and have ensured we provide adequate security across the state utilising a comprehensivesecurityarchitecture which incorporates vigilance groupsinthelocalcommunities with our state Public Workforce Volunteer (PUWOV), who are under the guidance of the new community policing by the Inspector General of Police, who eventually report to the Divisional Police Officers in various LGAs,” Obaseki said. “I am satisfied that we can provide the security required to conduct elections in Edo State. I have gone through this election process before; it was more heated in 2016 but no life was lost. Things will be more calm this time around because of the limitation of movement as a result of COVID-19 and most of the electioneering will be done electronically,” he said.

AfDB: US mistaken about Adesina, says African Chamber chief ... Calls for engagement SEGUN ADAMS

ISAAC ANYAOGU ithin the last 10 years, the demand for Liquefied Petroleum Gas (LPG) in Nigeria has surged to over 850,000 metric tons (MT) from a mere 70,000MT on the back of government tax exemption that charted a path for private sector investment, but local supply has failed to keep up. The main drivers for LPG growth are the removal of Value Added Tax (VAT) on incountry sales and waivers on tariffs for LPG infrastructure by the Muhammadu Buhari-led government at the end of 2018. Stakeholders, including government agencies and private operators,haverampedupadvocacy to replace dirty fuels such as keroseneandfirewoodwithLPG inlinewithNigeria’sParisClimate Accord goals of cutting carbon emissions by 65 percent. The trouble is how Nigeria can meet demand as growth continues to soar. Nigeria is Africa’s most populous country, yet it has the continent’s lowest LPG consumption with less than 10 percent of Nigerians using LPG, according to Timipre Sylva, minister of state for petroleum resources. Currently, 80 percent of LPG consumed in Nigeria is for cooking gas which leaves out LPG for transport, manufac-

Edo guber: Obaseki assures residents of adequate security before, during, after election … PDP begins screening of governorship aspirants today

he vice president of Pan African Chamber of Commerce and Industry (PACCI), Adetokunbo Kayode, has affirmed that the US Treasury Department is mistaken about its call for a fresh probe of Akinwumi Adesina, president of African Development Bank. The chamber leader called for engagement with Washington on the issue. In a virtual chat on African post-pandemic recovery, Kayode said the Treasury Department must consider programmes of the US State Department to see how helpful to Africa and Washington Adesina has been by his innovative support and stabilisation of Africa through the AFDB. “It is very sad that one of Africa’s best is being dragged around over what I will call a non-issue. The man was not accused of embezzling or diverting bank’s money. If anything, he increased the bank’s capitalisation and ensured investment in real sector to take the continent out of under-development,” the chamber leader said. “I read through the charges, his defence and the report of the Ethics Committee. I immediately concluded that somebody is misinforming Washington on the true state of things at the bank. Sincerely, I believe the American @Businessdayng

Treasury Secretary was misled to seek fresh probe of Adesina. We actually need to engage the Treasury Department on this matter,” he said. This is coming only days after President Muhammadu Buhari pledged Nigeria’s support for Adesina’s re-election, and over a week after former President Olusegun Obasanjo and Minister of Finance Zainab Ahmed also threw the weight of their support behind Adesina. Adesina, 60, a former minister of agriculture and rural development in Nigeria, was first elected as AfDB president on May 28, 2015. But his re-election bid is now being challenged by whistle-blowing allegations of inappropriate conducts. The bank’s Ethics Committee, after looking into the matter, cleared Adesina of all the allegations brought against him, but US Treasury Secretary Steven Mnuchin openly rejected the decision, calling for a fresh “independent” probe of Adesina, a move that analysts say risks eroding the independence of the bank’s corporate governance structure and raising doubt about the bank’s internal integrity mechanisms. Kayode insisted that the US was being misled to attack its own, an American-trained scholar who has protected American interest so far by stabilising Africa in developmental funding.

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NEWS NEPC, FOB, others offer discounted airfreight for non-oil export to 27 EU nations GBEMI FAMINU

he Nigerian Export Promotion Council (NEPC) and Free on Board (FOB) Global Logistics Limited have introduced Special Discounted Airfreight Services from Lagos International Airport to London Heathrow Airport and transhipment road haulage services to 27 EU nations. Segun Awolowo, CEO of NEPC, said this would encourage local exporters in the midst of the coronavirus pandemic, saying the combine efforts of NEPC, FOB Global Logistics and NACCIMA Export Group had created unusual export windows using air cargo to reach out to the world. Awolowo said the initial step taken was with British Airways to airlift non-oil products of Nigerian origin, adding that it had opened another opportunity with Turkish Airlines, which will continue to increase volume of Nigerian non-oil export. “It is estimated that the export of Nigeria products will continue to increase through air cargo, which will lead to prompt delivery of good and services,” he said. On his part, Jimmy Adebakin, CEO of FOB, described it as an opportunity for individuals and corporations to start earning income in US dollars by exporting much needed Nigerian nonoil products like food items and other made-in-Nigeria goods like textiles, cosmetics and other beauty products to Europe, USA, China, India and Dubai. “This requires little capital

to start and if you are not currently an exporter, we encourage you to contact Free On Board Global Logistics Limited and/or Nigerian Export Promotion Council for advice and support. “This is also a great opportunity for all our youthful population to start gainful self-employment. The days of looking for salaried employment are over. America is built on entrepreneurship, we call on our unemployed graduates to wake up and start exporting businesses. “We encourage governors of all states in Nigeria Including the Federal Capital Territory of Abuja to join our new call to action to support the Federal Government of Nigeria by encouraging Nigerian non-oil export. We are ready to deliver this national assignment and all hands must be on the desk.” The NEPC under the leadership of Awolowo has been championing the course of zero oil reliance and has signed partnerships with many organisations who have keyed into the diversification agenda of the federal government. Commenting on his company’s interest in this initiative, the group executive NAHCO, Saheed Lasisi, said NAHCO had been in the forefront of pursuits aimed at developing useful platforms for offshore marketing of Nigeria’s agri-produce. He stated that this objective has informed the company’s continued upgrade on its cargo processing and facilitation infrastructures at the Lagos, Abuja, Kano and Port Harcourt International Airports.

Chikwe Ihekweazu (r), directorgeneral, Nigeria Centre for Disease Control (NCDC); Toyosi Ogunsiji (l), chairperson, Victims Support Fund Task Force (VSFTF) on COVID-19, during the donation of video teleconference solution to NCDC by VSFTF as its contribution to fight Coronavirus pandemic, in Abuja. With them is Alkasim Abdulkadir (m), member, Task Force.

UPDC raises N16bn in Right Issue, positions for growth KELECHI EWUZIE

ACN Property Development Company plc has announced that it raised N16 billion through rights issue, offering to its existing shareholders 15,961,574,145 units at N1 per share, as it prepares for unbundling as a strategic growth plan. The company notes that the offer, which was oversubscribed, indicates investor confidence in the company’s future growth prospects, adding that proceeds from the Rights Issues have been used to improve UPDC’s capital structure and position the company for growth. Deborah Nicol-Omeruah, deputy CEO, UPDC, says the company retains unparalleled market knowledge and track re-

cord, more than N20 billion in assets, strong governance and an excellent facilities management business. The team at UPDC is focused on leveraging these strengths to drive stakeholder value creation. “We are grateful for the confidence exhibited by our loyal shareholders and continued patronage from our customers.” Folakemi Fadahunsi, finance director of UPDC, notes, “It is an exciting time to be a UPDC shareholder. The Rights Issue has resulted in improved cash flow for UPDC, as finance cost has reduced from N4.8 billion in 2018 to N700 million. We will continue to reposition our property portfolio by actively selling lower-yielding assets to provide further liquidity to fund new developments.” The next stage of UPDC’s strategic initiatives is

its upcoming unbundling from UAC, which will allow the platform to operate as an independent group, and UPDC looks to a future with greater flexibility and a solid foundation for growth, Fadahunsi states. According to Fadahunsi, the company’s simplified structure, strengthened capital base, technologydriven approach, expert management team, and well-defined development strategy provide investors considerable growth potential and opportunities for generating attractive long-term returns in the Nigerian real estate sector. “UPDC is set on a path to profitability, with an aggressive development strategy which will see the commencement of its first new project under its new management in Q4 2020. The proposed residential development, known as

Festival Flats is designed to be a 30 unit block of 2-bedroom apartments, targeted at the local middle-income market. “Located next to UPDC’s popular Festival Complex in Festac, which currently includes the Festival Mall, Festival Hotel, and The Residences Apartments, the proposed new development will offer buyers a lifestyle where they can live, work, and play at their doorstep,” Fadahunsi said. UPDC is Nigeria’s foremost real estate development firm with a market-leading facilities management business. UPDC boasts of a management team with deep experience of successful operations in the Nigerian real estate sector across multiple segments including residential, commercial, hospitality, and retail.

NGBF, NACCIMA partnership to foster economic stability Build digital capacity for post-COVID-19 JOSEPHINE OKOJIE survival, Ikeazor tells businesses

he Nigerian Global Business Forum (NGBF) and the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) have signed a memorandum of understanding (MoU) to foster economic growth amid COVID-19 pandemic. Through the strategic partnership, NGBF and NACCIMA will be focusing on salvaging the Nigerian economy by supporting businesses to reduce the impact of the economic fallout from the COVID-19 outbreak. Afolabi Andu, president, NGBF says the objective of the ground-breaking partnership is to primarily establish the country’s economic growth and ensure sustainability through the strategic movement of both NACCIMA membership network and NGBF.

According to Andu, the strategic partnership between NACCIMA and NGBF is an actualisation of one of Saratu Iya Aliyu’s cardinal objectives for her tenure as national president of NACCIMA, which is to promote and develop all matters affecting businesses through the provision of a network for national and international business. Corroborating this, Dele Oye, second deputy president of NACCIMA, emphasises that with this partnership, there is bound to be a healthy exchange of ideas and commercial interface between both organisations, which will invariably be to the country’s overall benefit. While justifying the rationale for the deal, Oye states, the group has branches all over the world including the US, the Caribbean as part of the practical response to this COVID-19 issue.

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“We at NACCIMA under the able leadership of Hajiya Aliyu realised that most of our businessmen cannot travel abroad for their products and services,” he says. “Other countries work with their people, so what we are saying is that the knowledge these guys have abroad about their locality, our businessmen do not need to travel,” he further notes. “All they need to do is that we have a platform we are setting up for people to access what is the best option of whatever goods they what to import, at the best price and quality. In that way, these people will be engaged,” he states. Over $20 billion comes into the country as remittance which goes into the informal sector and family, he notes, noting that the partnership has created a link for Nigerian diaspora to invest directly in businesses.

usinesses in Nigeria have been advised to invest in digital capabilities as one of the critical strategies to survive post-COVID-19. Philip Ikeazor, former managing director, Keystone Bank Limited, who is currently a director at Tideway Advisory Limited, gave this advice during a webinar on the effects of COVID-19 on business operation, organised by the Nigerian chapter of University of Buckingham Alumni Association. According to Ikeazor, the transition to contactless operations has gained currency during this crisis, hence businesses must take proactive steps to remain in business after the crisis. “Healthcare is a classic case; in the UK, less than 1 per cent of medication consultations were recorded in 2019 but under the lockdown, 100 per cent of consultations are

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occurring remotely,” he said. “There is already a big shift to digital and online channels by banks. Online banking rose by 90 per cent during the crisis in the UK, while in Nigeria, electronic bills payment rose by 36.6 per cent during the lockdown.” Ikeazor added that educational institutions globally have also embraced remote learning, adding that car manufacturers in Asia have developed virtual showrooms. He said businesses in the country would also need to improve their risk management capabilities as vulnerabilities would continue to exist in the operating environment. “Organisations that have a proactive and structured approach to risk management will always stay ahead of the curve as the next crisis emerges. Risk management approaches must be seen from an enterprise-wide perspec@Businessdayng

tive with the capacity to absorb uncertainty, fine-tune key risk indicators, and incorporate the lessons learnt from the pandemic into the operating model,” he advised. He said the businesses also need to adopt “a through-cycle mindset that focuses on the long-term after reassessing your competitive advantage while shoring up the balance sheet and capacity in the short term.” This, he said, would be decisive for businesses in capturing significant value and out-perform peers postCOVID 19. While commending the Central Bank of Nigeria (CBN) for coming up with several initiatives aimed at cushioning the effects of the pandemic on businesses, Ikeazor urged manufacturers and SMEs to improve their corporate governance practice to benefit from the apex bank’s intervention fund.

Friday 05 June 2020

BUSINESS DAY

NEWS

Naira signals strength at N387.50k to dollar Enhanced services expected as Lagos begins review of obsolete parastatals laws HOPE MOSES-ASHIKE

JOSHUA BASSEY

usinesses and individuals having dealings with the various parastatals of Lagos State can look to prompt and enhanced services in the days ahead, as the state government has begun a review of all obsolete laws limiting the efficiency of its parastatals and agencies. The review of the parastatals enabling laws will put them in a position for more efficient service delivery to the public towards fulfilling the THEMES agenda of the Governor Babajide SanwoOlu’s administration. The THEMES is an acronym derived from the six pillars upon which Sanwo-Olu hopes to deliver his electioneering promises to Lagos. They include traffic management and transportation, health and environment, education and technology, making Lagos 21st Century, entertainment and tourism as well as security and governance (THEMES). Special adviser to the state governor on Parastals Moni-

toring Office (PMO), Afolabi Ayantayo, said at a media briefing to mark first anniversary of the Governor Sanwo-Olu’s administration, on Wednesday, that the review of the parastatals law was being undertaken in collaboration with the state ministry of justice. When completed, it will bring the parastatals to modern realities. “In collaboration with ministry of justice (Law Reforms Commission) the office (PMO) has embarked on the review of enabling laws for the parastatals that are either obsolete or hindering their operational guidelines. A total number of 54 enabling laws have been forwarded to the Law Reforms Commission for review,” Ayantayo said. According to Ayantayo, the PMO has also undertaken the classification of the parastatals along sectoral obligations so as to allow for proper coordination of their services. He said: “For proper coordination, parastatals have been classified into sectors based on their enabling law and streamlined into the THEMES Agenda of the prewww.businessday.ng

sent administration. “They have also been classified based on internally generated revenue (IGR) related services and non IGR related services, with each of them made to understand the importance and necessity of key performance indicators (KPIs) to meet congruent targeted goals within reasonable time frame.” The classification seen by BusinessDay captured the parastatals under broadbased groupings, which include traffic management transportation, environmental sanitation & special offences agency as well as education and technology. “Parastatal organisations and agencies perform key roles in delivering specific services to the general public in line with the laws that established them and government policy directives. It is therefore imperative for parastatals to be effectively and efficiently monitored to ensure that the agencies are being optimally administered and are being run in accordance with the vision of the governor,” the special adviser said.

igeria’s foreign exchange market signalled an appreciation in the value of the naira as it opened with the dollar trading at N387.50k on Thursday morning at the Investors and Exporters (I&E) forex window. This indicates N0.18k gain when compared with N387.67k opened with on Wednesday, data from FMDQ reveal.

The price of Brent crude rose to $39.32 per barrel as at Thursday from as low as $20 per barrel in March 2020. The naira weakened by N1 at the black market as the dollar traded at N443 on Thursday, as against N442 on Wednesday. Investigation shows normal demand and supply playing out in the market with uncertainty about when the Central Bank of Nigeria (CBN) will resume dollar sales to the Bureau De

Change (BDC) operators. CBN said on April 29, 2020, that it had made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels, and other designated retail uses, as soon as international flights resume. On the same day, the apex bank resumed dollar sales for school fees and Small and Medium Enterprises (SMEs) and directed users to access FX from the banks.

COVID-19: Neconde Energy donates medical equipment, test kits to Delta JOSEPHINE OKOJIE

s part of its corporate social responsibility and support to the efforts at curbing the spread of the coronavirus in Nigeria, Neconde Energy Limited has donated hundreds of test kits and medical equipment to the Delta State government. The donated items include 600 COVID-19 test kits; 150 isolation suits, 50 infrared thermometer guns; 4000 KN95 face masks, 1000 hand gloves, and 150 hair cover. Boma Brown, chief operating officer, Neconde, while delivering the items to the

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state government, said the items were given as part of the oil company’s corporate social responsibility (CSR) to the society and support to the government efforts at curtailing the ravaging effects of the pandemic. He commended Governor Ifeanyi Okowa’s personal commitment in fighting the COVID-19 pandemic, which had made the state among the least infected by the virus. He stated that the state government’s proactive step in managing the pandemic was evident to the fact that Delta State had one of the lowest recorded cases of infection in the country. @Businessdayng

“It is our hope that this token contribution will go a long way to support your administration’s efforts in the effective management of the COVID-19 pandemic in Delta State,” he said. Receiving the items, Chiedu Ebie, secretary to the state government, appreciated Neconde for the donation while assuring that the state government would make effective use of the items in the fight against the COVID-19 pandemic. The SSG called on other corporate organisations to emulate the gesture of Neconde in the ‘war’ against the pandemic.

Friday 05 June 2020

BUSINESS DAY

NEWS

Sub-Saharan Africa is world’s Bayelsa government refutes most food-insecure region - IMF obtaining €60m loan

Reps summon NSA, service chiefs over killings, kidnappings JAMES KWEN, Abuja

ouse of Representatives on Thursday summoned the National Security Adviser (NSA), Babagana Monguno, the Chief of Defence Staff, Gabriel Olonisakin and service chiefs, director, Department of State Security, and Inspector General of Police to brief the House on the effort being made to bring an end to the killings, kidnappings and armed banditry in the country at next sitting. The House also mandated the leadership of the House to continue the engagement with all the security agencies on a monthly basis on the progress being made until normalcy was restored. The House reached these resolutions Thursday at plenary following the adoption of a motion of urgent public importance moved by Sada Soli (APC Katsina). Moving the motion, Soli said the House noted that in recent time, security situation in some

parts of the country has degenerated; and cases of kidnapping, killings and armed banditry have become a daily occurrence across the country, especially in Niger, Sokoto, Zamfara Kaduna and Katsina states. The lawmaker said the House was cognizant of the Presidential directives which has not helped to drastically reduce cases of kidnaping, killings and banditry in the country due to lack of sustained tempo in the intervention, criminals have continued to regroup in different camps in the Government Reserve Forests and surrounding Villages across the country. He said he was “worried that the magnitude of the attacks on various communities have reached an alarming rate as these criminals have continued to perpetuate their criminal acts unabated. “Also worried that if this criminality is not urgently addressed there will be an imminent present danger to our food security in the country.

HOPE MOSES-ASHIKE

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nternational Monetary Fund (IMF) on Thursday said food security in sub-Saharan Africa (SSA) is under threat. In view of this, SSA needs to prioritise policies targeted at reducing risks to food security as part of fiscal stimulus packages to counter the pandemic, the Fund said. The ability of many Africans to access sufficient, safe and nutritious food to meet their dietary needs has been disrupted by successive natural disasters and epidemics. Cyclones Idai and Kenneth, locust outbreaks in Eastern Africa, and droughts in Southern and Eastern Africa are some examples. The COVID-19 pandemic is just the latest catastrophe to have swollen the ranks of 240 million people going hungry in the region. In some countries, over 70 percent of the population has problems accessing food, the

Fund noted. SSA is the world’s most food-insecure region, and in the June 2020 subSaharan Africa Regional Economic Outlook shows that climate change is increasing that insecurity. Africans are easily pushed into food insecurity because their ability to adapt is limited by many factors, including low savings and access to finance and insurance. As a result, lives are lost, malnutrition rises, health worsens, and school enrolment drops. All this, ultimately damages the economy’s productive capacity. The measures to contain and manage the COVID-19 pandemic, while critical to saving lives, risk exacerbating food insecurity. Border closures, lockdowns, and curfews intended to slow the spread of the disease are disrupting supply chains that, even under normal circumstances, struggle to stock markets, and supply farmers with seeds and other inputs.

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SAMUEL ESE, Yenagoa

ayelsa State government has refuted obtaining a €60 million loan in 2019 for the development of the proposed Bayelsa Maritime Academy, Okpoama. Acting chief press secretary to the governor, Daniel Alabrah, made the clarification in a telephone interview with our correspondent in Yenagoa on Wednesday. Alabrah said there was need to present accurate facts as the state government obtained the approval of the Bayelsa State House of Assembly to renegotiate commercial bank loan facilities. According to Alabrah, the report was based on mere speculation, stressing that the only loan facility obtained by the state government in 2019 was N40 billion to develop the Bayelsa International Airport. In September 2013, the government of former governor, Henry Seriake Dickson, received the approval of the state House of @Businessdayng

Assembly to obtain a €60 million loan from the Polish Government to develop the proposed Bayelsa Maritime Academy, Okpoama near Brass. Dickson had relocated the then College of Education, Okpoama, to Sagbama, citing the absence of a link road to the island community and structures for the commencement of academic activities. On relocating it to Sagbama, he had renamed it Isaac Jasper Boro College of Education and established the Bayelsa Maritime Academy, Okpoama, as compensation. He had then sought the approval of the state House of Assembly under then speaker, Konbowei Friday Benson, who is presently the Secretary to the State Government, which was granted. However, several prominent Bayelsans and members of various civil society organisations opposed the loan move that was subsequently jettisoned by the Dickson administration.

