BusinessDay 05 Oct 2018

businessday market monitor FMDQ Close

Everdon Bureau De Change

Bitcoin

NSE

Foreign Exchange

Biggest Gainer CCNN N25

Biggest Loser

Okomuoil 7.76 pc N73.2 -4.94 pc 32,423.57

Foreign Reserve - $43.9bn Cross Rates - GBP-$:1.30 YUANY-N52.85 Commodities Cocoa

Gold

Crude Oil

US $2,010.00

$1,202.10

$84.78

news you can trust I **FRIDAY 05 OCTOBER 2018 I vol. 15, no 155 I N300

Primaries: APC governors appeal for Buhari’s intervention …hold meeting with Oshiomhole

₦2,291,504.88

+1.80 pc

Powered by

@

Buy

Sell

$-N 358.00 361.00 £-N 472.50 479.50 €-N 412.00 419.00

Market I&E FX Window CBN Official Rate Currency Futures

($/N)

fgn bonds

Treasury bills

Spot ($/N)

3M

6M

5Y

363.57 306.40

-0.24 12.14

-0.43 13.27

0.20

NGUS DEC 26 2018 364.27

15.16

NGUS MAR 27 2019 364.72

10 Y 20 Y 0.05 -0.09 15.13

15.14

NGUS SEP 18 2019 365.62

g

FG goes borrowing while idle assets waste away CHUKA UROKO & LOLADE AKINMURELE

T

he abandoned federal secretariat, Ikoyi is a daily reminder of the one of the federal government’s idle assets wasting away across the country even as the government piles up

debt that it can hardly afford to repay. Now, experts are recommending that the government should consider selling some of these assets located across the country to plug its revenue shortfalls.

Since inception, the Bureau for Public Enterprises has pri-

vatised some 142 enterprises but no privatisation has happened since 2015, a period that coincides with acute revenue shortfalls.

In two years, 2016 and 2017 the FG has only managed to raise N5 billion (USD$ 16 million) from privatisation of public as-

sets, 14 times less than it raised from the single sale of Eleme Petrochemicals as far back as 2006.

Interestingly, the government first muted the idea of selling idle assets as far back as 2016.

“There are some unused asContinues on page 38

Tony Ailemen, Abuja

A

s crises continues to trail the current primaries of the All Progressive Congress APC, Governors of the ruling party Thursday stormed the Presidential Villa, Abuja with requests that they be allowed to determine their successors.

BusinessDay gathered the Governors who pleaded with President Buhari to quickly intervene in the crises, are also seeking soft landings for their preferred choices in the primaries.

Following the insistence on controlling the primaries from Continues on page 38

Olu Fasan on Monday “Nigeria is a one-party state.

The party is the political class.”

L-R: Aigboje Aig-Imoukhuede, chairman, Coronation Capital; Osayi Alile, CEO, ACT Foundation; Pat Alile, wife of the deceased; Ikponwmwosa Alile, son of the deceased, and Aliko Dangote, chairman, Dangote Group, paying a condolence visit to the Alile family on the demise of Apostle Hayford Ikponmwosa Alile.

2 BUSINESS DAY NEWS

C002D5556

Friday 05 October 2018

Kachikwu performs groundbreaking for 5,000bpd Waltersmith Refinery ... more to come on-stream in 2 years FRANK UZUEGBUNAM

T

he Minister of State for Petroleum Resources, Ibe Kachikwu, yesterday, performed the ground breaking ceremony for the 5,000 barrels per day modular refinery located at the Ibigwe onshore field Imo state, in eastern Niger Delta.

Kachikwu said that Nigeria’s refining roadmap should take into cognisance full repair of the country’s existing refineries, tackle the modular challenge, and emergency of private-sector led Greenfield refineries to turn Nigeria into the refining hub of Africa.

“It will be sad if at the end of it all, Nigeria is still importing petroleum products,” Kachikwu said.

The modular refinery project is championed by Waltersmith Refining & Petrochemical Co. Limited in partnership with Nigerian Content Development & Monitoring Board (NCDMB) and African Finance Corporation (AFC).

The project is scheduled to be completed within 18 months.

“The 5,000bpd refinery was conceptualised in 2011 to mitigate the frequent outage of the third-party export Trans Niger Pipeline (TNP) and to optimise the full value of our produced crude through in-country refining and providing the petroleum products for the domestic market,” said Abdulrazaq Isa, chairman/chief executive, Waltersmith Petroman Oil Limited.

“The 5,000bpd refinery which we are breaking ground today is the first phase of a much larger development. Ultimately, we plan to increase

the capacity to 30,000bpd to process additional products including petrol (PMS) and jet fuel. We have already executed a MoU with PCC of China towards the installation of the additional capacity within 3 years, after start-up of the 5,000bpd modular refinery in December 2020,” Isa added.

Meanwhile, Saidu Mohammed, COO, Gas & Power, Nigerian National Petroleum Corporation (NNPC) who represented Maikanti Baru, NNPC GMD, said that in the next 24 months, 2 more modular refineries will come on stream in South East and Delta states.

The Engineering, Procurement and Construction (EPC) contract for 5,000bpd Waltersmith modular refinery was executed in April 2018 with Velem, a JV between Vfuels of Houston and Lambert Electromec.

The crude feedstock will be supplied from the adjoining Ibigwe flowstation to the dedicated crude storage tanks at the refinery site.

The refinery will produce per day 300,168 liters of diesel, 54,691 liters of Kerosene, 409,710 liters of HPFO and 24,643 liters of Naphtha.

The refined products would be sold and evacuated via dedicated trucks from a 5-bay truck rack where the products are loaded into tankers.

The loading bay is equipped with a metering unit skid which has capacity to load a minimum of 29 trucks daily.

It will be recalled that the NCDMB in June this year signed a 30 percent equity share subscription agreement in the modular refinery with Waltersmith worth $10-million.

•Continues online at www.businessdayonline.com

Why Nigeria Air was doomed to fail from conception – stakeholders IFEOMA OKEKE

S

takeholders in the aviation industry have said the national carrier project recently suspended by the Federal Government was a failure from its conception.

Victor Banjo, a former director, Human Resources of the defunct Virgin Nigeria, on Thursday, said the project lacked the requisite structure for success.

Banjo and other stakeholders spoke at the Q4 2018 quarterly business breakfast meeting of the Aviation Safety Roundtable Initiative, (ARTI) in Lagos, with the theme, ‘Short life span of Nigerian airlines, the importance of corporate governance’.

He said the proposed national carrier lacked accountability, fairness, transparency and independence.

“From onset, Nigeria Air was doomed to fail because the four pillars of corporate governance were missing. In terms of transparency, too much was shrouded in secrecy for a project that a huge chunk of tax payers money was about to be committed, and time will tell if it will move from being premature to a stillborn,” he said.

Hadi Sirika, the Minister of State for Aviation,hadinSeptemberannounced the suspension of the planned national carrier, Nigeria Air, which the Federal Government had said would begin flight operations in December.

Banjo, who is also a former Direc-

tor-General of the Institute of Directors, noted that the national carrier idea was not to launch an airline but may have been for some other purposes not disclosed to the public.

Anthony Kila, the director of Studies, Centre for International Advanced and Professional Studies, said the Federal Government began the Nigeria Air project without due consultation with stakeholders, adding that failure was guaranteed from the planning stage.

“Nigeria Air was conceived on power point, shared on adobe and died on Twitter,” he added.

Also speaking during the event, Gbenga Olowo, the president of ARTI, said the announcement of the national carrier shook the industry as it was a vote of no confidence in the existing airlines.

He said the Federal Government should explain to Nigerians if the project had been suspended or not so that stakeholders in the aviation industry could plan better.

Edward Boyo, the managing director of Overland Airways, said the problem with the aviation industry had nothing to do with airlines or their owners but with the Nigerian people who promote foreign airlines and talk down on domestic carriers.

He said the industry would become better if people changed their attitude and the government changed certain laws that make the operating environment difficult for domestic carriers.

L-R: Yewande Sadiku, executive secretary, Nigerian Investment Promotion Commission; Bismarck Rewane, managing director, Financial Derivatives; Folashade Ambrose-Medebem, president, European Business Organisation Nigeria, and Afolabi Imoukhuede, senior special assistant to the president on job creation, at the 7th EU - Nigeria Business Forum in Lagos, yesterday.

A former bank MD explains lessons from Skye Bank’s crash

BY OUR REPORTER

J

ohn Darlington, a former managing director of Bond Bank is one of those who personally feels the pain that has befallen Sky Bank. Bond Bank is one of the six banks that came together to form Skye Bank. It was a merger that he was never comfortable with and the fate that has fallen the bank is for him what he feared when the merger came into being.

According to the Bank MD, in the fall of Skye bank, the small shareholders are the most impacted. He said the big shareholders in the bank have been largely responsible for its

failure through their unrestrained access to insider related loans. He also accuses the pioneer managing directors of Skye bank of mismanaging the bank.

“Those three CEOs (Skye Bank until it was taken over by the CBN) should face the law, they looted the patrimony of a whole lot of shareholders and destroyed otherwise what was meant to be a solid bank.”

“The board (of the defunct Skye Bank) must also face the music. The board failed in their role of protecting the interest of all stakeholders.”

Darlington also does not spare the regulators, specifically the Central Bank of Nigeria (CBN).

“It took the regulator a while to act. Everybody in the market knew that Skye bank was in some sort of trouble. But it took the CBN two years to act. In my humble opinion the CBN should have acted two years ago when the board was dissolved and management kicked out. Why wait for two years?”

Darlington has an advice for shareholders.

“I believe shareholders must now come together under an umbrella and go after the management and the board that looted and destroyed their common patrimony. Let us

Continues on page 38

Downstream firms’ debts fall on new NNPC import model BALA AUGIE

D

ownstream oil and gas firms have seen the proportion of debt in their capital structure drop to record lows, as they no longer borrow to fund importation of petroleum product.

The reductions in debt to equity (D/E) ratio has helped to underpin margins, as firms can now better manage liquidity without the need to fight government for prompt payment.

Nigeria National Petroleum Corporation (NNPC) has been the sole importer of petroleum products since December 2017, as scarcity of foreign exchange hindered private marketers from importing products.

“For Total and Forte Oil, the decline in debt to equity ratio is a reflection of reduction in the need to engage long term debt to cover cost of import which usually included subsidy in the past,” said Jubril Kareem, Energy Research Analyst at Ecobank Capital.

“As subsidy is now directly borne

by NNPC, the companies have no need to borrow long term to cover the cost of subsidy usually incurred during the importation process that existed in the past,” said Kareem.

Total Nigeria Plc’s has reduced the proportion of debts in its capital structure as debt to equity (D/E) ratio improved to 42.90 percent in June 2018, from 58.90 percent recorded

the previous year, according to data gathered from Bloomberg Terminal.

The company’s return on common equity (ROCE) stood at 33.06 percent in the period under review, higher than the 25 percent recorded in the first quarter of 2017.

Mobil Nigeria Plc has maintained a zero debt level in the last 5 years, and little wonder its ROCE increased to 40.18 percent in June 2018 as against 31.82 percent it recorded in the first quarter of 2017.

Forte Oil Nigeria Plc’s D/E ratio fell to 37.69 percent in the period under review, a remarkable improvement from 109.93 percent figure as at the first quarter of 2017.

Interestingly, the company’s ROCE grew to 29.37 percent as at June 2018, from 26.15 percent as at first quarter of 2017 and 6.43 percent as at the third quarter of 2017.

The improvement in Forte Oil’s gearing level during the second quarter can be further attributed to the company’sdecisiontosellitspowerbusiness and hence removing the operation of the power plant from its books.

Eternal Oil Nigeria Plc’s debt to equity ratio fell to 49.07 percent in the period under review from 50.48 percent the previous year.

ItsROEincreasedto15.76percentin June 2018, compared to 14.99 percent recorded in the fourth quarter of 2017.

Eterna stock is currently trading at 4.06 times earnings, lower than

the average of 4.16 times earnings of the Oil and Gas Index.

The stock has a year to date return of 53.92 percent, outperforming Nigerian Stock Exchange (NSE) All Share Index (ASI) of 14.36 percent.

Many Nigerians paid more for petroleum products, including Premium Motor Spirit (petrol), in August according to data from the National Bureau of Statistics.

The average price paid by consumers for petrol increased by 1.7 per cent year-on-year and 0.1 per cent month-on-month to N146.90 per litre in August from N146.80 in July.

States with the highest average price of petrol were Borno (N157), Kebbi (N152.94) and Kwara (N152.86), while Ekiti, Katsina and Bauchi recorded the lowest average prices of N144.23, N144.08 and N143.89, respectively.

While the new model has impacted positively on the bottom line of firms as evidenced by improved margins and better working capital position, the future profitability of companies are under treat as the NNPC now controls margins.

“It should be noted the despite all these benefits, the fact that NNPC now handles importation and effectively dictates margins to the companies means profitability is being affected and industry operators will have to better manage cost to improve profitability,” said Kareem.

Friday 05 October 2018

BUSINESS DAY

3

4

BUSINESS DAY

Friday 05 October 2018

Friday 05 October 2018

BUSINESS DAY

5

6 BUSINESS DAY NEWS Nigeria seeks deep collaboration with private sector to grow economy, create jobs DANIEL OBI

N

igerian government says it is deeply seeking genuine collaboration with the private sector to expand the nation’s economy from the 1.5 percent growth rate to enable wealth creation and job opportunities.

The country’s unemployment rate increased to 18.80 percent in the third quarter of 2017 from 16.20 percent in the second quarter of 2017 due to the sluggish economy. But the Buhari government believes that with strong collaboration with the organised private sector and members of EU, certain economic indices will begin to look up.

Conveying the desire of the government at the seventh EU-Nigeria business forum in Lagos, Thursday, senior special assistant to the President on job creation, Afolabi Imoukuede, said the essence of economic growth that the government was championing was that it would be a private sector driven, but government enabled strategy.

“That defines the need for collaboration between and private and public sectors and all other entities

such as countries that represent the European Union and business within the EU. This is one way in which we can grow the economy,” Imoukuede said.

At the forum with theme “Building partnerships for growth and job creation,” Imoukuede illustrated building the economy like building a house, which he said must have strong pillars. The pillars represent investing in people, governing capabilities and competitive environment. The roof represents inclusiveness, ensuring that every aspect of the economy is inclusive and the house should have strong foundation, called deliveries.

But he said the real challenge Nigerians face is being able to stay on track, to be consistent and see that the policies, strategies, the engagement and methodologies defined are consistently followed to deliver on them.

“This is a commitment for all Nigerians as we must be able to hold each other accountable and beyond accountability we must be able to stay on task to ensure we build blocks steadily to achieve the steady growth”.

Also speaking at the forum, Ademola Abass, who represented governor of Lagos State, Akinwunmi Am-

bode, traced the history of establishment of EU to 1957, primarily for economic integration of European member states and its establishment of fund to engage with African countries, including Nigeria.

He reminded the audience comprising local and foreign investors, diplomatic community that while some people may be focusing on the economic and innovation side, Nigeria should keep in mind the fact that there are many political dimensions to the relationship between EU and Nigeria and Africa as a whole, for instance on respect for rule of law, democracy, avoidance of impunity that have become pivotal in the evolution of relationship between EU and Nigeria.

He said the evolution of relationship between EU and Africa has been open to a lot of critical appraisals such that the relationship has not been conducted in the past on equal basis.

“Whether this is true or mere perception, what we cannot run away from is that EU should begin to treat Nigeria and rest of Africa as more of equal partners.

These countries are sovereign nations and nobody would like to be dictated to.

C002D5556

Friday 05 October 2018

Friday 05 October 2018

C002D5556

7 NEWS

BUSINESS DAY

NNPC confirms rise in oil, gas export sales by 35% HARRISON EDEH, Abuja

N

L-R: Akeem Oyewale, chief executive, Stanbic IBTC Nominees Limited; Isyaku Bala Tilde, executive commissioner, ‎Securities and Exchange Commission (SEC); Mary Uduk, acting director-general, SEC; Dapo Adekoje, president/chairman of council, Chartered Institute of Stockbrokers (CIS), and Abimbola Ogunbanjo, president, Nigerian Stock Exchange, at the 22nd Stockbrokers’ Conference of the Chartered Institute of Bankers of Nigeria sponsored by Stanbic IBTC in Lagos, yesterday.

Analysts differ with CBN on 1.75% GDP forecast BUNMI BAILEY

E

conomic analysts are not too optimistic about Nigeria’s 2018 GDP forecast of 1.75 percent made by the Central Bank of Nigeria (CBN) in its bimonthly Monetary Policy Committee (MPC) meeting held last week.

Ayo Akinwunmi, head of research, FSDH Merchant Bank, said, “For us to end at 1.75 percent means that the second half of the year has to be better than the first half of the year. The specific policy that the Federal Government is going to implement is not clear, and that will make us have a better second half of 2018.

“Currently, there are security issues in the country.

The agricultural sector grew about 3 percent in first quarter (Q1) and by Q2 the sector declined to 1.1 percent, which is really poor.

“What have they done to ensure that we have a better growth in Q3 than in Q2? I cannot see any policy. What we can see are crimes happening in the country and we are not talking about it because elections are taking the government’s attention.”

The forecast rate is equivalent to the average growth rate the country has managed in the first two quarters of 2018. Nigeria’s economy grew at 1.50 percent in Q2 2018, down from 1.95 recorded in the preceding quarter, according to a report released by the National Bureau of Statistics (NBS).

Ibrahim Tajudeem, head of research, Chaphill Denham, on his part, noted that the forecast might be attainable depending on what the country could deliver in 2018.

“The MPC is optimistic that it will improve in Q4 of this year, but for Q3 and Q4, I do not think that we are

going to see a growth that is materially better than 1.50 percent,” Johnson Chukwu, CEO, Cowry Asset Management Limited, said.

“We know that the environment is now dominated by political activities so we should expect that the growth will not achieve much traction and we also have to deal with the floods that we are seeing in the food belts of the country, which could lead to reduction in harvest,” Chukwu said.

On October 3, 2018, the World Bank stated in its October 2018 ‘Africa Pulse,’ a bi-annual analysis of the state of African economies, that the projected growth of Nigeria’s economy in 2018 would drop from 2.1 percent it had earlier estimated for the country in April to 1.9 percent.

The World Bank noted that its bearish stance was predicated on the renewed clashes between farmers

World Teachers’ Day: Edo lauds teachers’ contributions to development

E

do State governor, Godwin Obaseki, has lauded the contributions of teachers to human and societal development across the globe, assuring that his administration is committed to improved teachers’ welfare with sustained collaboration of Edo teachers.

Obaseki gave the commendation on the occasion of the commemoration of World Teachers’ Day marked on October 5, each year.

“On a day like this, we must acknowledge the role teachers play in upholding the trust that parents and the society have in teachers.

“Teachers are special people and deserve to be celebrated for their immense contributions to human and societal development. Daily, they painstakingly groom, nurture and mould minds and equip generations with legally and socially approved

practices, skills, norms and values,” the governor said.

He emphasised that “Teachers set the tone for society’s growth and development.

The quality of our human capital is measured by the quality of teachers and their disposition to raising generations of thoroughly bred youths that are sound, both in character and knowledge and are ready to take their place in the global space.”

The governor explained that “In Edo State, we have identified the critical role of teachers in our growth plan and this informed our decision to birth the Edo State Basic Education Sector Transformation (Edo-BEST) programme, that has kickstarted a series of reforms in the education sector.

According to Obaseki, “Edo-BEST programme is developing a pool of highly-skilled teaching workforce for the state,

by training, supporting and motivating Edo State teachers to succeed in the classroom of tomorrow; enhance the Edo State Basic Education curriculum thereby empowering children to compete effectively in the world of work.

“The programme has started leapfrogging the basic education delivery systems by leveraging technology in education provision, gathering and utilising accurate and timely data to drive policy and planning decisions.

The governor said, “In the programme, every teacher receives tablets loaded with digital lesson plans for every lesson needed for each day.

Head teachers are given smart phones and provided with monthly data to enable them use the software in the smart phone to register all children and take attendance and manage teacher performance in each classroom every day.”

and herdsmen, which were recorded in most part of the year that have contracted the productivity of the agricultural sector.

“In Nigeria, declining oil production and contraction in the agriculture sector partially offset a rebound in the services sector and dampened non-oil growth, all of which affected economic recovery,” the bank said.

igerian National Petroleum Corporation (NNPC) has announced a total crude oil and gas export sales of $416.07 million in June 2018, which is 35.78 percent higher than the previous month.

Details of the figures contained in the June 2018 edition of the Monthly NNPC Financial and Operations Reports, released on Thursday also indicated that the crude oil export sales contributed $274.95 million, which translates to 66.08 percent of the dollar transactions compared with $244.72 million contribution in the previous month.

The export gas sales for the month amounted to $141.12 million, the report said. The 35th edition of the Monthly NNPC Financial and Operations Report indicated that the corporation undertook the repairs of ruptured gas pipeline that supplies gas to most thermal electricity generating plants in the country, leading to appreciable leap in power generation.

In all, a total of 744 million standard cubic feet of gas per day (mmscfd) was delivered to the gas fired power plants in the month of June 2018 to generate an average power of about 2,970mw compared with the May 2018, where

an average of 742mmscfd was supplied to generate 2,940mw. A total of 211.51 billion cubic feet (bcf) of natural gas was produced in the month of June 2018, translating to an average daily production of 7,056.22mmscfd.

For the period between June 2017 and June 2018, a total of 3,080.90bcf of gas was produced, representing an average daily production of 7,826.41mmscfd.

During the period under review, Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 69.35 percent, 21.77 percent and 8.88 percent, respectively, to the total national gas production.

Out of the 209.55bcf of gas supplied in June 2018, a total of 113.08bcf of gas was commercialized, comprising of 36.23bcf and 76.85bcf for the domestic and export market, respectively.