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Racism on the rise Tales from the main road

Eugenia Abu

y Mum of blessed memory used to say there are some people whose heads are very strong spiritually and if you go touch them, you would be dealing with your own undoing. In my own culture, prayers are said for new born babies by an old uncle or old Aunty, may his head be strong like Kolanut and may he be protected by his ancestors. If the truth be told, if the police officers accused of murdering George Floyd in Minneapolis have gotten away with bad behaviour, shootings and derogatory language for too long, the spirit of George Floyd, his ancestors and his head, strong like a Kolanut, has finally caught up with them. Floyd, an African American was arrested by the Minneapolis policemen for presenting a fake $20 bill which the owner of the grocery store has said Floyd may not have been aware was fake. He was wrestled down and one of the policemen Chauvin pinned him down, knee on neck style, and he died. As it so happened Social Media did its thing. By last week Minneapolis was at boiling point with protests and with property being set ablaze because of one senseless policeman and his colleagues, a whole city is being destroyed

while everyone is looking to re-jig a floundering economy in the face of COVID-19. Other cities in America have joined the protest as has many countries around the world. This is truly insane. It’s also amazing to see whites and Hispanics and some police officers join in the protests while trying to calm other protesters. Floyd’s family has called for calm and no violence. The mayor of Minneapolis slowed before he began to react. By the way, the policeman involved in the Floyd case who has now been arrested, has had seventeen complaints against him in his 19-year career including shootings and derogatory language. In between all of this he was given a medal by his employers. Truly bizarre! A week before, a black birdie who was birdwatching in a designated park in the United states had asked a white woman to put her dog on a leash and she refused and said she was going to call the police and tell them a black man was threatening her. In the furore that ensued, he filmed her saying so and it went viral. Not only did she lose her job, she also lost the dog because in the viral video, she is seen dragging the dog by its collar almost strangling the dog instead of putting it on the leash as requested. By the way those are the rules of the park. Again, last week, a white man calls the police on his co-tenants who are black demanding to see their identity and permission to use the gym, which is open to all tenants. He has now lost his lease because property administrators consider his action racist. His excuse, he felt that the black men were threatening. You might just be walking past and a white man or woman decides just

because of the colour of your skin that you are threatening. Racism has been living with us since the Trans-Atlantic slave trade. Since moving thousands of black Africans across the Atlantic for slave labour, African Americans have been facing institutional racism for the longest and many demeaning unspeakable things and killing them at will or arresting them with no proof is what black America is still dealing with in the 21st century. You are suspected of being a thug, a thief and a low-level person just because you are black. I remember many years ago in London when I tried to get accommodation as a Masters student at City University when most of the student accommodation had been taken. I came in as a late entry. I pounded the phones so I could get a decent studio flat to stay in. One afternoon, I called a number I found on the student’s notice board and a lady answered. We chit chatted and it was pleasant. She then invited me to come and look at the property. When I arrived, she was shocked that I was black. My conversation with her gave her the impression that I was somewhat white or coloured and peeping through her kitchen window she would not open the door. Really? Really! These types of behaviour are inexcusable and unacceptable. For years, many African American populations and black neighbourhoods all over the world are underserved and held under the glare of suspicion by citizens and governments alike. And long after the slave trade was abolished, there are still racially driven members of the white population who cannot see black people as equals or even as humans and continue to profile them and treat them

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It is truly sad. We are not out of the woods yet and Minneapolis is a tip of the iceberg of what is going to come. Racism will be higher, domestic violence is already rising and depression is creeping back into our societies

like dirt. Recall that in an unsubstantiated and controversial story in the 70’s it was thought that to destroy the very core of African Americans, there was a covert intelligence operation by an arm of the United States to flood black neighbourhoods with psychotropic drugs in order to weaken them and reduce their right based attitudes. In the end those drugs found their way from black streets to white streets leading to a major national crisis in the early seventies and still dogging a lot of American communities today. There are also many stories of how black and Hispanic youths especially victims of drug abuse who are cleaned up cold turkey are sent to fight wars on behalf of their country while many underprivileged families have been subjected to dangerous tests of new drugs without being told of the harmful effects in the long run. Pawns, Guinea pigs and discriminated against in a country that propagates freedom as its mantra. Young African Americans doing well and determined to stay free of crime are described as sell outs and wannabes by their kith and kin while the other side of the population are increasingly maltreated. The anger leads to confrontation and the jailhouse becomes their home. Being black outside Africa is a hard nut, catch 22 position where any pathway is already a no-win situation. This is why my friend in Australia

Note: The rest of this article continues in the online edition of Business Day @https://businessday.ng Eugenia Abu is a broadcaster, writer, trainer, brand and multimedia strategy expert and media consultant. Contact. abu_eugenia@yahoo.com

Benefits of attaining transformational leadership in the workplace culture

aving to save costs is one solution organisations are always in search of, especially as they expand, grow, or pivot. When employees know their leaders are paying attention to their needs and concerns and offer them coaching and mentoring that uplift them, there is a higher chance that they are going to feel wanted. This, in turn, can lead to low workforce turnover over time. Rather than leaving for other places, they form a more substantial reason to stay and bring their best efforts to their jobs, perform beyond average, and go the extra mile. When employees feel personally connected to their leaders, they tend to stay longer on the job. This outcome is good news for organisations seeking to retain their best talents. With low staff turnover, they don’t have to spend too much money hiring new people only to lose them and start the process all over again. Quick and appropriate response to change Transformational leaders are best equipped to respond better to change compared to leaders who just focus on themselves. Since they are in tune with the challenges their employees are facing, and because there is that trust and candour factor, they need to have better access to information and facts to make better and swift decisions. As transformational leaders empower their people, they make it safer for themselves to lead better. The least thing a leader wants is to be cut out of the flow of information within the organisation—a scenario that can prevent any leader from being proactive to imminent change or winning in the marketplace. Corporate learning is enhanced, when leadership creates a culture where everyone is always learning and looking for ways to improve and get better results. What this means is that the administration of the organisation is

grown in house, as leaders’ mentor those following them and those do the same to others. With transformational leadership, you are not only building an organisation but a learning powerhouse where every employee is inspired to grow, lead, and realize their full potential. Running an efficient organisation requires excellent people skills. Transformational leaders, due to the effort they put in mentoring, coaching and leading by example, over time, they develop exceptional people skills. Meaning they can connect well with their most vital assets, take foreign concepts and translate them into simplified and compelling words, images, and doctrines that resonate deeply with their employees and customers. They can use their leadership capability and influence to create a workplace culture where employees trust and care for each other while always keeping a firm focus on attaining their shared corporate goals. Further, when it comes to transforming culture in an organisation, the leadership has first to define what the direction is going forward. As leaders, they need to explain why the change is necessary to the followers or staff of the organisation, while also sharing the benefits and costs that come with the impending change. The leaders also need to spell out the dangers that could arise if the changes are not implemented. By doing this, the leaders are laying the groundwork of good faith among the people and allowing them to be part of the journey and giving them a sense of ownership. To get the campaign started in terms of making the changes in an organisation, the leaders need to make sure the new vision and road map is not only apparent to just them in leadership but is also well articulated and widely accepted throughout the organisation. The second stage when it comes to transwww.businessday.ng

forming an organisation within is to create a sense of urgency and maintain a sense of urgency for the long haul. Without this sense of urgency, people will easily slide back into doing things the old way. That is why it is necessary to have many of the leaders act as change champions, calling others to action by leading from the front. One way to promote urgency is to reward and recognise the small wins that occur during the initial stages of implementation. Then find ways to capitalise on these favourable circumstances and events to get the organisation and everyone super excited and geared to finding solutions and delivering better results as an organisation. Beyond these actions, for an organisation to be truly successful at changing its culture, there needs to be a coalition of leaders spearheading the transformation. These are men and women who are fired up and ready to go and have the motivation to be champions of the new organisational culture against all odds. When it comes to forming this coalition, it will be helpful if the leaders are from diverse backgrounds and come from different departments. The benefit being that this will lead to a diversity of ideas and smoother dissemination of the cultural values across the organisation at every level, as more people will feel connected to the movement. Another thing a leader needs to consider when it comes to connecting with the people in the organisation is how to engage with different stakeholders within the organisation. This engagement is imperative for the campaign to be successful because they are the ones who will be doing most of the jobs in the frontline and within the various departments. In addition to this, there must be constant communication promoting and expounding the new culture and the values so that before long, it’s entirely part of

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Toye Sobande

the organisations’ DNA and part of everyone’s vocabulary. When it comes to getting the followers or staff more involved and being part of the change, it is the task of transformational leaders to create an avenue for open communication, where leaders can quickly get feedback as the implementation takes place. This avenue gives team members a voice to speak out on the impact the change is having on the organisation. They are thus providing the leadership with the data they need to work out the kinks in the strategic road map and then come out with a more reliable and detailed plan. What this means is that the organisation might have to realign the operations for the new vision to be truly useful. For the culture champions to be truly effective in getting the new culture in place, they need to get adequate and continuous training. This training is to upgrade their skills and keep them prepared so that they will be able to lead the organisation into a new dimension. Sobande is a Lawyer and Leadership Consultant. He is a Doctoral Candidate at Regent University, Virginia Beach, USA, for a Ph.D. in Strategic Leadership. He can be reached through Email: contactme@toyesobande.com

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Friday 05 June 2020

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Lynching Akin Adesina THE NEW WEALTH OF NATIONS

Obadiah Mailafia

he culture of lynching and genocide is deeply embedded in the gestalt of American race relations. In the Jim Crow South of the sixties, it was the norm for the KKK to hang a young African-American man on a tree for allegedly staring at a white woman. These days, the lynching is done mostly through the police and the criminal justice system. This is how it comes about that there are more black men in prison than in college in the United States. Last week, an unarmed AfricanAmerican man, George Floyd, was arrested by white policemen in the city of Minneapolis, Minnesota. Their kingpin, Derek Chauvin, threw the handcuffed 46-year old to the ground and placed his knee on his neck. The poor man kept pleading, “I can’t breathe”, until life was snuffed out of him. It was a coldblooded murder. Riots have spread all over the country in protest. A tearful Barack Obama came out to plead for a New America -- for a more tolerant and more compassionate America based on fairness, justice and racial harmony. Racism has remained the defining character of American civilisation. Racial bigotry has, sadly, gotten worse in the Age of Trump. His body language and lugubrious rhetoric have made it acceptable, if not attractive. I am not anti-American. I am, rather, an admirer of American government, entrepreneurship and can-do spirit. Americans are a generous and warm people. Some of my dearest friends are white Americans. What we see today is a gross travesty of the ideals that define

America as a land of hope and glory. In the seventies, for example, former Secretary of State Henry Kissinger and the neo-pagans in the State Department articulated de-population as the cornerstone of their African policy. There has been a silent population war against our people. It is a welldocumented fact that the erstwhile Apartheid regime were deliberately injecting black people with the HIV/ AIDS virus. This is how it comes about that the pandemic has wrecked such terrible havoc in Southern Africa. The same may be said of Ebola. Between Washington DC and Beijing, they know more than we do about the origins and provenance of the novel coronavirus “pandemic” that has been inflicted upon a despairing world. The most recent case of lynching is that of the current serving President of the African Development Bank Group (AfDB), Akinwumi Adesina. As everybody knows, his five-year term comes to an end in August. He has submitted his candidacy for re-election, with full endorsement by the Buhari regime, ECOWAS and the African Union. So far, he is the sole candidate. And then, out of the blues, a catalogue of alleged misdeeds has been slammed on him by an anonymous “Group of Concerned Staff Members of the AfDB”. The accusations centre on abuse of office, corruption, favouritism, unethical conduct, conflict of interest and impunity. They also claim Adesina has been implementing a policy of “Nigerianisation” of the bank. The matter recently came up before the Ethics Committee of the bank, which exonerated him. But the Americans are up in arms. US Treasury Secretary Steve Mnuchin has written to the board, demanding an independent inquiry. Some of the accusations are plainly stupid. Writing a few days ago, a former BBC journalist Larry Madowo claimed that the Trump administration are against Adesina because of his alleged “flamboyance” and for being “a sharp dresser known for his expensive tailored suits, immaculate white shirts

and an endless supply of colourful bow ties”. Officials from the Quai d’Orsay, the palace that houses the French Foreign Ministry in Paris, were quoted as complaining that Adesina, a fluent French speaker, rarely speaks the language during important meetings. Adesina cuts this image of a squeaky-clean Southern Baptist preacher, with a brand that is svelte and debonair. He must be paying quite a fortune to the tailors in Saville Row and Champs d’Elysée for those suits. But that’s not a crime. Bankers are expected to dress well. And as good dressing goes, Adesina tails, in my view, behind former bank President Wila Mungomba of Zambia. Nobody ever accused Wila of being “flamboyant”. As for the French tantrums, they are the kind of gratuitous insults we would expect from Paris Akin Adesina has been one of the most successful CEOs of the AfDB. He has doubled the bank’s capitalisation from $100 billion to $208 billion. He has enhanced its knowledge capital and made the institution more relevant to the needs of our continent. He is passionate about industrialisation, technology and innovation, which are, apparently, anathema to the so-called “development partners”. A first-class graduate of Agricultural Economics with a prized doctorate from Purdue University, Adesina is a former Vice-President of the Alliance for a Green Revolution in Africa (AGRA) and a successful former Nigerian Minister of Agriculture. He is the 2017 winner of the prestigious World Food Prize. He has attracted bright talents to the bank, one of them being his Chief of Staff, Banji Oyelaran-Oyeyinka, a brilliant technology policy scientist. It has been rumoured that the real problem is that the Americans feel he has cozied up too warmly to Beijing. For them, their enemy must also be our enemy, whether we like or not. The whole thing reeks of bad faith. Without prejudice to the ongoing investigations, I do not think the Americans have a right to exercise veto powers on who becomes President of the African

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The whole thing reeks of bad faith. Without prejudice to the ongoing investigations, I do not think the Americans have a right to exercise veto powers on who becomes President of the African Development Bank. Perhaps we need to remind our friends in Washington that this bank is ours, not theirs

Note: The rest of this article continues in the online edition of Business Day @https://businessday.ng Dr. Mailafia is a former Deputy Governor of the Central Bank of Nigeria, a development economist and public finance expert with a DPhil from Oxford obmailafia@gmail.com; 08036590990 (text messages only)

English for official purposes

egister can be explained as the style of language and grammar used in a particular field, and all disciplines have their respective jargon. In this connection, readers should take note that jargon does not mean nonsensical words, as spuriously assumed by many people. Factually, jargon encapsulates technical words which are used by a group of people in their profession. These words are often esoteric in nature; that is, they are scarcely understood by laymen. Furthermore, jargon is a non-count noun which does not attract the plural marker, “s.” Other words that do not attract the plural indicator are vocabulary and slang. Vocabulary means all the words known and used by a particular person. Considering this, I presume that you have not always defined it as “big big English,” just like I did several years ago. Slang is very informal language that is usually spoken rather than written. Besides, it could be used to reflect the peculiar lingo or local parlance that is prevalent in particular climes. Therefore, when next you hear, “mofo o,” “gbe body e,” “shaku shaku” and whatnot, they exemplify slang, slang terms, slang expressions or slang words (not slangs) in the Nigerian pop culture. May I equally add that the slang used by criminals, which are often not understood by the general public are called argot (refrain from pronouncing the “t”

in the word). Moving forward, caution must be observed when deploying words in official settings. For one, it is noteworthy that a system of fixed rules that chiefly determines how one should comport oneself in official/formal settings is called “protocol,” not “protocols.” As such, “Government functionaries ought to learn the art of public speaking and ‘protocol.’” However, “protocol” is regarded as countable in medical lexicon. For this reason, advisories that were established in the wake of the remorseless COVID-19 pandemic, including regular washing of the hands, the use of hand sanitiser, wearing of face masks and physical distancing measures are aptly called health “protocols.” Moreover, while we have working conditions, working relationships and working practices, the aggregate of the undertakings or job we have performed to date is called “work experience” — another uncount noun — not “working experience.” Technically speaking, therefore, “Jide has ten years’ work experience.” You aren’t supposed to say/write, “Jide has a ten-year working experience.” Meanwhile, those who job-hunt ought to be adequately informed that a formal written request for a job is designated as an “application” or “letter of application” — not an “application letter.” Along these lines, it behoves such individuals to write an “Application for the Post of Teacher/Editor/

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Development bank. Perhaps we need to remind our friends in Washington that this bank is ours, not theirs. It is for Africans to decide who has the best fit to lead this great pan-African financial institution. And I do not think the majority shareholders should accept that the existing rules and statutory processes should be set aside in favour of an external panel of investigators. The AfDB is a multinational finance institution with 80 members, of which 54 are African while 26 are non-regionals. Nigeria is the biggest shareholder, with 9.1 percent; followed by the United States with 6.5 percent; and Egypt in third place with 5.5 percent. Others are Japan (5.4%); South Africa (4.9%); Algeria (4.1%); Germany (4%); Canada (3.8%); Ivory Coast (3.7%); and France (3.6%). With the largest shareholding in the World Bank and IMF, America permanently keeps the Presidency of the Bank while Europe hangs on to the Managing Directorship of the Fund. Nigeria, the largest shareholder at the AfDB and sole financier of the Nigeria Trust Fund, has never had its national as President until 2015. I was a career economist at the bank. I know that our influence has been very low while aniNigerian sentiments run deep in the bank’s institutional culture; much of it orchestrated by non-regionals that see Nigeria as a threat to their hegemonic ambitions on our continent. It seems the image of the selfconfident and well-educated Nigerian grates with the sensibilities of the transAtlantic world powers. By our education, self-confidence and capacity for self-exertion, Nigerian professionals upset their image of the African as a mindless Little Black Sambo.

The Gift of Gab Receptionist/Lecturer, etc. without including the indefinite articles a/an before the post. By the same token, don’t write an “Application for the Post of ‘a’ Teacher” or an “Application for the Post of ‘an’ Editor.” Similarly, it won’t slip my mind to mention that a “resignation” or a “letter of resignation” can be tendered; not a “resignation letter.” In addition, it has come to my notice that the overwhelming majority of Nigerians often confuse “resume” with “assume,” in their workplaces. For clarity’s sake, you are supposed to “resume” an activity, a job and the like, after it has been interrupted in times past. On the other hand, you are duty bound to “assume” a role and responsibility, among other things, for the very first time. Pursuant to the foregoing, the written record of a meeting is called minutes (not minute). More fascinatingly, the word attracts a plural verb (not a singular verb) and also a plural pronoun, even if it is the report of a single meeting. By the same token, “The minutes of the last meeting were (not “was”) approved unanimously; everyone agreed that they (not “it”) were correct. Does that evoke surprise? Recall that I informed you a fortnight ago that English is a mad language! For the record, also, the writing paper that has the name and address of a person or organisation embossed on the top is not a “letter

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Ganiu Bamgbose

heading,” a “letterheaded” or a “letterheaded paper;” it is simply a “letterhead.” Against this background, the letters and other information sent or received via email are called “mail,” and the foregoing should not be pluralised. Hence, go ahead and respond to all your mail. Be in the know, too, that a short thin piece of wire found in a stapler, which is used to fasten sheets of paper together is a “staple,” and not a “staple pin.” I shall round off this treatise on the note that, the small card that portrays your name, company name and job title is a “business card.” This negates the use of the erroneous version called a “complimentary card.” Dr Bamgbose (Dr GAB) has a PhD in English and lectures at the Pan-Atlantic University, Lagos. He is a social commentator who writes on different issues of national concern and the author of daily online English lessons titled “English for Today” with hundreds of lessons available on his website www.englishdietng.com.

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Ekwegh is a private legal practitioner with over 15 years

Friday 05 June 2020

BUSINESS DAY

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COVID-19 and the future of work HumanAngle

Femi olugbile

everal years ago, it came to you that Work was not a wellresearched area of scientific study for psychiatrists and psychologists in Nigeria, and in Africa as a whole. And yet Work was an important part of everyone’s life. Intrigued, you decided to carry out research on the Nigerian worker – who he was and what made him tick, and to write a book about your findings. The project would, of course, require a sponsor. You broached the subject with your friend Fola, a man who had already acquired something of a cult status in banking circles as the principal force behind a new generation bank that was redefining banking culture in Nigeria. Might his bank be willing to sponsor a book on Work as CSR? He listened intently for several minutes, with his usual air of calm reflection. You would need to make a presentation to Management, he announced at length. On the day of the presentation, his deputy, Tayo, directed affairs. Work, you explained, was a central connecting thread in human life, from cradle to grave. Much that was anecdotal, and pejorative had been said about the Nigeria worker. It was surely be a good

idea to have an authoritative reference volume on the psychology of Nigerian workers bearing the imprimatur of the bank. Tayo looked genuinely interested in the subject. He was in his shirtsleeves and he had a kindly face with a gentle smile. He asked a few probing questions. Two years later, “Nigeria at Work – A survey of the psychology of work among Nigerians” was formally presented at the bank’s Annual General Meeting, with a review by Oxonian publisher and teacher, Dafe Otobo. Writing the book, for you, was an educational journey, offering up interesting insights and memorable encounters, such as a whole afternoon spent talking with Professor Olatunde Oloko, the world-acclaimed sociologist famous for his research on workers in Ewekoro Cement factory. Through the book, you found that Nigerian workers valued “opportunity to advance in the company” more than just the promise of a generous salary. And you discovered that workers were de-motivated if “the pathway to desired goal” (promotion) was not transparent and uniform for everybody. In the decades since the writing of the book, the knowledge that the mental and social health of workers are crucial to the bottom line of the organisation has gone mainstream. With the current cross-cutting influence of the Information Communication Technology in Work of all categories, the prototype of the modern worker is shifting from the assembly plant drone who sings the company anthem daily, and expects to be in the chaebol all life-long, such as you saw during a visit to the Sony complex in Tokyo in its heyday. The prototype worker, more and more, is a

smartphone and laptop-wielding nerd whose allegiance is to the next bright idea. He, or she, expects to go through easily five employers or branch out and set up on their own. COVID-19 has imploded on the world, bringing totally unique challenges and, perhaps, opportunities. The world has been in an unprecedented lockdown. Not only have whole industries been grounded, but their very survival has been called into question. The idea of “working from home” has gone from a vague metaphor for slacking to an absolute necessity. Even children now “school from home”. In taking on this new expanded definition of home life, new technologies have sprung up, and existing platforms have been expanded and popularised. “Zoom”, a web-platform for conferences has spiralled up astronomically during the COVID-19 lockdown, and the word “Zoom” itself has become a part of common chatter. “I’ve been zoomed off my feet today” means the individual has held several zoom meetings, perhaps sitting before his ragged bookshelf. The airline industry has been among the worst hit sectors, as nations shut down international travel. It is feared that even an end to the COVID-19 crisis may not lead to “business as usual” for many businesses. Many businesses will not recover from the financial devastation of COVID-19. Many will become unnecessary or unprofitable. New business possibilities will emerge. Will it really be necessary to have so many air flights, and so many airlines? Will tourism be redefined and realigned, killing off some current options, but creating opportunity for new entrants? Is it really necessary for people to work five days a week? Is it necessary for people to go to work every day, or

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COVID-19 has imploded on the world, bringing totally unique challenges and, perhaps, opportunities. The world has been in an unprecedented lockdown. Not only have whole industries been grounded, but their very survival has been called into question

should “working from home” become a greater part of the new normal? Will communication and all the other functions involved in the work process be decentralised beyond COVID-19 so that “Work” does not always mean “office”? In Lagos, with its perpetual traffic congestion, is it a chance to finally solve the okada menace and move forward on the journey to becoming an efficiently mobile megacity? Go-kada and other organised operators became couriers and home-and-office delivery facilitators in the lockdown. That could be expanded beyond COVID-19, increasing on-line grocery-shopping, increasing inter-office message delivery systems, and reducing the need for people to travel from place to place in the daily crush on the Third Mainland Bridge. Perhaps it is the opportunity to take street traders off the streets and give vendors roles in neighbourhood mobile “way-markets” conveniently located in lay-bys. Now that basic food self-sufficiency has become an achievable option, deliberately channelling technologically minded youths into the agricultural value chain could engage hands and increase efficiency in production and distribution. Not a lot of people will want to commit to doing the same thing year in year out, for a whole lifetime. Youths will try to develop new competencies, always on the lookout for new possibilities. In such a new world, people will be defined by the skills they have, what they do now, and what they plan to do next, rather than what they studied in school and who they have worked for. Welcome to the brave new world of post-COVID-19 Work, loading. Olugbile is a writer and psychiatrist. synthesiz@gmail.com

Racism and economics – what blacks should know

e are making a mistake building walls than bridges. Beyond singing Wyclef’s Diallo; beyond screaming “I can’t breathe” in solidarity of George Floyd comes a reality. When it comes to marginalisation in the 21st Century, playing Malcolm and Martin Luther King is played out. The same goes for shouting Biafra on the streets of Aba before Operation Python or screaming Aluta like Sowore as if it’s 1993 again in his Unilag prime. Mere protests around marginalisation if not in your small campuses remains a temporarily solution to a permanent problem. Tribes and race battles aren’t about accents and colours. Leave that for Language classes and Fine Art lessons. It’s about economics and power. If you don’t crack that code, you’re screaming in vacuum! Protest especially when it overstays its welcome will always be hijacked. This is same for every cycle of black protest mainly against racial profiling, xenophobia, police brutality, and inequality in the justice systems. Racism is more socio-economics. In other words, blacks in America need to step up their game. We can do much more than Ferguson Protests and Trayvon Martin’s memories. We can do more than remember slavery, complain of racism, and also begin to hate other people as we do ourselves. Beyond noise, what’s the strategy? No one really respects you if they don’t think you have a backup Being organised is everything. On the streets where the likes of Floyd die for an alleged 20 fake dollar bill crime, the Chinese, Indian and Italian gangs are bloodier than black gangsters (which by my view are even exaggerated in movies and Hip Hop). However, no one touches them recklessly. This is because they know that if they

do, there are organised systems and people who will fight for them. It may even become an international issue as they come from a community that is powerful. This is one of the most powerful concepts. But let’s be real, there’s no real power without unity and progress. This means finance also. You rarely can go far without a strong culture Everybody has a culture. It is defined as a way of life. The truth is, some cultures are stronger than others. Culture is not biological, it is social, and this means it is not genetic but acquired through learning and passed through interactions and into generations. The Jews have one of the strongest cultures, that even though Christianity came from their background, they still embrace Judaism. The Arabs, Chinese and Japanese are where they are because they haven’t allowed any drastic European trend from eating up their core. I suspect that Africa after all its initial hoax will embrace gay laws and the LGBT community eventually than others, especially as it becomes “cooler”. Keep watching. Black culture has a strong porous affinity for the material and short termed as against any other race. Therefore, the differences in development between say the white and a black society has nothing to do with superior intelligence but that of consumerism as against production. The reason why the white society is what it is today is due to the default stronger culture they were created with which involves the zeal to produce for exploration, innovation and adventure. The African default culture is different and lacks these three features. The African culture values tradition so much that they don’t give room for changes, improvement and innovation.

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We are consumers, we rarely produce Looking away from the window to the mirror, you’d see that something must be wrong with blacks and Africans at large. In America, they are the ones that spray money at strip clubs. In Nigeria we spray money at parties, we flaunt wealth more on IG and use “giveaways” to gain unnecessary attention. In this minimalist movement era, we still bask in the complexities of retail consumerism than any other race. While we rarely produce, we are the biggest customers of luxury and consumer products. Beyond being customers, we need more black owned businesses. We need not just individual wealth but an interdependence of our own empires. We need our own ecosystems. Beyond raw materials and commodity trading, we need processes and processing. Take for example, Cote d’ Ivoire sells off Cocoa and then imports Chocolate. Sierra Leon sells off Diamond and then imports Jewellery. Even Nigeria, we sell off Crude oil and imports petrol! Materialism creates consumerism. It’s a wild goose chase where the things you strive to own ends up owning you. Too many people in Africa spend money they don’t have to buy the things they don’t need, just to impress the people they don’t like. Most times, those people don’t even care. Bitterness and resentment surround us Nothing good is attracted to misery. I tell people, confront what you don’t like and let it go. Don’t keep spilling your misery on other people’s happiness. I get upset when Blacks hold grudges from 200+ years ago of slavery. That’s too deep for a progressive mind. Some people even blame it for their own personal backwardness, even if laziness and their personal ignorance was the cause. I hate it when the

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EIZU UWAOMA best and award-winning black movies always have to be tied to slavery. Media isn’t helping, because if you keep telling the same old story, you’ll keep living the same old life. I can relate to marginalisation, for I come from the Eastern part of Nigeria. I am Igbo, we fought a very bitter Civil war In Nigeria to liberate Biafra. It didn’t work, and till this day, we have been marginalised. I totally agree. But what has politics done for the areas like say the North East whom their leaders have been on top, are they really living more in wealth, peace or prosperity than us? My point is, the past may either make you bitter or better. We may be politically irrelevant, but if we took out any atom of bitterness and faced what we have, our economic brilliance, creativity, wisdom and entrepreneurial spirit, we can collaborate more, we can buy back everything we lost and more, including power and that freedom if we still need it. Let’s build something tangible like the Jews have done, other things like power will align. It is just the principles of life. So, face your work, at least you have one.

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. contacteizu@gmail.com

@Businessdayng

Friday 05 June 2020

BUSINESS DAY

Editorial No means No

Publisher/Editor-in-chief

Frank Aigbogun

Sexual offence bill must be enforced. The menace, rape, must stop!

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

Bashir Ibrahim Hassan

he age of consent in Nigeria according to Section 31 (3) (a) of the Child’s Rights Act of 2003 is 18. It states that, “Where a person is charged with an offence (of unlawful sexual relations with a child) under this section (31 of the same Act), it is immaterial that the offender believed the person to be of or above the age of eighteen years.” However, if you search, “Age of consent in Nigeria” on Google, you will see 11 years. The Nigerian constitution states 18 years but the age stated by AgeOfConsent.net seems closer to the Nigerian reality given that child marriage is still rampant in some parts of the country. As at May, for instance, 11 Northern states are yet to adopt the Child’s Right Act of 2003. Furthermore, Section 7 of the Sexual Offences Bill disallows sexual intercourse

with anyone between the ages of 0 to 18. The penalisation is a life imprisonment once they are convicted. Consent means permission for something to happen or agreement to do something. Sadly, in a series of distasteful happenings in Nigeria recently, the word “consent” wasn’t the case when 22-year-old, Vera Uwaila Omozuwa, a microbiology student who sort a tranquil environment, but safe, for effective assimilation, chose the church. She was raped and bludgeoned with a fire extinguisher. Also, Jennifer an underage girl was also raped by 11 men. The culprits, according to reports, have been apprehended but how many more are walking the streets freely? These are just few of several grisly stories of rape perpetuated by paedophiles in suits and exotic traditional wears, in causals and robes, unsuspecting passers-by, uncles, family friends, clerics, small and big business owners

etc. who seem to get away with such devilish acts in a porous country like ours. To their shame, the umbrellas are flying off, the tool called social media is not letting any of these go by, perpetrators are constantly being called out and proof is no more alien, it is showing up to be used against them. In the case of Vera, arrest was made after fingerprints on the fire extinguisher were examined. Else, how many cases of rape have been silenced? How many girls have been threatened not to speak and are dying in silence? Have there been investigations examining objects and fingerprints at crime scenes before now? How often do the police examine for fingerprints? How many culprits have been arrested? How many have been allowed to go free? In Nigeria, where State Houses of Assemblies are allowed to make laws in their states, it therefore means, by law, an 11

or 12-year-old could still “legally” get married. As long as the Child’s Rights Act is only being carried out in 24 states, certainly, a 12-year old will be married off. It however, doesn’t change the fact that at that age, any sexual activity with the minor, according to the Child’s right Act is rape. If the sexual offence bill is not enforced beyond being written in the constitution, if the state laws aren’t reviewed and restricted, if there are unresolved collective agreement on marriageable age, people will exploit these loopholes in the law to satisfy their barbaric cravings to subdue minors, exposing them to various diseases like Vesicovaginal Fistula among others. No means No! not just a word but a complete sentence. Underage sex is rape and it is a crime. Likewise, sex with an adult without consent is also rape and an act of crime. Perpetrators must face the law without bias.

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Friday 05 June 2020

News

BUSINESS DAY

Products Review

Technology Review

Personality Review

FINTECH

Company Review

Why merchants still experience payout delays from payment providers in Nigeria FRANK ELEANYA

ver the weekend, Sam Ireke, a legal practitioner and founder of an online legal resources firm, received payments in dollars from his clients in South Africa through his Nigerian payment provider, Paystack. To his surprise, the Nigerian payment processor had updated its payout rules. Ireke later confessed to paying scant attention to dozens of emails Paystack sends to his email. The new rules updated in April noted that there is a limited amount merchants can receive automatically which attracts some cost. Alternatively, merchants can decide to leave the funds to accumulate so they can receive it in bulk and pay less fees. Normal payout means merchants have to wait 24 hours for Nigerian naira settlements, two days for Ghanaian Cedi, and seven days for dollars. “We have two payment cycles every day, one in the morning and the other in the afternoon. If you do not receive your payouts in the morning you can rest assured you’ll get it in the afternoon,” Stephen Amaza of Paystack wrote on the company’s blog announcing the updated rules. Receiving payments the next day may not seem much of a hassle until you add holidays and weekends to it, then the waiting grows unnervingly long. Ireke’s client paid on a Friday evening. Unfortunately, the federal government had declared Monday and Tuesday as public holidays to celebrate the Muslim end of fasting. Since settlements are not also done on weekends and holidays, which means that Ireke and anyone like him was going to wait until Wednesday to receive payment for a transaction he concluded on Friday.

“This is COVID-19 situation. And it doesn’t begin to make sense to hold onto small business funds for four days straight. Online payment connotes virtual flexibility to be able to sidestep some of the challenges physical banking and cash occasions,” Ireke told BusinessDay. The World Bank estimates that there are 400 million micro, small and medium enterprises (MSMEs) in emerging markets. These contribute over 60 percent of total employment and up to 40 percent of national income (GDP) in emerging economies However, about 70 percent of these businesses lack access to formal credit. The credit gap for SMEs is $2.6 trillion; with the micro-segment included the number goes over the roof. For banks to provide funding to these SMEs there has to be some form of verifiable information to help in assessing their creditworthiness. Digitizing merchants’ payments, therefore, directly helps to bridge the lack of information by providing detailed, time-series data on cash flow. Also, online payments dramatically expands the size of

a merchants’ target audience, says Emmanuel Quartey, Head of Growth, Paystack. Since they’re no longer constrained by time and place, a merchant can sell to customers from all over the world, even while they sleep. It’s exponentially easier to perform important administrative tasks such as financial reports, reconciliation, audits, refunds management, and a lot more. A delay in payouts could, however, be a disincentive in the adoption of digital payment channels. Add delays to the extra cost that paying digitally comes with, then you have more merchants willing to drop their PoS terminals. In a report conducted by PYMNTS, 61.3 percent of brickand-mortar microbusinesses said they might delay vendor payments as a result of not having access to cash, and 66.7 percent of omnichannel microbusinesses said this could force them to take longer to make payroll. Ayooba Lateef (not real names), another merchant who uses Flutterwave and experiences delays said he has learnt to reduce the impact by asking

some of his clients to make payments in bitcoin, which goes to his virtual wallet in less than 30 minutes of transfer. At a Lagos conference in 2018, Agada Apochi, CEO of Unified Payments (UP) said that digital payment adoption was very low as merchants largely chose to ignore channels like Point of Sale (PoS) and transfers because of delay in settlement. As a result, Nigeria was doing less than 10 percent of its potential in electronic payments. Unified Payment had attempted to solve the problem in July 2018 with the UP Hourly Settlement Service (UP-HSS). The UP product ensures that retailers get their money on an hourly basis in addition to a full settlement report that aids them in reconciling daily. But there is more to digital payments than meets the eye. In an email response to BusinessDay, Paystack explains the different loop that a transaction goes through before making it to cash out. According to Quartey of Paystack, when a customer makes a payment to a merchant with Paystack, the money first goes to a payment pro-

cessor, which then sends the money to Paystack so that we can pay it out to the merchant. Most of the processors settle on a T+1 basis (I.e. within 1 working day). The money is usually paid out by the next morning, but it’s not usual for the money to arrive in the afternoon. The T or transaction date is the date on which the transaction happened and it is counted as a separate day. The model is borrowed from the stock exchange guideline issued by the Central Bank of Nigeria in 2012. While it is globally uncommon for payouts to be instant, Nigeria’s T+1 system is said to be ahead of markets in the US and Europe where payouts are an average 3 working days. But a few global payments are already trying their hands on instant payments. Fintech firms like Square and PayPal have created services where sales can be done in real-time and pushed to the merchant almost as fast as sales are made. “Ideally, we shouldn’t pay out merchants before we’ve been settled by the processors, otherwise we are using our own funds to do so,” Quartey said. Nonetheless, Paystack says its finance team strives to pay out all merchants by 10 am every weekday. Flutterwave has a similar rule. Merchants receive local payments the next day while international payments vary depending on the region. The payment company has also attempted to crack the instant settlement dilemma with Rave in 2019. Merchants on Flutterwave receive their funds via Rave. But it was not open to every category of merchants. “You don’t have to change any setting right now because you’ll be notified in your dashboard as soon as Instant Settlement is available to you, so you can choose whether or not to enable it. Instant Settlement will be enabled for all new mer-

chants by default, although we still reserve the right to accept or decline Instant Settlement for any merchant,” the company had noted in a statement in 2019. In an email response to BusinessDay on Wednesday, the company said the sameday settlement was no longer available on Rave. But settlements are done on weekends and public holidays. Also, all international settlements are made in 5 days, there is no difference in countries. A source close to the payment companies told BusinessDay that while instant settlements is a service they are eager to offer to every merchant, commercial banks which are an important link in the settlement process are not making it easy. Maryam Asima, Customer Support at Flutterwave told BusinessDay that a timeline is needed to “ enable us to liaise with the bank and also to ensure disputes and chargebacks do not occur during the holding period.” It is important to note that the Merchant Settlement Charge (MSC) is another source of income for banks. The CBN guideline on charges stipulates that the maximum total fee that a merchant shall be charged for any POS transaction shall be 1.25 percent of the transaction value subject to a maximum of N2,000.00. Notwithstanding, there is substantial demand for rapid settlement services, which enable merchants to have access to funds within 30 minutes of payment. “This is something we’re actively working on and will announce formally very soon. In general, we’re actually very sensitive to this idea of faster payouts, because we understand well how certain cashintensive businesses need that money to reinvest in the business,” said Quartey.

Hunt for Africa’s fintech unicorn back to zero as Interswitch loses place on global list FRANK ELEANYA

agos-based fintech company, Interswitch did not make the May 2020 Unicorn Startups List of more than 470 private companies around the world valued between $1 billion and above. Before the COVID-19 pandemic, Interswitch was the only fintech firm in Africa that

joined the illustrious league in November 2019 following the $200 million funding from Visa. The company also joined Jumia as to become the only two indigenously grown African unicorn companies. Jumia has since dropped from the list following a series of financial losses that led to selling off some assets in about four countries and the eventual exit of the original investors in www.businessday.ng

the ecommerce company. Interswitch’s plan of going IPO on a major stock exchange - preferably London - has been one of its major attractions. The company had reportedly wanted to build momentum by engaging JPMorgan Chase & Co., Citigroup Inc, and Standard Bank Group to work on a tentative IPO in November, which would have seen the company valued between $1.3

billion to $1.5 billion. However, the company rolled back the plan after the Visa’s 20 percent acquisition. The IPO plan was reportedly put on hold until 2020. The COVID-19 pandemic could force the company to delay a little while longer, while it finds ways to mitigate the impact of the virus on its business. Representing Africa on the unicorn list are Promasidor and

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Cell C both located in South Africa. Promasidor was founded in 1979 by Robert Rose, who left the United Kingdom in 1957 for Zimbabwe to pursue an African dream. Today the company supplies food products in more than 30 African countries. Cell C, at launch, was wholly owned by 3C Telecommunications, which in turn was 60 percent owned by Oger Telecom South Africa, a division of Saudi @Businessdayng

Oger, 25 percent by CellSaf, (a broad-based Black Economic Empowerment entity which represents over 30 black empowerment companies and trusts), and 15 percent by Lanun Securities SA (Lanun is a wholly-owned subsidiary of Saudi Oger Limited). The CB Insight list is dominated by companies in the United States (49%) and China (24%).

Friday 05 June 2020

BUSINESS DAY

COMPANIES & MARKETS

COMPANY NEWS ANALYSIS INSIGHT

With average 6% ROI, Investment One pensions tops PFAs for fund II,III,IV in April MICHAEL ANI

nvestment One Pensions Managers Limited has emerged the top Pension Fund Administrator (PFAs) to have reported the highest Return on Investment (ROI) for the fund II, III and IV categories. The financial services firm grew ROI the most in the month of April by an average of 6 percent in all three aforementioned funds, from levels in the previous month, thanks to its continued innovative products and services from the firm’s experienced and professional employees. On a month-to-month basis, the firm grew its Retirement Saving Account (RSA) Fund II fund price to 2.9166 in April, according to the latest Pencom Data. That’s a 6.16 percent ROI when compared with a price of 2.7474 in the month of March. For Fund III and IV, the firm grew ROI by 5.34 percent and 6.21 percent, to a fund price of 1.2320 and 2.5691 respectively.

Meanwhile, Crusader Sterling Pensions Limited topped the chart in the Fund I category with a ROI of 6.54 percent after growing Fund I price to 1.1307 in April from I.0613 in the previous month. A growth in ROI means

that all the participating contributors to the fund will share from the growth in the form of increase in returns. The Nigerian pension Industry like others operate a multi fund structure, such that retirement savings hold-

he leading container operator, APM Terminals Apapa has deployed equipment and cranes necessary for fast evacuation of cargo at the Lagos Port Complex Apapa, Nigeria’s premiere port, Hadiza Bala Usman, managing director of Nigerian Ports Authority (NPA), has said. Usman, who spoke on a TV programme monitored in Lagos recently, also decried the manual inspection of cargoes by the Nigeria Customs Service (NCS), which she says does not promote port efficiency. “With the deployment of the cranes by APM Terminals, they are now working assiduously with NPA in improving on the operational efficiency which will translate to an improved cargo evacuation for consignees outside of the port location,” she said. According to her, there is also need for prompt deployment of scanners and automation of the cargo clearing process to reduce the burden of consignees using the na-

exposure to stock among the funds under the multifund structure meaning that a higher percentage of fund 1 is invested into buying shares of companies compared to other funds. About 20 percent to 75 percent of portfolios are

Chikwe Ihekweazu (r), director-general, Nigeria Centre for Diseases Control (NCDC); Toyosi Ogunsiji (l), chairperson, Victims Support Fund Task Force (VSFTF) on COVID-19, during the donation of video teleconference solution to NCDC by VSFTF as its contribution to fight Coronavirus pandemic, in Abuja, with them is Alkasim Abdulkadir (m), member, Task Force.

APM Terminals deploys equipment for fast cargo evacuation AMAKA ANAGOR-EWUZIE

ers are placed in fund structures depending on their ages and risk profile. Fund I is a special but optional type of fund that RSA holders who are below 50 years of age can request to be moved to. It has the highest

tion’s seaport. “We will continue to engage with our stakeholders but we recognise that we must enhance efficiency and ensure consignees get their cargo in a timely manner. Some of the things we are doing are pushing to ensure that vessels come in and cargoes evacuated in good time,” she said. Usman, who stated that the authority is also working assiduously with the terminal operators and the Nigeria Customs Service to fast track the process of evacuating cargo from the vessel, and importantly the inspection of cargo, said that it is of great priority to the ports authority, government and more so for Customs. “We need to deploy scanners at our ports so that our cargoes can be inspected using scanners. Right now, as a lot of consignees are aware that cargoes are inspected physically. You can imagine how difficult and challenging that would be having cargoes that come into the country examined physically. We need to make sure that we put in place automation

mechanism to improve port efficiency, she added. On NPA’s efforts to encourage intermodal transportation in cargo evacuation, Usman said that work is ongoing to connect the Tin-Can Island and Apapa ports by rail. “One of the things we should recognise is that a port cannot function if 90 percent of its cargo is going by road. So, we must assiduously recognise the need for intermodal transportation system. That is why the Minister of Transportation has been actively pursuing a rail project. Right now, the contractors are working in linking the Tin-Can Island and Apapa ports with rail connection and that should be completed before the end of the year. Intermodal transportation is what will enable us address the congestion within the entrance of the Tin-Can Island and Apapa ports,” she said. Usman further stated that NPA under its new board will ensure the realisation of deep seaport projects in the country.

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assigned to variable income instruments under the Fund I category. For Fund II, RSA holders who are below 50 years are placed on default. About 10 percent to 55 percent of Portfolios in the fund class are exposed to variable investment instruments. Fund III, is the default fund for RSA holders who are 50 years and above but have not retired. Around 5 percent to 20 percent of portfolios of this class are assigned to high risk instruments. The last pension fund class, known as Fund IV is strictly earmarked for retirees, and are not allowed to move to other funds. Fund IV has the lowest exposure to equity. Year to date, the Veritas Glanvills Pensions Limited has shown great performance, having grown ROI in all Fund I, II and IV. The Pension firm reported an ROI of 9 percent, 4.24 percent and 5.58 percent respectively, while Radix Pension Fund Managers topped Fund III with an ROI of 5.38 percent.

TECH

Prospa debuts in Nigeria to provide banking services for businesses JOSEPHINE OKOJIE

ro s p a h a s launched into the Nigerian market to provide businesses easy and quick access to banking services with the use of mobile and web applications. Prospa is an app that allows businesses to operate and manage their finances effectively whilst focusing on growing their businesses. “Prospa is building accounts for Nigerian entrepreneurs SMEs, start-ups, and freelancers. We are on a mission to empower business owners with the tools they need to succeed,” said Chioma Ugo, head of growth at Prospa. “ We b e l i e v e t h a t a thriving business does not only benefit its customers, owners, and employees but society at large, by increasing wealth, solv-

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i ng d i f f i cu l t p ro b l e m s, and inspiring innovation,” Ugo said. She added that her organisation; Prospa, is making banking simple, accessible, and fast, as a bank account can be opened within five minutes. She stated that Prospa puts business operators in control of their finances, noting that the app is perfect for entrepreneurs who o p e rate mu l t i p l e bu s i nesses. “You can link multiple business accounts and manag e multiple businesses via one app, operate separate accounts, but all in the same place and keep your finances organised,” she explains. “If you want to open a business account fast and avoid the long queues, going back and forth to the bank then Prospa is the perfect solution,” she @Businessdayng

advised. Thousands of Nigerian business owners, freelancers, startups and growing co mpa n i e s a re a lrea dy using Prospa. Fo r S M E s , b u s i n e s s ow n e r s, a n d e nt re p re neurs who need to set up an account within a matter of minutes, Prospa is the perfect solution, she says. For businesses to open an account with Prospa, they need to download the app on android or apple store, provide basic information about themselves and their business, upload their CAC certificate and ID and within minutes the account is open and ready to use. Businesses operating accounts with Prospa have access to community experts who support SMEs in scaling their businesses, bank-grade security, insured deposits, and ringfenced accounts among others.