This translates to a total supply of 1,207.74mmscfd of gas to the domestic market and 2,561.70 mmscfd of gas supplied to the export market for the month, implying that 53.96 percent of the average daily gas produced was commercialised while the balance of 46.04 percent was re-injected.

8 BUSINESS DAY NEWS

C002D5556

NUBIFIE wants NAICOM to Expert advocates oncofertility counselling for women in Nigeria review recapitalisation policy ANTHONIA OBOKOH

A

n expert in fertility has shown there is need for oncofertility counselling for women in Nigeria in order to spread awareness and help patients preserve their fertility after chemotherapy.

Worldwide, millions of individuals in the reproductive age group are affected by cancer, Nigeria inclusive.

Cancer patients do not usually suffer infertility as a direct effect of cancer.

More often it is cancer treatment such as radiotherapy, chemotherapy or surgery, which results in reduced fertility or even sterility in cancer survivor.

Abayomi Ajayi, specialist in obstetrics and gynaecology and also the local organising committee chairman of Association for Fertility and Reproductive Health (AFRH) in Nigeria, said the oncofertility counselling would help patients in high survivorship and provide good quality of life.

“There needs to be a change from an old way of thinking to a new one, as this field of oncofertility expands.

There exists in Nigeria urgency to clarify and update patients on oncofertility services that are provided on a global scale in order to share best practice,” Ajayi said.

According to the World Health Organisation (WHO), Nigeria’s cancer death ratio of 4 in 5 affected persons is one of the worst in the world and is responsible for 3 percent of total mortality leading to 72,000 death per annum.

The most common can-

cers in Nigerian women are breast and cervical, while the most common in men is prostate cancer.

Ajayi said when diagnosed with cancer, survival was the foremost on the patients mind, noting that many anti-cancer therapies adversely affect fertility, which is a fact often overlooked in the race to defeat cancer.

“There are several barriers that face oncofertiltiy practise in Nigeria; we have to look at social, cultural, religion, lack of institution and research fund and the issues of cost, and other barriers such as lack of awareness among oncologist, gynaecologist and patients,” according to Ajayi.

Fertility treatments are not covered by health insurance in Nigeria and over 90 percent of fertility service in Nigeria is provided in private centres and clinics, but some In-vitro fertilisation treatment (IVF) centre at university hospitals may offer low-cost service and some charity organisations are now coming up to support patients who have the resources to pay.

“In spite of different barriers, oncofertility has a great potential in Nigeria, areas for improvement in this growing field can be addressed through collaboration of relevant professionals and government bodies,” he said.

The expert further said that advancement in reproduction technology have given cancer survivors hope for future reproduction which makes the fertility preservation conversation more important than ever.

JOSHUA BASSEY with agency report

N

ational Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) on Thursday urged the National Insurance Commission (NAICOM) to review its recapitalisation policy directives to boost the industry.

Danjuma Musa, outgoing president of NUBIFIE, spoke in Lagos while handing over to the incoming president, Anthony Abakpa.

NAICOM had announced an increase in the minimum capital base for composite insurance (life and non-underwriters) that wanted licence to underwrite all risks in the country from N5 billion to N15 billion. The commission is also raising the minimum capital requirement of life insurance companies that want to underwrite all forms of life insurance from N2 billion to N6 billion.

The minimum capital base for non-life insurance companies is also being raised from N3 billion to N9 billion.

According to Musa, the recapitalisation policy is discriminatory, restrictive of choice and capable of driving aground many insurance companies.

“This is not good for under insured economy like Nigeria. Many Nigerians prefer to buy third party insurance than others. We call on NAICOM to review it and address our concerns and apprehensions.

“NAICOM should also extend the time of compliance because some groups are planning to buy over companies that are not able to capitalise before the October deadline,’’ he said. The out-going president said it was regrettable that the prolonged crisis in the union had hampered its ability to pursue the cause of the union and the industry.

He said with the resolution of the crisis and with new executive members in place to run the union, the interest and welfare of the members would be taken care of. He urged the members to support and criticise the new executive objectively and provide them enabling environment to perform their duty.

Muhammed Sheikh, NUBIFIE’s general secretary, also faulted the policy, saying it restricted free participation in the insurance policy.

Sheikh said the capitalisation policy, if not looked into, would make the public to discriminate against some companies and undermine the goal of making insurance to the people.

Friday 05 October 2018

ICSAN signs partnership with BusinessDay GBEMI FAMINU

I

nstitute of Chartered Secretaries and Administrators of Nigeria (ICSAN), Lagos chapter, has entered into partnership with BusinessDay Media Limited for collaboration and support of their events.

This was made known during a courtesy visit of the newly elected ICSAN executive members to BusinessDay office, led by the chairman, Francis Olawale, who said, “Every corporate organisation wants to be identified with BusinessDay because of its reputation of being principled and factual with stories in all its publications.

“In order to have a successful event, ICSAN deemed it fit to have BusinessDay as its media partner.”

The BusinessDay delegation, led by the editor, Anthony Osae Brown, was glad about the new partnership and expressed his delight in looking forward to having an interesting relationship that would be valuable to both parties.

With the new partnership, ICSAN team said they remained assured that

they would have unlimited access to information beneficial to their association.

ICSAN also made mention of their upcoming conference themed “governance and technological advancement in the 21st Century,” which is aimed at developing cordial relationships among members and even extending it to non-members, improving the performance of chartered secretaries and administrators in their various fields with the use of technological and digital innovation.

The vice chairman of ICSAN stated that other than media support from BusinessDay, they were also welcome as nonmembers to any of their events and trainings without restriction.

ICSAN is a leading recognised professional body in Nigeria dedicated to enhancing the status and practice of Corporate Government and Public Administration with members in top niches positions in their respective fields nationally and internationally. They encourage improvement and capacity building through the use of information.

Friday 05 October 2018

C002D5556

BUSINESS DAY

9

10

BUSINESS DAY

C002D5556

COMMENT

comment is free

Friday 05 October 2018

Send 800word comments to comment@businessdayonline.com

The maritime anti-corruption network’s annual members meeting

SOJI APAMPA Olusoji Apampa is the CEO of The Convention on Business Integrity.

Twitter: @sojapa E-mail: aviga@ cbinigeria.com

T

his year’s edition took place in the very traditional Library Room of the Royal Horseguards hotel, London, a stone’s throw from the Nigeria High Commission. The flavour of the meeting was about embedding ethics in the DNA of global shipping companies to ensure anti-corruption compliance happens more as part of culture than through policing by compliance officers. The event was attended by senior representatives of over 100 companies in the maritime sector.

Interesting issues were considered in the various working groups: agent working group; cargo owners; container working group; dry bulk & tanker group. An interesting topic that generated very a lot of debate was whether or not going cashless would help ship masters resist corruption better or whether or not inclusion of closed circuit television will deter port officials from their attempts to induce bribes out of the vessel.

Sitting in the room and hearing from the tanker group for instance, their challenge is typically

one of lifting oil from very challenging locations like Cameroon for discharge in kinder locations like Europe.

How does one get a straight link between the desire to do right, be right with catching any errant behavior before it shows up as odd payments in your books? How do you ensure the whole corporate culture traps and flushes out corrupt behaviours? A fascinating session on this involved representative of Nigeria’s Convention on Business Integrity.

The first step in getting the ethical compass of your company is regulatory compliance.

This is foundational for everything else you do to underscore an ethical culture in your organisation. It is also a first reflection of the “tone at the top” within the company. Unpacking it further, tone at the top would refer to ethics and integrity demonstrated and demanded by the top people in the company; the board and functioning of its audit committee; the commitment of top management to excellence; the clarity around authority and responsibilities in the company; HR policies and procedures; organisation structure and management’s philosophy and operating style.

All these factors create an environment that predisposes members of the organisation to doing the right things and doing things the right way.

Management has then to ensure that it has adequate risk management procedures in place. What are the chances that staff would like to cut corners by paying bribes? In what ways,

‘

With strong internal controls, risk management and internal audit driven by a management exemplifying the right behaviours, there is a good chance that unwanted behaviours can be caught…

’

where, under what circumstances, why? This risk identification and analysis needs to apply to the whole company and to specific vulnerable processes of the company with change plans being driven to mitigate the identified risks. The way of working which minimizes risks and mitigates them should end up in clear policies and procedures employees are required to follow.

The set up and control of technology platforms used for recording and analyzing transactions needs senior management attention to ensure it is structured to support the values and principles articulated for managing the company.

Management should also worry about disaster recovery, backups

and business continuity strategies to ensure they are continually assured of proper, accurate and timely records of business transactions with the right personnel in place for real-time exception reporting.

The whole company must regularly receive relevant guidance through communication between board, management and the rest of the company. The same thing needs to be done with external audiences as well. Adequate procedures need to be in place to ensure the overall functioning of this system is monitored and evaluated to be sure it functions as designed. With strong internal controls, risk management and internal audit driven by a management exemplifying the right behaviors, there is a good chance unwanted behaviors can be caught in exceptions reports and corrupt payments identified and dealt with. Companies are finding that it is better to identify, trap and deal with such exceptions thrown up by a culture of integrity than for such to be identified by auditors and shown to a blindsided leadership because “your company’s ethical DNA is in your books.”

The inevitable breakout session on Nigeria and West Africa took place with Bonny Terminal dominating the discussions once again. It is interesting how many reports there were of Nigerian officials attempting to squeeze out a bribe from vessel captains and the order of magnitude seemed to be about $20,000 per visit made up of concocted “fines.” A recent survey of ship captains of vessels calling Nigerian sea ports and terminals was presented by the Convention on Business Integrity at the meet-

ing. Confusion around treatment of seaman’s books was a scheme identified as often exploited by Nigerian officials. Ship captains report that despite Nigeria claiming officials boarding vessels should not spend more than 90mins, 100% of vessel captains surveyed claimed officials spent more than 90mins always. 90% of respondents also affirmed that Nigerian officials “always/usually” ask for cash or other items from the galley when they board sea vessels for inspection.

The Convention on Business Integrity has since 2016 represented the maritime anti-corruption network in Nigeria. The Nigerian Shippers Council has been a major actor managing the grievance mechanism available to shippers who wish to report breaches of the standard operating procedures. The Port Service Reforms committee chaired by the ICPC and including TUGAR and leadership of all agencies in the ports has been involved in pushing the reforms. The current survey forms a baseline for Cbi’s engagement activities on behalf of the network. In the baseline, using a 5 star system, all Nigerian sea ports came up red along with Bonny terminal. All other terminals are amber with exception of Ikorodu Light Terminal, Sapele Terminal and Kirikiri Light Terminal 1 which were green. Is this the sort of information to which the Presidential Enabling Business Environment Council should pay particular attention? What has your experience of Nigerian sea ports and terminals been?

Send reactions to: comment@businessdayonline.

The Zuma fiasco – A light at the end of the tunnel

UADE AHIMIE Ahimie is the author of CRAPI-FART - Perspectives for an Emerging Market and principal consultant of Accounting Lab Limited

O

ver the last few days I have read about how major organizations are trembling over the Gupta family fiasco in South Africa. How a major UK PR Company founded in 1987 by one of Margaret Thatcher’s favorite PR advis-

ers Bell Pottinger has collapsed because of the smear campaign it ran that sparked racial tension in South Africa.

KPMG South Africa has fired its executive management team following damning findings in an investigation report which acknowledged flaws in tax services showing that the former finance minister of South Africa, Pravin Gordham was involved in setting up a “spy rogue unit” when he was a minister.

Another big-name consulting firm McKenzie has also been called out by the South African Anti-Corruption Groups. Though they have denied any wrongdoing, they are currently carrying out in-house investigations to ascertain if there were any levels of complicity.

Also named in the scandal is SAP SE, the software company based in Germany. As part of their preliminary actions during internal investigations, four South African managers were compulsorily sent on leave fol-

lowing media reports that the local unit had agreed to pay commissions to a firm which had direct links with Jacob Zuma’s son.

Like the saying goes, there is never any smoke without a fire, and the ambers of this flame has been increasing fanned for over the last couple of years as the South African President has had to face two vote of confidence sessions in the parliament.

The fiasco in South Africa helps bring to light the continued misuse of tax payers’ monies and country resources by elected officials to the detriment of the populace. They line their pockets with the nation’s resources, opening the coffers for family members to have their fill.

The war has been ongoing for a while in South Africa and it seems that after losing several battles during the war, the tide is gradually turning to the side of those fighting for truth and justice.

In fact, the gradual wind of change blowing across the continent - since that dramatic day in Nigeria when an incumbent president

conceded victory in an election to his opponent, is beginning to spread to other facets of leadership as evident in the events in South Africa.

The voice of change requesting justice over corruption in the corridors of power in South Africa is equally filtering into other countries. The tide looks set to overwhelm leaders who continue to embrace and institutionalize corruption and economic crimes across the continent.

Today it is KPMG in South Africa, who knows who it would be next and in which country?

Leaders of conglomerates, multinationals and/or consulting businesses need to realize that holding brief for corrupt leaders would certainly truncate the shelf life of their organizations. The Arthur Anderson and Enron debacle as well as similar cases are pointers to the fact that organizations that decide to pitch their tents with corrupt leaders and systems will ultimately go under.

Considering all this, let me

bring the issue back home to Nigeria by asking the question to the leaders of the big businesses – where are you on the corruption moral index? The truth is, only Nigerians can re-build the trust of the populace in the Nigeria Project.

Are we towing the line of KPMG SA by helping to promote some form of wrong doing, or are we like Bell Pottinger, sowing the seeds of ethnic hatred and/ or religious bigotry? Like the popular saying “every day for the thief and one day for the owner” there will always be a rendezvous with history for the promoters of corruption.

In conclusion, I believe that the time has come for the leadership of large corporations and businesses to start re-building trust and integrity. The responsibility starts with the leaders. Will they rise to the occasion?

Send reactions to: comment@businessdayonline. com

Friday 05 October 2018

C002D5556

COMMENT

BUSINESS DAY

11

comment is free

Send 800word comments to comment@businessdayonline.com

Dilemmas of disruptive technologies EDWIN AGWU Dr Agwu is Associate Professor of Strategic Management Lagos Business School, Pan-Atlantic University

D

isruption, a hitherto negative word, has become a buzz word.

It has now occupied a conspicuous place in the watch-list of every business manager and in fact the boardrooms of various organizations. Managers are on the watch out for products which may disrupt theirs in the market-place and board members are continually searching for newer ideas to move the organization to newer heights. While many businesses see disruption of any sort as ill-winds that blow no good to any organization, their shadows and even realities come as massive shocks and worries to almost all organizational managers. In particular, the assertion that every firm that stumbles or fails suffers from the consequences of disruption sheds light on why the term has become almost overused today. Disruption is what happens when a firm faces a high decline in operational values. In this case, what the organization uses as a strategy that works before to drive their success has become an obsolete strategy that works against the organization.

This means that disruption is not

an illegitimate phenomenon, but rather a fact that can explain what happens when firms’ poor performance is not due to disruption but as a result of other factors within the internal or external environment of the organization. Disruption occurs in every facet of life on planet earth and organizations of all sorts are not immune to this every present shocks.

Therefore, disruption occurs in goods and services of superior qualities, superior management style occasioned by time, place and space. The disruptive tendencies of various facets of businesses give every manager a lot to chew. Over two decades ago, technology was viewed as a cost and not worth investing in; however, the current place of technology in business cycle makes it irresistible and its cost worthwhile, hence the massive investment in technologies by all forms of businesses. This is because, technology has taken the centre stage of various organizations and it is now seen as a medium for organizations to showcase themselves thereby creating a cyber-market place, a hitherto unthinkable and unknown market in the annals of history.

Disrupted Technologies In one way or another, we are all affected by disruptions. Disruptive innovations alter the way we live and pose real dangers to established norms, companies and business models. The debate around disruption is viewed from three different angles. Firstly, disruption is happening more often and affecting areas which had been spared from radical changes in the past, such as the healthcare industry and the financial world. Secondly, there is no simple answer to the question of whether disruption is good or bad. While pioneering progress in the healthcare industry is appreciated by the vast majority of the developed and devel-

oping economies, radical changes in political systems that jeopardises balance and stability might be dangerous.

And thirdly, what is being witnessed at the moment might be just the tip of the iceberg. The age of real disruption might be right around the corner. The extent of disruption witnessed so far, lays credence to this as exemplified by the fact that the launch of iTune reshaped the recording industry and technically disrupted the conventional systems of voice and music recordings.

Consequently, iPhone apps since 2007 heralded a major paradigm shift as the launch of the App store in 2007 with only 500 applications was just the beginning of the next Apple-driven revolution and in fact ushered in the development of apps. And in less than a decade later, the ecosystem offers over two million applications and these have been downloaded more than 130 billion times around the globe.

Services such as Skype, WhatsApp, Twitter, etc. have revolutionised the way we communicate. Furthermore, platforms such as Uber, Taxify and others have transformed the way we travel. And networks like Facebook or LinkedIn are changing the way we connect privately as well as professionally.

The phenomenon of outsiders quietly rewriting the rules and suddenly attacking established systems is not a phenomenon restricted to business.

The fall of the Berlin Wall in 1989 was a response to rising societal pressure which ultimately heralded the rebirth of democracy in Central Europe. More recently, democracy itself has surprised the world - British voters’ decision to exit the European Union called into question the idea of the EU itself, and might soon fundamentally change Europe. These remarkable changes are in fact affecting every facet of human development and definitely signs of better things to come.

Unfortunately, technology was

‘

Over two decades ago, technology was viewed as a cost and not worth investing in; however, the current place of technology in business cycle makes it irresistible and its cost worthwhile, hence the massive investment in technologies by all forms of businesses

’

despised based on cost in the 70s, 80s and early 90s, only few notable organizations adopted technologies at these times simply for self-esteem.

The millennium heralded the acceptance and adoption of technologies and since the year 2000, this has been on the increase. Disruptive technology is largely accepted by many because they usually start in low-end footholds and large-markets footholds. The low-end footholds are navigated by entrants because incumbents focus is on customers that will give them high possible profits, therefore neglecting or paying less attention to others who are not able to afford the high price difference in the products or services offered. This difference is leveraged on by entrants or disrupters, who capitalize on the offerings of incumbents to offer the same product to consumers at lesser requirements. The new-market footholds occur when disrupters create a new market in the absence of none.

In this case, they find a way to make

those who are not interested in a product or service to become interested.

They turn non-consumers to consumers by making them see the value in the usage of a particular product or service. A typical example is the photocopying technology produced by Xerox. Their target markets were large companies and corporations who can afford to pay high-value charges to get Xerox services. Other potential customers like small business owners, schools and hospitals were left out of their business marketing models. New entrants in the 1970s created new markets that allow customers who could not afford the high charges of Xerox photocopiers access to affordable individual and personal photocopy makers that can be used for personal and office purposes.

Disruptive technology and mainstream customers Mainstream customers are always on the defensive when there is a disruption in a market model. Their fear lies in the fact that the product or service of new entrants may not meet the required standard. Until such expectation is met, mainstream customers may not want to associate with such disruptions. At first, the willingness to purchase or use the product or service is not considered a good idea because they are considered either inferior or less expensive. They are willing to use the product when they notice incremental features in the product or service quality. The acceptance of the new product with its associative low prices gives an avenue for market disruption.

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

How a global trade war would derail recovery worldwide

DAN STEINBOCK Dr Dan Steinbock is the founder of Difference Group and has served as research director at the India, China and America Institute (USA) and visiting fellow at the Shanghai Institutes for International Studies (China) and the EU Center (Singapore). For more, see https://www.differencegroup.net/

D

uring a press conference on September 26, President Donald Trump disclosed why he believes China, despite the U.S. tariff wars, respects him – because of his “very, very large brain.”

Whether it is the net effect of the president’s extraordinary brain or the result of more conventional economic and geopolitical forces, the U.S. tariff wars are set to derail global recovery that has taken a decade to materialize.

Escalation through three scenarios Where will the current tensions lead? The progression of Trump’s tariff war can be illustrated through

three scenarios, showing the development of the dispute from a mere bilateral trade conflict to a potential global trade war. Following a series of tariff threats from the Trump administration in spring, the economic stakes have been increased from $50 billion to $200 billion, and now to a threatened $500 billion of Chinese imports in America.

Scenario 1: Unilateral muddling through. In July, this stage began when the two countries imposed 25 percent tariffs on $34 billion of the other’s imports and levies on another $16 billion. With just $50 billion of goods impacted, the tariff’s economic impact would have been limited to 0.1 percent of Chinese GDP and 0.2 percent of American GDP, respectively.

That’s when some of Trump’s key constituencies, such as the U.S. Chamber of Commerce and the National Farmers’ Association, began a campaign against the tariffs; they were soon joined by American retailers and a host of other industry associations.

Scenario 2: ‘America First’ escalation. Every U.S. president has exploited China-bashing in the post-Cold War presidential campaigns. However, Trump is the first to walk the talk in the White House. With escalation, the stakes quadrupled to $200 billion, and the potential collateral dam-

age quadrupled relative to the first scenario. In China, it could shave off 0.4 percent of GDP; in the U.S., 0.8 percent of GDP. Scenario 3: Global trade war. It is the third scenario that has hovered as a threat above the global economy ever since the 2000s, as China has been increasingly used as a scapegoat for America’s trade deficit.

When the stakes of the White House’s tariff war escalate to $500 billion, the potential collateral damage will increase tenfold from the first scenario.

While China’s GDP could take a hit of 1 percent, the U.S. GDP is likely to suffer a net impact of 2 percent (see Figure 1 sources).

Derailing global economic integration Following a surprisingly sharp upswing in 2017, both exports and imports in Asia have held up very well year-to-date, with continued double-digit growth in many economies. However, now there is heightened uncertainty about the external environment. The three pillars of global economic integration – world trade, investment and migration flows –– are now positioned to take severe hits, only a decade after the global financial crisis.