Friday 05 June 2020

BUSINESS DAY

COMPANIES&MARKETS

Business Event

CIIN launches new course books to catch up with modern economic, social developments MODESTUS ANAESORONYE

n order to remain relevant and meet expectation of today’s social and economic demands in line with global best practices, the Chartered Insurance Institute of Nigeria (CIIN) has began update of the industry’s course books. The exercise, which has seen the over 50 years old Institute upgrade eight of its course books, with another 27 being worked on, is in line with her vision to have insurance professionals that will remain relevant in the scheme of things. Eddie Efekoha, president of the CIIN who disclosed this during the presentation and launch of the first set of course books said this is in line with the fulcrum of his presidency with the theme: ‘Advancing Insurance Education and professionalism’.

Efekoha said he has come to understand as a professional that one of the major factors for success is the ability to adapt within the shortest possible period to events as they unfold around you. “In a manner that is unprecedented, the business world is fast changing and professionals in all fields are being tasked to change rapidly too in reaction to the challenges and opportunities being presented by the advent of technology and the evolving demands of humans. If this was not enough, the entire world has been dragged to its knees by the outbreak of the COVID-19 pandemic and life may not return to the same way as we know it for the foreseeable future.” I cannot say the Institute had foresight of this, but in line with its primary duty of catering for the devel-

opment of the manpower development needs of the insurance industry, the Institute has restructured its curriculum in line with international best standards.” Today, I present to you the first set of course books to be used for the foundation stage of the new CIIN curriculum. The books which number 8 in total are to be used for foundation stage of the Institutes exams F01 – F08. According to him, these books represent a body of work that will greatly stimulate the intellect of the modern day professional. “Subsequently, the books for the other stages will be released to stakeholders for their use appropriately, and total numbers of revised books to be released are 27, and I can tell you that considerable work has been put into ensuring that this idea came into fruition, Efekoha said.

L-R: Austin Avuru, Chief Executive Officer, Seplat Petroleum Development Company Plc; Dr. A.B.C. Orjiako, Chairman, SEPLAT and Edith Onwuchekwa, Company Secretary/Chief Governance Compliance Officer, SEPLAT, at the SEPLAT 7th Annual General Meeting held in Lagos recently.

L-R: Olusola Ayo-Soyemi, Project Manager, Dradrock Real Estate Limited; Oladipo Idowu-Agida, managing director/chief executive officer; Babatunde Adewale, new brand partner for the company, and Babalola Salau, site engineer, Pacific Manor Estate, Lekki, at the signing of brand partnership and visit to one of the estate, Pacific Manor Lekki in Lagos.

REAL ESTATE

Oga For Property rebrands as Zylus Homes JOSEPHINE OKOJIE

ga For Property, a t o p re a l e s tate firm has rebranded as Zylus Homes to expand its operations and provide better services to its customers. The rebranding by the firm is based on the fact that the company wants to move beyond providing a few products to bringing numerous investment opportunities to its clients. “Oga for Property has served its purpose in providing affordable real estate solutions and secure investment options for her clients,” Oluwatosin Olatujoye, chief executive officer, Zylus Homes said. “We needed a name that could accommodate more subsidiaries. We want more

people to know that real estate surpasses selling lands or houses,” Olatujoye said. “There are a lot of products available in the industry. There is also a need to meet the growing demands of clients and diversify by providing more investment options for Nigerians at home and abroad,” he added. He noted that the firm is coming up with new creative solutions for its clients Zylus Homes aim to be a worldclass real estate company and a key player in the Nigerian real estate market. The rebranding reflects the company’s broader commitment and its expertise in driving the innovations needed to shape the future of real estate in Nigeria, he says. On his part, Shina Balogun, the company’s secre-

tary says it is important for a brand to be forward-looking and meet the needs of their target audience and that is what Oga For Property has done. “It is a renowned brand. However, we need to evolve. We look forward to serving our customers as we have always done, and getting maximum support from them, as they have always done,” he said. Zylus Homes is a premium real estate company in Lagos, offering real estate products and services such as property sales, property development, estate development, land banking, real estate consultancy to clients in Nigeria and diaspora. The company is rebranding to meet the growing demands of clients in the Nigerian real estate market.

L-R: Tobi Adeniran , assistant brand manager, Dairy, Promasidor Nigeria Limited; Mercy Arinze, matron, Tower of Refuge Motherless Orphanage Babies Home , Surulere Lagos , and Olumide Olaokun, assistant brand manager, Cereal, Promasidor Nigeria Limited , during the presentation of palliatives to the orphanage home to cushion the effect of COVID- 19 pandemic by Promasidor in Lagos.

COMPANY RELEASE

StarTimes enhances digital TV access with 8 new channels

eading Digital Pay TV provider, StarTimes has announced the introduction of eight new additional channels to its bouquet in a bid to further enhance viewers’ experience and attract more households. The new exciting, educative and entertaining channels will focus on news, fashion, live-action, and children’s programmes for the delight

of television viewers across Africa. The new digital television channels include Sky News, Film Box, Novelas, Fashion Box HD, Gametoon, Toonami and CBeebies. “As a listening organisation, part of our aggressive expansion drive is geared towards fulfilling our promise to deliver an affordable and unmatched entertainment to every Nigewww.businessday.ng

rian home,” the company said on the development. “This is one of our little way of showing appreciation to our loyal customers by giving them more value at these unprecedented times when most people are still working from home due to the pandemic. We want to ensure people have access to quality entertainment with rich and diverse content,” it said.

L-R: Tayo Erinle, executive director Tabitha Cumi Foundation (TCF); Danladi Jarimi, representing Esu of Durumi Mpape, and Oladipo Funke, representing minister of women affairs and social development, during the presentation of mensural kits to Tabitha Girls Club (TGC) as palliative in easing Covid-19 lockdown in commemoration of 2020 Menstrual Hygiene Day, themed “ It’s Time to take Action” held at VTC Durumi Comumunity Mpape in Abuja. Pic by Tunde Adeniyi

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16 BUSINESS DAY

Friday 05 June 2020

FINANCIAL TIMES

World Business Newspaper

ECB boosts bond-buying stimulus package by €600bn

Central bank ratchets up efforts to prevent region slipping into deflationary spiral MARTIN ARNOLD

he European Central Bank has added an extra €600bn to the bondbuying programme that it launched to support the eurozone’s pandemic-stricken economy as it steps up its efforts to stop the region sliding into a deflationary spiral. ECB president Christine Lagarde said the eurozone economy was “experiencing an unprecedented contraction”, adding that “severe job and income losses and exceptional uncertainty” had led to a “severe fall” in both consumer spending and investment. The move to increase the ECB’s pandemic emergency purchase programme to a new total of €1.35tn was slightly larger than most economists’ expectations and means the central bank is on track to buy a record total of more than €1.7tn of assets this year. The PEPP had been on course to run out of firepower by October, having already spent more than €234bn of its original €750bn total by late May. The ECB also extended the timeframe of its emergency bondbuying scheme until June 2021 and said it would “continue net asset purchases under the PEPP until it judges that the coronavirus crisis phase is over”. There had been a “bottoming out” in economic activity in May but the recovery had so far been

Christine Lagarde, ECB president, during a live stream of the central bank’s virtual news conference on Thursday © Bloomberg

“tepid” compared with the speed with which the economy had contracted after the pandemic hit, Ms Lagarde said. She added that inflation had been dragged down by lower energy prices but would “remain subdued” because of the sharp decline in economic activity. The ECB published new forecasts, predicting the eurozone economy would shrink 8.7 per cent this year before expanding by 5.2 per cent next year and 3.3 per cent in 2022. It also slashed its inflation forecasts to 0.3 per cent this year, 0.8 per cent next year and 1.3 per cent

in 2022 — all well below its core target for price growth to be below but close to 2 per cent. Announcing the decision on Thursday, the central bank said: “In response to the pandemicrelated downward revision to inflation over the projection horizon, the PEPP expansion will further ease the general monetary policy stance, supporting funding conditions in the real economy, especially for businesses and households.” Keeping its main deposit rate unchanged at minus 0.5 per cent, the ECB said: “The maturing principal payments from securities

purchased under the PEPP will be reinvested until at least the end of 2022.” It added: “In any case, the future roll-off of the PEPP portfolio will be managed to avoid interference with the appropriate monetary stance.” Some investors had worried that the ECB’s initial bond-buying plan would not have been sufficient to soak up the extra debt of between €1tn and €1.5tn that eurozone governments are expected to issue this year, leaving some of the worst-hit countries, such as Italy, facing a surge in their borrowing costs.

Yields on Italian and Greek government debt dropped sharply after the announcement; yields fall when prices rise. The yield on 10-year Italian debt dropped 16 basis points to 1.41 per cent and on equivalent-maturity Greek debt fell 13bp to 1.40 per cent, the lowest level since early March. The difference between yields on 10-year German and Italian bonds — a widely watched indicator of eurozone political risk — declined to 1.76 percentage points, its narrowest since late March. The move shows Ms Lagarde wants to stay ahead of the curve, some analysts said, after she was forced to apologise to colleagues in March for giving the impression that she was reluctant to act to combat a sell-off in the bonds of southern European countries. “To judge by the size of today’s uplift, it appears that [Ms] Lagarde has well and truly learned her lesson from early March’s mis-step,” said Kenneth Wattret, chief European economist at IHS Markit. “The ECB has bought itself some time but the pressure will inevitably build to do more.” Strategists at ABN Amro argued that “a further increase in the PEPP envelope will likely follow later this year”. “This reflects the deep recession in the economy and the significant disinflation it will trigger over the coming years,” they said.

Covid-19 pandemic hits black voters’ incomes hardest, FT poll shows Latest FT-Peterson survey underscores coronavirus disparities amid outcry over George Floyd LAUREN FEDOR AND CHRISTINE ZHANG

ar more African-American than white voters have suffered a reduction in their family’s income due to the coronavirus outbreak, according to a poll for the Financial Times that underscores the racial disparities of the Covid-19 pandemic. The survey showed 74 per cent of black voters reported a financial hit compared to 58 per cent of white voters. It also found that more African-Americans had lost their jobs since the outbreak began, highlighting the growing economic inequalities at a time when Americans are protesting against the killing of George Floyd. The monthly survey of likely voters for the FT and the Peter G Peterson Foundation found 25 per cent of black respondents had been dismissed or furloughed since the start of the recent lockdowns, compared to 19 per cent of white respondents. The findings of the latest FTPeterson poll, conducted between May 20 and 26, come as more than 100,000 Americans have died from

About a quarter of likely black voters in the US reported having been dismissed or furloughed from their jobs since the lockdowns began, compared to 19% of white respondents © Bloomberg

Covid-19, a virus that has disproportionately killed black and Latino Americans. Polling concluded a day after Floyd, an African-American, was killed in Minneapolis after a white police officer knelt on his neck, setting off a wave of protests that has swept US cities nationwide and revived long-simmering tensions over race in America. The FT-Peterson poll highlighted how the deadly coronavirus had www.businessday.ng

disproportionately taken the lives and livelihoods of black Americans. The survey showed black Americans were more likely to be pessimistic about both the public health crisis and the potential for an economic recovery than their white counterparts. Forty-three per cent of black voters said the coronavirus outbreak would get worse in their community in the next month, compared to 32 per cent of white voters.

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African-Americans were also more likely to support a slower reopening of non-essential businesses, with 48 per cent of black voters saying restrictions and social distancing should be lifted within three months, compared to 64 per cent of white voters. Congress has approved almost $3tn in economic relief since the start of the coronavirus pandemic, including the $2.2tn Cares Act, which was signed into law in March and included one-off $1,200 “economic impact payments” for Americans earning up to $75,000 a year. Of the likely voters surveyed, almost all black voters — 98 per cent — said an additional “economic impact payment” was important to them and their families, compared to 72 per cent of white voters. Almost two-thirds of black voters said they would use the federal money for basic living expenses, such as food, mortgage or rent payments. The findings, which are part of the monthly FT-Peterson US Economic Monitor, underscore the challenges facing Mr Trump ahead of November’s presidential election, when he will face former @Businessdayng

US vice-president Joe Biden, the presumptive Democratic party nominee who clinched his party’s nomination with the overwhelming support of African-American voters. Mr Trump had centred his reelection efforts around his stewardship of the economy, which has had its worst collapse since the Great Depression because of nationwide lockdowns. The latest poll found that 36 per cent of Americans said they were better off since Mr Trump became president, compared to 29 per cent who said they were worse off. White voters were significantly more likely to report being better off than black voters, with 41 per cent of white voters saying they were better off, compared to 12 per cent of black voters. With just under five months to go until election day, the economic fallout of the coronavirus crisis, as well as the political backlash over Mr Trump’s handling of the Floyd protests, appear to have helped Mr Biden to widen his lead over the incumbent in nationwide surveys.

Friday 05 June 2020

BUSINESS DAY

COMPANIES & MARKETS

Eurozone bond prices jump after ECB move Investors cheered by pledge to expand debt-buying programme by €600bn HARRY DEMPSEY, PHILIP STAFFORD AND HUDSON LOCKETT

urozone bonds rallied on Thursday after the European Central Bank announced a biggerthan-expected boost to its stimulus package to tackle the economic fallout from the coronavirus crisis. The yield on 10-year Italian and Greek debt dropped sharply after the ECB said it would expand its bond-buying programme by €600bn and extend it until 2021. The additional yield on Italian 10-year debt over German debt — a key measure of risk for the eurozone — fell below 1.8 percentage points, from a peak of 2.8 points during the coronavirus sell-off. Italian debt slipped 0.16 percentage points to 1.4 per cent, equating to the lowest borrowing costs for the country since March. European stocks, which have outperformed US markets this week, trimmed earlier gains. London’s FTSE 100 and the CAC 40 in Paris were down 0.6 and 0.3 per cent, respectively. US equity markets marked time at the open after notching up four days of consecutive gains. The S&P 500 fell 0.3 per cent while the techheavy Nasdaq slipped 0.2 per cent. The ECB said its move — which extended its current €750bn pandemic emergency purchase pro-

gramme — was intended to support “funding conditions in the real economy, especially for businesses and households”. “Today’s decision should dent any future speculation about whether or not the ECB is willing to play its role of lender of last resort for the eurozone. It is,” said Carsten Brzeski, chief economist at ING. But some analysts said the ECB would have to do more to keep fuelling investor optimism and support an economic recovery. The bond-buying programme “is still insufficient to mop up this

year’s supply (given that not all purchases are government bonds) let alone the still large bond supply that will come to the market next year”, said Nick Kounis of ABN Amro. The euro surged 0.6 per cent against the dollar after the decision, before giving up some of those gains in the afternoon. In a press conference, Christine Lagarde gave a downbeat assessment of the speed of economic recovery in the bloc. The ECB president said the eurozone economy was “experiencing an unprecedented contraction” and

the recovery had been “tepid” compared with the rapid pace of contraction when the pandemic hit. The advances on Wall Street this week have come despite nationwide protests sparked by the killing of George Floyd. First-time unemployment benefit claims by Americans last week slowed down for a ninth consecutive week to 1.9m, according to official data released on Thursday. It takes the total number of new claims to nearly 43m since lockdowns began in mid-March as the US economy struggles to reopen. Investors also sold 10-year

benchmark US sovereign debt, with the yield rising as much as 0.8 per cent. The spread between yield on 2-year and 10-year Treasury bonds expanded as much as 10 per cent to 60 basis points, its widest level since mid-March. In the Asia-Pacific region, Japan’s Topix index gained 0.3 per cent while South Korea’s Kospi edged 0.2 per cent higher. China’s CSI 300 of Shanghai and Shenzhenlisted stocks was flat, while Hong Kong’s Hang Seng rose 0.2 per cent. In the latest escalation of tensions between China and the US, the White House on Wednesday moved to block Chinese airlines from operating in American airspace unless Beijing relaxed restrictions on US airlines. “Economies are gradually lifting lockdowns, ending states of emergency and easing restrictions. But just as equity markets start to recover, another crisis looms: escalating tensions between the US and China,” said Frank Benzimra, a strategist at Société Générale. Oil prices continued to lose ground after Brent crude, the international benchmark, failed to close above $40 a barrel on Wednesday on signs that not all members of the Opec+ production alliance were willing to extend output cuts. Brent crude slipped on Thursday to $39.50 a barrel. West Texas Intermediate, the US marker, dropped more than 1 per cent to $36.78 a barrel.

Private equity eyes $400bn windfall from US retirement savers Trump administration says asset class can be used in some funds within 401(k) plans BILLY NAUMAN

he Trump administration on Wednesday cleared a path for ordinary savers to invest in private equity funds through their employer-sponsored retirement accounts, handing the alternative investment management industry a victory after a yearslong push. The US labour department, which governs 401(k) retirement accounts, said private equity could be used within the professionally managed funds on offer to savers, such as target date funds which invest in multiple asset classes. The retirement accounts were not cleared to offer private equity funds directly, meaning private equity managers can only expect to access a portion of the $6.5tn 401(k) market — but they could still gain as much as $400bn in new assets, Evercore analysts

Blackstone could be among the private equity firms to benefit from a potential new market, according to analysts © Bloomberg

projected. The new rule will “level the playing field for ordinary investors”, said Eugene Scalia, US labour secretary. Shares in some of the largest private equity managers outpaced the broader stock market rally after the news. Carlyle climbed almost 4 per cent while Blackstone and Apollo gained www.businessday.ng

more than 2 per cent each. Time and time again we heard from plans [that wanted] guidance from the DOL that adding private equity is permissible under federal law Doug Keller, Pantheon Private equity firms have argued that the rules restricting retail investors from accessing such investments have placed

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ordinary savers at a disadvantage to institutional investors. Typically, private equity funds are only available to institutions and wealthy individuals, as their risk, illiquidity and complex fee structures can make them unsuitable for unsophisticated investors. A recent study showed that while private equity consistently outperformed public markets before 2006, its more recent performance has not been as good. Jefferies analyst Jerry O’Hara tipped Blackstone as one of the top early beneficiaries to the rule change, saying it had laid the ground work to be included in funds for retail investors. “Tony James [Blackstone’s executive vice-chairman] has been pounding the table on this for years, even going so far as to write a book,” Mr O’Hara said. The Department of Labor’s statement on Wednesday was the result of a request for guid@Businessdayng

ance submitted by Partners Group and Pantheon, two private equity managers. The pair in 2013 launched private equity funds with daily pricing and liquidity that were designed to be slotted into investments in 401(k) plans, but regulatory uncertainty and fear of litigation had limited their appeal until now. “Time and time again we heard from plans [that wanted] guidance from the DOL that adding private equity is permissible under federal law,” said Doug Keller, head of private wealth at Pantheon. Evercore predicted the labour department would eventually throw open the 401(k) market to other so-called alternative investments such as real estate, credit and infrastructure. Ultimately this is “the holy grail” for alternatives managers, said Mr O’Hara from Jefferies, although he did not expect Wednesday’s announcement to

Friday 05 June 2020

BUSINESS DAY

Harvard Business Review

MANAGEMENTDIGEST

Begin with Trust FRANCES X. FREI AND ANNE MORRISS

n 2017, Travis Kalanick, then the CEO of Uber, walked into a conference room at the company’s Bay Area headquarters. One of us, Frances Frei, was waiting for him. Meghan Joyce, the company’s general manager for the United States and Canada, had reached out to us, hoping that we could guide the company as it sought to heal from a series of self-inflicted wounds. We had a track record of helping organizations tackle messy leadership and culture challenges. We were skeptical about Uber. At the time, the company was a successful startup, but its success seemed to have come at the price of basic decency. In early 2017, for example, when taxi drivers went on strike in New York City to protest President Donald Trump’s travel ban, Uber appeared to have used tactics to profit from the situation. A month later, not long before the meeting, an Uber engineer named Susan Fowler had blogged courageously about her experiences of harassment and discrimination at the company. Despite our skepticism, we realized that if we could help get Uber back on the right path, then we could offer a road map to countless other organizations that had lost their way. So we signed on to the project. After making that decision, we knew exactly where to start. With trust. Trust is one of the most essential forms of capital a leader has. Building trust, however, often requires thinking about leadership from a new perspective. The traditional leadership narrative is all about you: your vision, your talents, your courage. But leadership isn’t about you. It’s about empowering other people as a result of your presence, and about making sure that the impact of your leadership continues into your absence. Your job as a leader is to create the conditions for your people to realize their own capacity and power. And that’s true not only when you’re in the trenches with them but also when you’re not around and even when you’ve permanently moved on from the team. We call it “empowerment leadership.” So how do you build up stores of this foundational leadership capital? In our experience, trust has three core drivers: authenticity, logic and empathy. People tend to trust you when they believe they are interacting with the real you (authenticity), when they have

faith in your judgment and competence (logic) and when they feel that you care about them (empathy). When trust is lost, it can almost always be traced back to a breakdown in one of these three drivers. The good news is that most of us generate a stable pattern of trust signals, which means a small change in behavior can go a long way. In moments when trust is broken, or fails to get any real traction, it’s usually the same driver that has gone wobbly on us — authenticity, empathy or logic. We call this driver your “trust wobble.” Everybody has a trust wobble. To build trust as a leader, you first need to figure out what yours is. Think of a recent moment when you were not trusted as much as you wanted to be. Maybe you lost an important sale. Maybe someone simply doubted your ability to execute. With that moment in mind, give the other person in your story the benefit of the doubt. Let’s call that person your “skeptic.” Assume that your skeptic’s reservations were valid and that you were the one responsible for the breakdown in trust. If you had to choose from our three trust drivers, which would you say went wobbly on you in this situation? Did your skeptic feel you were misrepresenting some part of yourself or your story? If so, that’s an authenticity problem. Did your skeptic feel you might be putting your own interests first? If so, that’s an empathy problem. Did your skeptic question the rigor of your analysis or your ability to execute on an ambitious plan? If so, that’s a logic problem. We’ve helped all kinds of leaders wrestle with trust issues. In doing so, we’ve learned about strategies you can deploy to overcome your own trust wobbles. Let’s explore what’s most effective for each of the drivers in our trust triangle. www.businessday.ng