Falling trade. According to the World Trade Organization (WTO), merchandise trade volume growth was expected to reach 4.4 percent in 2018; that’s only a few percent-

age points below the 2017 level.

But as Trump’s tariffs are escalating trade tensions, a fall in business confidence and changing investment decisions are likely to compromise the 4.4 percent outlook. A full trade war could derail trade recovery for years.

Stagnating investment. Before the global financial crisis, world investment soared to almost $2 trillion. According to the UN, global FDI flows were projected to resume growth in 2017 and surpass $1.8 trillion in 2018. In reality, they fell to $1.5 trillion last year; that’s 15 percent below the pre-crisis peak.

In the near term, Trump’s trade war and the Fed’s interest rate hikes seem set to undermine world investment prospects.

Migration crises. After the terrorist attacks in 2001, the subsequent U.S.-led wars in Afghanistan and Iraq, and conflicts elsewhere in the Middle East and Africa, more than 68 million people have been driven from their homes. That translates to the greatest global forced displacement since 1945.

In the Trump era, a tariff war and the historical reversal of American immigration policy are likely to aggravate geopolitical friction new migration crises, and terrorism.

Global economic prospects no longer immune In 2017-18, the U.S. had major

trade deficits with China, Mexico, Japan and Germany, as well as more minor deficits with a number of other countries. In addition to the European Union, these economies represent America’s NAFTA partners, U.S. geopolitical allies in East Asia (Japan and South Korea) and low-cost emerging Asia. If President Trump keeps his pledge to challenge these major “deficit offenders” along with China, trade wars will spread multilaterally.

Yet, the progress of Trump’s trade hawks may already have stalled. The Trump White House has greatly benefited from the Republican Congress, but now both the Democrats and U.S. trade partners are positioned to wait to negotiate until after the mid-term elections. The outcome of the midterms could constrain Trump’s leverage significantly (if Democrats win the House) or very significantly (if Democrats win both the House and the Senate).

When talks between the U.S. and China begin anew, we can expect one of these four scenarios:

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

12

BUSINESS DAY

C002D5556

Editorial PUBLISHER/CEO

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

EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, DIGITAL SERVICES Oghenevwoke Ighure ADVERT MANAGER Adeola Ajewole FINANCE MANAGER Emeka Ifeanyi MANAGER, CONFERENCES & EVENTS Obiora Onyeaso SUBSCRIPTIONS MANAGER Patrick Ijegbai CIRCULATION MANAGER John Okpaire GM, BUSINESS DEVELOPMENT (North)

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

Friday 05 October 2018

Demise of Nigeria (hot) Air

P

erhaps, beyond the hoard of government officials that sat at the room at Farnborough International A irsh o w in L on don, on July 18, 2018, very few or no one investor believed in the ‘Nigeria Air’ project being sold to them by the minister of state for Aviation, Hadi Sirika. Perhaps, even the Nigerian delegation who were selling the project did not believe it will succeed in their hearts of hearts but for the estacodes, travel opportunities and contracts involved.

The plan was that Nigeria Air will begin operation in December 2018, with a first set of 5 airplanes that will later be expanded to 30 in five years. The initial start up cost was estimated at N3.168 billion ($8.8 million) and will increase to N108 billion ($300 million) over the next 3 years. In the Outline Business Case (OB C) approv e d by the Infrastructure Concession Regulator y Commission (ICRC) and disclosed to

the public, the airline was to be run as a public private partnership (PPP) with 95 percent share pushed to private investors. The start-up capital of N3.2 billion to be provided by government will be part-payment for government’s 5 percent equity.

Hardly had the plan been unveiled than experts in the industry and on investments generally pooh-poohed the idea as unworkable. Their argument generally is that national airlines are capital intensive projects that are becoming quite unpopular and unattractive to investors; and that the Nigerian Air expenditure will either die a premature death or the government will end up funding the project entirely on its own.

For instance the Chairman of the Airlines Operators of Nigeria (AON), avers that “setting up of National Carrier will cost Nigeria at least N1.08 trillion ($3 billion). A single Boeing 777 as of today costs about N115.2 billion ($320 million)” “Also, the national carrier will need an additional cash injection of

N180 billion ($500million) subsidy per year on average for the next 10 years to keep the airline afloat...”

Of course, there were those, who for purely sentimental reasons or for national pride, wanted the ‘Nigeria Air’ project to work.

Ordinarily, investors do not like investing in national carriers. Add Nigeria’s frequent policy summersaults, inconsistencies, notoriety for not honouring contracts and agreements, and the inclement operating environment for businesses, both local and foreign investors are most likely to ignore the government.

True to pre diction, on September 19, the government accepted the inevitable and announced the indefinite suspension of the entire project. Although the government said it was suspended for ‘strategic reasons’, industry watchers believed the reason was due to the apathy of investors to the project and government’s inability to single-handedly fund the entire project, especially since the project was

not budgeted for.

But not everyone is a loser.

Over one billion naira had already gone into the project in the form of business case design, transaction advisory team and the design and unveiling of the logo.

We think it was a frivolous project that had no chance of succeeding at all. National carriers, the world ov er, with ver y few exceptions, are becoming unmanageable and huge cost centres for governments. Nigeria has no capacity or will to successfully manage an airline or attract investors to invest in one. If Nigeria wanted a national carrier sorely for prestige reasons, it could hav e a dopte d on e of th e airlines it owns through the Asset Management Corporation of Nigeria (AMCON) than setting one up afresh.

But while we complain and morn over the still birth of Nigeria (hot) Air, some officials may be rejoicing over the money spent and contracts awarded. Perhaps, that may even have been the motivation for the entire project.

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

ENQUIRIES NEWS ROOM 08023165438 08169609331 Lagos 08033160837 Abuja

}

ADVERTISING 01-2799108 08034743892 08033225506 SUBSCRIPTIONS 01-2799101 07032496069 07054563299 www.businessdayonline.com The Brook, 6 Point Road, GRA, Apapa, Lagos, Nigeria.

01-2799100 LEGAL ADVISERS The Law Union

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

OUR CORE VALUES

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

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

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

Friday 05 October 2018

C002D5556

BUSINESS DAY

13

14

BUSINESS DAY

Friday 05 October 2018

CityFile

Accidents: TRACE begins 24-hour patrol of Sango-Abeokuta road RAZAQ AYINLA, Abeokuta

T

he Ogun Traffic Compliance And Enforcement Corps (TRACE) has directed its operatives to begin 24 hours patrol of Sango-Abeokuta Expressway, following incessant accidents on the highway resulting to loss of lives and property.

Tope Oseni, TRACE unit commander of Owode-Ijako said that the corps would also give special attention to Owode-Ijako section.

According to her, the measure becomes necessary as Julius Berger begins construction work on the road and also to curb accidents on the highway, which could result to loss of lives and property.

She said the measure would go a long way to checkmate careless motorists and other road users plying the highway.

More than four people including a TRACE operative were killed by hit-and run motorists along Owode-Ijako recently.

“We have received the mandate to check incessant killing of people by some reckless motorists along Owode-Ijako section of the expressway, this is why we are increasing our patrol to 24 hours. The construction company in charge of this road has indicated its readiness to start construction works without delay.

“It is part of our mandate to ensure that there is free flow of traffic and to ensure that the workers on the road are not disturbed. So there is need for motorists to adhere strictly to traffic controllers’ instructions, the traffic controllers include TRACE, Police, FRSC, just to mention but a few,” she said.

According to her, motorists’ speed limit at this affected portion of the expressway must not exceed between 45 and50 kilometers to avoid unnecessary loss of lives in this section of the road.

She implored motorists whose vehicles’ engines develop mechanical fault to inform the traffic agencies to avoid gridlock on the major road.

The unit commander cautioned motorists to refrain from drinking alcohol and use of telephone while on the wheels, and “I am reminding them that we are still in the rainy season and more importantly in ’ember months”.

Police recover 47 illegal firearms in Kano

T

he police in Kano have recovered 47 firearms with 819 ammunition and 1,117 cartridges between January and August 2018.

Magaji Majiya, the police public relations officer in a statement released to the media, said the action was in compliance with the directive from Ibrahim Idris, the Inspector-General of Police, to mop up illegal arms and ammunition from unauthorised persons.

According to Majiya, “the command through various raids and arrest of notorious armed criminals recovered a total of 47 arms with 819 ammunition and 1117 cartridges from January to August 2018.”

Majiya stated that the arms and ammunition were recovered from suspected armed robbers and bandits in various locations across the state.

He added that “the raids of criminal hideouts and black spots will be sustained with a view of controlling and flushing out of all criminals in the state.” NAN

Staff members of the National Agricultural Seed Council (NASC), during an awareness campaign to encourage farmers to use improved seed and forthcoming “National Seed Fair”, in Abuja on Wednesday. NAN

Lalong seeks stakeholders’ support to curb killings

G

overnor Simon Lalong of Plateau has solicited the support of stakeholders to address the challenge of insecurity and the spate of killing in the state.

Lalong made the appeal during a meeting with stakeholders drawn from three local governments in the northern zone of the state, Wednesday, aimed at finding a solution to the protracted crisis being witnessed in Plateau.

“Security is a collective responsibility and we are determined to work with you the stakeholders to address the situation we are going through.

He condemned the recent breach of peace in the state and appealed to stakehold-

ers invited to the meeting to shun blame games and come up with solutions that will restore and sustain peace.

“I want to call on our people especially the youths to avoid misusing the social media by posting stories that are untrue.

“Such may further compound the already existing problem,” he said.

The governor expressed sadness on how innocent people were affected in the recent uprising.

James Sani, representative of the Christian Association of Nigeria (CAN) stressed the need for people to live in peace irrespective of their religious affiliations.

Sani appeals to communities to volunteer

useful information to the security agencies especially, about those bent on causing trouble.

Garba Abdulkadir, representative of the Jama’atu Nasri Islam, (JNI) also commended government’s effort in maintaining peace in the state.

Abdulkadir, however, observed that those perpetrating the killings could be under the influence of drugs hence the need to check the sale and consumption of illicit substances The stakeholders were drawn from Jos North, Jos South and Bassa local governments. They included ward heads, religious and youth leaders among others.

Owners to sue LASG over N2bn property JOHN SALAU

O

wners of demolished property at the Lagoon View Estate, Ibeshe, Igbogbo-Bayeku Local Council Development Area (LCDA), Ikorodu, have resolved to take the Lagos State government to court to seek redress.

Victor Armstrong, one of the affected residents of the estate, told newsmen in Lagos on Wednesday that property pulled down in the estate were worth over N2 billion, adding that other “land grabbers’’ would be joined in the suit. The property were demolished in 2017.

Armstrong said that the owners of the property decided to seek redress in court

after they had reported the matter to the state ministry of physical planning.

He explained that the affected people had earlier written a petition to the state governor, Akinwunmi Ambode and thereafter, led a protest to his office without getting any response.

Armstrong lamented that apart from the petition written to the governor, they also wrote a petition to the state’s attorney general, Adeniji Kazeem.

He said that they also sought government’s intervention on the issue at the Citizens Mediation Centre.

“We contacted a lawyer and wrote a petition to the Lagos State governor, Akinwunmi Ambode

and copied the attorney general of the state.

“We also wrote a letter to the police commissioner and the state House of Assembly.

Unfortunately, Governor Ambode did nothing on the issue and never responded to the letters.

“When we led a protest to his office no one attended to us and we have been suffering,’’ Armstrong said.

According to him, the only option is to seek redress in court since the Citizens Mediation Centre has been asked to hands off the matter.

“The next legal step to take is for us to go to court and we have filed our petition and we will meet in court soon,” he said.

suspected to have been carried out by cattle rustlers and the command is investigating the matter” Abubakar said.

He said that some policemen who went to the area to douse the tension were attacked and injured by some miscreants.

According to him, the police, however, recovered four motorcycles from the miscreants.

Reacting to the development, Usman Ali, the spokesperson of the herdsmen in Demsa, confirmed the incident to have

happened on September 26.

He, however, alleged that 20 cows were rustled by persons suspected to be farmers.

He said that shortly after the attack, the herdsmen reported the incident to Demsa area police division for possible early intervention.

He said that the herdsmen also reported the case to the community leader, Alhamdu Teneke, seeking for his intervention. Ali appealed to appropriate authorities to intervene and do justice to the suspected cattle rustlers. NAN

1 person missing, 16 cows rustled in Adamawa

T

he Adamawa police command has confirmed the missing of one herdsman and rustling of 16 cows in Kademun village in Demsa local government area of the state.

Othman Abubakar, the command’s spokesman confirmed the situation in Yola, Wednesday “The command has received a report from Demsa police divisional headquarters that one Fulani cattle rearer got missing and 16 cows were rustled. The incident was

Friday 05 October 2018

C002D5556

BUSINESS DAY

15

MoneyInsight Personal Finance: Investing Retirement

Taxes

Credit Cards

Home Buying

Small Business Shopping

Financing

Driving more digital payments solutions in Nigeria, is key to a healthier economy In this interview, KEMI OKUSANYA, general manager, Visa West Africa, provides insights on the impact of digitization to the Nigerian economy.

She also highlighted the current state of cashless payments in Lagos,as well as the ways Visa is driving digital payment penetration across Nigeria.

M

ajor economies, developed and developing, are going cashless. What insights can you provide and how can we learn from them?

Also, in view of the fraud metrics over the years, there has been a significant reduction, as hackers need to crack so hard to be able to get away with it

Cities are increasingly important economic growth engines for nations around the world. Today, over half of the world’s population live in cities and cities account for nearly 80 percent of the global GDP. These numbers are projected to grow. Local governments have the opportunity to develop policies to foster economic growth through digital payments.

In recognition of this opportunity, a number of governments globally have introduced “smart city” initiatives, and are utilizing a wide range of digital technologies, including payments, to improve the lives of their residents, and Lagos State Government has taken a positive step with the Cashless Lagos initiative.

cess to bank loans and government grants. This inherently will allow them expand their businesses, employ more man-power, disburse funds appropriately and increase transparency. The more businesses that get digitized payments, the healthier the economy.

What was the motivation to organise the just concluded Cashless Lagos Hackathon?

Last year, Visa commissioned Roubini Thought Lab, a research agency, to carry out a study on cashless cities. During the study carried out by the lab, we found Lagos to still be a very cash centric city, due to small businesses who make up a huge portion of “idle cash” in the economy today. This “idle cash” could be used to promote capital accumulation, credit creation, increased economic activity, and increased investment, which are key to revitalizing the economy. For us at Visa, we see cash as our only competitor, because of the challenges it brings when we try to connect entities, governments, businesses, individuals, and banks. We knew that to reduce the problem of cash in Lagos, and push for a digitized economy, we had to start thinking up new ideas and solutions to financially include those small business owners who primarily still make payments with cash.

On that note, we engaged the Lagos State Employment Trust Fund (LSETF), to help bring some of the merchants from these businesses, to tell us the challenges they face when making transactions using cash. These narrations then

helped us, and the teams during the hackathon, to come up with unique digital payment solutions via the hackathon. The motivation for organising the Cashless Lagos Hackathon was to reduce the reliance of cash in Lagos by giving programmers and developers the ability to create innovative solutions that would help small businesses make and receive payments.

“idle cash” could be used to promote capital accumulation, credit creation, increased economic activity, and increased investment, which are key to revitalizing the economy

So are there plans to commercialize these solutions developed at the Hackathon?

For us at Visa, it doesn’t end at the Cashless Lagos Hackathon, because it is one thing to actually have the hackathon, and another to have solutions that we feel will work for these Micro, Small and Medium Enterprises. We are fixated on the ways we can make these solutions created a reality. So let us keep our fingers crossed over the next few months. We should have these solutions that these great minds have actually created, into the market after we test with some of the small business owners and beneficiaries.

For us, what is most important is solving their real problems because cash continues to remain a problem in our city today.

How does going cashless help MSMEs achieve their full potential and contribute to Nigeria’s overall economic success?

For MSMEs going cashless, this means they can not only receive payments, but also make bulk purchases and keep inventory of their transactions, thereby allowing ac-

One of the fears of people who use digital payment solutions is fraud. How is this being addressed?

At Visa, security is at the heart of everything we do, so if we are going to ensure that people continue to make payments, we must guarantee that they can sleep with their eyes closed. And one of the things that has distinguished us at Visa is that in the last 60 years that we have been operating in over 200 countries and territories, all our products are designed to be secure. Be it to the merchants, consumers, or other players in that transaction. Also, in view of the fraud metrics over the years, there has been a significant reduction, as hackers need to crack so hard to be able to get away with it. The beauty is that even for entities like ours, we continue to task experts that work with us, to hack the solutions we make until they are fool-proof.

Block Chain is used in certain countries in digital payments, do you see that happening in Nigeria, and what are the benefits?

Block Chain is a technology that is already being harnessed in Nigeria. Most times, when people think about block chain, they think it is Cryptocurrency, but it is so much more than that. At Visa, we

already have plugged into Block Chain Technology and we are currently testing it to see how we can use it to make payments across markets. Once that is piloted and we are comfortable with it, we would definitely be bringing it into Nigeria.

What is the benefit of blockchain technologies for Nigeria?

So the benefit for Nigeria is the fact that it would help alleviate the challenges of conducting foreign transactions. If you want to make payments to a merchant in China for instance, it probably would take 48 hours at the minimum. With blockchain technologies, these payments can be made faster as the intermediaries that slow down the process will be removed.

How would you describe the current state of cashless payments in Lagos state?

Lagos has low digital payments readiness and low digital payments usage. It is still a cash centric city. However, we see this as an opportunity. To Visa, a world with more digital payments means greater convenience, security and user interface, and that translates to freedom for consumers and retailers alike. Digital payments usage is growing rapidly around the world and we intend to ensure that Lagos is not left behind in this growth.

How would you describe the state of Nigeria’s ICT ecosystem and its future in driving cashless payments?

A number of start-ups have gained traction over the past decade, from retailers like Jumia, to streaming platforms such as iRoko. One of the start-up sectors currently attracting a significant amount of interest in Nigeria is financial technology (fintech). According to KPMG, investments in the space exceeded $200m in the two years to November 2016.

This makes Nigeria stand out as one of the top-three recipients of fintech investment on the continent, along with South Africa and Egypt. As we work to ensure that more digital payments solutions are adopted, we understand that it is a process, which continuously evolves. The future is one we are excited about with financial literacy, financial inclusion and innovation, as our pillars to bring more people into the financial system.

16

BUSINESS DAY

C002D5556

Friday 05 October 2018

Friday 05 October 2018

BUSINESS

COMPANIES & MARKETS

DAY

17

May & Baker Nigeria floats N2.45bn rights issue

Pg. 18

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

Lead Fixed Income Fund records N38.3 million PAT Endurance Okafor

L

ead Fixed Income Fund (the Fund), managed by Lead Asset Management, one of Nigeria’s leading fund and portfolio managers reported a profit after tax of N38.3 million for the period ended 31 December 2017, the audited financial results shows.

The Fund which is an open-ended fund registered and authorized in Nigeria as a Unit Trust Scheme under Section 160 of the Investment & Securities Act, reported operating expenses of N9.6 million for the same period.

Addressing its tax payment for the year under review, the Lagos-based Fund said “the Fund has no taxable income after adjusting for tax exempt income from Treasury bill and bond.”

A breakdown of the Fund’s 2017financial report revealed that the Fund manager is proposing N1.20 dividend payment per unit

to members whose name appears in the register of members as at close of register for full year 31st December 2017.

The proposed dividend payment is however higher that the June reward which was disclosed to have been paid to investors. “ In line with the provisions of the Trust Deed, the sum of N2.4 million (N1.101 per unit) was paid to members whose names appeared in the Register of members as at the close of register for the half year ended 30th June 2017,” the Fund said in its 2017 financials.

Meanwhile, analysis of the Fund’s 2017 financials showed that interest on redeem subscription amounted to N31.3 million, and the undistributed profit attributable to the subscribers to the fund was N4.4 million while the earnings per unit (Kobo)- basic was stated to be N1,671.

“During the half year, the Fund’s asset allocation went through a significant change as against the trust deed with the following reasons;

L-R: Eke Ubiji, executive secretary, Nigerian Association of Small and Medium Enterprises (NASME); Babatunde Ruwase, president, Lagos Chamber of Commerce and Industry (LCCI); Knut Ulvmoen, deputy president, and Michael Olawale-Cole, vice president, at a News Conference to unveil LCCI Maritime Report, in Lagos.

non availability of commercial paper that met our criteria, Debt Management Office chaining minimum fro, N5 to N50 million and a large number of liquidity during the quarter, which however gave the fund an

impressive performance,” Lead Fixed Income Fund said in its financials Meanwhile, in the first quarter of 2017, Nigeria reported a Gross Domestic Product (GDP) contraction of 0.52 percent year-on-year

in real terms, which represented the fifth consecutive quarter contraction since Q1 2016. Although it exited the contraction mode in the following quarter.

The figures by the National Bureau of Statistics (NBS)

shows that after one year of exiting its worst recession in more than two decades, Nigeria recorded national output of N16.58trillion, representing a growth of 1.50 percent in the second quarter (Q2) of 2018.

Lead Fixed Income Fund records N38.3m PAT Internet Society, Facebook partner to deepen Internet Exchange Points in Africa Endurance Okafor

L

ead Fixed Income Fund (the Fund), managed by Lead Asset Management, one of Nigeria’s leading fund and portfolio managers reported a profit after tax of N38.3 million for the period ended 31 December 2017, the audited financial results shows.

The Fund which is an open-ended fund registered and authorized in Nigeria as a Unit Trust Scheme under Section 160 of the Investment & Securities Act, reported operating expenses of N9.6 million for the same period.

Addressing its tax payment for the year under review, the Lagos-based Fund said “the Fund has no taxable income after adjusting for tax exempt income from Treasury bill and bond.”

A breakdown of the Fund’s 2017financial report revealed that the Fund manager is proposing N1.20 dividend payment per unit to members whose name appears in the register of members as at close of register for full year 31st December 2017.

The proposed dividend

payment is however higher that the June reward which was disclosed to have been paid to investors. “ In line with the provisions of the Trust Deed, the sum of N2.4 million (N1.101 per unit) was paid to members whose names appeared in the Register of members as at the close of register for the half year ended 30th June 2017,” the Fund said in its 2017 financials.

Meanwhile, analysis of the Fund’s 2017 financials showed that interest on redeem subscription amounted to N31.3 million, and the undistributed profit attributable to the subscribers to the fund was N4.4 million while the earnings per unit (Kobo)basic was stated to be N1,671.

“During the half year, the Fund’s asset allocation went through a significant change as against the trust deed with the following reasons; non availability of commercial paper that met our criteria, Debt Management Office chaining minimum fro, N5 to N50 million and a large number of liquidity during the quarter, which however gave the fund an impressive performance,” Lead Fixed Income Fund said

in its financials Meanwhile, in the first quarter of 2017, Nigeria reported a Gross Domestic Product (GDP) contraction of 0.52 percent year-on-year in real terms, which represented the fifth consecutive quarter contraction since Q1 2016. Although it exited the contraction mode in the following quarter.

The figures by the National Bureau of Statistics (NBS) shows that after one year of exiting its worst recession in more than two decades, Nigeria recorded national output of N16.58trillion, representing a growth of 1.50 percent in the second quarter (Q2) of 2018.

This also marks the second consecutive quarter of decline in the pace of economic growth in the country as a decline in oil sector growth hurt the pace of economic expansion.

Meanwhile, figures compiled from the Securities and Exchange Commission’s (SEC) website shows that as at the week ended September 21 2018, Lead Fixed Income Fund reported a Net Asset Value (NAV) of N380 million with a unit price of N132.37.

Jumoke Akiyode-Lawanson

C

urrently, 42 percent of countries in Africa lack Internet Exchange Points (IXPs), which means that most of their domestic Internet traffic is exchanged through points outside their respective country.

In a move to curb the increased use of foreign exchange points and drive more internet traffic to the continent, the Internet Society, a global non-profit organisation dedicated to the open development, evolution and use of the internet, recently partnered with Facebook to develop IXPs throughout Africa.

An Internet Exchange Point is where multiple local and international networks, internet service providers (ISPs) and content providers interconnect their networks together to efficiently exchange internet traffic through an arrangement commonly referred to as peering.

As of today, most of the domestic internet traffic

from African countries is exchanged through points outside their respective country, usually through satellite or submarine fiber across multiple international hubs to reach their destination. This can result in poor end-user experiences and discourages hosting content locally, which are some of the key factors towards the development of the local internet ecosystem.

Peering at IXPs helps keep domestic internet traffic local by offloading traffic from relatively expensive international links onto more affordable local links. As a result, ISPs are able to offer improved internet experiences for end-users and spur interest in hosting content locally.

The Internet Society and Facebook will collaborate in promoting IXP infrastructure development, training and community engagement with the objective of increasing the number of IXPs and supporting the expansion of existing IXPs to meet the growing demand in Africa.

Studies have shown that internet users throughout Africa benefit from Peering

as it enables faster, more affordable and reliable access to content.

“The internet community adopted the goal of having at least 80 percent of the internet traffic consumed in Africa being locally accessible, and only 20 percent sourced outside the continent by the year 2020,”says Dawit Bekele, Africa regional bureau director for the Internet Society.

“We are getting closer to that target thanks to the many activities that promote interconnection and hosting in Africa and to partnerships such as the one we are announcing today with Facebook,” he adds.

According to the Africa IXP Association (Af-IX), there are approximately 44 active IXPs located across 32 countries in Africa. This has resulted in a 275 percent growth of locally exchanged Internet traffic over the last 10 years (there were 16 IXPs in 2008). During the same period, traffic exchanged at the African IXPs increased from 0.16Gbps to 412Gbps with over 800 networks now connected at these IXPs

18

BUSINESS DAY

C002D5556

Friday 05 October 2018

COMPANIES & MARKETS

May & Baker Nigeria floats N2.45bn rights issue Bala Augie

D

irectors of May & Baker Nigeria Plc and professional advisers to the healthcare company have signed off the offer documents for the company’s recapitalisation, paving the way for application list for the offer to open.

At a signing ceremony, the board of the company, issuing houses and other professional parties rounded off the pre-offer processes with the formal signing of the offer documents including the rights issue circular, posters and other agreements.

The signing ceremony followed approval of the rights issue by the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE).

Shareholders had in 2014 empowered the company to raise up to N3.2 billion new equity capital.

Capital Assets Limited and Compass Investments &Securities Limited are the stockbrokers to the rights issue while Cordros Capital Limited and Afrinvest (West Africa) Limited are the

issuing houses.

May & Baker Nigeria will be offering 980 million ordinary shares of 50 kobo each at N2.50 per share to existing shareholders. The rights issue has been provisionally pre-allotted on the basis of one new ordinary share for every one ordinary shares held as at the close of business on Tuesday, September 4, 2018.

Application list for the rights issue is scheduled to open on Monday October 15, 2018 and close on Wednesday November 21, 2018.

Theophilus Danjuma, chairman, May & Baker Nigeria Plc, a retired general in the Nigerian army, recently told shareholders that directors of the company believed that the time is now right to raise the funds to enable the company harness new opportunities.

“Therefore our rights issue will soon open and I hope shareholders will take up their rights to support our company in achieving its new vision. We shall all reap the rewards in the immediate future and beyond,” Danjuma said.

He outlined that the compa-

Mamador reinstates commitment to women empowerment

F

ood giant, Mamador, a premium brand of PZ Wilmar has once again reinstated its commitment to supporting Nigerian women empowerment initiatives.

Mamador said it was once again on hand to support the annual home-coming and gathering of Igbo women across different communities in the South-East popularly called ‘August Meeting’ as it added the much-needed spice to the 2018 meetings in several communities – where it held a number of activations and activities geared towards rural development.

Since its inception, the August Women’s Meeting initiative has become synonymous with women empowerment, rural community development, conflict management, peace-building, and human development in rural societies as it concerns the various communities in the Eastern part of Nigeria. This year’s edition was no different, as Igbo women traveled from far and wide to gather at their various hometowns, united by the common goal of furthering the development of their communities.

According to the Mamador brand, the importance and significance of the August Meeting

cannot be overemphasized.

Speaking on the brand’s continuous support for the initiative, Chioma Mbanugo, category marketing manager, said in a statment that PZ Wilmar, in line with its commitment to sustainable initiatives, investing in the future of local communities and the environment, recognized the meeting’s penchant for holistic development in rural communities.

“Mamador would like to press forward with its penchant for revitalising every woman and her home by providing them with healthy cooking options and as a result, ensuring a healthy lifestyle. Women, as mothers and homemakers, play a major role in family development which in turn benefits the society. To see women take it even a step further by coming together for such positive causes in their various communities is quite commendable and should be supported. This is why Mamador has over the years stayed committed to partnering and supporting women empowerment programmes within the different August Meetings across various communities, and we hope to sustain this blooming partnership,” she said.

ny has envisioned a new vision that will see it dominating the Sub-Saharan Africa (SSA) markets in line with its new vision of being the leading healthcare brand in SSA. According to him, the new five-year strategic plan of the company entails focus and expansion along the company’s competitive advantage of healthcare and it will soon begin to establish footprints and seek dominance in this area in the SSA region.

“Your company has turned the corner and is now solidly on the path of growth and strong profitability. Our plan in the next few years is to focus on driving our new vision, strategic goals and establishing our footprint as a leading healthcare brand in SubSaharan Africa. The company will strive to acquire required competencies in related business areas, expand its regional reach to explore new markets, improve capacity utilization at our WHO GMP pharmaceutical facility in Ota and continue to deliver value and returns on investments to our loyal shareholders,” Danjuma said.

L-R: Osunbunmi Olaitan, brand manager biscuits category, OK Foods Limited; Agboola Afolayan, deputy director standards/group lead chemical and technology, Standard Organisations of Nigeria, and Taiwo Ubany, quality assurance manager, OK Foods Limited during the presentation of Africa’s most outstanding premium quality biscuits brand to PureBliss Biscuits range.

Union bank re- ignites Nigerian dream in new campaign ANTHONIA OBOKOH

A

s Nigeria marks another milestone in its postindependence journey, Union Bank has demonstrated its faith in the country and her people with the release of an indigenous television production that seeks to rekindle flames of hope.

According to the press statement made available to BusinessDay, in a marked de-

parture from the average bank advert which will typically focus on marketing the institution’s products and services, “Union Bank’s two-minute short film will communicate strong themes of introspection, perseverance, healing and hope of a better future for Nigeria,” it says.

The organisation said that the production paints vivid scenarios of a society flawed with several problems. It encourages Nigerians to unite in a passion-

ate purpose to fight against the factors that seek to divide.

“Viewers can easily identify themselves in the plot of the commercial; from the aspiring photographer, to the taxi driver battling societal forces that threaten his fledgling business; from the single mother struggling to make ends meet for her young family, to the Youth Corper who stares into a future that is difficult to see,” it added.

The organisation further said that the commercial shows

the daily struggles and disappointments of the average Nigerian and firmly reiterates the Bank’s commitment to support the people in their bid to rise above the odds and live more successful, fulfilling lives.

An entirely indigenous production, the television commercial was co-ordinated by brand agency, Image, Time and Nigerian-owned Lighthouse Television and Filmworks; and was shot in various cities across Nigeria.

Ecobank reiterates commitment to excellent service delivery HOPE MOSES-ASHIKE

E

cobank Nigeria has restated commitment to excellent service delivery to meet the needs and aspirations of its customers at all times.

Flagging off the 2018 Customer Service Week at the Ikorodu branch of the bank on Tuesday, the Patrick Akinwuntan, managing director, said the week is a huge opportunity to say thank you and to celebrate customers of the bank.

He assured that the bank will remain committed to excellence in products and services

delivery at all its touch points.

“This is another moment to celebrate you. We will always celebrate you. You are the reason why we are in business.

Excellent customer service is a vital part of our promise as a bank. For us, this is more than just providing answers.

It’s helping customers even when they don’t know they need help. It’s teaching them how to do more with our products. It starts with a smile and a friendly word, and finishes with sharing our expertise, even when it has nothing at all to do with our products. We are committed to bringing you superior customer service,

whenever, wherever, and however you need it. Thank you for choosing Ecobank.” He noted Akinwuntan , who was a “Bank Teller” today at the Ikorodu Branch used the opportunity to showcase some of the digital and innovative self-service options offered

by Ecobank. “We have Ecobankmobile app, and it is only one app for all the affiliates of the group including Nigeria.

When you are within the app, you can switch from one country to the other, you can do transfers from one country to the other, instantly, seamlessly, real-time. On the app, you can also open an instant

account, which we call Xpress account within 5 minutes, without having to go physically to the bank. Also on the app you can pay for your electricity bills, school fees, membership fees for major associations, insurance premiums, DSTV, but more importantly, you can also generate a token, which we call Xpress Cash, and you can take that code to any Ecobank ATM and withdraw cash. It’s very convenient and we have more than 8 million onboarded users on Ecobankmobile across Africa including 1.5 million of these users in Nigeria” he noted.

BUSINESS

Friday 05 October 2018

DAY

19

COMPANIES & MARKETS AGUSTO & CO. assigns ‘5 star’ ratings to four banks in Nigeria Seyi John Salau

N

igeria’s first credit rating and research Agency, Agusto & Co. Limited, has launched its 2018 Consumer Digital Banking Satisfaction Index report, which highlights customer’s preferences and attitude towards digital banking platforms provided by banks in Nigeria.

This Index was released, following an extensive online and offline consumer survey carried out by Agusto and Co. Limited across Nigeria. The output of the Index is based on information provided by respondents on the top ten banks in Nigeria by total assets as at 31 December 2017.

Four banks were assigned a ‘5 Star’ rating for Consumer Digital Banking Satisfaction of which Stanbic IBTC Bank Plc scored the highest, emerging the ‘Best Digital Bank in Nigeria’.

The ‘5 Star’ rating assigned to StanbicIBTC Bank reflects ease of use, perceived security and very good troubleshooting & IT resolution on its different digital platforms. The Index revealed that StanbicIBTC Bank has the most ease in navigating through primary platforms used such as mobile app, USSD (Unstruc-

tured Supplementary Service Data) or web; customers felt the most secure using their preferred primary platforms, and the bank was quick to resolve conflicts encountered by customers on the various digital banking channels.

Customers of the bank further disclosed that there were only very few instances of unsuccessful transactions, and the overall functionality of StanbicIBTC’s digital platforms is seamless.

However, findings from this Index indicated ample room for improvement on digital banking services in Nigeria as majority of respondents desire better user interface, enhanced security features, increased services particularly on mobile banking platform, speedy notifications on account activities, less cumbersome enrollment procedures, reduction in charges for frequently used services such as airtime top-up as well as general improvement in speed on services.

According to Agusto & Co, the objective of this Index is to create an independent appraisal of the ease of using digital banking platforms by the Nigerian populace considering that banks have invested significantly in digitalization. The Index will give banks in Nigeria insights and suggestions on ways to enhance customer experiences on digital

banking platforms.

Commenting on the Digital Banking Satisfaction Index report, Yinka Adelekan, executive director, Agusto & Co. Limited said “One of the major reasons we launched this Index was to get first hand insights on awareness, ease, issue resolution and perceived security from users of digital banking platforms in Nigeria. It is essential that banks increase awareness of the different products and services available on their digital platforms. In addition, customers who use these platforms must be supported by minimal system downtimes, user friendly navigation processes and improved turnaround time for IT resolution. We understand the need for convenience, speed and for customers to feel secure when they perform transactions.

As a research and credit rating agency, we seek to provide banks with credible information on how best services can be improved for customers, which we believe can be achieved with findings from this Index”.

For over two decades, Agusto & Co. has provided investors with invaluable information and sound financial analysis, promoting transparency and best practices. Its clientele base spans major international corporations as well as key domestic operators.

Mastercard drives global startup ecosystem at Barcelona Forum

M

astercard, a leading technology company in the global payments industry, recently welcomed 10 startups to its Start Path programme at the Mastercard ‘Connecting Tomorrow’ Forum. The event, which held in Barcelona, Spain, is part of efforts to drive the startup ecosystem.

Mastercard Start Path is the company’s global initiative to provide startups with the operational support and commercial access needed to scale. The programme brings together a global network of innovators, ranging from startups to banks and merchants, to shape the future of commerce in an agile and accelerated manner. Start Path evaluates roughly 1,600 applications per year and invites about 40 later-

stage startups to participate each year Representing numerous countries including Nigeria, Mexico, Australia, Singapore, Jordan, the UK and the US, the participating startups are developing innovative financial services technologies that exemplify a new level of innovation and convenience in customer experience. During the Mastercard Connecting Tomorrow Forum, the selected startups were given the opportunity to pitch their ideas to an audience of more than 250 potential investors and partners.

Speaking on the forum, Gaurang Shah, senior vice-president, Product Management, Digital Payments and Labs, MEA, Mastercard said: “Startups are reimagining all touch points of

the consumer lifecycle and we must harness their unique approach to addressing emerging challenges to our advantage.

Through the Mastercard Start Path programme, we are able to combine our assets and expertise with the startup community’s out-of-the-box ideas and unconventional business models to shape the future of commerce together.”

The ideas presented by startups ranged from new approaches to enabling small merchants to accept payments and manage personal data and digital identities, to solutions that allow consumers to pay together for ecommerce transactions, as well as programmes that empower citizens to be in control of their financial obligations across multiple geographies.

Business Event

L-R: Emeka Obiagwu, director, FIRS; Charles Bassey-Eyo, director, Axiom Learning Solutions Limited, and Femi Gbadebo, founder, Benola Cerebral Palsy Initiative, during the 2018 KCOBA (Kings College Old Boys Association) dinner held at the College Assembly Hall in Lagos.

L-R: Bada Akintunde-Johnson, country manager Nigeria, VIMN Africa; Omotunde Adenusi, senior brand manager, Maltina, and Alex Okosi, executive vice president and managing director For VIMN Africa And BET International, At The Nickfest With Maltina Festival In Lagos.

Ike Willie-Nwobu, coordinator, International Federation on Ageing-Nigeria (IFAN), (l), receiving a souvenir from representative of Ibrahim Tijani, director-general, National Youth Service Corps (NYSC), after the signing of an MoU on operation of the National Integrated Mobil/Field Hospital Initiative incorporating humanitarian intervention and social response, in Abuja.

FBNQuest highlights role of audit executives in cybersecurity

F

BNQuest Merchant Bank, the investment banking and asset management subsidiary of FBN Holdings Plc has called on audit executives of Banks in Nigeria to take advantage of technological advancement to enhance cybersecurity resilience in the country.

The Company made the call at the 40th Quarterly General Meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN), themed “Cybersecurity: The Role of Audit Executives”, which held in Lagos, In her keynote speech, Funke Feyisitan Ladimeji, head of Tech-

nology and Services at FBNQuest Merchant Bank, highlighted the important role of audit executives in influencing and facilitating organisational change by ensuring that robust cyber threat programs are implemented across businesses to mitigate risks.

According to her, businesses still make use of traditional approaches in cyber vulnerability assessments and it is difficult for security units within organizations today to achieve complete ecosystem visibility across other functional units. However, with emerging technologies and the commoditisation of data, cyber-

security has become undeniably more sophisticated and clearly a top Board agenda.

Ladimeji further stated, that audit executives must be part of the decision making process for organisations to ensure that compliance to cyber security standards are a key factor in business strategies. The internal audit function must be forward thinking, making a concerted effort to follow trends that will influence management implementation frameworks in line with the General Data Protection Regulation (GDPR) and future CBN guidelines.

L-R: Mike Eze, secretary-general, Nigeria Union of Teachers; Sonny Echono, permanent secretary, Federal Ministry of Education, and Steve Nwokeocha, guest speaker, during a symposium to mark the World Teachers Day in Abuja

20 BUSINESS DAY

C002D5556

Friday 05 October 2018

Friday 05 October 2018

C002D5556

BUSINESS DAY

INTERVIEW

21

‘Our business plans aren’t targeted at the short, but long-term future of Nigeria’ ALEX DIMITRIEF, a Senior Vice President at GE and the current President & CEO of GE’s Global Growth Organisation was in Nigeria this week for sessions with key stakeholders of the world’s premier Digital Industrial company.

In this exclusive interview with BusinessDay’s Energy Editor, OLUSOLA BELLO, he speaks on GE’s role and commitment in closing the infrastructural gaps in emerging markets like Nigeria, among other topics. Excerpts:

P

lease introduce yourself?

My n a m e i s A l e x Dimitrief. I’m a Senior Vice President for GE and I’m also the President and CEO of the GE Global Growth Organisation. I’ve had this job since January 2018. Before then I was General Counsel, GE and I’ve also held a number of other positions at GE. I’ve been with the company since 2007.

What’s your purpose of coming to Africa and is this your first time of in Nigeria?

This is my third time of coming to Nigeria. My first visit was in 2010; then I came as General Counsel. This is my first visit to Nigeria as the President of the Global Growth Organisation and the main purpose of the visit was to meet with key GE stakeholders; both government officials and customers about the future of GE in Nigeria. This is to discuss and to reiterate our commitment to the future of the country. We’ve had some terrific meetings with ministers like the Minister of Power, about the future of power generation and the transmission distribution structure in Nigeria. We’ve also had some good conversations with people about healthcare and so we are very excited about the future in Nigeria and Sub-Sahara Africa in general.

What is your level of involvement in the power sector in Nigeria?

Over 70% of gas-powered generation in Nigeria runs on GE technology. We announced recently a re-organisation of GE. Going forward, our focus is going to be on power, renewables and aviation. So, we are involved in all aspects of the power industry, generation as well as transmission and distribution, and this is going to be a key focus for us in Nigeria. It’s something that we have been doing here virtually in the entire 40 years that we have been present in the country. And again, we believe in bringing the best of our science and technology to Nigeria and sub-Sahara Africa to deal with the challenges of electrification.

There was a recent re-organisation in GE worldwide; how is that going to affect your operations in Nigeria and Africa?

It may affect how the team is structured within Nigeria and Africa but it does not at all reduce GE’s commitment to Africa or to Nigeria in particular. The announcement that we made was that we were going to reorganise GE to focus on power, renewables and aviation and we also announced that within GE, we are going to have a shift in the centre of gravity in the operation of GE away from corporate to those businesses so that those businesses will have more control over their own destinies.

We believe that’s important

because we want each business to make the best capital allocation decisions that their business can make for its own future. For example, power will be making its own capital allocation decisions about the type of technologies to invest in. On a global level, the businesses will each remain committed to their global markets, and that’s true in Nigeria as elsewhere in Sub-Sahara Africa. I don’t think that the government or our customers are going to see any change whatsoever in how GE operates within Nigeria. I think the businesses will continue to deliver the best we have in science and technology.

Are you still going on with your vocational training centre in Calabar, Cross River State?

We are training at the local college and that’s still going on at this point. We are putting in a facility to serve our power services business as well as our oil and gas business that will be opening next year. And tied in to that is that we’ve been training local people to be able to work there.

So, the local content of the operation is what you’re preparing for?

Yes. How many people have you trained so far?

We built and equipped a mechanical and electrical workshop at the Technical College in Ikot Effanga. This facility is used to train hundreds of students of the college, thus building their capacity to work with GE or any other of such companies.

Can you give the highlights of your operations in the emerging markets, in Nigeria and other parts of Africa and the world?

We have operations in 186 countries around the world and we are very excited about the growth that GE has enjoyed outside of the United States which represents over 60 per cent of our revenues at this point and that would be true of course of all our businesses.

Our aviation business is a worldwide business and is helping meet the rising demand for aviation traffic in emerging markets.