— EMPATHY: Signaling a lack of empathy is a major barrier to empowerment leadership. If people think you care more about yourself than about others, they won’t trust you enough to lead them. Empathy wobbles are common among people who are analytical and driven to learn. They often get impatient with those who aren’t similarly motivated or who take longer than they do to understand something. We advise empathy wobblers to pay close attention to their behavior in group settings, particularly when other people have the floor. Consider what often happens in a meeting: When it kicks off, most people feel very engaged. But as soon as empathy wobblers understand the concepts under discussion and have contributed their ideas, they lose interest. Instead of paying attention, they often multitask or check their phones. There’s a basic solution to this problem. Instead of focusing on what you need in that meeting, work to ensure that everyone else gets what they need. Share the burden of moving the dialogue forward, even if it’s not your meeting. Search for the examples that will bring the concepts to life, and don’t disengage until everyone else in the room understands. This is almost impossible to do if texting or checking email is an option, so put away your devices. — LOGIC: If people don’t always have confidence in the rigor of your ideas, or if they don’t have full faith in your ability to deliver on them, then logic is probably your wobble. When logic is the problem, we advise going back to the data. Root the case you’re making in sound evidence, and speak only about the things you know to be true beyond a reasonable doubt. Along the way, make an effort to learn from

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other people. You must be willing to reveal that you don’t have all the answers. For most logic wobblers, however, the problem is they’re not communicating their ideas effectively. There are generally two ways to communicate complex thoughts. The first takes your audience on a journey, with twists and turns and dramatic tension, until they eventually get to the payoff. You can visualize this approach by imagining an inverted triangle. The storyteller starts at the top, at the inverted base of the triangle, and traces a route down to its point. If logic is your wobble, however, that’s a risky path to take. You’re likely to lose your audience along the way rather than build trust in your judgment. To avoid that, try flipping the imaginary triangle upright. Start with your main point at the top of the triangle, and then work your way down, building a base of reinforcing evidence. This approach signals a clarity of vision and a full command of the facts. — AUTHENTICITY: If people feel they’re not getting access to the “real” you — to a full and complete accounting of what you know, think and feel — then you probably have an authenticity wobble. A quick test: How different is your professional persona from the one that shows up around family and friends? If there’s a sharp difference, what are you getting in return for masking or minimizing certain parts of yourself? Being your “real self” sounds nice in theory, but there can be powerful reasons for holding back certain truths. The calculation can be highly practical at times, if wrenching — as in deciding to stay closeted in a workplace that’s hostile to queer identities. We’re not talking here about moments of @Businessdayng

prudent self-censorship, which sometimes can’t be divorced from a larger context of bias or low psychological safety. Instead, we’re talking about inauthenticity as a strategy, a way of navigating the workplace. If this is how you operate, you’re dealing with an authenticity wobble. In our experience, withholding your true self puts an artificial cap on trust and, by extension, on your ability to lead. When people sense that you’re concealing the truth, they’re less willing to make themselves vulnerable to you in the ways that leadership demands. To create spaces where authenticity can thrive, pay less attention to what you think people want to hear and more attention to what you need to say to them. We’ve argued that the foundation of empowerment leadership is getting other people to trust you. That’s certainly true, but there’s one last thing you need to know. The path to empowerment leadership doesn’t begin when other people start to trust you. It begins when you start to trust yourself. Take stock of where you wobble in your relationship with yourself. Are you being honest about your ambitions, or are you ignoring what really inspires you? If you’re hiding something from yourself, you’ve got an authenticity problem you need to address. Do you acknowledge your own needs? If not, you’ve got to adopt a more empathetic posture toward yourself. Do you lack conviction in your own ideas and ability to perform? If so, you’ve got some logic issues to work out. Doing this work is important as a leader. If you don’t trust yourself, why should anybody else trust you?

(Editor’s Note: Frances Frei received shares in Uber as compensation for her work with the company, which she continues to hold.) Frances X. Frei is the UPS Foundation professor of service management at Harvard Business School and is a co-author of “Unleashed: The Unapologetic Leader’s Guide to Empowering Everyone Around You.” Anne Morriss is an entrepreneur and the executive founder of the Leadership Consortium. She is also a co-author of “Unleashed: The Unapologetic Leader’s Guide to Empowering Everyone Around You.”

Friday 05 June 2020

BUSINESS DAY

HEALTH BUSINESS&LIFE How Telemedicine is improving service delivery in Nigeria

COVID-19: The effect on psyche, behavior of people during and after pandemic (part 1)

...as Eko hospital introduces Ekodoc, free tele emergency services ANTHONIA OBOKOH

he Corona Virus Disease (COVID-19) pandemic has drawn global attention to the need to strengthen and maintain agile health care systems. Most healthcare systems are more familiar with dealing Non- Communicable Diseases (NCD), not the Infectious Disease (ID) such as the COVID-19. The reality of the novel coronavirus is leading to “Epidemiological Transition” a new term in medicine. In Nigeria it has shown dearth in the supply of essential but much needed affordable and quality healthcare. With a huge demand for healthcare services from a population of over 200 million people and decreasing number of healthcare workers due to brain drain, there is an urgent need to create innovative solutions to mitigate the shortage in health service supply. The next phase after the COVID-19 pandemic requires innovative health interventions to address the deficiency in the access and availability of essential, quality yet affordable healthcare in Nigeria. These innovations would seek to bridge the gap between the demand (people in need) for healthcare and the supply (skilled personnel, consumables, and equipment) of health services. In a space of three months of the Corona Virus Disease, many health facilities have created TRIAGE sorting system which has also forced them to reject an untold number of the sick patients due to the lack of adequate Personal Protective Equipment (PPE) and diagnostic kits for COVID-19; thus leading to so much collateral, preventable and avoidable deaths of people in their houses EKOCORP PLC – owners

Coker A. Olurotimi

W of EKO Hospitals as a socially responsible publicly quoted private hospital is taking the bold step of augmenting the effort of the government. The Ekodoc telemedicine initiative has been rolled out in line with keeping with social distancing guidelines; HMO Patients, corporate enrolees, and private patients can access over 50 Medical Experts and super specialists from the comfort of their homes. This means only patients that cannot be handled virtually are invited to the hospital. This initiative makes it possible for Nigerians to be able to speak with a healthcare worker or specialist as need arises. Other benefits include reduction of waiting time in the hospital as patients who do not necessarily have to visit the hospital can consult a medical expect either on scheduled appointment or by emergency from the comfort of their homes. This also reduces the risk to all healthcare workers and patients as the initiative further helps to maintain the Federal Government’s guideline on social distancing during this pandemic as patients can also receive their drugs in the comfort of their homes without visiting the hospital or via hospital drive- through system. This is the future of Doctor Consulting which is here now. The trouble of commuting for several hours in traffic and associated cost has been removed by this initiative. While patients who are on HMO Plans, NHIS and

Corporate enrolees do not have to pay anything extra to access this initiative, emergency response and consultation are offered to general public at no cost. According to Kunle Megbuwawon, the chief strategy and business development officer, “no one can predict the time of emergency and at most times it happens in the night when help is difficult to find. At that time it is difficult to talk about money”. “Access to affordable health care is a fundamental Human right and as such the goal of the Universal Health Coverage,” he said. The strategist further opined that telemedicine will deliver your medication at the comfort of your home or through the drive-thru pharmacy in your car. Furthermore, Ademolu Owoyele, chief executive officer, said within two weeks of commencing the Telemedicine Initiative, they have attended to hundreds of clients remotely while some have been mandated to visit the hospital for further management. “Patients have called us from Dubai and we have clients from the USA who needed care for their elderly ones in Nigeria.” According to Owoyele, EKODOC Telemedicine & Telepharmacy involves the use of electronic communications and software to provide medical services to patients without an in-person visit to the hospital for such patients that do not necessarily have to come to the hospital.

hat are the expected behavioural, mental and psychological health responses and consequences of the corona virus infection and the Covid-19 pandemic due to the quarantine, loneliness, physical and social distancing associated with the C19?

Causes of the behavioural, mental and psychological health conditions due to the pandemic. The pandemic has brough about loneliness which can be looked as a form of loss of freedom, loss or decrease in income, loss of job, employment and livelihoods, closure of all schools including the tertiary institutions, affectations of the four dimensions of health, the physical, mental, social and spiritual wellbeing health. There is an increase in domestic violence because spouses are spending more time with one another and finding faults with each other. Even before the onset of the C19 pandemic, the degrees of mental health conditions such as generalised anxiety, depression, psychotic conditions such as bipolar illness and substance use; therefore it stands to reason that there would have been some remarkable increase in the mental health issues during this pandemic lockdown period and definitely after the pandemic era. What are the mental health conditions that we are likely to encounter during the pandemic lockdown? The total lockdown will bring about mental health conditions in various forms of severity from mild, to moderate and severe conditions. These conditions include Loneliness especially for the elderly, which has a high correlation for mental health disorders.

Those with previous psychological distress and mental health illnesses Nigerians that have been diagnosed as having mental health illnesses previously before the pandemic, most likely, their illnesses may get worse and may experience relapses of their mental health conditions. Due to the lockdown, they may not have access to their hospitals or attend their outpatients’ clinics. Since they could non access their hospitals and clinics, they may also not be able to get their prescription drugs. In this regard, these patients may continue to experience severity of their conditions.

had been diagnosed and also experiencing chronic physical illnesses such as hypertension, diabetes, heart disease and cancers who need regular monthly follow-up at their outpatients’ clinics but have not been able to access their clinics and hospitals due to the pandemic. They may also have difficulties in procuring their medications. This will also lead to diminished physical and mental wellbeing of the populace which can also exacerbates psychological distress and mental health disorders. The elderly above the age of 65 years need to be very careful because they have been found to be vulnerable and could easily contract the Covid-19 illness. We are advised to protect them and keep them safe in their rooms. B e r e a v e m e n t and grief reactions from family members who lost their loved ones We all know one or two people that have died during this period, their family members and friends will also experience symptoms of grief such as - Denial, Anger, Depression, Acute stress disorders some day after the loss of the family member, Posttraumatic Stress Disorder may occur some week or months after the loss of the loved member of the family that can manifests as flash backs, reliving the traumatic experience, sleep problems, and avoidance of places where the death occurred. Those that have contacted the virus, received treatment and discharged from the isolation centres Patients who had contracted the infection, treated at the isolation centre will face the issues of posttraumatic stress disorder, discrimination and social stigma and may also be avoided by family members and friends. We therefore need to carry out mass public education and information to prevent stigmatisation and discrimination of previously infected people.

The middle-aged and elderly in the society We also need to consider the middle-aged and elderly within the age bracket 60 years and above who already

Dr. Coker, Ayodele Olurotimi is an Associate Professor of Psychiatry and Behavioural Medicine, based in Lagos, Nigeria.

affected community for another round of test. “So far, 75 percent of our cases were imported. There is no record of community spread yet in Kwara. While we commend the security agencies for what they are doing, we urge them to do much more to secure our borders and prevent influx of people into the state. The new 23 cases, as many before now, were a backlash from porous borders. “We would like to state that Kwara’s performance in COVID-19 management

is one of the best in the country. As of May 30, our percentage of recoveries/ discharges is 43%, far above the national average of 29%. Our percentage of mortality is 1.15%. It is well below the national average of 2.81%. The state also ranks among the best in terms of high index of suspicion as can be seen in the number of positive cases compared to the test done. For every 100 test done in Kwara, seven is positive, whereas the national average is 16 for every 100 tests done.

Fear of the unknown, fear of catching the illness and fear of dying. Anxiety, panic, phobia, which can manifest and restlessness, agitation, sweating, racing heart beats, sleep disturbances, chest constriction. Symptoms of depression – low moods, fatigue, loss of interest in activities that hitherto brought joy and happiness, sleep disturbances, gloomy feelings, restlessness. Domestic violence, spouse abuse, child abuse, verbal and physical aggression. Suicidal thoughts, ideas, and outright suicide. Obsessive-compulsive symptoms - repeated temperature checks, washing of hands, and overtly use of hand sanitisers. On societal angle, armed robberies, abductions for ransom will be on the increase and Civil disobedience which we can observed in many cities in Nigeria. Loss of jobs, high rates of unemployment as many people won’t even be able to pay salary, governors may also find it difficult to continue to pay salaries due to heavy drop in the price of crude oil, all these will lead to increased poverty and poverty has been highly linked to the development of various types of mental illness.

COVID-19: Kwara govt says 75% of cases were imported ...calls on FG to set up testing center as confirmed cases hit 111 SIKIRAT SHEHU, Ilorin

wara State Government has said the sudden peak in the number of COVID-19 cases on Monday followed a deliberate effort of the committee to contact-trace and test all persons and health workers that have had contacts with two persons that recently sneaked into the state and tested positive to the virus. The government added that all but one of the 23 new cases posted on Monday —

the highest in a day since the outbreak — were already in isolation before the test result as they had long been identified as “persons of interest” on account of their close contacts with a pregnant woman who sneaked in from Zamfara and later tested positive. The woman was briefly treated at the Ilorin General Hospital and later at the University of Ilorin Teaching Hospital where she underwent an operation and later tested positive, leading to contact tracing and testing www.businessday.ng

of over 180 people. “Various precautionary measures have since been taken at the two hospitals, including disinfection of relevant wards, relocation of other patients to some other wards, testing of all the contacts, and a renewed emphasis on the need for healthcare workers to treat every patient as a potential COVID-19 case. “For the record, the rise in the cases was a result of government’s proactiveness in rounding up all contacts and testing all of them. In-

sinuations about the lack of PPEs or shortage of same are unfounded and reckless,” Rafiu Ajakaye, spokesman of the State Technical Committee on COVID-19, said in a statement on Wednesday. The government explained that the 23 cases included a contact of a deceased whose corpse was brought into Kwara State from the neighbouring Ekiti State. “The government has therefore despatched a Rapid Response Team to begin an aggressive contact tracing of the case in the

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Friday 05 June 2020

BUSINESS DAY

LEADINGWOMAN Onome Joy Adewuyi becomes president of ICAN KEMI AJUMOBI

he Institute of Chartered Accountants of Nigeria (ICAN) was established by Act of Parliament To determine what standards of knowledge and skill are to be attained by persons seeking to become members of the accountancy profession and to raise those standards from time to time as circumstances may permit. Secondly, to secure in accordance with the provision of the Act, the establishment and maintenance of the registers of fellows, associates and registered accountants entitled to practice as accountants and auditors and to publish from time to time a list of those persons And thirdly, to perform, through the Council of the Institute, all other functions conferred on it by the Act. As the foremost professional accounting body in the West African subregion, in 1982, ICAN initiated and contributed significantly to the formation of the Association of Accounting Bodies in West Africa (ABWA). ICAN recently made Onome Joy Adewuyi her President. She has been a member of the Governing Council of the Institute of

Chartered Accountants of Nigeria (ICAN) since 2007 and sits on the Council. She is also currently the Chair of the Membership Affairs, Staff and Organizing, and Investigation Panel Committees. Previous service with ICAN includes three terms as ICAN’s Treasurer, chairing the ICAN Professional Examinations in 2017 and chairing the IT and Image and Publicity Committees. Adewuyi is also a member of the board of the Financial Reporting Council of Nigeria and was the president of Society of Women Accountants Nigeria, 2013-2015. Her career spans 35 years and includes a variety of sectors, such as manufacturing, oil and gas, and banking. She worked at Fidelity Bank Plc from 1997 to 2015, where she rose to the position of Executive Director Risk Management from 20092015. After retiring from that position, she co-founded a new business, Cynergy Platforms Limited in 2015. She is currently the Executive Director Finance and Administration. Adewuyi also sits on the boards of Law Union and Rock Insurance Plc, Dominion Trust Co limited, and Dominion Finance Limited as non-executive directors. She holds a B.Sc Second Class

Honours Degree in Accounting from the University of Benin and an M.Sc Degree in Banking and Finance from the University of Lagos. She qualified as a Char-

tered Accountant (ACA) in 1986, Conferred FCA of ICAN in 1997. She qualified as a Chartered Banker (ACIB) 1993 and conferred a fellow of the Chartered

Institute of Bankers in 2007. She is also a fellow of the Risk Managers Association of Nigeria and was the Vice President of the Association in 2007.

Women want menstrual dignity, end to stigma …marks Menstrual Hygiene Day DESMOND OKON

ichelle Tatu was afraid she was dying when she got her first period. So, she gorged herself with bits of clothes and cotton in a bid to stem the bleeding. All along, she kept silent about it because she was too frightened to tell her parents what was happening. Consequently, she spent her school day terrified blood would leak out, exposing her to ridicule from her classmates. “At first I was so scared, I didn’t know what it was, I thought I had hurt myself,” she told UK-based Guardian during a women’s right awareness protest in Kenya. The march had been organised by non-profit The Cup, which provides menstrual cups to girls like Tatu. Today, many girls all over Africa are afraid like Tatu was. That fear still lurks in the crannies of Africa and her experience is common across Kenya, and the rest of the continent. As many as one in 10 girls in sub-Saharan Africa are missing school during menstruation. Girls have endured discrimination due to menstruation for dec-

ades, with serious human rights violations. A report by UNFPA underscored how shame, stigma, and misinformation, around period undermine the well-being of women and girls, making them vulnerable to gender discrimination, child marriage, exclusion, violence, poverty, and untreated www.businessday.ng

health problems. “Menstruation happens to all girls, why would I be embarrassed?” Tatu had wondered. Menstrual Hygiene Day (MHD) marked on May 28 every year creates an opportunity for awareness on the importance of good menstrual hygiene man-

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agement. Female activists, feminists, and other women groups seize the day to dispel myths and taboos associated with menstruation. This year, the message is simple: menstrual dignity is all they want, and an end to stigma. Micro messages like “say no @Businessdayng

period of shame” were pushed by non-governmental organizations focused on women and girls in Africa, calling on every girl to know that menstruation is normal. “COVID-19 will not ‘lockdown’ periods. I am a woman and yes, I bleed and I am not ashamed. It’s time for action, time to let every girl woman and girl know that menstruation is normal and it is nothing to be ashamed of,” said Nnedi Jane, a gender-based violence advocate. Stigma and taboo are major barriers to menstrual hygiene management. Cited earlier, UNFPA’s paper finds that menstruation taboos can keep women and girls from touching water or cooking, attending religious ceremonies, or engaging in community activities. These taboos reinforce gender-based discrimination, perpetuating the idea that menstruating women and girls are unclean. UNESCO believes that periods don’t stop for COVID-19 pandemic, adding it is a human right to manage periods safely and in dignity at all times. In addition, the women arm of United Nations in Nigeria, UNWomen called for action to end period stigma now and even after the pandemic.

Friday 05 June 2020

BUSINESS DAY

AGRIBUSINESSINSIGHT Market Insights

Analysis

Commentaries

Experts/Industry Views

Commodities watch

Policy Reviews

Send in Commentaries to caleb.ojewale@businessdayonline.com

Experts proffer solutions as agro logistics bear brunt of lockdown CALEB OJEWALE Twiiter: @calebtinolu

hen sick people are getting treatment, perhaps even after contracting something like the coronavirus, feeding is required for the drugs to work, and for them to get well. Even the healthy ones require sufficient, nutritious food in order not to break down as well. However, a major revelation from the ongoing COVID-19 pandemic has been; food production and supply in Nigeria is not given much of a priority, as it should be. Stanley Chigemezu Okoro, a 400 level student of Sociology at Olabisi Onabanjo University, Ogun state had combined farming and schooling since his first year in order to see himself through school. Transportation, sales, mortality, insecurity and inability to purchase drugs had over the years made his experience as a farmer less pleasant than he may want it to be. However, with the lockdowns across the country, all factors got worse and he was stuck with livestock he could afford neither to feed nor sell. “The Turkeys are ready for sale and I am not ready to feed them anymore because there is no more money,” said Okoro who had to hire a Sienna car for N7000 (instead of N2,000) to transport some of his birds to Ibadan where he ended up selling at what he says was a low price. He was carrying four small cartons originally used for packaging of Apples, containing 48 turkeys of 5weeks old. As there were no buses loading in the garages, he had to charter the sienna which initially agreed to collect N6000 but along the way insisted on being paid N10,000, and threatening to go back if he did not agree. He ended up paying N7,000. “Throughout last week I called all the people who buy Turkey from me but they all said they are not ready to buy because of lockdown,” said the university student trying to make ends meet. “Though I am

almost discouraged but not yet,” he concluded. At present, while movement within states has mostly been relaxed, inter-state movement restrictions remain in place, placing further strain on the survival of farmers across Nigeria, just like Okoro. The situation has worsened in terms of postharvest losses, as delays in moving food across Nigeria have increased wastage substantially. “There is food stuck on farms because there is no road to evacuate the food from the Farms,” said Akintunde Sawyerr, founder, Agricultural Fresh Produce Growers and Exporters Association of Nigeria (AFGEAN) in one of the sessions of a webinar series by the Guild of Nigerian Agriculture Journalists (GNAJ). “With the lockdown and with the specific participants who are measuring what they are losing, the figure that we are seeing is somewhere in the region of 70 percent spoilage due to the product missing its market targets or facing delays.” On his part, Bello Dogondaji, national general secretary, Federation of Agricultural Commodity Associations of Nigeria (FACAN) while reiterating that the movement of essential goods and services is key to every economy, also stated “the development finance department of the Central Bank of Nigeria needs to firm up activities surrounding the Anchor Borrowers’ Programme for this year”. Otherwise, “There could www.businessday.ng

be problems,” he said. While this would not be tied directly to logistics, it was a call to ensure projected deficits in agricultural output are managed. Dogondaji explained that restrictions in the movement of people have also implied that some of the commodities that are time bound, are also stuck. “Some of our members have stocked their warehouses with commodities due for exportation, but because of this pandemic which is not limited to Nigeria alone these Commodities are laying in the warehouses,” he lamented. While sitting in the warehouses, those commodities, he said, will be losing value, shrinking, and getting stale. With the activities at the ports drastically reduced, exports have also been on hold, with farmers and commodity traders losing income, and government equally losing much needed foreign exchange. “Even with the pandemic situation, we have received quite a number of orders that are good to go,” he said. Solutions for present and future crises Today, there is a situation where if a food consignment leaves Kaduna for a market in Lagos, Port Harcourt or Yenogoa, it is not possible to predict how long that journey is going to take. The reason for this is not because of traffic, it is because of checkpoints, said Sawyerr of AFGEAN. According to him, one im-

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portant solution is for the government to immediately designate some sort of clearance pass for vehicles that are carrying food, perishables or otherwise to be waived through traffic or through checkpoints. “If I am a dignitary sitting in the back of a big Land Cruiser with the number plate covered and I have a policeman sitting in the front seat, I will be waved through a checkpoint, but it’s just carrying me,” said Sawyerr. “When we are carrying food, we need to be clear that food transportation vehicle should have priority because it is taking food; a means of human sustenance to somebody on the other side of that checkpoint. It should be waived through.” One of the ways this can be achieved according to Sawyerr is to either put a uniformed person in that vehicle or to label that vehicle almost like a food ambulance to say “this vehicle is carrying food; it must not be delayed, it must not be stopped”. As we have it with ambulances, fire trucks, and police vehicles, a vehicle that is carrying food is carrying a critical life-sustaining commodity and that vehicle must not be stopped, he said. To achieve this, Sawyerr noted it is imperative to have a directive from “the top to say this is how we are going to identify foodcarrying vehicles”. The solution proffered by Sawyerr is such that, those Vehicles carrying food, people handling food, people wanting to export or to get to markets are provided with some sort of indi@Businessdayng

cation, licensing, or pass to make sure that their movement is not impeded. This, he says goes beyond the lockdown, because “if the pandemic ends tomorrow, this is something that we must do because food takes too long to move around in Nigeria”. On his part, Hemense Orkar, VP Commercials at AFEX noted there is a need to lift restriction in order for “agricultural workers and processors to help us support the economy later on and ensure that we have a good harvest”. Furthermore, there is a need to focus on production right at the start of the Season when farmers usually do not have a lot of money. Therefore, if the government can come in and provide financing to small holder Farmers, this will go a long way, he said, reinforcing the view earlier expressed by Dogondaji of FACAN. Orkar also stated it was important to answer a question on “How do we maintain the ability for a farmer to sell their Commodities at the end of the day and that is going to change as we go forward. “Whereas it was primarily in the physical markets, going forward we should start to consider how we can move a lot of that online,” he suggested. Orkar also identified the need for localized supply chain, as current restrictions and inability for some commodities and also agro chemicals to come into the country, has raised another question of “how do we fill that gap locally?”

Friday 05 June 2020

BUSINESS DAY

MONEYINSIGHT Explainer: Why the Federal Government is going What start-ups need to attract investors after Nigerians with irregular foreign assets reports about the offshore assets of prominent Nigerians named in the database that is now globally referred to as #PanamaPapers. Some of them, who are public office holders, held the assets in violation of Nigerian law, failing to declare them to the Code of Conduct Bureau.

STEPHEN ONYEKWELU

ast Friday, President Muhammadu Buhari signed an amendment to Executive Order 008 on the Voluntary Offshore Assets Regularisation Scheme (VOARS) to facilitate the enforcement of the order originally signed in October 2018. The order was first signed two years ago to help Nigeria collect taxes on offshore assets by providing an avenue for defaulters to voluntarily declare their foreign assets and pay a one-time levy of 35 percent to avoid penalties for tax evasion. This was similar to the 2017 Voluntary Asset and Income Declaration Scheme (VAIDS) meant to shore up Nigeria’s tax revenue. Under the amended order, domestic or foreign banks, asset managers or intermediaries that cooperates with defaulters, enabling them to conceal offshore assets and obligations about them shall be liable to pay to the Federal Government of Nigeria a penalty on the total of such offshore assets, in addition to other penalties provided for under Nigerian laws or laws of foreign countries from which Nigeria can benefit. What is offshore? The term offshore refers to a location outside of one’s national boundaries, whether or not that location is land or water-based. The term may be used to describe foreign banks, corporations, investments, and deposits. A company may legitimately move offshore for tax avoidance or to enjoy relaxed regulations. Offshore financial institutions can also be used for illicit purposes such as money laundering and tax evasion. Offshore refers to a vari-

ety of foreign-based entities or accounts. To qualify as offshore, the accounts or entity must be based in any country other than the customer’s or investor’s home nation. Many countries, territories and jurisdictions have offshore financial centres (OFCs). These include well-known centres such as Switzerland, Bermuda, or the Cayman Islands, and lesser-known centres such as Mauritius, Dublin, and Belize. The level of regulatory standards and transparency differs widely among OFCs. These are sometimes referred to as tax havens. Nigerian government’s tax drive and offshore assets Tax revenue keeps society and an economy afloat. But not all taxpayers play by the same set of rules. The global dip in oil prices and the resulting economic recession (2016) in Nigeria resulted in an increased focus on revenue generation through taxation in Nigeria. Following the mandate by the Federal Government, the Federal Inland Revenue Service (FIRS) intensified its drive for tax collection and has so far reported giant strides in its collection efforts. However, the tax-toGross Domestic Product (GDP) ratio has continued to hover around an abysmal 6 percent despite the reported tax revenue increase by the FIRS. The tax-to-GDP ratio in South Africa is 29 percent, Ghana 18 percent,

Egypt 15 percent and Kenya 18 percent according to the Organisation for Economic Corporation and Development. One explanation for this is that Nigeria has a small tax base, which places huge burdens on honest and compliant taxpayers. According to the International Monetary Fund (IMF), out of the Nigerian labour force of 77 million persons, only 10 million persons are registered for tax purposes. This situation has adversely affected the government’s revenue generation through taxes. However, another category of uncaptured taxpayers are those who own and operate offshore assets. With the help of lawyers, accountants, white-shoe professionals and complicit Western governments, the wealthy and well-connected have avoided paying trillions of dollars in taxes. This leaves government treasuries bereft of monies needed to build roads, schools and tackle existential threats like climate change and global pandemics. Tax havens make it all possible. In leaked internal data of Panamanian law firm Mossack Fonseca at least 110 affluent Nigerians and companies were identified as operators of offshore shell companies in tax havens. When news of the unprecedented leaks broke worldwide on April 3, 2016, PREMIUM TIMES published series of exclusive

What VOARS seeks to achieve The VOARS seeks to provide an incentive for taxpayers who have defaulted in the payment of taxes in respect of their offshore assets and foreign-sourced income to voluntarily declare their offshore assets and regularise their tax affairs. Some of the incentives include a permanent waiver of criminal prosecution for tax offences and other offences relating to the offshore assets; immunity from tax audit of the declared and regularised offshore assets; waiver of interest and penalties on the declared and regularised offshore assets; receipt of Offshore Assets Regularisation Compliance Certificate on the declared and regularised offshore assets; and freedom to use and invest duly regularised offshore asset in any manner in Nigeria or oversea. The VOARS Order mandates the Attorney General of the Federation and Minister of Justice to set up the VOARS facility in Switzerland. To take advantage of the Scheme, taxpayers are required to access the facility by paying a 2 percent facility access fee and making all necessary disclosures. Any defaulting taxpayer who fails to take advantage of the Scheme will be liable to the tax due, the interest thereon, investigation, charges and enforcement procedures for offshore assets held anywhere in the world.

STEPHEN ONYEKWELU

t is important as a startup 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 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 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 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 start-up 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.

COVID-19: Maltina stresses importance of brand sharing

altina, one of Nigeria’s leading malt brands, has said that its #RamadanWithMaltina campaign was aimed at showing how a brand can show warmth in the coldness of a global pandemic, coronavirus. It was aimed at answering the call through sharing, interpreted as a helping hand, prayers, food on the table, drinks to enjoy, knowledge to learn, or a reason to be happy. According to the promoters of the campaign, “The first lesson is never stop sharing; to this end, Maltina has continued on its mission to share happiness across Nigeria, even in the midst

of a global pandemic.” At the beginning of the Ramadan season, Maltina shared cases of its refreshing malt drink every Friday to consumers at select Mosques and Islamic leaders across Nigeria. Apart from sharing free drinks, in a campaign designed to create a ripple effect of sharing across communities and sharing as much happiness, hope, and joy from one person to others around them, the brand took it further by sharing Maltina care boxes. It also explained that the sharing was with “with a purpose”, hence Maltina sent care boxes to Muslim influencers, including iconic actors, Ali Nuhu, www.businessday.ng

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Rahama Sadau, and Femi Adebayo. Maltina also shared with celebrated Nigerian artistes like Sound Sultan, Reminisce, Kaffy Shafau, and several others. The selected influencers across the country from Lagos, Abuja, Oyo, to Kano, were empowered to in turn share the care boxes to people in their communities. The special Maltina care boxes contained highly nutritious and essential foods like rice, beans, fruits, vegetables, and Maltina drinks. The gifts also bore letters conveying hope and uplifting prayers, capturing the happiness Maltina continues to stand for as a brand.

Friday 05 June 2020

BUSINESS DAY

INSIGHT COVID-19 outbreak:

CBN grants regulatory forbearance for restructure of credit facilities of other financial institutions

Introduction he Central Bank of Nigeria (“CBN”) on 27 May 2020 approved regulatory forbearance for the restructure of loans of Other Financial Institutions (“OFIs”) impacted by the outbreak of COVID19. The initiative is part of CBN’s policy measures to mitigate the impact of the pandemic on Nigeria’s economy. On 16 March 2020, the CBN had granted similar regulatory forbearance to Deposit Money Banks (“DMBs”). This article highlights the CBN’s latest regulatory intervention to cushion the impact of the pandemic on households, businesses and other stakeholders.

Olawale Akoni, SAN

Managing Partner wakoni@babalakinandco.com

Kubi Udofia, Ph.D.

Managing Associate kudofia@babalakinandco.com

Joy Afolabi

Associate jafolabi@babalakinandco.com

CBN’s Regulatory Forbearance to OFIs The CBN Circular dated 27 May 2020 with reference number FPR/ DIR/GEN/CIR/06/55 (the “27 May 2020 Circular”) sets out the scope of CBN’s approved regulatory forbearance for restructuring of credit facilities in the OFI sub-sector as follows: (i) A further one-year moratorium for CBN’s intervention facilities offered through participating OFIs effective from 1 March 2020. (ii) A reduction of interest rates on CBN’s intervention facilities through OFIs from 9% to 5% per annum effective from 1 March 2020. (iii) The grant of leave to OFIs to consider temporary and time-limited restructuring of the tenor and loan terms for households and businesses affected by the COVID-19 outbreak, subject to the recently issued guidelines for restructuring affected credit facilities in the OFI sub-sector. The 27 May 2020 Circular also states that the CBN will continue to monitor developments and implement appropriate measures to safeguard financial stability and support stakeholders affected by the COVID-19 pandemic. Section 61(1)(a) of the Banks and Other Financial Institutions Act, 1991 (“BOFIA”), empowers the CBN to supervise and regulate the activities of OFIs. OFIs are defined under section 66 of BOFIA to include micro-finance banks, primary mortgage institutions, development finance institutions, bureaux de change, discount houses, finance companies etc. Echoes of CBN’s Regulatory Forbearance to DMBs The CBN had rolled out its first set of palliative measures on 16 March 2020. The measures were contained in a Circular with reference number FPR/DIR/GEN/CIR/07/49 (the “16 March 2020 Circular”). The palliative measures were aimed at supporting individuals, businesses and other stakeholders against the www.businessday.ng

adverse impact of the COVID-19 outbreak. The 16 March 2020 Circular was specifically addressed to “Deposit Money Banks and the General Public”. Accordingly, CBN’s credit facilities channeled through OFIs were excluded from the approved regulatory forbearance. Instructively, the CBN’s approved regulatory forbearance to OFIs in the 27 May 2020 Circular is drafted in similar terms as the approved regulatory forbearance to DMBs in the 16 March 2020 Circular. Notwithstanding the disparity in the dates of the announcements of these initiatives, the one-year moratorium and reduction of interest rates on intervention facilities through DMBs and OFIs are effective from 1 March 2020. Grant of One-year Moratorium for CBN’s Intervention Facilities The CBN has granted borrowers of its intervention facilities through participating OFIs a one- year moratorium. The moratorium period commences on 1 March 2020. The one-year moratorium is expressed in similar terms as that in relation to DMBs in the CBN’s 16 March 2020 Circular. The CBN’S 16 March 2020 Circular stated as follows: “All CBN intervention facilities are hereby granted a further moratorium of one year on all principal repayments, effective March 1, 2020. This means that any intervention loans currently under moratorium are hereby granted additional period of the year.” In contrast to the 27 May 2020 Circular, the CBN in the 16 March 2020 Circular had further “directed” DMBs to provide new amortization schedules for all beneficiaries. Reduction of Interest Rates on CBN’s Intervention Facilities The CBN has reduced the interest

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‘ This notwithstanding, DMBs and OFIs are expected to tap into the CBN’s initiatives to avert a tsunami of defaults, cash flow insolvencies of viable businesses and job losses rates on its intervention facilities through OFIs from 9% to 5% per annum. The reduction is effective from 1 March 2020. In a similar vein, in the 16 March 2020 Circular, the CBN had stated (in relation to DMBs) that: “Interest rates on all applicable CBN intervention facilities are hereby reduced from 9 to 5 percent per annum for 1 year effective March 1, 2020.” Grant of Leave to Consider Restructuring of Tenor and Loan Terms The CBN has granted approval to OFIs o consider temporary and time-limited restructuring of the tenor and loan terms for households and businesses affected by the COVID-19 outbreak. The CBN granted a similar regulatory forbearance to DMBs in the 16 March 2020 Circular. Accordingly, the 27 May 2020 Circular has now extended the regulatory forbearance to OFIs. In the 16 @Businessdayng

March 2020 Circular, the CBN had disclosed its resolve to work closely with DMBs to ensure that the use of the forbearance is “targeted, transparent and temporary”. In contrast, the 27 May 2020 Circular is silent in this respect. This notwithstanding, CBN would be expected to act in that regard in relation to the regulatory forbearance to OFIs in line with its supervisory and regulatory powers under section 61(1)(a) of BOFIA. Conclusion The CBN’s latest intervention is commendable in these extremely challenging times. However, as is the case with DMBs, OFIs are under no compulsion or obligation to take advantage of CBN’s regulatory forbearance. The 16 March 2020 and the 27 May 2020 Circulars merely grant DMBs and OFIs respectively leave to “consider” restructuring the applicable loans. This notwithstanding, DMBs and OFIs are expected to tap into the CBN’s initiatives to avert a tsunami of defaults, cash flow insolvencies of viable businesses and job losses. In contrast to the CBN’s approach, Governments and Central (or Reserve) Banks in some countries such as Egypt, Albania, Bulgaria Czech, Kosovo, Montenegro, Philippines, Romania and Serbia have imposed mandatory moratorium on loan repayments. Furthermore, the Slovenian Parliament has adopted an emergency law requiring banks to allow a 12-month moratorium on payment of loans falling due after 12 March 2020. Hungary’s Government has passed a Decree for payment moratorium between 19 March 2020 and 31 December 2020.

Courtesy: Babalakin & Co., Legal Practitioners

Friday 05 June 2020

BUSINESS DAY

entertainment Majek Fashek; the rainmaker dies on rainy day

Obinna Emelike

or the hip-hop generation, the name Majek Fashek may not ring bell, especially now that the once-popular reggae genre, which won the hearts of many Nigerians in the 80s, seems to have no artiste, fans and playing time on radio stations again. Born as Majekodunmi Fasheke, the legendary musician who staged as Majek Fashek, was among the few Ni-

gerian artistes who popularized the reggae genre with meaningful lyrics, incredible stage craft and huge followership. He was popularly know as the rainmaker as rain is acclaimed to fall anytime he performed ‘Send Down the Rain’, his massive single of 1988, even during the dry season. Sadly, he passed away on June 1, 2020 at 57 years in the United States of America. The rainmaker died during the rainy season and probably, the heavy downpour that day, bade him farewell, attesting further to his acclaim while alive. However, his huge fans across the country and the world are insisting that the heavy downpour has finally fallen as they mourn him, and described him as a prophet and reggae artiste of unique style. Majek started his music career in the early 80s with Jastix, a music group, which was best known as the in-house band on ‘Music Panorama’ show on NTA Benin. At that time, he went by the stage name Rajesh Kanal

Betway to sponsor BBNaija Season 5

ultiChoice Nigeria is pleased to announce Betway as lead sponsor of the 5th season of Big Brother Naija reality TV show, which is scheduled to air in July 2020. Betway is a premium online and mobile sports betting platform across Africa providing the best sports betting experience action and betting opportunities on major leagues and tournaments. Welcoming the new partnership, John Ugbe, chief executive officer, MultiChoice Nigeria, said: “As an established brand in its competitive industry, Betway is a right fit for BBNaija and we are excited to have them onboard this season. We believe this partnership will bring about an increase in engagement and

excitement for fans of the reality TV show.” “Betway is excited to be a part of Big Brother Naija season five. The collaboration with Big Brother Naija presents us with the opportunity to engage and connect with Nigerians through our amazing range of sports betting and online games. We believe our offerings will bring added excitement to both the contestants and the viewers at home” said Chris Ubosi, Betway representative. The Big Brother Naija reality TV show continues to show immense success and a growing popularity every season. Preparations for its fifth season is underway following the announcement and conclusion of the online audition process on Saturday, May 30, 2020.

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and also toured with other reggae groups, especially The Mandators. However, he came to limelight after going solo in 1988 and shortly released ‘Prisoner of Conscience’, his debut album in 1988. The album was released to massive success and had the popular single ‘Send Down the Rain’. ‘Send Down the Rain’ became an anthem in Nigeria and won several awards. He

consolidated on him fame with the release of ‘So Long for Too Long’ in 1991. From then, several successes followed until heavy drug and bankruptcy affected his career. Although he made several comebacks, he never remained the same. For Orits Wiliki, a reggae musician, the Nigerian music industry has lost an icon and no musician can be like Majek Fashek.

We need to support youthful creativity to boost economy amid global distress — SJW Entertainment boss

n the face of the current global distress occasioned by coronavirus pandemic, Obiajunwa Justine Chinonso, chief executive officer, Sir Justine Worldwide (SJW) Entertainment, has said that youths in the creative world are the hope for boosting of both the personal and national economies. According to Chinonso, who is popularly known as Sir Justine, “These days, creativity rules the world.The usual economic pattern is presently being challenged and threatened with the global lockdown of businesses and other activities owing to the coronavirus pandemic, there is a need to create a new order.” The music entrepreneur, who has worked with many youths in the creative industry with his record label, SJW Entertainment, especially song writers, producers and Nigerian singers like BLaq Jerzee, who has equally collaborated with his creative colleagues in the music industry to produce hit songs like Fever for Wizkid and Low for Larry Gaga, said Nigerian youths must be encouraged to use their talents to develop the national economy. Sir Justine further noted that the creativity of others artistes such as Tiwa Savage, Burna Boy, Iyanya, and Dr Sid, DJ Tunez, Davido, Olamide, among others, has created good fortune for Nigerian youths who flood the music scene and the country’s film industry.

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The entrepreneur and one of the top players in the Nigerian music recording industry, who is about rebranding to reposition his business said, as someone in the music industry, there are still many grounds to cover in the area of generating contents to populate the virtual world for the end users. “Music is my business, and I know the extent one can go in trying to create contents that will be globally acceptable to the audience. It requires a lot of attention, concentration and creativity. Once you get it right, it enjoys public patronage, and the proceeds can even be source of foreign earning for the copyright owner and the country. “Our government has to en@Businessdayng

courage our young talents in the entertainment world, invest in their creativity so they can produce good songs, especially in the quality of production which is where the bulk of finances is required because of the expensive hard/softwares being used in our studios. “Once there is government partnership and access to soft loans with less bank charges, there will be more patronage in the industry and creative youths will also be able to invest in their talents, and in the end, we can be so sure of boosting the national economy with foreign earnings from our music and movies, which are good materials for exports these days, “ Sir Justine concluded.

Friday 05 June, 2020

BUSINESS DAY

Hotels A taste of True Hospitality, Tru Blu OBINNA EMELIKE

bviously, the world has been waiting with bated breath for the curve to be flattened months after the coronavirus (COVID-19) outbreak. No doubt, the pandemic has kept the world on hold and this part of the world is not left out. For some, the world is at a continued stand-still, while for others, the inevitable life with the presence of COVID-19 is a new way of living. The latter is the case at Radisson Blu Hotel Lagos Ikeja. For this reason below are just a few of the steps the hotel has taken to ensure guests’ comfort while in the hotel: First, the management of Radisson Blu Hotel Lagos Ikeja has put in place high hygiene and control measures in compliance with the standards of the Lagos State government, following the

regulations of the Nigeria Centre for Disease Control (NCDC ) in preparation for welcoming the hotel’s esteemed guests. Secondly, every staff of the hotel has been trained and equipped with the Lagos State government required face masks and gloves (as required for their roles). Therefore, Radisson Blu Hotel Lagos

Ikeja is looking forward to safely welcoming its guests bearing in mind that ‘their safety comes first’. Thirdly, the property fumigation process is routinely maintained on a weekly basis. As well, the hotel has invested in constant training of its House Keeping staff to maintain the new cleaning methods and an adaptation

to the new lifestyle while giving the same five star service, which is Radisson Blu trademark. With the new system, the hotel assured that the food lifestyle is not left out. “Our chef’s table has however been looked into to ensure that nutritional needs to stay healthy and vibrant as required are made available by health and safety vetted suppliers. Likewise special meal preparation methods will be considered with the sole intention that all essential nutrients are retained in your meals”, the hotel said. So, whether you are guest looking to stay or you are in for a quick meeting, Radisson Blu Hotel Lagos Ikeja is assuring that, “Our ‘True Hospitality’ is you feeling the difference when you visit and decide to choose us again on your return, knowing the service is the same but the experience is always warm and memorable”. True Hospitality is Blu Ikeja, the hotel insisted.