Our power business participates in all the different technologies; we are in steam, we are in gas, we have a nuclear business, we are in renewables; we participate in hydro and wind, both onshore and offshore. We are excited about developing the world’s largest offshore wind turbine with a 12MW generator sitting 150 meters above the waves. We also participate in solar; we work with solar inverters; we don’t make the panels themselves, but we work on integrating those into the grid.

We also have a grid business that works across the spectrum with all these different types of generation technologies, and then we have our healthcare business of course.

world. When you have the type of women and men that we do, that are determined to bring the best of GE’s technology to benefit their countries, great things can happen. I have seen tremendous growth in Africa since I first visited in 2010? The size of our team has more than tripled, our sales have more than tripled, and the size of our facilities has tripled.

It’s really been something to watch and it’s to the credit of the team that we have here, not me.

In our healthcare business, we have a sustainable health solutions business that’s actually focussed on the emerging markets. It takes a very different approach to most of the healthcare companies that make medical devices. We have designed and manufactured devices in emerging markets for emerging markets and I’m extremely proud of the fact that for the first time, we are now manufacturing in the US, products that were designed outside of the US which really shows the extent of our global footprint.

When we look around the world, we see a growing demand for the science and technology that GE has to offer richly across the world and that’s why we are so excited about our future as a global company.

Do you have country specific solutions in terms of technological development based on their needs?

I wouldn’t say we have country specific as much as we have region specific; really demographic specific. So, generally speaking, the type of healthcare equipment that works well in a remote rural area in one country will generally work fairly well in a rural area of another country.

In Nigeria in terms of the health area, which areas are you very active in?

Recently, we signed an agreement with the Kaduna State Government for primary healthcare; to provide equipment and training to about 240 centres and about 35 secondary healthcare centres. We are focused on the development of healthcare equipment and on training. So far, we have trained about 1, 500 healthcare professionals from different areas; clinical care, equipment management and just about everything that makes health centres keep going.

From the standpoint of x-ray machines, etc, we are able to equip a lot of the government owned hospitals out there. Hand-held ultrasound is one of the types of equipment that we provide. It’s a hand-held ultrasound and you can probe a pregnant woman and a midwife can make the determination if that woman needs to go to the hospital for a difficult birth.

What’s the progress that has been made so far in respect of the rail project in Nigeria?

So, GE will be transitioning the leadership of the Consortium involved in the Nigerian Railway Concession Transnet. This development follows a recent announcement that we would be combining GE Transportation’s business globally with WABTEC Corporation. Transnet has been a trusted partner of GE for several decades; we have great confidence in their ability and that of the other consortium members to execute on the railway concession project successfully. We would continue to offer our support as GE to the members of the

Alex Dimitrief

consortium team as we remain committed to the sustainable development of Nigeria.

What are your greatest challenges in emerging markets?

In general, what we see around the world is a gap between demand for infrastructure and the ability to finance the infrastructure development. As we look to drive investments downwards into the emerging markets, investors are increasingly looking for projects that are bankable, that are financeable, that are well organised, that they have the confidence to invest in. They also want a system with the rule of law, that is consistent, reliable, predictable and something that they believe they can count on, that won’t change if there’s a change in government that will put their investment in jeopardy.

So, I really think making the emerging markets a destination of choice for investments is the biggest challenge that we see.

Some people estimate that this infrastructure gap is trillions of dollars a year. So, what we have focused on at GE is developing our team to help our customers access the capital markets and we do that by relationships with private banks, also export credit agencies around the world; in Europe, Canada, the US and else-

where, to try to help development in the emerging markets. But I would say that closing that financing gap is the biggest challenge that emerging markets have right now and something that we are eager to help our customers with. We have a worldwide team that has developed expertise in helping with access to capital and that is something that we are eager to bring to Nigeria and other parts of the world.

Is GE going to be involved in project financing like its competitors?

I respect Siemens as a very worthy competitor and I’m sure that they have experts in capital markets and other areas but I’ll put up our team against Siemens team or anyone else’s team.

We do have a team in London that has extensive experience working with banks in Europe; working with export development agencies in Europe and elsewhere. So, we are very confident about our ability, and we’ve had great success in France, Switzerland, Hungary, in the UK and other European capitals. It’s about helping to develop the economies of the emerging markets and we don’t take a back seat to anybody. Like I said, I have lots of respect for Siemens as a worthy competitor but I’ll put our team up against anybody’s.

Do you have plans for any project in Nigeria that will have that kind of arrangement?

I think we are actively looking at a

number of power and healthcare development projects. We are working and coordinating potential capital markets access for our teams; something that I think is probably going to be pertinent to how a project is done in Nigeria in the next two to three years.

Aside from Africa, in which other continent’s emerging markets are you very prominent?

It’s hard for me to leave anyone out and I’d hate to do that by accident but when I look at where a lot of our activities have been, we are particularly excited about Southeast Asia.

The ASEAN countries area source of exciting growth and rapid increases in infrastructure requirements and Central Asia, Kazakhstan, Uzbekistan, all have growing demands for power; we are excited about our prospects there.

Northern Africa is another very active region for us. We see their economies beginning to rebound and there’s been increased demand there. Then Latin America and Central America are also very exciting markets for us. China continues to be a very strong market for GE, so one of the privileges of my job is when you ask me which region we are interested in, it’s difficult for me to leave any out. We are very active around the world and that’s a real privilege that we have and it’s made possible by having terrific global teams. So, the reason GE is successful in Nigeria is not because we have a great team in the US, it’s because we have developed a great team here in Nigeria and I can say the same thing about different parts of the

You are also into oil and gas. Can you give us an insight into your oil and gas operation in Nigeria?

Sure. We traditionally had an oil and gas business that was more focused on the equipment side of the industry. We entered into a merger agreement with Baker Hughes Incorporated (BHI)and as a result, we formed a new partnership that was sixty-two and a half per cent owned by GE and thirty-seven and a half per cent owned by public shareholders, many of whom used to own Baker Hughes stock.

They formed a new combined company, Baker Hughes, A GE company (BHGE), that is a fullservice company, or as the company calls itself, “the world’s first Full stream company.” This business is now equipped to help customers go from molecule to megawatts and it offers full services across the entire range more than any of the other oil service companies across the world. In a relatively short time, we have become a formidable competitor to Schlumberger and Halliburton and we are very proud of that business, we believe it has a very bright future.

Recently, we announced that we will be setting that business up as a standalone business sometime over the next two to three years.

That’s a huge vote of confidence in that business. We believe it is very successful and that it will succeed on its own.

Is there any way you plan to help in financing and increasing the oil flow in Nigeria?

We support the independent oil, gas operators that are managing mature fields as well as the big IOCs and the local players.

We operate effectively in the equipment business and services business. We are not into exploration or going into owning an oil field or anything like that.

But it is supporting them in what they are doing. As such, a lot of the mature fields that are being managed by Nigerian local business people, from the IOCs to the local, we will support them from the standpoint of our technology and services. Like in the Baker Hughes/GE merger, our oil and gas businesses allowed us to provide the services across the upstream, midstream and downstream spectrum. That’s where we married legacy GE expertise in equipment with the services proficiency of legacy Baker Hughes.

The synergy created as a result of this marriage is what provides the industry a unique one-stop shop across the entire industry value chain in Nigeria and beyond.

Apart from Nigeria, which other countries in Africa are you very prominent in?

We are very active in Angola, we are very active in South Africa, and we are also very active in Kenya, Ghana, Mozambique, Tanzania and Ethiopia. It depends on the business and it depends on the particular time frame that you have in mind. We are very active in all these countries and we see a very bright future.

What gives you the confidence to put so much investment in Nigeria?

Again, I think the watchword for a company like GE is that we’ve been around for 125 years. So we are thinking about the next 125 years. On that horizon, our business plans aren’t targeted for the next quarter, or for the next year, they are targeted for the longterm future of the country. And when we see the development of the growing middle class in Nigeria, with the growing population, it is going to require electricity in order to succeed, it is going to require precision healthcare to succeed. We believe that clime would be such that we would be able to succeed in that environment. We believe that the people of Nigeria are going to require the types of technologies GE is able to offer, and we are confident that the environment would be such that this would be a positive investment for GE. What is GE’s revenue globally? And what percentage did Africa contribute?

Revenue in 2017 was just about $122bn and the revenues in sub-

Saharan Africa was at $3.7bn, contributing between three and five per cent of our global revenues.

How do you intend to improve upon that?

I think it’s really a question of two things. The first is - we need to develop our local teams. And again, if you look at the women and men who work for GE in Africa, I think we have an incredibly strong team. I think Jay Ireland (outgoing CEO for Africa) and the team have developed the next generation of leaders who are really ready to take this company and make it have an even bigger presence in Africa than it already has. The second part is - we just have to continue to sell outcomes. And so that means that we continue to invest in the best technology, but also bring new technology to bear such as additive technology as well as digital analytics.

In the area of Additive manufacturing, we are leaders in 3D printing. We believe that 3D printing is going to revolutionize how products are designed and made.

We believe that could have some impeccability in sub-Saharan Africa as well. Sub-Saharan Africa can skip a couple of steps that developing markets have had to go through and go right to the efficiency of 3D printing, with respect to certain parts of its manufacturing infrastructure. So that’s an area where GE is prepared to lead, and we set up an advanced manufacturing training program in Nigeria, the GE Lagos Garage, in 2016. The program has trained over 250 Nigerian entrepreneurs so far on these cutting edge additive technologies. And then digital analytics, depending on which part of the world you are in, people call it industrial internet, or industry 4.0. but again, the ability to use analytics to correct the data generated by our machines and

learn from that data about how to optimise the performance of machines and optimise how they are designed and manufactured in the future is something we believe will give us a tremendous competitive advantage in Africa and elsewhere.

Going forward, what are the plans for advancing GE’s growth in the emerging markets?

Again, I think it’s really a question of investing in our teams, investing in science, investing in technology, making sure that we continue to make the required progress in new technologies like additive manufacturing and becoming the digital industrial company of the world.

What is the secret to GE’s success?

Honestly, I think the secret to GE’s success is really the people who make up GE. And I work with the best team and it’s incredible.

We’ve tripled the number of people working for GE in Africa.

We now have 2,500 people in sub Saharan Africa - 700 employees in Nigeria, 150 employees in Kenya, and these are amazing leaders.

And again, I just look at women that we have promoted into leadership positions and their special talents within the company. And as a global leader, I can’t tell you how much of a privilege it is.

Wherever I go, I see fewer and fewer Americans, and more and more nationals, and I really think that’s going to be the secret of GE’s success in the future.

The government officials you met with in Nigeria, what assurances did you get from them?

I think the assurances we have is if we are competitive, if we bring the best of our science, we bring the best of our technology and we continue to deliver outcomes, we are going to have a fair opportunity to compete for business. And I think that is all the assurance we can ask for.

I think we are proud to compete on the strength of what we have to offer. I think the ministers with whom we work, and the customers with whom we work, are very savvy, knowledgeable customers. They are very demanding.

They have high standards and the assurance we have, is that if we provide good products and good services, we will be in business. But it’s all about the merits, and how good we are. And if our products aren’t the best, we don’t expect to be able to sell them in Nigeria or elsewhere.

The Afam project which you are planning to rehabilitate, what were the challenges you are facing now and how soon would it project come on stream?

We are in the process of negotiating the completion of the project and are eager to work with the government to resolve any issues.

22

BUSINESS DAY

C002D5556

Kwara has lowest under-5 mortality rate - NGF SIKIRAT SHEHU, Ilorin

Firms join forces to fight chronic diseases in Nigeria ANTHONIA OBOKOH

T

T

he Nigeria Governor’s Forum (NGF ) has ranked Kwara as the state with the lowest new-borns and underfive mortality rate in the country.

NGF in its monthly publication, ‘The Executive Summary’, July 2017 edition titled “Roadmap to Achieving Universal Health Coverage at the Subnational level”, made this known.

In Kwara, the under-five Mortality per Thousand Live Births (MICS 2016/2017) is put at 45.

According to the report, Ebonyi, Rivers, Anambra, Cross River, Lagos and Kwara States are below the benchmark of the Sustainable Development Goals (SDG) of newborns and under-five mortality out of which Kwara has the lowest rate.

In a survey of the 36 states, indices used include; passage (and launch) of the state social health insurance bill, enrolment into State Health Insurance scheme, development of affordable minimum service package (a- MSP), establishment of drugs management agency for the sustainable drugs supply scheme, and the development of framework and process to report, review and respond to all

maternal and child deaths.

NGF at its meeting in January 2018, ratified promotion of accelerated implementation of Universal Health Coverage (UHC), commitment to Polio Eradication Initiative including strengthening routine immunization, and addressing the problem of malnutrition, particularly stunting amongst under five children as the priority health interventions for 2018.

The actualization of all the indices adjudged Kwara as the state with the lowest under-five mortality rate.

Responding to the report, Abdulfatah Ahmed, Kwara State Governor, described NGFs’ rank-

ing of the state as an affirmation of his administration’s commitment to providing accessible and affordable healthcare to all.

He reiterated his commitment to promoting Universal Health Coverage (UHC) as evidenced in the recently launched Kwara State Health Insurance Scheme (KHIS), which provides subsidized healthcare as well as rehabilitation of health infrastructure across the state.

He added that the state government will continue to implement policies aimed at expanding access to quality healthcare and eliminating infant mortality, such as its current policy of free healthcare for pregnant women and under-5s.

Friday 05 October 2018

he Society for Family Health (SFH) has announced its partnership with Novartis Social Business to supply medicines against chronic diseases to the poorest and most vulnerable population, with the aim of tackling the growing burden of chronic diseases in Nigeria.

According to a press statement made available to BusinessDay, SFH will distribute Novartis Access medicines to treat four of the most common chronic diseases: cardiovascular diseases, type 2 diabetes, respiratory illnesses and breast cancer.

Bright Ekweremadu, managing director of SFH, said Nigeria is increasingly affected by the

“Cardiovascular diseases are responsible for seven per cent of deaths, Cancer accounts for three per cent of deaths, diabetes accounts for two per cent of deaths; chronic respiratory diseases account for one per cent of deaths; and other NCDs account for eleven per cent,” says WHO. However, the country’s advancing middle-class and increasing urbanization is driving an increase in lifestyle factors which pose high risk for several NCDs, including obesity and tobacco use. 8.9 per cent of Nigerian adults are obese and more than 3.5 million adults use tobacco daily - a smoking prevalence of 17.4 per cent.

“As part of our strong commitment to achieve Universal

Experts seek improved IVF treatment, regulation, professionalism ANTHONIA OBOKOH

M

edical experts are advocating for improvements in treatment offered for In-vitro fertilization (IVF) in Nigeria, even as the country seems to be recording better awareness that is fuelling increase in patronage.

In Nigeria, there are no specific regulatory frameworks for IVF, and it has been suggested that clinics conduct services without clearly defined standards or protocols.

Experts say there is need to provide a robust and acceptable standard/ code of practice policy document, the lack of which is seen to have constituted a threat to standards and professionalism of service delivery.

“The average cost of regular IVF treatment is about N1.5 to N3.5 million depending on kind of services. We want to strategize IVF within Nigeria and make the price relevant instead of people going abroad for the same treatment,” said Oladapo Ashiru, managing director and CEO, Medical Art Centre (MART Clinics) in a presentation on ‘price fixing in assisted reproductive technology’ (A.R.T) at the Association for Fertility and Reproductive Health (AFRH), annual international scientific conference held in Lagos on September 27.

Ashiru and other experts shared their views at the conference, which is now in its eighth year, and had the theme ‘New Frontiers in Reproductive Tech-

nology’, and purported to be one of the most interesting things happening within the reproductive health sector. Ashiru, averred that some facilities offer poor services at lower costs, in order to get patients’ traffic and this is why there is a need to put strict regulations in place. Nigeria, according to him, has a very big task ahead in improving IVF treatment and standard.

He also noted that there has been a surge in Diaspora patients seeking IVF treatment in Nigeria over the past five years, due to the perceived increase in success as well as comparable cost.

“The advances in ART have ushered in new hope, and a wide range of procedures addressing many of the causes of infertility are now available,” Ashiru said.

Infertility is a significant health issue, and according to the World Health Organisation, it affects up to 10.5 per cent of couples of reproductive age group globally.

Studies suggest that the prevalence of infertility is much higher in Nigerians compared to the rest of the world; there are about 12 million infertile persons in Nigeria, which is almost 10 per cent of the total population.

Abayomi Ajayi, local organising committee chairman AFRH while delivering a speech at the conference, said “Nigeria has relatively high infertility rate of about 5.59 births per woman due to social and cultural reason, there is still room for more awareness as patients seek treatment very late,”

“The plan is based on inputs from the members of our association as a commitment to actively raising the quality of professionalism. It is my wish that the outcome of this conference will provide benefits both to our and patients care,” Ajayi said.

The conference had participants from different facets of medicine in Nigeria and also from United Kingdom, United States, Asia, Europe and other African countries which include obstetricians, gynaecologists, surgeons, embryologists, ultra-sonographers, health regulators as well as other support service industries.

Also speaking at the conference, Akinkunmi Amode represented by Olufemi Onanuga, Special Adviser to the Governor on Primary Health Care for Lagos State said, “ART is supported to put smiles on the faces of couples with challenges of conception. It is our duty to take responsibility as a government, we are ready to collaborate and partner with facilities to ensure the enforcement of law against quack practitioners.”

Yutaka Osuga, a professor of Obstetrics and Gynaecology, University of Tokyo, Japan, also noted that “IVF in Africa is improving.

The quality of IVF treatment in Nigeria is growing and the good part is that those that take the treatment here are much younger than Asian countries.

“I am here to help the development of ART technologies in Nigeria and the whole of Africa,” he said.

burden of non-communicable diseases (NCDs) as lifestyles and habits become more sedentary.

“We have been working for more than 30 years to help Nigerians, particularly the poor and most vulnerable, to live healthier lives, including improving access to essential health services.

This collaboration with Novartis Social Business is part of the solution to the challenges of the poor who are most at risk of NCDs,” Ekweremadu said.

The organisation also said that the programme will be implemented to start in eight (8) states in Nigeria, potentially reaching more than five million patients.

“Nigeria becomes the fifth country in Africa (after Kenya, Ethiopia, Uganda and Cameroon) to sign an agreement to distribute Novartis Access treatments against chronic diseases.

First treatments will start reaching patients in the upcoming months.

“In Nigeria treatments will be offered to patients through SFH at a final cost of up to 2.21 USD per patient per month,” said SFH. According to the World Health Organization (WHO) non-communicable diseases are estimated to account for 24 per cent of deaths in Nigeria.

Health Coverage (UHC) in Nigeria, we are working to promote disease prevention, facilitate access to basic healthcare and lifesaving medicines in both urban and rural areas. Conduct health education and awareness, and strengthen service capacity with key focus on health care facilities and workers,” said Omokhudu Idogho, DMD social business enterprise, SFH. Idogho added that the partnership with Novartis Social Business will help SFH put its expertise and experiences behind a programme that will help poor populations get diagnosis and access to key medicines to treat chronic diseases in Nigeria, which are often responsible for catastrophic health expenditure.

Parfait Touré, Head of the West and Central African cluster for Novartis Social Business also expressed belief that “new approaches such as our Novartis Access portfolio that bring governments, the private sector and social sector together are needed to expand access to medicines and healthcare delivery in our countries.

“We are pleased to help Nigerian patients better manage their chronic conditions,” Touré added.

Friday 05 October 2018

C002D5556

BUSINESS DAY

23

The weighty burden of tuberculosis in Nigeria Red Carpet Dentistry: Redefining the way Oral Care is perceived in Nigeria I ANTHONIA OBOKOH

F

adeke Ademosun (not real name) is a 45 yearold widow with two children based in Abeokuta; Ogun state recollects her journey of pain struggling to survive tuberculosis.

Last year, I began to cough and started losing weight for no reason. Within six months I lost a lot of weight and I was vomiting, I thought I had the Acquired Immune Deficiency Syndrome (AIDS).

I never knew anything about the symptoms of tuberculosis; I thought the cough was normal because I work as a cleaner in a school where I sweep most often, thinking it was the dust I inhaled that might has caused the coughing. But I still did not know that I had contracted the disease.

The doctor told me that I have to carry out a chest X- ray which diagnosed me of TB; it showed it had been dormant in me for almost one year.

I do not know how I got the disease; tuberculosis is a serious disease and should be taken seriously. It has pulled me through pains, this is besides the drugs and the anxiety that I would die soon.

Ademosun advised that doctors should make people more aware of the disease and its symptoms.

It is treatable with early diagnoses.

Tuberculosis (TB) is contagious and airborne. It spreads through the air from one person to another.

The TB bacteria are put into the air when a person with TB disease of the lungs or throat coughs, sneezes, speaks, or sings. People nearby may breathe in these bacteria and become infected.

TB is one of the top 10 causes of death worldwide. It is also the main cause of deaths related to antimicrobial resistance and the leading killer of people with HIV. The most common symptoms include: Cough lasting for more than two weeks, and sometimes

HBL TEAM

with blood-streaked sputum, shortness of breath, loss of appetite and weight loss, fever and sweating, extreme fatigue.

Nigeria is among 14 countries with the highest burden for TB, TB/HIV and multi-drug resistant (MDR)-TB. It ranked 7th among the 30 high TB burden countries and 2nd in Africa. Every hour 47 Nigerians develop active TB, seven (7) of whom are children, according to the 2017 global TB report.

Funding gap, high tuberculosis burden and rising incidence of multi drug resistance are among factors hindering Nigeria’s fight against TB, leading to 420 Nigerian deaths daily.

Currently, there is no effective vaccine to prevent TB and about 104,904 cases were notified in 2017 out of the estimated 420, 000 huge TB cases in Nigeria.

“Every day, 420 Nigerians die from Tuberculosis, an estimated 300,000 cases remain undetected with each of the undetected cases having the potential of infecting between 10 and 15 others. TB is not far from anyone,” said Adebola Lawanson, National Tuberculosis and Leprosy Control (NTBLC).