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

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

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 Hotel Group launches Safety Protocol in partnership with SGS

adisson Hotel Group on Wednesday announced its Radisson Hotels Safety Protocol, a new program of in-depth cleanliness and disinfection procedures, in partnership with SGS, the world’s leading inspection, verification, testing and certification company. One of Radisson Hotel Group’s highest priorities is the continued health, safety and security of its guests, team members, and business partners. The company has conducted a thorough review of all existing health and safety processes and worked with a team of experts to develop and validate additional protocols. These enhanced protocols, operational guidance and comprehensive health and safety procedures validated by SGS, will be adapted based on local requirements and recommendations, to

ensure guests’ safety and peace of mind from check-in to check-out. Radisson Hotels Safety Protocol will further strengthen Radisson Hotel Group’s existing rigorous sanitation, cleanliness and disinfection guidelines at hotels globally. The guidelines include hand sanitizing stations at all entrances, the use of Personal Protective Equipment (PPE) and protective screens, enhanced and recorded cleaning and disinfection frequency, social distancing in all areas of its hotels, including in the Meeting & Event facilities, training in local, Centers for Disease Control, or World Health Organization recommendations and health guidelines, reiteration of food safety standards and comprehensive staff training. Radisson Hotel Group’s enhanced cleaning and disinfection guidelines have been

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developed in collaboration with global hygiene solutions provider, Diversey, by uniting best-in-class cleaning and hygiene solutions with reinforced protocols and patented technology designed for healthcare. Radisson Hotel Group will be introducing an official label of cleanliness and disinfection issued by SGS to ensure the highest Cleanliness, Hygiene and Safety standards, as confirmed by SGS through a centralized validation process. Under this program, individual hotels can receive an approval label upon completion of a comprehensive local audit including on-site testing using the latest technology. “At Radisson Hotel Group, we are committed to delivering a clean and safe environment for our guests and team members. The world has been fundamentally changed by COVID-19 so it is key that we strive to protect all who work, stay and partner with us as we re-open our doors to a new era of travel. To do this we have thoroughly examined all areas of the hotel experience, and we are proud to have partnered with SGS to create our Radisson Hotels Safety Protocol program.” says Federico J. González, CEO, Radisson Hospitality AB and Chairman of Radisson Hotel Group’s Global Steering Committee. Frankie Ng, CEO of SGS, adds that: “SGS’ global leadership in the Travel & Hos-

pitality sector has enabled our network of health and safety experts to develop a comprehensive and straightforward protocol to check management procedures and disinfection status of hotels. Our goal is to ensure that maximum hygiene standards are met, to protect guests as well as Radisson Hotel Group team members.” Radisson Hotel Group will soon be announcing an extension to its brand commitment which includes 20 Stepsand an additional 10-Step protocol for Meetings & Events. The company expects to complete all the necessary operational details of this program over the next few weeks. Principles under consideration include: Increased cleaning and disinfection frequency of all hotel areas, paying special attention to high-touch items, stations installed with alcohol-based hand sanitizer and gloves at the front entrance and hotel public areas, all room keys disinfected and presented safely upon check-in, express check-out process available for guests to minimize contact, cash-free methods of payments available and encouraged, door hangers displayed with cleaning and disinfection procedures in each room, comprehensive hygiene and preventions training programs for team members, team members provided with Personal Protective Equipment such as masks and gloves.

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

206 Exclusive Hotel Plot 206 Oladipo Diya Road Opposite Olympia Estate By Games Village Second Gate Durumi2 Abuja

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

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 June 2020

BUSINESS DAY

FEATURE

COVID-19: Nigeria’s response and the big challenges ETIM ETIM

ive months into the global health emergency, our world has changed drastically. What began as a health crisis is now a major economic challenge of immense proportion. Huge job losses, business closures and sharp drop in crude oil prices are the immediate problems facing every nation on earth. No nation is unaffected by what is now the most devastating economic and social catastrophe of our time. The response of each country to COVID-19 and its huge economic implications has become the most important differentiating factor amongst the global community. While other countries were caught flat-footed and remained in denial in the first few months, Nigeria rose quickly and responded efficiently with the benefit of its experience with Ebola in 2014. As the federal and state governments set up incident management teams consisting of a broad spectrum of medical professionals and senior government officials, businesses, business leaders, industry captains and NGOs were quick to offer huge financial and logistics supports to the governments to fight the pandemic. One of Nigeria’s truly visionary business leaders, Aigboje AigImoukhuede, has also stepped up to help in a big way. Aig, as his friends and associates call him, is remembered for his remarkable tenure as the chief executive of Access Bank, during which he took the bank from near-insolvency to the top four in the industry before his retirement six years ago. Last week, Africa Initiative for Governance (AIG), an NGO founded by Aigboje, co-hosted a webinar with Oxford University’s Blavatnik School of Government on the impact of COVID-19 and the oil price crash on Nigeria’s economy and the response of our government to the crisis. AIG serves as a catalyst for the transformation of Africa’s public sector with appreciation that an effective public sector is instrument to the attainment of a country’s developmental goals. I had in February written an article on AIG. Many prominent citizens participated actively in the virtual dialogue last Friday. I am glad to have been invited to join. Professor Ngaire Woods, the founding Dean of the Blavatnik School of Government at Oxford University, UK, opened the session with a brief introduction of the objective of the programme. She noted that the School of Government is working with many countries, especially the oil-dependent ones that are currently facing peculiar revenue crisis, to set and reset their strategies for recovery and growth during and after the pandemic. Tracing

Aigboje Aig-Imoukhuede, founder and chairman of Africa Initiative for Governance

the genesis of the partnership between Oxford and AIG, Prof Woods noted that ‘’Aigboje’s relentless energy and determination to inspire careers in public service’’ has resulted in many brilliant young Nigerians studying in Oxford. A son of a career civil servant himself, Aig has realized in the course of his long and successful banking career that the quality of the public service is a very important determinant of good governance in Africa. As soon as Prof Woods finished with her opening remarks, she introduced Aigboje to speak. His first order of business was to explain what AIG stands for. ‘’We are not an African DFID’’, he joked. ‘’We are an independent, non-state, not-for-profit institution set up to transform leadership in government’’, he said. He then set out his presentation in three slides that focused on the stark statistics of our health crisis and the need to take advantage of the ongoing crisis to rebuild the Nigerian political economy. Globally governments have so far committed $15 .6 trillion in response to Covid-19 which works out as $2,042.00 per person, while Nigeria’s $6.5 billion in commitments amount to a paltry $32.50 per person. He commented that it is obvious that whilst Nigeria’s private sector has thus far contributed 5% of the commitments, the nation has no option. The private www.businessday.ng

sector should give more. Aigboje said that Nigeria’s large population and pervasive poverty is fueling the impact of the pandemic. Our experience with previous health crises like HIV is that most pandemics don’t hit Africa first, so for us in Nigeria, the curve will take a while to plateau. While the rest of the world has defeated malaria and HIV, Africa has not. This crisis, Aig concludes, is an opportunity for us to spend more on our health services. He is saddened by the high doctor to citizen ratio in Nigeria (1:2,600) against WHO’s recommended 1:600; and low budgetary allocation to the sector (a little above 4% yearly). ‘’So COVID is an opportunity to reset our thinking and spend on health,’’ he said. He concluded that our governments must reset their priorities, spend smarter and act faster. Next speaker was Professor Paul Collier, Professor of Economics and Public Policy at Blavatnik School of Government at Oxford. His husky voice and measured tone were unmistakable. He set off by noting that although there’s been no guidebook anywhere in the world on how best to manage this crisis, Nigeria has done creditably well. We appear to be managing the crisis better than the Europeans and the Americans, he emphasized. I note that President Donald Trump was in denial in

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the first two crucial months of the pandemic, while Boris Johnson had this initial plan to allow the virus affect a good proportion of the population so that the people could develop immunity. Today, the US and Britain are two of the most infected nations. But Nigeria was quick to shut down and move into the contact, track and race strict regime. Prof Collier then posited that each nation should design its own coping measures based on its unique peculiarities. From the experience of the last five months, Prof Collier asserts that two main types of leaders have emerged: the commander-in-chief and the communicator-in-chief. The latter is most suitable in times like this and his role is to lead his country through effective communication, he notes. Nigeria’s Presidential Task Force on COVID-19 has done a great deal in this regard, especially in developing guidelines and policies, and briefing the nation daily. Prof Collier then sliced through a swath of issues on how nations are managing the crisis and quickly delved into our well-known difficulties: huge population, mass poverty, weak health systems and the miserable economy. He dimensioned the economic crisis into three areas: Plunge in government revenue; dwindling foreign exchange earnings and citizens’ low capacity to spend. Collier said that countries like Saudi Arabia have since recognized these shocks and are responding in various ways. For Nigeria, he has the following prescriptions: reduce dependence on imports, especially food imports; cut spending and raise revenue by expanding the tax base. To increase purchasing power of the citizens, he advocates increasing soft credits to businesses and the informal sector. Prof Collier took most of the over two hours we spent, but it was worth it. Midway through his presentation, former President Olusegun Obasanjo joined us, and he was given the floor (or the web?) as soon as Collier finished. As is his habit in every speaking engagement, President Obasanjo started off by clearing his throat. There is no Nigerian leader that is so enduring, nationalistic, and broadminded as Obj. I love and respect his love for Nigeria and his service to the country. For this event, he participated as the Chairman of the Advisory Board of AIG. I’m not surprised that Aigboje chose Obj to be chairman of the Advisory Board while Aig is its Chairman. Nigerians of my generation easily recognize the former President as one leader with the largest footprint on the nation’s politics. He introduced his presentation by commending the Buhari administration for handling the pandemic well. We took the fight down to the states and the communities, he said, adding: @Businessdayng

‘’I was pleasantly surprised when I saw government officials in my village testing and tracing’’. The kernel of his intervention was that we should ramp up our agricultural outputs drastically so that we can feed ourselves without a single imported item. A big farmer himself, his words on food production are taken seriously. After Obasanjo, Prof Woods asked Speaker Femi Gbajabiamila and former Emir Sanusi Lamido Sanusi who were in the audience to make their contributions. In between them, was a detailed presentation by Dr. Ceyla Pazarbasiogu, Vice President for Equitable Growth, Finance and Institutions (EFI) at the World Bank while Dr. Yemi Folashade-Esan, Head of Service of the Federation was the last speaker. The Head of Service highlighted her plans to digitize the public sector and reduce wastes. As a response to COVID-19, she announced that a lot more work in the civil service are now done online, and that would be the way to go going forward. But it was Sanusi Lamido Sanusi who made an impact on me. He maintained that with over 500 federal legislators, over 1,500 members in the 36 Houses of Assembly, Commissioners, SAs, Chairmen and Councilors in the 774 LGAs nationwide, Nigeria’s political structure is too unwieldy. “Can we afford over 500 federal legislators in Abuja?’’, he asked. I made the same point in my article published early May titled ‘’Managing the war economy’’. I wrote: ‘’The expenses of the National Assembly, especially those dubious allowances should be cut by at least 30%. Eventually we will require a Constitutional amendment to restructure our legislature into one chamber of no more than 300 members”. Femi Gbajabiamila’s comments which centred on plans to cut allowances and perks of the National Assembly members were quite insightful. For one, we now know that our lawmakers in Abuja are not as out of touch as we believe. The programme ended with a wrap-up from Aigboje who commended the Head of Service for her push to digitize the operations of the public sector. ‘’Let’s bring the public sector into the digital age’’, he pleaded. This will entail digitizing core processes, providing digital products and services and harnessing valuable data. Other areas which Aigboje recommended for the public sector include: introducing performance management into public service; public-private partnership to scale up delivery of basic services; redefining jobs, re skilling employees and shift personnel to sectors of value. After over two hours of deliberations, it was clear that the webinar is a major contribution by AIG to the development of our nation. I commend Aigboje for his vision and passion for Nigeria.

Friday 05 June 2020

BUSINESS DAY

FEATURE

How Dangote Cement supports security efforts in Lagos, Ogun

…donates patrol cars TEMITAYO AYETOTO

he donations by the Dangote cement plc of patrol vehicles to the Security Trust Funds of Ogun and Lagos governments have remained a landmark since the establishment of the Funds. This is because lack of operational vehicles has been a sore point in the efforts of the security operatives in the two states to combat crimes and bring about a secured atmosphere for people and businesses to thrive. Following series of security breaches and the apparent inability of the security agencies to respond appropriately, state governments not wanting to give in to helplessness took steps with a view to finding solutions to the seeming intractable insecurity so that the people would be able to sleep with their two eyes closed while the corporate bodies would be free to pursue their legitimate businesses in a secured environment. In the case of Lagos State, the government set up a committee, headed by a former Inspector General of Police, to examine the issue of insecurity in the state, to look into ways and means of combating the growing menace of violent crimes in the state and the seeming inability of the police and other security agencies to confront this challenge. The committee’s report indicated that the problem was essentially related to lack of logistics, mobility, communications, kitting and so on, especially when considering the peculiar security challenges in the state. The committee also considered how much the state government would cough out on regular basis to adequately cater for security and put violent crimes under checks, which the state cannot afford. Thus in 2007, the Lagos State Security Trust Fund was established. The idea of a Trust Fund was to make it donor-funded by sourcing for funds from government, private organisations and individuals in order to meet the operational capacity needs of security agencies particularly in the areas of logistics and provision of crime fighting equipment in the effective discharge of their duties. The state government adopted a Public Private Partnership (PPP) business model for the governance and financial operations of the Trust Fund due to the energy and expertise that exists in the private sector and for timely security interventions devoid of bureaucratic bottlenecks. Apart from Lagos, the neighboring Ogun State has also gone

L-R: Michel Puchercos, GMD, Dangote Cement plc; Ernest Ebi, non-executive director, Dangote Cement Plc; Emmanuel Ikazoboh, nonexecutive director, Dangote Cement Plc, and Abdurrrazaq Balogun, executive secretary, Lagos State Security Trust Fund, during the presentation of 35 police patrol cars to the Security Trust Fund by Dangote Cement Plc, in Lagos.

ahead to set up its own Ogun State Security Trust Fund. Since the launch, leading cement manufacturer, Dangote Cement Plc, headquartered in Lagos but with plants across the country including Ogun state, in line with its corporate citizenry strategy has been partnering the two Funds to deliver on their mandate. Quite recently, Dangote Cement donated 60 fully equipped operational vehicles to the fleet of the Funds, 25 to Ogun and 35 to Lagos, to help strengthen the Funds by boosting its operations Presenting the cars to the Lagos State Security Trust Fund, a NonExecutive Director of Dangote Cement, Emmanuel Ikhazobor, who led the management of the firm to Marina Lagos House where the vehicles were handed over to the state government, said the gesture was part of the company’s Corporate Social Responsibility (CSR) activities, which was being done in appreciation of the efforts of the State Governor, Mr. Babajide Sanwo-Olu to make the State secure for the people and investments. Besides, he stated that the donation of the cars was in response to the challenges of securing Lagos State as a destination of choice to investors and the face that security is essential to economic development remains one of the major demands of investors. “We are presenting 35 saloon cars today to strengthen the operations of the Lagos State Security Trust Fund. We commend the Government of the State for instituting a Trust Fund with the mandate of utilizing donations from corporate bodies and individuals to equip the security agencies operating within the state,” he said. According to Ikhazobor, the company decided to support the www.businessday.ng

Lagos State Security Trust Fund, having being established in September 2007, because it was in direct response to the security challenges in the State such as logistics, mobility, communications and kitting. “The donation of operational vehicles today is in continuation of our commitment to the promotion of security in Lagos State. It should be recalled that our Chairman, Aliko Dangote made donations to the Fund in the past. As a socially responsible organization, the security and well-being of our host communities remains utmost in our minds. “Therefore, a major step towards encouraging investments and creation of employment is promoting and ensuring adequate security in our environments. This is why we at Dangote Cement, fully appreciate several initiatives by the State government in the promotion of security and a safe operating environment for business,” he stated. Ikhazobor maintained that Dangote Cement management was of the firm belief that government alone cannot continue to bear the full cost of meeting the expectations of the entire populace in the provision of basic necessities like health, education and security for the citizenry, and this gave rise to Public Private Partnerships, where private sector collaborates with public sector in the provision of essential services. “Our desire to partner government or the public sector informed our interventions such as ApapaWharf road, Itori-Ibese road, and Obajana-Kabba Road. We are at the forefront of combating the COVID-19 pandemic. “We have adopted several protocols such as social distancing, provision of temperature scanners, hand sanitizers, face masks and sick

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bays, designed to secure the health of our staff at the cement plants. We have provided basic necessities to prevent infection and transmission of the virus in our plants,” he stated. Receiving the car keys, the Executive Secretary of the Fund, Abdulrrazak Balogun, described the donation as a huge intervention from a private sector organization to solve critical challenges of logistics and mobility faced by the security personnel in the state. He expressed the appreciation of the state governor to the gesture and promised that the vehicles would be put to good use. “We know that receiving these vehicles is one thing, maintaining them is another thing. Though we don’t have control of the security personnel that would make use of the vehicles but we will try to ensure they are well maintained. Balogun said the state government was particularly happy that Dangote Group has always being there for the State in the area of maintaining security of lives and investments pointing out that Dangote has been helping the Fund to the tune of hundreds of millions of Naira in the last 13 years that the Fund was established. Earlier, the company presented 25 cars to the Ogun State Security Trust Fund. The donation, according to the executive director, was a fulfillment of a pledge made by the immediate past Group Managing Director (GMD) of the company, Joseph Makoju, who promised the state government that Dangote Cement as a responsible corporate citizen would partner the government in ensuring the much desired security is maintained in the state and its environs. Ikazoboh, while presenting the car keys, said the donation was informed by the need to boost the Fund’s operation because security is @Businessdayng

essential to economic development. “No investor will be willing to put his/her funds in an economy where insecurity is rife with lawlessness and chaos is the order of the day. We are major investors in Ogun State and as such we prefer a state of orderliness and sound security which allows businesses to thrive. “Ogun Security Trust Fund was established in 2011 and refined in 2019 by the Governor, His Excellency, Prince Dapo Abiodun. The objectives of the Fund include the maintenance of security and welfare of citizens. “I recall that on October 6, 2019, our then Group Managing Director, Engr. Joe Makoju made a pledge on behalf of the company to present operational vehicles to the fund. As a corporate socially responsible organisation, the security and wellbeing of our host communities remains utmost in our minds,” he said. Ikazoboh said a major step towards encouraging investments and creation of employments is promoting and ensuring adequate security in our environments. “This is why we at Dangote Cement, fully appreciate your State government’s several initiatives in the promotion of security and a safe operating environment for business,” he said. The director explained that government alone could not continue to bear the full cost of meeting the expectations of the entire populace in the provision of basic necessities like health, education and security for the citizenry, adding that this thought gave rise to Public Private Partnerships, where private sector collaborates with public sector in the provision of essential services. “This collective support, we believe, will go a long way to ensure adequate security for all stakeholders in Ogun State,” he said. Responding after collecting the keys to the cars, the executive secretary of the Fund, Opeyemi Agbaje, expressed the appreciation of the Ogun State government to the management of Dangote Cement Plc, saying the gesture would go a long way in helping the Fund achieve its core mandate of maintaining security with ease. “When you do a fund raiser, we are used to the Nigerian phenomenon, where it’s very easy to make a pledge and when it is time to redeem, it becomes difficult. We are happy that this is a fulfilment of a pledge made sometimes ago being fulfilled in our very eyes,” Agbaje said. He promised that the cars would be maintained and put to judicious use, saying the Fund would not disappoint the company on the partnership.

Friday 05 June 2020

BUSINESS DAY

NEWS

Lessons for Nigerian landlords on rents in time of coronavirus crisis CHUKA UROKO

or Nigerian landlords, there are lessons to learn from other jurisdictions on how to relate with their tenants in terms of rents payment at a time like this, when coronavirus has brought all economic activities to a standstill around the globe. Though, Kunle Awobodu, president, Nigerian Institute of Building (NIOB), says the time the world is in calls for understanding on the part of landlords, analysts say Nigerian landlords could go beyond that by adopting what obtains in a place like Saudi Arabia where each tenant is viewed as a partner that needs full support during this pandemic.

Both residential and commercial property landlords are increasingly concerned about the economic impact of the coronavirus pandemic on their tenants and property portfolio. For reasons of the lockdown and social distancing rules, most commercial properties, especially office spaces, were shut down and the occupiers compelled to work from home. Residential property landlords are also impacted because their tenants who have either lost their jobs or taken pay cuts can no longer afford their rents. But “commercial landlords need rent money to keep their own businesses afloat. So, we’ve recommended that, while landlords should accommodate

rent reductions, they should continue to demand rent in the usual way, while refraining from waiving their right to collect unpaid rent at a future date,” a new report quotes a commercial property solicitor, Paul Hinchliffe, as saying. This, according to Awobodu, is the position of most Nigerian landlords, explaining that the landlords are also impacted by the deadly diseases. But it is different story in Saudi Arabia where landlords have shown their support by exempting tenants from paying rent to mitigate the impact of Covid-19. Before the pandemic, as part of incentives to attract tenants, both retail and office space suppliers in Nigeria only supported their tenants during their fit out period. None of these land-

lords has so far announced a rent-free period for tenants as a result of the Covid-19 crisis. Unlike their Nigerian counterparts, most Saudi landlords have given few months free for tenants. The landlords explained that the rent-free period for their tenants was a response to the crisis and aimed to mitigate the impact of the pandemic and protect as well as help the tenants. The rent-free period, however, depend on the level of impact of the crisis on the tenant. Wafi Energy, for instance, is one of the subsidiaries of Al-Tas’heelat Holding Group. It is a fuel station company that rents, operates, invests in and runs fuel stations through long-term investment contracts.

DELSU jumps 40 positions higher in latest global academic rankings JUMOKE AKIYODE-LAWANSON

igeria’s Delta State University (DELSU), Abraka, has got improved overall rating in the recently released Webometrics rankings of 30,000 universities in 200 countries. Webometrics, a global ranking body, reveals that DELSU made great gains, jumping from its 78th position among Nigerian universities to a more respectable 38th position, and from a previous 19th position to 7th among state universities. In a statement signed by Ben Nwanne, acting director, Ceremonials, Information and Public Relations of the university, he says the university community is excited about the significant improvements in the ratings of DELSU, attributing it to the enlightened and committed leadership, which Andy Egwunyenga, the vice chancellor, has provided the university in just six months of being in office. “Egwunyenga, a first rate scholar and administrator, gave notice of his expected high quality performance in the first few days of his administration. At his first Senate on December 11, 2019, he assured his colleagues that

he would work assiduously with them towards making DELSU the best State University in practically all aspects, including aesthetics and environmental upliftment. It was obvious he had carefully thought through his mandate,” Nwanne says. Following the rating, there was a plethora of congratulatory messages that followed the publication. C.P Aloamaka, former deputy vice chancellor in charge of administration at DELSU, states: “This achievement is not surprising. It is not enough to know what to do, but it is more rewarding to carry people along in working towards your goal. This has earned DELSU great success.” In another congratulatory message, John Igwe, one of the contenders for the highly coveted post of vice chancellor in the last contest, says: “Our V.C you are doing great. The next leap will revolve around visibility, strong broadbrand internet connectivity”. Responding to the congratulatory messages, Egwunyenga, who has set a high standard in scholarship, fairness and due process, told the academic community that they should not rest on their oars.

Banks slash interest on savings accounts as CBN lowers MPR by 100bp … from average of 4.2% to 3.7% per annum Muhammad Bello (l), minister, Federal Capital Territory (FCT), inaugurating the 17-member FCT State Community Policing Advisory Committee (SCPAC) headed by Bala Ciroma (r), commissioner of Police in FCT, as part of efforts towards reducing crime rate in the territory. With them is Philip Aduda (2nd l), senator representing the FCT.