Similarly, Lovett Lawson, board chair, Stop TB partnership Nigeria added that TB is curable if it is diagnosed early enough. Despite the significant challenges to the country’s public health institute, it can be controlled.

“Tuberculosis control in Nigeria is grossly underfunded, receiving less than 30 per cent of the required funding, there is an enormous gap between the TB control and the amount needed to achieve the mission to universal access to service delivery” Lawson said.

Analysts say there is a need to devote more funds to Nigerians TB centres and also political, social commitment for further progress towards eliminating the disease as a public health burden.

Nigeria, India, Indonesia, China, Philippines, Pakistan and South Africa accounted for 64 per cent of

the new cases of tuberculosis, the report reveals.

Despite progress made in the last two decades, the incidence of TB is not declining fast enough to end the disease as envisaged under the Sustainable Development Goals 2.

Nigeria has over 1,700 points for diagnosis and more than 5,000 points for treatment of the disease but only about 20 per cent of Nigeria’s TB burden gets detected.

In 2014, Nigeria developed a national strategic plan for TB control which it planned to run between 2015 – 2020 to provide citizens with universal access to high-quality, patient-centred prevention, diagnosis and treatment services for TB, TB/HIV and drug-resistant and TB by 2020. But the programme has recorded only uncertain success.

According to the Stop TB Partnership, “although TB is curable and preventable all people developing TB, including drug-resistant TB, needs to be diagnosed and treated, and those at highest risk of developing TB (contacts of patients, people living with HIV) need to receive preventive therapy.

Currently, only about 60 per cent of TB and about 25 per cent of drugresistant TB are notified as receiving treatment; the remaining are the millions of people who are ‘missing’ from care. Coverage levels are lower for children, and preventive therapy coverage is minimal.”

To address the burden in the country, President Muhammadu Buhari stated that the National Action Plan on TB Eradication 2015-2020, is being pursued with renewed vigour, and structured on five priorities: detection of TB in adults and children; improving treatment in specific geographic areas that are under-performing; integrating TB and HIV services; building capacity for diagnosing and treating drug resistant TB; and creating strong and sustainable systems to support these achievements

t’s time for a change — a radical shift in the perception of dentistry in Africa. For far too long, Nigerians have assumed that in order to have “access,” to the highest level of dental care, they must have a passport available and a willingness to leave the country.

They didn’t believe they could find “best-in-class” service, highly skilled practitioners and cutting-edge technology right in their backyard. Many bought into the myth that oral care in Africa was subpar. The industry wasn’t advanced enough to address their needs. It wasn’t safe. Or, it simply wasn’t the way to go for those who had the means to choose an alternative.

The reality is, nothing can be further from the truth.

The popular trend of seeking out dentists in far-away places or designing girl-friend vacations to-far-away places like Dubai, U.S. America or Europe, in an effort to obtain that Million Dollar smile is not only an expensive and a danger-

ous way to approach your oral care, it is also extremely unnecessary. It’s for that trend to be a think of the past.

Everything you could ever possibly want is in Nigeria.

As the founder of Nigeria’s biggest and award winning dental practice, I have made it my life’s mission to wake people up to the fact that everything you could possibly want or need for your dental care is right here. I believe it’s time for Nigerian’s to put away their passport, at least for dental purposes, and recognize that some of the leading dental practices are right in here.

We believed that our patients deserved more than just a beautiful smile, they deserved an entire experience. We want them to feel like royalty and look forward to walking through our doors again.

Patients should feel as though they were our most important priority, not by our words, but by our actions.

Our goal now is simple: to elevate the dental game so that one day, we are able to turn Nigeria into a Hub for Dental Tourism, and people from around Nigeria and the world are coming to us for dental care.

Now isn’t that something worth smiling about?

A reason to smile... with Dr+Amy SHUMBUSHO

Email: dramy@smile360ng.com Tel: 0818 136 0000

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

24

BUSINESS DAY

C002D5556

Friday 05 October 2018

Friday 05 October 2018

C002D5556

FINTECH News

Products Review

Technology Review

Personality Review

BUSINESS DAY

25

Company Review

TECHNOLOGY REVIEW

What you need to know about card maintenance fees and websites is also free of cost.

Banks in the United Kingdom do not charge usage fees on ATMs if the withdrawal is within the region and in local currency.

FRANK ELEANYA

T

he Central Bank of Nigeria (CBN), in the 2017 ‘Guide to Charges by Banks and other Financial Institutions in Nigeria’ makes provision for financial institutions to charge N50 monthly card maintenance and N100 annually on naira debit and credit card. The guide also allows banks to charge $20 per annum on foreign currency denominated debit and credit cards.

By that guide, every debit or credit card holder will pay N600 annually as against the N100 being paid previously.

Data released recently by the Nigeria Inter Bank Settlement System (NIBSS) the central database for banking transactions in the country show that as at September 30, 2016, there were 29.24 million active cards being used by the 63 million active bank customers. In essence, bank customers in Nigeria will pay not less than N1.462 billion every month to banks as card maintenance totalling N17.544 billion annually.

All this is separate from the issuance fee of N1000, a replacement fee of N1000 and a renewal fee of N1000 once a customer’s card expires.

However, almost on a daily basis, bank customers complain about incessant card maintenance charges. Accusations include debiting customers’ accounts more than the stipulated N50 card maintenance charges, charging N52 or N52.50 instead

of N50, customers without ATM cards getting N50 debit alert, charging twice for card maintenance in one month, new account holders getting deductions for maintenance as well and many others. Here are what to know about card maintenance fee.

What is card maintenance?

It is a monthly charge of N50 that banks take from customers with active debit cards. The

fees are charged each month by the banks for active cards (card whose PIN has been changed).

“ATM or Card maintenance fee is common in Africa but unknown in more developed countries,” a source in digital finance sector told BusinesDay. For instance, In India, HDFC Bank issues ATM cards to its customers free of cost. Usage of the bank’s debit card at domestic merchant locations

Why card maintenance fee?

Pius Ikheloa, a banking expert told BusinessDay that charging card maintenance fee is like an incentive from CBN to banks who are the major drivers in its cashless initiative.

“Keeping ATMs functional (issuing, acquiring, switching, personnel etc) involves a lot of cost,” he said. “The maintenance fee I believe is a way of compensating the banks.

ATM is of course at the centre of CBN’s cashless initiative and if they are putting pressure on the banks to ensure it always functional, there has to be a way of offsetting some of the cost.”

He further pointed out that although, banks outside Africa may issue and allow customers to transact with their debit cards for free, the foreign banks still collect one form of charge or the other, “maybe not directly called “Card Maintenance fee”.

are decoupled from input fields. Replying in a USSD input field doesn’t automatically progress you to the next step. Instead, a user depending on a screen reader has to know to double tap “Cancel” or “Send” to dismiss the session or navigate forward.

Failing this, the session automatically times out from inactivity and the user has to start over.

Session time outs cost users money. Users that dep end on s cre en read ers are more likely to take longer to complete a USSD

session and the odds are higher that the USSD session will time out. Given that mobile network operators charge 3rd parties per second or per session to use USSD, that means the most vulnerable users are more likely to pay more to access USSD-based services. And that’s just the cost to access a service — there’s usually an additional fee based on the service that’s accessed (e.g. a fee to withdraw funds from your bank account to your mobile wallet).

USSD made it possible to

“The idea behind those charges is basically the same as that of Africa. In Europe and North America, they collect what is known as ‘Monthly Account Maintenance fee.’ In addition some banks collect credit card maintenance fee and various other charges.”

Other charges that come with ATM transactions in Nigeria which are approved by the CBN include N65 after the third withdrawal within the same month.

Recently, the apex card directed that banks will be liable for a N10, 000 fine on every failed electronic transactions that is not resolved within 24 hours.

CBN may scrap card maintenance fee Some experts have urged a reduction on the cost of electronic transactions in order to attract more unbanked Nigeria who may be turned off by the many charges they take on once they are issued a bank electronic banking tool.

“There is a strong believe that the CBN may scrap this (card maintenance fee) in the next Guide to bank charges,” the source told BusinessDay.

TECHNOLOGY REVIEW

USSD has an accessibility problem BEN LYON, Guest writer

U

nstructured Supplementary Service Data (USSD) has been described as “The Third Universal Mobile Application” and, according to The World Bank, is “the best communication technology available to provide [mobile financial services] to low-income individuals.” It’s undeniably changed the world for the better, but it also has a dark side: USSD is inaccessible to nearly 1.3 billion people.

If you’re one of the ~250 million people living with a visual impairment, or one of the ~1 billion people living with illiteracy or innumeracy, USSD is an impassable wall.

Here’s why: Even Google’s own phones fail to meet its accessibility standards. According to Google’s Accessibility Scanner, for example, the essential * and # characters on the Pixel’s default dialer have an insufficient text contrast ratio (3.19 vs. the recommended 4.50) and the call button has an insufficient image contrast

ratio (2.18 vs. the recommended 3.00), making them harder to see.

USSD input fields have no item label, which means they “may not have a label readable by screen readers” (also from Accessibility Scanner). In practice, this means the user has to know to double tap the input field to select an item from a list, enter a variable, or enter their PIN. When they do, Google’s screen reader, TalkBack, confusingly interprets the input field as “edit box.”

Navigational commands

reach billions of people like never before, but we’re only beginning to understand its true potential. It’s so critical to bringing the next billion online, in fact, that it’s been added to the 5G specification. With the right tooling (something we’re working on at Hover), developers and product teams can finally make “The Third Universal Mobile Application” truly universal.

Ben Lyon is the CEO of Hover, a USSD automation provider for developers

26 BUSINESS DAY Policy

Investments

Market

Friday 05 October 2018

C002D5556

Insight

Influencers

INVESTMENTS

FG grants investors in stalled solar IPPs new contract extension are yet to see the light of day. According to the terms of the deal, the solar plants, which would be mostly cited in the northern part of the country would be connected to the grid but disagreement over tariff was the first wrinkle to the deal.

Capital to build the plants was not available especially when the path to profitability was not clear.

“We just have to move with the deal, but it is really coming at a loss to us,” one investor told BusinessDay in confidence.

The investors had agreed with NBET on a tariff of 11.5cents per kilowatt hour for power supplied to the grid but considering the limited purchasing power of mostly rural dwellers who will benefit, NBET refused to approve the tariff and slashed it to $0.075 cent per kilowatt hour (kWh).

By this extension, the new deadline for the PCOA is now January 2019 with NBET insisting that this would be the last extension it will grant the developers.

This means that after January, the PCOAs must have been agreed and signed following stipulated conditions or the agreement will be terminated.

Stories by ISAAC ANYAOGU

I

nvestors in the fourteen solar Independent Power Projects which has stalled since July 2016 seem to be heaving a sigh of relief as the Federal Government has agreed to extend the deadline for the Put Call Option Agreements (PCOA) it signed with them.

A PCOA is the last stage of getting a power project agreement to financial closure providing a payment guarantee that in the case of default someone else will pick up the tab. The quantum of termination payments that will be received by an IPP under the PCOA will depend on whether the termination of the PPA was the result of a seller default, a buyer default or a force majeure event.

The six months PCOAs extension was done in July and government through the Nigerian Bulk Electricity Trading Plc (NBET) expects investors to commit to a pragmatic investment plan within this six month period.

However the chequered history of the project does not give much confidence.

The 14 Solar IPPs has suffered a series of false starts since July 2016 when the Nigerian Bulk Electricity Trader (NBET) signed power purchase agreements for 1,125MW of power at the cost of $2.5 billion.

In April 2017, The Federal Ministry of Power, Works and Housing said it has signed an agreement with two firms, Afrinegia Nigeria Limited and CT Cosmos Nigeria Limited to provide

cover against a premature termination of the power purchase agreements.

The signed deal will see Afrinegia Nigeria Limited deliver 50MW from its solar project at Onyi Kokona LGA of Nassarawa State while CT Cosmos will deliver 70MW to the grid on completion from its own project at Panyam, Mangu LGA, Plateau State.

Babatunde Fashola, Minister of Power Works and

Housing who presided over the signing on April 11 2017, said the agreement, coordinated by the Nigerian Bulk Electricity Trading Plc (NBET), will ensure that the solar PPAs stalled since July last year can now proceed to financial closure and benefit Nigerians.

“Sooner rather than later communities that are yet to experience and benefit from access to energy would begin to feel the impact”

Fashola said while expressing gratitude to the investors.

Fashola called the development a ‘milestone.’

Saying, “It sits very well with our Ministry’s Energy Mix to deliver 30 per cent of our total energy capacity through renewables by 2030. So it has ticked all of the right boxes; what remains now is to tick the final box to get power to peoples’ homes.”

A year later, the projects

FUNDING

World Bank provides $1bn funding for renewable energy battery storage

T

he World Bank has disclosed it would commit $1 billion for a new global program to accelerate investments in battery storage for energy systems in developing and middle-income countries.

It said the program is expected to help these countries ramp up their use of renewables – particularly wind and solar power – improve energy security, increase grid stability and expand access to electricity.

The announcement was done at the One Planet Summit. The Bank said in it that the new program will mobilize another $4 billion for investment in batteries adding that it would be a game changer for developing countries.

According to it, the $4 billion will come in as concessional climate financing and public and private in-

vestments. The program, it added aims to finance 17.5 gigawatt hours (GWh) of battery storage by 2025 – more than triple the 4 to 5 GWh currently installed in all developing countries.

“For developing countries, this can be a game changer,” says Jim Yong Kim, the World Bank Group President.

Kim, further explained: “Battery storage can help countries leapfrog to the next generation of power generation technology, expand energy access, and set the stage for much cleaner, more stable, energy systems.”

Currently, the Bank said batteries used in energy generation systems are expensive, and most projects are concentrated in developed countries.

It added that the ‘Accelerating Battery Storage for Development’ program, in response to demand from

countries, will finance and de-risk investments such as utility-scale solar parks with battery storage, off-grid systems – including mini-grids – and stand-alone batteries that can help stabilize and strengthen grids.

The program, it added, will also support large-scale demonstration projects for new storage technolo-

gies suitable for developing countries’ needs, such as batteries that are long-lasting, resilient to harsh conditions and high temperatures, and that present minimal environmental risks.

“Batteries are critical to decarbonizing the world’s power systems. They allow us to store wind and solar energy and deploy it

Analyst: Isaac Anyaogu, Email: isaac.anyaogu@businessdayonline.com, 07037817378,

when it’s needed most to provide people with clean, affordable, round-the-clock power,” Kim added.

He also said: “We call on our partners to join us and match the investments we’re making today. We can create new markets for battery storage in countries with high wind and solar potential, growing energy demand, and populations that still live without reliable electricity.”

Further, the statement said the World Bank Group is putting $1 billion of its own funds towards this new program and will fund-raise another $1 billion in concessional climate funds through channels such as the Climate Investment Funds’ Clean Technology Fund (CTF).

Additional $3 billion, it added would come from public and private funds and investors.

The new program will also convene a global think-tank

on battery storage, bringing together national laboratories, research institutions, development agencies and philanthropies to foster international technological cooperation and training that can develop and adapt new storage solutions tailored for the needs and conditions of developing countries.

The World Bank Group equally said it has been working with countries to support the deployment of batteries together with solar and wind power for several years, with projects currently underway in Africa, South Asia, and the Pacific.

It added that it has financed roughly 15 per cent of the stationary battery storage capacity already deployed or currently under development in developing countries, mostly through mini-grid projects and in island states to improve resilience.

Graphics: Joel Samson

BUSINESS DAY

Friday 05 October 2018

AgriBusinessInsight Market Insights

Analysis

Commentaries

Experts/Industry Views

Commodities watch

Policy Reviews

27

Send in Commentaries to caleb.ojewale@businessdayonline.com

Gender gaps limit progress in African agriculture Avoiding fake ‘hybrid’ seeds

I

CALEB OJEWALE Twiiter: @calebtinolu

W

omen play an import a nt ro l e in African agriculture but remain disadvantaged in accessing opportunities that would have enabled them scale up their productivity.

José Graziano da Silva, the UN Food and Agriculture Organization’s Director-General, said at a recent joint event with the African Union (AU) on the sidelines of the UN General Assembly, that gender gaps in agriculture in Africa are holding back progress towards ending hunger and must be urgently addressed, the “We need to better recognize and harness the fundamental contribution of women to food security and nutrition. For that, we must close persisting gender gaps in agriculture in Africa,” Graziano da Silva said.

He called for better representation of women in governance mechanisms and decision-making processes, as well as adequate and equal access to land, financial resources, social protection programmes, services and opportunities for women in rural areas.

Oluwafemi Abioye, CEO, Agricmedia had in a BusinessDay article, had expressed similar view that; It is recognized globally that agriculture is an engine of growth and poverty reduc-

tion in countries where it is the main occupation of the poor.

However, Agricultural sector in many developing countries is underperforming, in part because women, who represent a crucial resource in agriculture and the rural economy through their roles as farmers, labourers and entrepreneurs, almost everywhere face more severe constraints than men in access to productive resources. Efforts by federal government, state governments and the international community to achieve their goals for agricultural development, economic growth and food security will be strengthened and accelerated if they build on the contributions that women make and take steps to alleviate these constraints.

The findings and recom-

mendations of the AU-FAO study, which were presented at the UNGA event, include calls for a “gender data revolution” in the agri-food sector to inform sound policies and programmes, and elevating the gender benchmarks in planning, monitoring and accountability.

“We ne e d to put in place g ender targ ete d programmes that address women’s specific vulnerabilities but also their key role in household nutrition and resilience,” Graziano da Silva said.

“Evidence shows that when women are empowered, farms are more productive, natural resources are better managed, nutrition is improved, and livelihoods are more secure,” he added.

In some African countries, women account for up to 60 percent of the labour

force in family farming.

They are largely responsible for agricultural activities such as growing vegetables, preserving harvests and raising small ruminants such as sheep and goats.

Women are also responsible for family nutrition through the preparation of meals.

Closing productivity gaps could increase food production and consumption by up to 10 percent and reduce poverty by up to 13 percent.

If women have the same access to skills, resources and opportunities as men, they can be powerful drivers in the fight against hunger, malnutrition and poverty.

Empowering women in agriculture, value chains and trade will accelerate the achievement of the Malabo Commitments and the Sustainable Development Goals.

t is not unusual for farmers to complain of poor yields even after planting what ought to have been hybrid seeds. Many times, seeds have a low germination rate and in some instances they do not germinate at all and farmers have been suffering in silence.

When their voice is heard perhaps, is when they refuse to patronise and plant the “supposed hybrids”. At this time, it becomes a bit difficult to convince them to give it another try.

One reason that has been given for sale of bad seeds is because the planting season is characterised by high demand for certified seeds against low supply.

Get your seed at accredited government source Michael Ajala, a professor of seed technology at the Federal University of Agriculture, Abeokuta suggested that seeds for planting are best obtained from agric centres, for instance in the South West; Ogun State Agriculture Development Programme (OGSADEP), Oyo State Agriculture Development Programme (OYSADEP) and others with similar remit. He explained that they often have good quality seeds that will have germination rate written on the label. It is important to go to trusted people so as to buy whatever is need as such sources can also be visited again to provide either good or bad feedback which will result into action.

Test seeds at home

or for free at agricultural research centres A sample of 100 hundred seeds can be taken and put inside tins filled with sand. If after three to four days, they all grow, then that means there is 90 – 100 percent germination. It implies the seeds are viable and the planting rate can be simply adjusted. If however, the germinating rate is low, then the planting rate will have to be increased. That is, putting three seeds per hole (for instance) so that the germination can be optimised, this is at least according to Professor Ajala.

Alternatively, a prospective farmer can go to a research farm/centre such as a faculty of agriculture or even a university of agriculture, where the germination could be tested ‘free’. A farmer can approach such a centre to request that he/ she wants to ascertain the viability of any given seeds and provided it is of a small quantity, this will be carried out free. When seeds are on a massive scale, then a nominal fee may be charged.

Procure your seeds early

Taking into cognisance, the fact that fake seeds are often sold when farmers are in a rush and may not implement due diligence, it becomes imperative that seeds are procured early enough to avoid the rush period. The fake seeds are sold to desperate farmers who come late to acquire the seeds, usually because the certified seeds would have been depleted.

Making your crops export worthy to avoid rejection, losses

T

he weakening of naira has made exportation to become a more enticing and lucrative venture for many entrepreneurs. However, many people who dabble into agro-exports neglect the need to obtain requisite certifications which will ensure their produce comply with requisite international standards.

Ensuring strict compliance with certification of agricultural commodities, while making businesses more acceptable to the international markets, is also bound to restore the confidence of international trade partners in Nigeria, and improving the country’s prospects for increased earnings.

Vincent Isegbe, coordinating director, Nigeria Agriculture Quarantine

Service (NAQS), explained that there is a need to be conversant with international quarantine best practices and trends such as the EU TRACES (Trade Control and Export Systems) which is an online management tool of the EU for health certification and control, that tracks the movement of animals, plants, food, and feeds imported from outside the EU and traded throughout the EU member states.

He also emphasised the need to implement Sanitary and Phytosanitary (SPS) measures to facilitate safe trade, STDF (Standards and Trade Development Facility), the UN-CEFACT (United Nations Centre for Trade Facilitation) and Electronic Business which is a simple, transparent

and effective process for global business, efficient and automated exchange system.

Others are Codex Alimentarius which is a collection of international food standards, guidelines and codes of practice whose main purpose is to protect the health of consumers and ensure fair practices in food trade.

There is also “Global GAP”, an internationally recognized set of farm standards dedicated to Good Agricultural Practices (GAP). Through certification, agricultural producers demonstrate adherence to accepted levels of safety and quality. And consumers can rest assured that the food has been produced sustainably-respecting the health, safety, and welfare

of workers, the environment, and in consideration of animal welfare issues.