Medplus expands pharmaceutical Access Bank leverages e-Learning to improve monetary literacy of children chain with new openings BUNMI BAILEY

edplus Pharmacy, a health and beauty retail company, has expanded its pharmaceutical chain of over 54 outlets across Nigeria with two new stores located at Prime Mall, Orchid Road after Chevron Second Toll Gate, Lekki, and The Bloc, Kusenla Road, Ikate-Elegushi, Lekki-Epe expressway, Lagos. Furthering its commitment to helping Nigerians live and feel good with a holistic approach to healthcare by caring for the mind, body and spirit, the new additions will continue to deliver the best health and beauty products, while ensuring availability and accessibility of improved healthcare services to the community. Speaking about the new openings, Senami Atika, marketing manager, Med-

plus Nigeria, emphasises on the importance of access to health products during this pandemic without any hassle. Expressing her excitement about the new stores, she states that brand’s approach is the possibility to take advantage of affordable health and beauty products while making sure it is readily available for the consumers. According to Atika, “One of our top priorities over the years is ensuring that Nigerians have access to quality health and beauty products and I’m thrilled that we have been able to achieve so much, ranging from our delivery services, 24 hour stores across Lagos and over 54 outlets across the country, we at Medplus continue to focus on building a standard healthcare and beauty foundation for our customers to create easy and better lives and also improve the community at large.

HOPE MOSES-ASHIKE

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howing a deep understanding of the adverse effects the COVID-19 pandemic has on Nigeria’s education system, Access Bank plc has rolled out Access9ijaKids, a 12-week eLearning programme aimed at improving the intelligence quotients, financial literacy and civic knowledge of primary school children. The programme, which employs the use of gamified technology, is being executed in partnership with 9ija Kids, a Nigerian EduTech company with a storied history of using games to engage, educate and reward Nigerian children. Speaking on the need for the initiative, Omobolanle Victor-Laniyan, Access Bank’s head of sustainability, said, “As countries continue to grapple with the massive disruption to education caused by COVID-19, Access

Bank has set up the Access9ijaKids platform to support learning and knowledgesharing through the use of materials at a no-cost access. “The COVID-19 crisis has resulted in a paradigm shift on how learners of all ages, worldwide, can access learning and as part of our Sustainability drive to ensure inclusive and equitable quality education, we have provided a platform that our kids can easily interact with. Through this platform, we also aim to aid them in building their intelligence quotients by providing access to information relevant to real-life problems.” This innovative educational platform is serving as a preparatory ground for children to learn about financial management while also offering them the chance to have their Access Bank Early Savers accounts credited with stipends for participation.

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ENDURANCE OKAFOR

ollowing the decision by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to slash the Monetary Policy Rate (MPR) by 100 basis points, Nigerian banks have reduced interest on savings accounts by 0.5 percentage points. From an initial average of 4.2 percent interest rate on basic savings account the deposit money banks after the new MPR rate reduced it to 3.7 percent per annum. “Following the recent changes in the MPR, the bank has revised interest rates on some products. The new rates will apply effective Thursday, May 28, 2020,” Access Bank notified its customers by mail while stating that the new interest would be 3.7 percent from its current 4.05 percent. The trend was the same with two other banks, even though they were yet to send the notification to their customers. “My bank is slashing interest on savings accounts at almost the same rate as the one you just mentioned, but they are yet to send out the notification,” a retail banker in one of @Businessdayng

the tier-one lenders said on the condition of anonymity. According to the World Bank, being able to have access to a transaction account is the first step toward broader financial inclusion, since a transaction account allows people to save money, send and receive payments. For savings account holders in Nigeria to qualify for the interest on the account, the banks require them not to make up to four withdrawals in a month; else they would have forfeited the interest. Also, the banks say the interest on the savings account is dependent on the MPR by the central bank. Outlining the benefits on its Max Yield, a savings account that offers interest rates on a minimum deposit balance, Stanbic IBTC Nigeria says before the rate cut by the CBN that the account holders can enjoy “normal savings rate or 4.2% per annum (subject to CBN-advised MPR).” To spur lending to the economy, which faces imminent recession on twin pressures of COVID-19 pandemic and low oil prices, the MPC unanimously voted to slash the MPR to 12.5 percent on May 28, 2020.

Friday 05 June 2020

BUSINESS DAY

news Mosques to reopen June 19 in Lagos... Continued from page 1

ligious centres must limit congregational gatherings to 40 percent of their total capacities and observe all protocols and guidelines that make for safety of worshipers and check further transmission of the disease. Such protocols, he said, include mandatory wearing of facemasks by all persons going into the churches and mosques, provision for handwashing under running water, sanitisers, and observance of reasonable distance by the worshipers. The religious centres are also expected to limit their gatherings only to regular Sunday services (churches) and Friday Jumat prayers (mosques) as all other services, including night vigils, are prohibited for the time being. There will be no communion or sharing of food of any kind in the churches, no sharing of kettle in the mosques, he said. Sanwo-Olu said aged persons 65 years and above, as well as young people 15 years and below, are to steer clear from all religious gatherings until otherwise further directed. This, he said, is necessary as statistics of fatalities showed that persons within these brackets are more susceptible to the pandemic. Compliance with these measures, the governor warned, would be strictly monitored by officials of the Lagos State Safety Commission, who would be paying surprise visits to the religious houses. He said the government reserves the right to further restrict or cancel religious gatherings in the state, depending on new developments regarding the disease or the level of compliance of the worship centres with guidelines and protocols given above. Sanwo-Olu also gave the nod for civil servants on grade levels 13 and 14 to resume work from Monday, June 22, while grade 1 to 12 should continue to stay home until further notice. He disclosed that seven additional testing centres (laboratories) would be made ready within the next few days to further assist in ramping up testing for suspected cases of the coronavirus. The government, Sanwo-Olu said, is on the verge of getting the Nigeria Centre for Disease Control

(NCDC) to accredit the seven new centres, which will bring the total test centres in Lagos to 11 from the existing four. Sanwo-Olu, who also hinted of the full reopening of event centres and hotels across the state in two weeks’ time, called on the operators of such places to use this period to prepare their facilities in line with the guidelines earlier issued by the Lagos Safety Commission and the Lagos State Environmental Protection Agency (LASEPA). The Lagos State Safety Commission has earlier announced that it has begun registration of religious and social centres in the state in preparation for full reopening. This, the commission said, was in furtherance of the Register-to-Open initiative of the state government, as directed by Governor Babajide Sanwo-Olu. “Further to the directive of Mr Governor with respect to the Registerto-Open initiative of Lagos State government, we hereby confirm that all religious and social centers (social clubs, event centres, restaurants, bars, night clubs, spas, cinemas and gyms) within the state can commence the registration process on the designated portal www. lasgsafetyreg.com immediately,” the commission said in a statement signed by Lanre Mojola, its director-general. The governor had on May 17 said the government was considering full reopening of the economy, including critical sectors like tourism and hospitality, sporting, event centres, cinemas, entertainment, and religious gatherings, adding that businesses in these sectors would have to undergo re-registration before reopening and that the Lagos State Safety Commission and Environmental Protection Agency (LASEPA) would be visiting offices and business premises to assess the level of their readiness to resume operations. On schools, Sanwo-Olu said on Thursday that ongoing learning via various online platforms would continue across the seven state-owned tertiary institutions while secondary and primary schools, both public and private, remain shut while government consults with all relevant stakeholders in the education sector. www.businessday.ng

L-R: Lai Mohammed, minister of information and culture, and Sabo Nanono, minister of agriculture, during a joint news conference on the Agricultural Revolution of President Muhammadu Buhari’s administration, in Abuja, yesterday. NAN

SMEs face nightmares on persisting... Continued from page 1

percent of Nigeria’s GDP while transport (and stor-

age) contributes 1.77 percent to the economy, according to the National Bureau of Statistics (NBS). The Nigerian economy relies on inter-state movement, particularly Lagos whose 20 million people rely on other states for 80 percent of their food, vegetables and fruits. Most of Lagos’ 8.4 million MSMEs depend on interstate movement to reach their customers or get their raw materials. Adepeju Jaiyeoba, CEO of Mother’s Delivery Kits, said her supplies outside Lagos have been stalled owing to inter-state restrictions. The 41.5 million MSMEs in the country contribute 50 percent to Nigeria’s GDP and account for 86.3 percent of jobs (59.6 million jobs in 2017), according to a report by the NBS and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

In a survey done by the Enterprise Development Centre of Pan-Atlantic University, Lagos, on the impact of Covid-19 on MSMEs, 93 percent of small businesses reported decline in revenue while 89 percent admitted having issues in their supply chains due to restrictions on interstate movement. Forty-nine percent of the respondents said they were facing crippling logistics issues as 88 percent said they would change their business models. “Most of them reported that they were unable to move their raw materials needed for production or transport their goods due to the restrictions of movement for both human and goods,” EDC said in the report. Olamide Ayeni-Babajide, chief executive of Pearl Recycling, a Lagos-based company that transforms solid wastes into chairs, has got orders for the supply of 300 chairs across Nigerian states since the Lagos lockdown. But she can’t supply due to restrictions on

inter-state movements. Weeks of lockdown to curb the spread of COVID-19 has impoverished many MSMEs who rely on daily incomes for upkeep. Lagos accounted for 12 percent of total national household expenditure (N5 trillion) in 2019, according to the NBS. Lagos residents spent N534 million on transport and N827 million on eating outside their home in 2019, said NBS. But the situation seems to be changing. Friday Opara, director, strategic partnership, SMEDAN, said small businesses are on life support now. “The government should do something to help the small businesses in this pandemic, considering their contribution to GDP and to employment,” he said. In a recent interview, Degun Agboade, president, Nigerian Association of Small and Medium Enterprises (NASME), said the Covid-19 pandemic and lockdown have been devastating for MSMEs operators in the country, especially for micro businesses who survive on daily incomes. He called for a bailout to save

millions of small businesses from going under. Chijioke Ekechukwu, an economist and former director general of the Abuja Chamber of Commerce and Industry, told BusinessDay that government’s intervention would most likely be limited now amid dwindling revenues. But he said the government must find a better strategy to address specific concerns of respective MSME sectors. “When the COVID pandemic started, the government rolled out stimulus package. Most MSMEs applied online for those packages and between that time and now I don’t think anything has happened and I can tell you that categorically,” he said. “I can also tell you that MSMEs that applied for amount up to N25 million, which is the maximum, got approval for N2.5 million. The implication is that if someone has a need for N25 million and you approved N2.5 million, it means you have prepared from day one to accept default,” he said.

COVID-19 patients can now be discharged between 10 to 14 days – NCDC ... As FG advances reasons for dropping anti-body test kits TONY AILEMEN, CYNTHIA EGBOBOH & GODSGIFT ONYEDINEFU, Abuja

he Nigeria Centre for Disease Control (NCDC) says COVID-19 patients can now be discharged between 10 to 14 days after a positive test or onset of symptoms. This is according to NCDC’s newly released case management guidelines. Chikwe Ihekweazu, director-general, NCDC, who made this known during the daily briefing of the Presidential Task Force on COVID-19 in Abuja,

Thursday, said the 3rd version of the guidelines was released following new science emerging about the duration of infectivity of individual patients. The DG said the World Health Organisation (WHO) had also released new guidelines after the study found that the virus is viable for about 10 days. This, he said, prompted a review of the national guidelines in line with local setting. Ihekweazu explained that symptomatic patients would now be discharged at least 10 days after symptoms on-

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set and at least three days without symptoms, while asymptomatic patients can be discharged 14 days after the first PCR positive test. “We no longer have to wait for a negative test to discharge. We are confident that you can go home and you are no longer infective or putting family or friends at risk. If your symptoms last for longer, we will wait while managing,” Ihekweazu said. He noted that physicians are hesitant about the new guidelines, but he assured them that the new guideline is effective and would have impact. @Businessdayng

The DG further informed that the centre has also removed the use of anti-virals such as chloroquine and hydroxychloroquine from its treatment guidelines.Hesaidtheanti-virals will now be used only on trials settingandnotcasually,because its safety is uncertain. He said the treatment protocol remains to manage symptoms, manage pre-existing conditions, supplemental oxygen therapy to different extents, treatment of bacterial infections and ensuring that patients are well nourished and well hydrated.

Friday 05 June, 2020

BUSINESS DAY

Markets + Finance

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

BUA Cement makes more money on sales than peers BALA AUGIE

he cement industry has always felt the pang of an economic downturn over the past few years, owing to reduced fiscal spending on capital projects as well as reduced private investments in capital formation due to feeble macro conditions. In 2016 when the economy went into a recession, the construction sector declined by 5.9 percent compared to the growth of 4.4 percent recorded in 2015. Despite these challenges inhibiting the growth of the industry, BUA Cement Plc is thriving as the company recorded strong earnings growth while contemporaneously magnifying shareholders’ earnings. BUA’s revenue increased by 47.47 percent to N175.51 billion in December 2019, that compares with -1 percent reduction in revenue for Dangote Cement, and Lafarge

Abdbul Samad, BUA group chairman

Africa (-2.20 percent). The growth at the top line (sales) was largely driven by capacity increase (s) from 2mmtpa in 2018 to 8mmtpa in 2019; the company said its differentiation strategy has translated to an increased appreciation of the ‘value’ imbued in the product offering. Last year, BUA merged two

of its subsidiaries (Obu Cement and Cement Company of Northern Nigeria) into a single entity to become the second largest producer of the building material. It became the third largest most capitalized company after it listed 33.86 billion ordinary shares on the bourse, and its market capitalization as at June 3 stood at N1.42 trillion. BUA is reaping the benefits of merger synergy as it is making more profit on sales and is more efficient in converting raw materials into sales than peer rivals. What this is means is that there is more to invest, save, and/or cover indirect expenses. The company’s gross profit increased by 39.59 percent to N82.44 billion as at December 2019 from N59.06 billion as at December 2018. On the other hand, Dangote Cement, the largest producer of the building material and most capitalized company in Nigeria saw a 1 percent reduction in gross profit while Lafarge Africa’s profit was up by 4.20 BUA cement has a profitable operation, and it is running its operations smoothly than peer rivals, as its operating profit margin increased to 40.67 percent in December 2019 from 36 percent the previous year. However, Dangote cement’s operating profit declined to 33.63 percent in the period under review from 37.58 percent the previous year while Lafarge Africa’s fell to 16.38 percent in December 2019 as against 17.68 percent as at December 2018. Despite the harsh and unpredictable macroeconomic environment, BUA cement recorded double digit growth in at the bottom line (profit).

Pre-tax profit increased by 69.11 percent to N66.23 billion as at December 2018, while Dangote cement saw profit dip by 16.73 percent and Lafarge Africa (-12.40 percent|) BUA cement’s cash flow from operating activities rose by 46.77 percent to N82.38 billion in December 2019 from N56.13 billion as at December 2018. What is this means is that the company has the financial strength to pay future dividend, settle debt, and finance future expansion plans. “Through the adoption of a focused and disciplined approach, we continue to record strong revenue growth, even as we derive revenue and cost synergies from the merger across: pricing, scale and operational efficiencies; all supported by a sustainable business model and a valueoriented strategy,” said Yusuf Binji Managing Director of BUA Cement. “Going forward, our focus is to further harness the full benefits of the merger while making further in-roads to “new markets” both locally and outside Nigeria,” said Binji There are tough times ahead for cement makers as Federal Government has reduced the amount budgeted for capital expenditure by 20 percent in the 2020 budget due to coronavirus pandemic shocks on revenue and crude oil price. Constructions activities have been suspended across the country due to lockdown measures impose by government to curb the spread of the virus. The International Monetary Fund says Nigeria’s economy is expected to shrink by 3.4 percent this year and Africa’s largest economy could face a recession lasting until 2021. Insidious virus has shattered Nigeria’s economy as Brent crude oil fell from $70 per barrel at the dawn of 2020 to $20 per barrel as of April 22, 2020. That forced the ministry of Finance to cut the budget benchmark to $25 a barrel from $57, which further compounds the woes of operators in the industrial goods sector that depend on government capital expenditure spending to jerk up revenue. The external foreign reserve has shed over 12 percent from $38.54 billion on January 1, 2020, to $33.63 billion as of April 23, 2020. To shield the external re-

serves from continued bleeding, the central bank was forced to weaken the currency to $360 from $306. The first quarter GDP report released by the National Bureau of Statistics (NBS) shows Nigeria’s economy grew 1.87 percent but that represents deterioration from the previ-

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

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ous quarter as oil prices and international trade fell due to the coronavirus pandemic. Chief Executive of Lafarge Africa, Khaled El Dokani said the cement company will freeze capital expenditure as it forecast a drop in secondquarter sales as the coronavirus pandemic hits demand.

Friday 05 June, 2020

BUSINESS DAY

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Women in Business

Shola Mos-Shogbamimu Business Lawyer, women’s rights & diversity advocate

S H

hola is a New York Attorney and Solicitor of England & Wales with broad expertise in the financial services industry, an author, public speaker and political commentator featured in mainstream and online media. As a political

and women’s rights activist, she also teaches intersectional feminism to female refugees and asylum seekers; scrutinizes government policies from a gender and diversity inclusion perspective; and co-organises women’s marches and social campaigns.

abiba Ali is the Managing Director and CEO of Sosai Renewable Energies Company, one of the largest distributors of renewable energy in Nigeria. Sosai Renewable Energies provides renewable energy products like solar lamps, water purifiers and solar panels, as well as energy consulting services to help bring clean, renewable energy solutions to Nigeria’s budding communities. Ali also co-founded the Developmental Association for Renewable Energies (DARE), and is a member of the Partnership for Clean Indoor Air and the Nigerian Energy Network. SOSAI Renewable Energies Company was set up with the idea of using market based strategies to address the issues of poverty and rural/community development as regards access to energy, clean water and ensuring positive livelihoods. The dream of bridging the energy gap and balancing the energy deficit in disadvantaged societies is what drives them at Sosai Renewable Energies Company. Since their inception, the company has invested in turning that dream into a reality. They have been responsible for providing world class technical, engineering and advisory services as well as distributorship of great renewable products in the area of renewable energy. Their years of experience, coupled with the expertise of their team of professionals, makes them one of Nigeria’s go-to renewable and biofuels company. Sosai believies that renewable energy can be affordable, efficient and sustainable and as such, preserving the environment is their ultimate goal. Habiba has been in the renewable energy industry since 2005. Aside co-founding the Developmental Association for Renewable Energies, she also worked as national coordi-

nator. She worked on the Clean Development Mechanism project, the Solar Lamps Assembly, sales training program, and the solar dryers for healthy foods project among others. As managing director and CEO of Sosai Renewable Energies, she manages a partnership with C-Quest LLC to implement a nationwide programme of activities for improved cook stoves in Nigeria, installing 60,000 cook stoves to date. She ensures the preparation of a corporate plan and annual business plan, and also monitors progress on these plans to ensure that the company attains its objectives as cost-effectively and efficiently as possible. Ali establishes and maintains effective formal and informal links with major customers, relevant government departments and agencies, local authorities, key decisionmakers and other stakeholders generally, to exchange information and views and to ensure that the company is providing the appropriate range and quality of services. She develops and maintains research and development programmes to ensure that the company remains at the forefront in the industry, applying efficient methods and services, hereby retaining their competitive edge. Habiba is the vice president of the Renewable Energies Association of Nigeria and serves as a member of the Global Alliance for Clean Cook Stoves, the Nigerian Alliance for Clean Cook Stoves and the Nigerian Energy Network. Sosai is currently empowering communities and businesses with solar technologies ranging from roof top solar panels, solar home systems, 10Kw Micro Grids for communities, solar dryers and integrated energy centers. Habiba is a member of the Manufacturers Association of Nigeria and holds the office of Kaduna North Regional Coordinator.

BUSINESS DAY Friday 05 June 2020 www.businessday.ng

By Kemi Ajumobi

She founded the Women in Leadership publication as a platform to drive positive change on topical issues that impact women globally through inspiring personal leadership journeys; and established She@LawTalks to promote Women & BAME leadership in the legal profession through universities and secondary schools. She is also the Co-Chair of the American Bar Association Africa committee. An academic enthusiast, she has an Executive MBA (Cambridge University); PhD (Birkbeck University); LLM (London School of Economics & Political Science); MA (Westminster University) and LLB Hons (Buckingham University). Shola is a highly qualified dual qualified New York Attorney and Solicitor of England & Wales with broad corporate and commercial international banking experience in the financial services industry. Having worked at leading financial organisations, she provides niche and flexible business law solutions and strategies to businesses. As a senior legal advisor, she has successfully maneuvered the delicate balance between dedication to mission, the need for bold entrepreneurial initiatives, and the application of sound business management. She has a decade of experience facilitating effective decision making to deliver key mandates; brokering strong alliances and cultivating productive relationships to influence and shape outcomes. She has undertaken broad responsibility for ensuring business is operated in compliance with relevant legal, regulatory requirements and group standards; assessing and advising on the impact of legal and regulatory changes on business activities and/or the legal implications of proposed business activities and transactions; en-

suring legal risks are identified, mitigated, prioritised and resourced to protect the business; providing support/guidance on best practice risk management regimes and frameworks; working closely with key stakeholders across the business to achieve key deliverables; overseeing negotiation of contractual arrangements across various jurisdictions; implementing, monitoring and driving change through learning interventions relating to compliance and governance; designing and implementing legal and leadership training programs across a global operating business. Shogbamimu believes in the powerful impact of human stories and founded the Women in Leadership publication to inspire personal leadership journeys of women. As Co-Chair of the Africa Committee at the American Bar Association, she was responsible for managing the over 400 member Africa committee in the ABA section of international law, which includes managing the basic operations of the committee, initiating projects of interest, liaising and interacting with high-level attorneys within the ABA and forging new relationships externally to contribute to African legal affairs. As Executive Board Director for Centre for African Business Education (CABE), a UK based institution focused on the development and exchange of practical knowledge on ‘doing business in Africa’ and ‘Africa doing business globally’, she ensured that, through products such as the unique African Business Management course (ABM®) and other programmes developed by the CABE, the organisation is able to provide not just business education, but opportunity to all parties interacting with it.

Habiba Ali MD/CEO Sosai Renewable Energies Company

Ali was named a Cherie Blaire mentee in 2016 a GSBi fellow 2017. She has also been named a Vital Voices GROW fellow, a World Bank Womenx fellow, a graduate of the Cherie Blaire Road to Business Growth program and a fellow of the SEForum Business Accelerator.

Sosai has received many awards and accolades, including the UNDP/BOI access to REnewable Energies award in 2012; the United Nations South-South Development award in 2013; the DFID Solar Nigeria award in 2016; and the USADF award for Powering Africa 2017.

For sponsorship and advert placement contact: kemi@businessdayonline.com Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Advert Hotline: 08033225506. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Patrick Atuanya. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.