The Global GAP standard is primarily designed to reassure consumers about how food is produced on the farm by minimizing detrimental environmental impacts of farming operations, reducing the use of chemical inputs and ensuring a responsible approach to worker health and safety as well as animal welfare.

Global GAP is a prefarm-gate standard, which means that the certificate covers the process of the certified product from farm inputs like feed or seedlings and all the farming activities until the product leaves the farm.

Emmanuel Ijewere, Vice President, Nige-

ria Agri Business Group (NABG) who is also CEO, Best Foods Limited remarked on the need to restore confidence in Nigeria’s agric exports through reorientation of those in the exportation business.

“The biggest problem is that many exporters just think of the foreign exchange and nothing else.

They do not realize the damage they do to Nigeria once Nigerian products have been de-certified or rejected by any country as the foreign countries will think that every exporter (from Nigeria) is the same,” said Ijewere during a phone interview.

Ijewere also explained that “Nigeria does not determine the quality of what the rest of the world wants; therefore those in exportation need to be

fully educated on what are standard requirements around the world. There should be proper checks and the customs service itself should ask for all the relevant certificates before allowing anything to be exported.”

Madu Obiora, director general, African Centre for Supply Chain, noted that “Even if you say that your product is organic, nobody will accept that it is until your farm is certified as organic. Certification is key and without it you cannot get on certain platforms.”

“For instance, having the Global GAP certification puts a potential exporter in vantage position to sell to different western countries and multinational retail chains such as Wal-Mart,” said Obiora.

28

BUSINESS DAY

C002D5556

Friday 05 October 2018

BUSINESS DAY

Friday 05 October 2018

Harvard Business Review

29

ManagementDigest

The good-better-best approach to pricing RAFI MOHAMMED

T

here’s nothing new about the concept of adding or subtracting product features to create variably priced bundles targeted to customers of varying economic means or those who value features differently. It’s been nearly 100 years since Alfred Sloan introduced a “price ladder” to differentiate Chevrolets from Cadillacs, creating “a car for every purse and purpose.”

In the modern era, Good-Better-Best pricing is evident in many product categories. Gas stations sell regular, plus and super fuel. American Express offers a range of credit cards, with varying benefits and annual fees. Tiered pricing is a strategy every company should consider to attract new highspending customers and priceconscious ones. (Disclosure: Among my clients is Harvard Business Publishing, the publisher of Harvard Business Review.)

G-B-B’s benefits come from three approaches: offensive plays aimed at generating new growth and revenue, defensive plays meant to counter or forestall moves by competitors and behavioral plays that draw on principles of consumer psychology.

— GOING ON THE OFFENSIVE: Companies can dramatically lift margins by creating a high-end Best version that persuades existing customers to spend more or attracts a new cohort of high-spenders. At the other end of the spectrum, a low-priced Good offering can make a product accessible to price-sensitive or dormant customers for whom the existing product line is out of reach.

— PLAYING DEFENSE: When faced with a low-cost rival, many companies’ knee-jerk response is to lower prices, but

that’s often a mistake. When the price holds firm, 15% of sales, say, might be lost to a low-cost competitor, but 85% of customers are still paying full price — whereas if the price is cut, 100% of customers will be paying less.

— DRAWING ON CONSUMER PSYCHOLOGY: G-B-B can shift customers from a binary “buy or don’t buy” mentality toward consideration of incremental value and spending. This can work in two ways. First, customers prefer having choices to feeling they have an ultimatum, so three differently-priced options can give them a sense of empowerment. Second, when faced with multiple options, customers tend to decide more quickly whether they are going to buy something. Having made that mental shift, they typically treat the Good version as a sunk cost, which makes them more amenable to upgrading.

When considering a G-B-B pricing structure, the first step is to decide how many product versions to offer. As the name implies, the most common approach is three. In general, companies with a single existing product will designate it as Better, adding features to cre-

ate Best and subtracting them for Good. But if taking away features to create a Good offering isn’t feasible, companies can forgo that option and simply offer Better and Best.

After a company has gotten a sense of how many tiers to offer, managers can brainstorm about the features to include in each, and then analyze the potential features identified.

Three questions are key: Does the feature have mass appeal or low appeal? How would adding or subtracting it affect the cost of producing the good or offering the service? And is it a “fence” attribute — one that constitutes a barrier preventing existing customers from crossing over to something cheaper?

Managers should begin by identifying fence attributes.

To choose the fence attributes that will separate their Good and Better offerings, look for features that most customers want and consider vitally important and are somewhat costly to produce. The combination of high appeal and high cost means that if the feature is part of the Better but not the Good offering, relatively few people accustomed to Bet-

ter (that is, existing customers) will consider Good — but those willing to do without the feature can enjoy a significant discount.

The same qualities — appeal and cost — that help companies choose fence features will also guide them toward features that belong in Best. Those should similarly appeal to a wide segment of buyers, but ideally they will cost relatively little to include so that the company can keep high margins on Best. High-appeal and low-cost Best features are often less about the actual product and more about the customer experience. For instance, quicker delivery time can be part of a Best offer.

After completing the costbenefit analysis of the various features, it’s time to design and assign tentative prices to the G-B-B bundles. Two rules of thumb for design: To ensure sharp distinctions between offerings, no more than four attributes should differ between Good and Better and between Better and Best. And it’s important to maintain a consistent progression of benefits from Good to Better to Best — beneficial features in Good should be retained in the higher-

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

We have you covered through CBN’s special intervention for specified retail invisible transactions.

Are you travelling abroad for vacation

Visit any of our designated branches nationwide for your following invisible trade transactions: School Fees Pilgrimage & Other Travel Allowances (PTA and BTA) Medical Allowances

or studying abroad?

We are here to serve you. *Terms and conditions apply

www.firstbanknigeria.com

FirstBankofNigeria

@FirstBankngr

Firstbankngr

FirstBankofNigeriaLtd

@firstbanknigeria

+FirstBankNigeria

priced offerings so that every step up the ladder is a clear improvement.

Those rules can similarly help with pricing. I strongly advise against setting a Good price that’s more than 25% below Better, and I recommend that the Best price should not exceed Better by more than 50%.

And it’s never too early to think about names for the G-B-B options; those are essential in helping consumers quickly identify which version best meets their needs.

Many companies conduct formal research to see whether their intuitive sense of what customers want is on target.

They can draw on three sources of data: — EXPERT JUDGMENT: Experienced executives, salespeople and other front-line employees have a good understanding of customers and their needs. When setting GB-B prices, companies should factor in the views of these inhouse experts.

— GENERAL MARKET RESEARCH: Basic insights can be gained by asking customers to respond to potential features and prices in quantitative or qualitative surveys.

— CONJOINT ANALYSIS: This common research technique involves giving subjects a series of binary product choices, each with different features and prices, and asking which they prefer.

Once research has helped a company finalize feature and pricing decisions, it’s time to launch the G-B-B offerings. Early results should be watched carefully and adjustments made as needed. Compared with other product attributes, pricing is often easy to alter on the fly.

Rafi Mohammed is the founder of Culture of Profit.

30

BUSINESS DAY

C002D5556

Friday 05 October 2018

Jazzy Etuk Ubong on the rise Stories by OBINNA EMELIKE

Y

oung, soft spoken, very talented and hardworking, Etuk Ubong does not immediately cut the part of a Jazz musician but again looks can be deceptive, very deceptive as he is one of the fast rising Jazz trumpeters steadily climbing to international fame from his home country Nigeria, and the world has started taking note! Gwen Ansell, acclaimed SA music industry writer, trainer and researcher who writes for Businessday SA and BDLIVE SA penned these words in her review “Ubong’s playing approach offers irresistible reminders of Miles Davis in the late ‘50s quartet recordings: a velvet tone and quiet inventiveness rather than brash grandstanding, but underpinned by quick fingers and an even quicker mind...

But there’s clearly more, and more that’s intriguing, to Ubong’s music... when the trumpet begins, the note sequence is distinctively Nigerian, not American, and it’s further in that African direction that Ubong’s intelligent improvisation takes it.”

Ibibio by birth but born and raised

in Lagos in 1992, the Akwa Ibom Sate indigene is a trumpeter and flugelhorn player who started playing music at the age of 14 and has put the decade since then to very good use. Etuk started his music tuition under the guidance of Etop Adolphors and Victor Ademofe, after which he moved on to study jazz at the Peter King College of Music and classical music at the MUSON School of Music in Lagos.

Currently he is enrolled for jazz studies at the University of Cape Town’s

Generation Africa calls for submissions on new narratives

G

eneration Africa is a documentary film project aimed at stimulating a new narrative on migration through the stories made by African filmmakers, and particularly young filmmakers.

The project is presented by South Africa based non-profit Steps (Social Transformation and Empowerment Projects) through AfriDocs, the first and only free global streaming platform for African documentaries. (www.afridocs.net) The topic of migration has dominated world news for some time, polarizing societies in the West as governments scramble to get a handle on what they view as a dire ‘immigration crisis’. As the ‘crisis’ grows, negative images and portrayals of Africa and Africans are proliferated more and more.

Cumulatively these images contribute to a singular narrative told about African migration without the inclusion of African voices. Therefore, many facts that go untold such as the fact that migration within Africa is higher than from the continent, or that Uganda hosts the third highest number of refugees in the world.

Africa also currently is the continent with the largest population of youth in the world, and is projected to have a population of over 840 million young people by 2050. This could spell a boom of growth for the continent, or escalating challenges, depending on how the continent responds.

Generation Africa is a collaboration with African filmmakers to cre-

ate documentaries that will shift this narrative on migration, and also give insights into a young generation on the move and making moves.

“We are looking for compelling, nuanced and unpredictable stories that celebrate the achievements of African youth on the continent,” explains Don Edkins, executive producer, STEPS. “The focus for the project is East and West Africa, as well as, the Horn of Africa, but we will consider stories from the entire continent if they are compelling.”

Filmmakers can submit up to three story ideas in the form of a one page synopsis, along with a CV, filmography, and links to previous works.

Submissions are invited from filmmakers who have made at least one documentary that has been broadcast or shown at a film festival.

Selected stories will be invited to take part in development workshops in East Africa, and West Africa (Anglophone and Francophone).

Steps is passionate about the power of documentaries to disrupt, shift, and transform the world around us. They work with organisations and individuals around the world to create documentaries on relevant social issues.

Through its streaming platform, AfriDocs, and through a network of organisations that host community based screenings, Steps uses a multiplatform distribution approach to bring documentaries to audiences across Africa.

Generation Africa is presented in partnership with Docubox in Kenya, NAFTI in Ghana and OuagaLab in Burkina Faso. The project is supported

by Deutsche Welle Academie, The Federal Ministry of Economic Cooperation and Development, and the Robert Bosch Stiftung.

South African College of Music having also completed the Berklee Online Specialist Certificate in Improvisation and he hold certificates from Trinity College London and the Associated Board of the Royal Schools of Music.

Apart from his formal studies, Ubong have gained invaluable experience by playing with world-renowned musicians like Victor Olaiya, Femi Kuti, the Gangbé Brass Band, Pat Harbison, Nduduzo Makhathini and many others. In 2012, Ubong’s former

teacher, top Nigerian trumpeter Victor Ademofe, invited him to play with him at the Lagos Jazz Series. Following that collaboration and aged just 21, Ubong was handpicked by Femi Kuti to join his band, and played regularly for the next 2 years with Kuti at the African Shrine as well at festivals and venues around Nigeria and touring to Ghana.

A highlight was meeting SA jazz legend Hugh Masekela at the Bayelsa International Jazz Festival produced

by Inspiro productions in 2013. Moving on from Kuti’s band, Ubong then played with the Gangbé Brass Band, touring with them for a while to Benin, the Art Ensemble of Lagos and then he played with various local ensembles and bands in Nigeria.

In 2015, Ubong played with his Nigerian Quartet, made up of Ita Samson on bass, Timothy Ogunbiyi on piano/ keyboards and Tombrapade Robert on drums, at the Lagos International Jazz Festival, the Abuja Jazz Festival and the MUSON Jazz Festival. British vocalist Cleveland Watkiss was so impressed by the band that he invited Ubong’s Quartet to play with him at the Satchmo Jazz Festival, where he was a headline act. As a member of the International Trumpet Guild, the

young Turk represented Nigeria and Africa at its conference in Ohio, USA in August 2015 and rounded off the year playing in the On Mass project headed by Jamie Cullum as part of the London Jazz Festival.

In 2016, Ubong relocated to South Africa to further his jazz studies at the University of Cape Town. A smart move which saw him rapidly starting to make a name for himself in the local jazz scene, having formed a South African Etuk Ubong Quartet with three rising talents: Ludwe Danxa on piano, Shakeel Cullis on double bass and Keno Carelse on drums.

The Quartet have performed at top live jazz venues in SA like The Orbit Jazz Club, African Freedom Station, The Crypt Jazz club, Sophia-Town Heritage Centre, The Piano Bar, Straight No chaser Jazz club and also the Artscape Youth Jazz Festival and are developing a name with jazz lovers and the media alike. Ubong has also performed with various other musicians and bands by invitation and in SA has played with Nduduzo Makhathini, Benjamin Jephta, Justin Bellairs and Ayanda Sikade amongst others, and was featured as soloist in the Artscape Youth Jazz Festival 2016.

Pick your man in Seven and a Half Dates

N

ollywood, the Nigerian movie industry, felt the heat when seven outstanding and brilliantly talented actors graced the screens in “Seven and a Half Dates”. In the movie, which hit cinemas recently, the amazing actors delivered their best and are top among the reasons cinema goers still look out for the movies, weeks after its screening.

The movie follows the story of a young lady who was set up on several blind dates by her father in a bid to find true love, meet the men of Seven and a Half Dates; Jim Iyke His name would pop up as one of the pioneers of Nollywood if you decide to google. Be it as a bad boy or a lover boy, Nollywood actor Jim Iyke will deliver an exceptional performance that will leave you asking for more.

You might not have seen him on your screens recently but Jim Iyke is back with a bang in this new movie.

The fashionable star actor has featured in countless movies such as American Driver, Last flight to Abuja, Palace war and more and he has been able to make his mark in the entertainment industry. Jim Iyke is not your regular actor. He is eloquent, talented and intelligent and having him back on our screens is pure delight. Jim Iyke plays the lead role as Jason.

Ali Nuhu Widely referred to as the King of Kannywood, Ali Nuhu truly precedes the title as he has endeared his name in the hearts of many Nigerians especially in the Northern part of the country. Ali Nuhu’s versatility to make use of both English and Hausa language makes him a prominent force in the movie industry. Ali Nuhu has also appeared in over 260 Hausa movies and more that 150 English movies.

Jim Iyke

The Kannywood and Nollywood actor brought his presence to this movie like never before with an exceptional performance that will leave you reeling with laughter. The actor plays the role of “Usman” in the movie.

Frank Donga Former journalist turned comedian and actor, Frank Donga rose to fame through the web series, The Interview, on NdaniTV. The series follows the life of an unassuming job-seeker which got Frank nominated for Best Actor in a Comedy in the Africa Magic Viewer’s Choice Award in 2015.

The actor has gone on to feature in several blockbuster movies such as The wedding party and its sequel The Wedding Party 2, Hakkunde, Tatu, Mentally and many more. Frank Donga also works as a photographer and a filmmaker and he definitely brought his skills and expertise to the movie.

He plays the role of Frank.

Ken Erics Actor, writer and occasional musician, Ken Erics has been controlling the movie scene for quite some time now and he is one to look forward to in Seven and a Half Dates.

Ken Erics who holds a degree in Theatre Arts and Film Studies, is popularly known for his role in

the movie “The illiterate” which he played alongside Tonto Dikeh and Yul Edochie.

He has also gone on to feature in movies such as Okafor’s Law, Omugwo, Body Language, The Bridge and many more.

Roxy Antak The name might not stick when heard but his acting is one that he will always be remembered for. The handsome actor who got into Nollywood few years ago is one of the fastrising actors.

Aside his acting skills, Roxy is most peculiar with his thick voice that he would definitely pass for the voice of Big Brother Naija. Roxy dazzled many audiences with his performance in ChinneyLove’s movie JUNE and also his role as Jonny the chef in Nollywood blockbuster, ‘The Women’, could never be underrated.

He also featured in Grey shadows.

Mc Lively Popularly known as Agidi, Mc Lively is a multi-talented personality whose talent is very evident in many of his online comedy skits. MC Lively is also a trained Lawyer but now devotes time to recording wonderful comedy skits and performing as a stand-up comedian. Seven and a half dates is also Mc Livery’s first cinema movie and his acting skills came out to play in this one.

Akin Lewis Popular Nollywood actor, Akin Lewis, is no doubt a force to reckon with in the Nigerian acting industry.The actor, who has been in the movie industry for over 42 years running, became well known when he played the lead role in Madam Dearest, in 2005. Over the years, he had featured, produced and directed several films. In October 2010, he won the Audio Visual Awards (TAVA) for best actor. Akin Lewis plays the role of Mr Gomez.

Friday 05 October 2018

C002D5556

BUSINESS DAY

31

Business Etiquette

Movie Review – MILE 22

with Janet Adetu

LINDA OCHUGBUA

M

iles 22 started q u i t e slowly and then drifted into loads of action scenes which later became very bloody.

The lead actor James Silva who was a very talented CIA agent with special gifts and skills since he was a kid, was recruited into the Top Security agency in America.

He had a bad temperament which didn’t sit well with his other colleagues.

They had to keep him because of his gifts, strength, talent and tenacity despite the fact that he was a terrible team player.

James and his team were given a case of a young guy who had some life threatening secret; retrieving this information came with a clause – it could only be revealed in a “safe place”.

In order to get to that safe place, he had to be taken to Mile 22 where he would escape on a plane. The “secret” was about how to track an explosive and disengage it before it goes off.

The ride to the exact point Mile 22 was indeed a tough one as they were a million and one bad guys who wanted this boy dead, hence making it a huge task for the agents to keep him alive. Little did they all know that they were being deceived into taking him to exactly where he wanted as his evil plans also involved destroying the CIA agent and his team.

It was quite devastating to see how poorly this movie ended. I absolutely didn’t like the end nor the storyline in this confused movie.

There was something absolutely wrong about the movie; it was difficult to tell if the concept for the production was to make it look like an old movie, or if it was just one of those badly produced movies; I really can’t answer that question even till date. I have struggled for weeks to put my thoughts together to give you a proper review, but it looks like my efforts are to no avail, so I guess I will just tell you what I got from the movie.

I am quite certain with the ratings of this movie; it’s going to make it to my low-

Listening Intentionally

H

ow well do you take your time to listen to what others are saying

Cast: Mark Wahlberg, Lauren Cohan, Iko Uwais, Ronda Rousey, Terry Kinney, John Malkovich, amongst others.

Genre: Action & Adventure Director: Peter Berg Ratings: R ( Strong Violence and language throughout) Written by: Lea Carpenter Runtime: 90 minutes Studio: STX Films

est ranked movies of the year.

Verdict: This movie gets a 4/10.

Why? - This is because they had everything working against them; poor production, zero storyline, wrong costumes, and a terrible end. It looked like a low budget movie; surprised it stars Mark Wahlberg.

I left much more confused than when I got in, being a while I came across such a poorly written story. The complaint about this movie couldn’t be contested at all, as everyone (i know) who saw this movie had the same verdict.

Ronda Rousey, Terry Kinney, John Malkovich, amongst others.

Genre: Action & Adventure Director: Peter Berg Ratings: R ( Strong Violence and language throughout) Written by: Lea Carpenter Runtime: 90 minutes Studio: STX Films Feel free to review any movie of your choice in not more than 200 words and send via email to linda@businessdayonline. com Also stand a chance to win a free movie ticket when you answer the question of the week shared on social media.

Movie Credit: Cast: Mark Wahlberg, Lauren Cohan, Iko Uwais,

Linda Ochugbua @lindaochugbua

around you?

Are you attentive during one on one conversations?

Do you consider yourself a more visual learner than auditory? It has been proven that adults and children tend to be influenced more by what they see rather than what they hear. Communication is always a two way exercise, when one is talking the other should be listening in order to provide a befitting response, and for dialogue to take place. The art of listening is a skill that has a technique and must be practiced.

During one of my trainings, I decided to test the listening capacity of my audience. I purposely kept their attention by talking and doing things at the same time. I later asked them to perform a little act; it did not surprise me that they simply copied what I did and not what I said. Clearly they were more engaged with what they saw and not with what they had heard.

It is very easy to wander off while you are supposed to be listening to something. It is easier to watch the TV and listen to the wordings of the movie or program at the same time.

People tend to listen to the radio when what they are engaged in other activities, for instance while at the desk, while driving, at the salon, or doing something else keeping preoccupied, that way there is no need to stop in your tracks to listen otherwise your attention span will be cut off quickly.

Though this does depend on what you are listening too especially if you purposely tuned in to listen to something specific.

A survey conducted tells us that we listen to round about 300 words per minute and we speak at least 200 words per minute. This means we do have the capacity to receive more information than that which is spoken. It is one thing to think it and another to understand what is being heard. Listening requires an intentional act that is why when you do not understand what you have heard you will tend to ask the person to come again or repeat. This means you want to intentionally listen

again so that you have a better understanding and therefore you can act accordingly. I understand that for communication to be successful you will need to listen 80% of the time and talk 20% of the time. Active listening makes all the difference.

Attributes to Good Listening.

Visual To hear what someone is saying well, listening becomes easier when you are looking at the person. You see the body language by way of that person’s actions, eye contact, smile, head nod, expression on the face, body movements, body positioning, hand gestures, leg movements and more.

It is impossible to have an argument smiling; likewise you cannot be happy frowning. What you see is what

you will interpret as part of your intentional listening.

Vocal When it comes to listening you can either attract a listener or totally distract a listener. The vocal cords expressed can be deep under toned, husky and slowly drifting away, on the other hand it can be high pitched, squeaky, too fast and incomprehensible. Your vocal cues when it comes to listening work well when you are able to control your tone of voice, high, low, or balanced is ideal. Your pace of voice also can influence people’s willingness to listen to you. If you speak too fast, you will be asked to keep repeating yourself. If your voice is slow it will appear boring and mundane this will draw away people’s attention span very quickly.

You will need to pick yours words carefully and be attentive to signs that people are listening, more importantly that they understand what they are hearing.

Verbal Talk they say is cheap, but what are you saying? It is

wrong to talk for the sake of it; unless you are that person who always wants to have the last word in before you are satisfied. The words you choose and how you say it influence ones listening capacity a great deal. In speaking your tone of voice is key but more importantly the inflection of your words, and the structure of your sentences. Your pronunciation and accent must be considered for people to hear and understand too. It is key that you pronounce your words as best fit as possible, as people will interpret what they heard, and may miscommunicate Verbal speech control is necessary where needed with practice this can be achieved.

Mental Finally to listen intentionally you must clearly be in the right frame of mind.

There are so many distractions around us that can make the mind wander, unconsciously or even consciously. If you feel that you are bugged down with other things preoccupying your mind, it is better to exit the conversation. It will be considered rude when one is talking and you are unable to respond or indicate that you are listening. Courtesy demands that you listen intentionally when you are in conservation. When in a meeting the benefit is derived when you come away from it more knowledgeable, better informed and impactful decisions are made. The best dtrategy is to improve and practice your listening skills.

There are many strategic tips on how to listen well.

Engage me in a lunch and learn session or performance training for your staff, the results will be amazing.

Wishing you the best of luck always!

Janet.adetu@jsketiquetteconsortium.com

32

BUSINESS DAY

C002D5556

Friday 05 October 2018

Hotels Ibom Hotel & Golf Resort, still a tourism landmark

Stories by OBINNA EMELIKE

W

hile the world celebrated September 27th as World Tourism Day, the celebration gave the Nigerian tourism community a chance to look at the state and potential of the industry.

Ronald Stilting, general manager, Ibom Hotel & Golf Resort in Akwa Ibom State, confirmed that tourism has great potential in Nigeria and in fact the whole of Africa, but that there are still challenges.

“Tourism can provide an income for many people due to the labor-intensive nature of the business. Unfortunately there is still a limited vacation-culture among most Nigerians ; the concept of leaving your home environment for a few

days or weeks is only slowly gaining popularity, mostly among Millennials”, the general manager explained.

“But the often poor infrastructure and inconsistent quality make Nigerians with sufficient income to rather look outside the country to spend their vacation.

The general uncertainty regarding safety-situation in several regions of Nigeria, often increases this trend”, he said further.

According to him, Ibom Hotel and Golf Resort has embarked on a mission to show that it is very possible to spend a wonderful vacation in a facility in Nigeria comparable with more expensive hotels worldwide at cost well below a trip to Dubai or Ghana among other destinations.

Of course, Ibom Hotel and Golf Resort, which was awarded Best Resort in Nigeria 2017 and has the Best Golf course in West-Africa, is one of few destinations

(1 hour flight from Lagos or Abuja) that has consistently been operating at a truly 5-star level. This is also confirmed by excellent reviews and guest feedback. In addition the safety situation in Akwa-Ibom, as well as, roads and other infra-structure are excellent with constant improvement and upgrading of product and services.

Aside the word-class golf-course, its whole spacious lay-out in a beautiful undisturbed natural environment, swimming pool, gym, restaurants and bars will provide an unforgettable experience for those who live in densely populated cities like Lagos or Port Harcourt. Families with children can enjoy around the poolside, discover the nature of the golf course by foot or on bike, relax at the riverside Marina restaurant among other attractions. It is encouraging that many who have come to Ibom Hotel and Golf Resort for work,

as it also has world-class conference facilities, return with their partners, friends and families to relax and enjoy. With affordable family- and weekend-packages, which include use of all facilities (including unlimited golf ), Ibom Hotel and Golf Resort can be considered a benchmark in Nigerian tourism landscape.

However, the general manager thinks that governments across all levels should support tourism entrepreneurs with tax incentives and supporting infrastructure. “Government has a task to monitor product and service level of the facilities to give assurance to potential guests that it is worth spending their money in Nigeria. It can as well initiate cooperation between the various players in order to improve the overall product offered in various regions and support marketing”.

The initial focus, for the general manager, should be to promote tourism to the enormous and largely untapped Nigerian market. “Attracting guest from other countries is far more difficult and expensive as these guests can choose from well-established destinations worldwide, without the hassle to spend on expensive flights to Nigeria and possibly visa”, he explained.

He also asked the media in Nigeria including the players in Social Media to support efforts to promote tourism in Nigeria, as the country surely has something to offer.

Legend Hotel Lagos Airport, Curio Collection by Hilton opens today

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

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

Protea Hotel Apo Apartments Address: Ahmadu Bello Way, Apo, Abuja Tel: 09 480 1818

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

Tel: +234 9 4603900, +234 805 7522500

Chida Hotel International Address: Plot 224, Solomon Lar Way, Utako, Abuja Tel: 0810 871 8882

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

206 Hotel Plot 206 Cadastral Zone B02 Opposite Kenuj 02 Mall, Oladipo Diya Road, Durumi District, Abuja Tel: 08119707993 Email: 206abuja@gmail.com

...Marks milestone of 500 operating Curio hotels worldwide

T

oday, the Lagos hospitality market is welcoming a new entrant in its burgeoning offerings.

Legend Hotel Lagos Airport, Curio Collection by Hilton, the new hotel in town, is a stylish and upscale offering located at Murtala Muhammed International Airport, which serves more than eight million passengers each year. The hotel is Hilton’s first Curio Collection in Africa, first hotel in Lagos and its second in Nigeria.

The stylish hotel is adjacent to the airport’s private jet terminal and has an exclusive immigrations and customs desk in the hotel for private jet passengers. Handpicked to be part of the exclusive collection of one-of-a-kind hotels and resorts celebrated for their individuality, the hotel joins more than 60 Curio Collection hotels around the world.

Speaking on the development, Chris Nassetta, Hilton’s

president and CEO, said: “We continue to innovate in Africa with new brands and products, and we are pleased to introduce our Curio Collection brand here with the opening of Legend Hotel Lagos Airport.

As the continent continues to undergo rapid urbanization, with the United Nations forecasting that the world’s 10 fastest-growing cities will all be in Africa by 2035, this hotel is a part of our strategy to connect guests to key cities and airport locations across the region.”

Hilton is seeing strong de-

mand for its brands across the continent and expects to open eight hotels in total across Africa this year, three of which will fly under the Hilton Garden Inn flag. This brand appeals to the rising tide of middle class travelers into and across Africa and the company expects to open at least 16 Hilton Garden Inn hotels in the coming five years, including brand entries in Kampala, Ghana, Malawi, eSwatini (formerly Swaziland) and many other strategic locations across sub-Saharan Africa.

Last year, Hilton launched the Hilton Africa Growth Initiative, which will support the conversion of existing hotels to Hilton brands with an investment of US$50 million over five years. During that period, Hilton expects to secure 100 conversion opportunities with some 15-20,000 rooms added to its portfolio to meet the growing need for quality branded hotels across the continent.

Hilton is committed to growth and opportunity across Africa and has been a continuous presence on the continent since 1959.

With 41 open hotels and 53 in its development pipeline in Africa, Hilton expects to double its footprint across the continent in the next five years. This includes market entries in 13 countries where it does not currently operate including Botswana, Ghana, eSwatini (formerly Swaziland), Uganda, Malawi and Rwanda.

Protea Hotel (GRA Ikeja) GRA Ikeja

Protea Hotel (V/Island) Off Ajose Adeogun Street, V/ Island

Gombe Jewel Hotel, 22, Njamena Street, off Aminu Kano crescent Wuse 2, Abuja.

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

Friday 05 October 2018

C002D5556

BUSINESS DAY

33

Sports

With over $1bn in earnings, FC Barcelona sets new revenue record Anthony Nlebem

I

t’s no doubt to say football business is the most lucrative and money spinning sports franchise on earth.

This is evident as Spanish football giant, FC Barcelona, have reported a $1.05 billion in revenues for the 2017-2018 fiscal year and posted operating income (earnings before interest, taxes, depreciation and amortization) off of $204 million. The team had a net profit of $15 million.

For the 2018-19 season, Barcelona has budgeted revenue of $1.105 billion and operating income of $220 million.

Barcelona now top Manchester United, the world’s most valuable soccer team in June, recently recorded record revenue of $794 million and operating income of $238 million in the fiscal year ending June, 2018. But the Red Devils had a net loss of $50 million.

Barcelona also boost of bigger and more profitable results than archrival Real Madrid, which had revenue of $892 million and operating income of $175 million in 2017-18.

“The Vice President and Treasurer of the Board of Directors, Enric Tombas, detailed the economic report on the fiscal year 2017-18 season, which ended on June 30 with revenue of $1.05bn , and makes FC Barcelona the first sports club in the world to surpass the 1-billion dollar mark in revenues,” according to a statement from FC Barcelona.

The operating profit for 2017-18 was $37m. The 2017-18 accounts, together with a proposed budget of $1.1b for this season, will be submitted to a meeting of the membership on October 20.

The spending plan for 2018-19 also earmarks funding of $83m for Espai Barça, an ambitious retrofit program for the Camp Nou that will expand stadium capacity and upgrade facilities.

The project is scheduled for completion in 2022 at a cost of $417m.

Since the 2011-12 season, Barce-

… projects 5% increase for 2018/1019 fiscal year lona’s revenues as published by the club have almost doubled, from $574m to $1.05b. Expenses have also doubled from $512m in the same period, but an operating profit has been achieved each season. This is the eighth straight season that the club has turned a profit.

The biggest increase from 20112012 to 2017-2018 was the profit on the sale of players from $22m to $264m.

The increase came from the buyout of Neymar’s contract by French Ligue 1 side, Paris Saint-Germain, in the summer of 2017.

The $264m constitutes 45% of the total profit generated by Barcelona from the sale of players over the last seven seasons. From 2014-2015, Barcelona would not have made an operating profit if it did not sell players at a substantial gain. Of course, Barcelona is not alone and many of Europe’s big clubs depend on a healthy transfer market to keep finances in the black.

Deloitte when compiling its annual Finance Football League does not regard profit from player sales in its revenue calculations and neither does Forbes when generating its annual most valuable soccer team rankings.

What this means is that Barcelona’s revenue number of $1.06 for 2017-18 will be closer to $812m when being

compared with revenue numbers for other teams.

Barcelona’s commercial revenues have grown nearly 80% since 2011-12 which is a healthy increase.

Sporting salaries for 2017-18 accounted for $600m in 2017-2018, a 119% increase since 2011-2012, and an increase of $180m in one year from 2016-2017 to 2017-2018.

After deduction of profit from player’s sales, the percentage of sporting salaries to operating revenue was 75%, a dangerously high number. Of course, another way to look at it is that a number of Barcelona players received big salary increases courtesy of Paris Saint-Germain and Neymar.

The high cost of purchase of new

players has pushed annual amortization costs to $137m in 2017-2018, doubles the number in 2011-2012.

Other costs have also increased, but the cost of acquiring and paying players has been the primary driver in doubling Barcelona’s costs since 2011-2012.

Barcelona is projecting an increase of 5% for 2018-2019 fiscal year. However, the problem is that Barcelona cannot sell Neymar every year. Although the anticipated profit on player sales of $151m should be achievable given moves in the summer transfer window, it still leaves close to a $115m gap year to year.

Barcelona’s management team

Here Are Five Biggest Sports Teams in the World: Barcelona: $1.05bn Real Madrid: $892m Dallas Cowboys: $864m Manchester United: $794m Manchester City: $674m Here Are Five Biggest Sports Teams in the World: Barcelona: $1.05bn Real Madrid: $892m Dallas Cowboys: $864m Manchester United: $794m Manchester City: $674m

Barcelona

2019 AFCON Qualifier: Rohr names squad for Libya clash

S

uper Eagles’ Technical Adviser, Gernot Rohr has invited Ahmed Musa and 23 other players for this month’s double header 2019 Africa Cup of Nations (AFCON) qualifying fixture against Libya’s Mediterranean Knights.

Arsenal FC of England forward Alex Iwobi (who scored the goal against Zambia that qualified Nigeria for the 2018 FIFA World Cup at the same venue a year ago), will return alongside Italy –based duo William Ekong and Olaoluwa Aina. All three missed the 3-0 win over Seychelles in Mahe last month due to injury.

Goalkeeper Ikechukwu Ezenwa is the only home –based professional.

China –based forward Odion Ighalo and Russia –based defender Bryan Idowu are also among the pack that has been called to hunt for the six maximum points against Group E leaders Libya in the Matchday 3 and 4 games. Nigeria host the first leg at the Godswill Akpabio Stadium in Uyo on Saturday, 13th October with the return scheduled

expects to plug the hole and more through generating more through sponsorship ($65m) and Media/ Broadcast $92m, the latter mainly through a new and more lucrative UEFA Champions League payout.

On the spending side, sporting salaries are down (although a relatively small reduction given the massive increase from 2016-2017 to 2017-2018, but amortization costs relating to signing new players and writing the deals down over the length of the contracts are up $25m, or 18%.

Other costs are also up but Sporting Salaries and Amortization constitute over 68% of Barcelona’s expenses.

for the 18,000 –capacity Stade Taïeb Mhiri in the city of Sfax, Tunisia on Tuesday, 16th October.

Also back is effervescent winger Moses Simon (edged out of the World Cup party by injury). Former junior international Isaac Success is called but Italy –based Simeon Nwankwo, who was in Seychelles and scored against Liberia in a friendly last month, is omitted. 2015 U17 World Cup –winning captain

Super-Eagles

Kelechi Nwakali is also overlooked.

All invited players are to report in the Akwa Ibom State capital on Monday, 8th October 2018.

FULL SQUAD LIST Goalkeepers: Francis Uzoho (Elche FC, Spain); Ikechukwu Ezenwa (Enyimba FC); Daniel Akpeyi (Chippa United, South Africa) Defenders: Olaoluwa Aina (Torino FC, Italy); Abdullahi Shehu (Bursaspor FC, Turkey); Semi Ajayi

(Rotherham United, England); Bryan Idowu (Lokomotiv Moscow, Russia); Chidozie Awaziem (FC Porto, Portugal); William Ekong (Udinese FC, Italy); Leon Balogun (Brighton & Hove Albion, England); Kenneth Omeruo (CD Leganes, Spain); Jamilu Collins (SC Padeborn 07, Germany) Midfielders: Ogenyi Onazi (Trabzonspor FC, Turkey); Wilfred Ndidi (Leicester City, England); Oghenekaro Etebo (Stoke City FC, England); John Ogu (Hapoel Be’er Sheva, Israel) Forwards: Ahmed Musa (Al Nasr FC, Saudi Arabia); Kelechi Iheanacho (Leicester City, England); Moses Simon (Levante FC, Spain); Henry Onyekuru (Galatasaray SK, Turkey); Odion Ighalo (Changchun Yatai, China); Alex Iwobi (Arsenal FC, England); Samuel Kalu (Bordeaux FC, France); Isaac Success (Watford FC, England) Super Eagles are third on the log in Group E with Libya, South Africa and Seychelles and will be hoping to make it to the 2019 AFCON edition after failing to qualify for two consecutive editions.

Tokyo 2020: First test event scheduled ahead of games Anthony Nlebem & Jonathan Aderoju

T

he organisers of Tokyo 2020 has announced the first part of its planned test event schedule ahead of the next Olympic and Paralympic Games.

A total of 50 test events will be held as they hone preparations for the Games.

Several of the events will be scheduled international competitions which were already due to take place in Japan, while others will have been organised as dedicated Tokyo 2020 test events.

“Test plans for each sport have been drawn up and reviewed in close collaboration with the respective International Federations based on a needs assessment conducted for each sport,” Tokyo 2020 said.

“The test event schedule has also benefited from Olympic Agenda 2020’s the New Norm, which allowed an optimised programme to be created following the creation of new principles for test events management.

34

BUSINESS DAY

C002D5556

Friday 05 October 2018

LegalPerspectives With Odunayo Oyasiji Corporatization and demutualization of the Nigerian Stock Exchange

T

he President of the Federal Republic of Nigeria signed the Demutualization of Nigerian Stock Exchange Bill into Law on September 26, 2018. The implication of this on the Nigerian Stock Exchange is what this article seeks to shed light on. Before proceeding, it is essential that the meaning of the terms Corporatization and Demutualization be properly examined.

Meaning of Corporatization Corporatization is a form of restructuring that comes before demutualization of the stock exchange. As the name suggests, it is the turning of the stock exchange into a corporate entity. This makes the system to be organised and administered like a company. The Demutualization of Nigerian Stock Exchange bill, 2017 that was signed into law by the president provides in its section 1(1) for the re-registration of the stock exchange from a company limited by guarantee to a public company limited by shares. The provision reads –“The Exchange may, in the overriding interest of the development of the capital market and in accordance with prevalent international practices and standards as well as the development of the economy of Nigeria as a whole, convert and reregister from a company limited by guarantee to a public company limited by shares.”

Meaning of Demutualization Demutualization refers to the changing of the legal structure of the stock exchange to make its focus to be on profit for the benefit of investors. A stock exchange that is mutually owned/state-owned or a municipal organisation is restructured in a way that its ownership is transferred to the shareholders.

Effect of corporatization and demutualization of the Nigerian stock exchange The effect of corporatization and demutualization of the Nigerian stock exchange is that the exchange is now a public company limited by shares and the members of

can lead to illegal dealings in securities by directors.

the public and investors are free to buy its shares and become shareholders. Therefore, the exchange becomes a profit making organization and can have its shares listed on the exchange for people to buy.

Examples Examples of demutualized stock exchange are – Australia (in 1998), Singapore (in 1999), Hong Kong (in March 2000), Philipine (August 2001), Tokyo (November 2001), Stockholm (in 1993), Helsinki (in 1995), Copenhagen (in 1996), Amsterdam (in 1997), Toronto (in 2000), London (in 2000), SouthAfrica and Kenya. This seems to be the trend across the world.

Reasons/Advantages of Demutualization The main reason for demutualization of the stock exchange is to promote efficiency and increase liquidity in the Nigerian capital market. Some of the advantages of demutualization are -1. It promotes transparency and decisions will be in the best interest of customers and the corporation. 2. Investors are allowed to participate by buying into the shares of the exchange. 3. The focus of the exchange becomes more global as it seeks to attract investors from other places- it aims towards having an enabling environment that will encourage investors. 4. There will be increased investment as the floor is open to both

local and foreign investors to invest in the exchange and 5. The exchange being profit oriented will aim more towards maximizing the share value of the exchange.

Insight into the provisions of the bill that was signed into law The bill itself has six sections.

The important provisions in sections 1 to 3 will be highlighted while sections 4 to 6 has to do with miscellaneous provisions, interpretation and the short title of the bill.

As earlier stated, section 1(1) provides for the conversion of the exchange from a company limited by guarantee to a company limited by shares.

Section 2(1) provides some conditions for the conversion to public company limited by shares. This includes special resolution passed by the exchange and the delivery of an application for conversion to Corporate Affairs Commission (CAC) accompanied with some documents listed under subsection 3 of section 2.

The special resolution must alter the memorandum and articles of association of the exchange to reflect its new status as a public limited by shares and to bring it in compliance with the provisions of Companies and Allied Matters Act. The documents to accompany the application delivered to CAC are –printed copy of the altered memorandum and article of association, written statement on oath by

council members and secretary of the exchange showing that the paid up capital as at the time of the application was not less than 25% of the authorized share capital.

Copy of the balance sheet of the exchange as at the date of the special resolution, declaration under oath by a council member and the secretary of the exchange affirming that the special resolution had been passed and that the net asset of the exchange is not less than the aggregate of the paid up share capital, copy of any prospectus or statement in lieu.

Section 3(1) states that the exchange will be excluded from any tax that has to do with the conversion. Subsection 2 of section 3 provides that the exchange will pay tax on profit it makes after the conversion to a public company limited by shares.

Conclusion The world tends to have moved towards demutualization of the stock exchange in order to increase its efficiency. The system tends to work better when it is given a better structure and people are given the opportunity to buy the shares of the exchange. However, one of the shortcomings that have been identified is the risk of manipulation by its directors due to the fact that the exchange is listed on its own exchange.

There is also the risk of insider trading. Access to material non public information

Legal Nuggets One of the necessary steps to take when buying a land is to conduct search at the Lands Registry to confirm the whether the person that wants to sell the land is the real owner and whether there is no encumbrance- mortgage etc. The importance of taking this step cannot be over-emphasized as it goes a long way to prevent a buyer from been duped or buying an encumbered land. Many land matters would have been avoided if the buyers conducted search before buying the land. The services of a legal practitioner can be engaged to do this.

The process involved is explained belowHow to conduct search at the Lands Registry in Lagos State The following documents a re n e e d e d t o c o n d u c t search- copy of the certificate of registration of the land, evidence of payment of search fee and application letter addressed to the Registrar of Titles.

The steps highlighted below are to be taken • Pay the sum of three thousand, seven hundred and fifty naira as the search fee at the bank and collect the electronically generated receipt.

• make a photocopy of the teller you filled to make payment for the search fee and the electronically generated receipt as the copy and your application letter will be collected by the officer on duty at the Land registry.

• A form will be given to you to fill.

• You will then be allowed to have access to the scanned copy of the original certificate and all the necessary information on a computer.

You should take note of the following• Name and address of the owner • Root of title • description of the land • Year of grant • Type of grant • Check if there is no encum • Term of years of the grant.

Friday 05 October 2018

C002D5556

BUSINESS DAY

35

Business SOUTH-SOUTH

COMPLETE COVERAGE OF SOUTH-SOUTH / SOUTH-EAST

Tension rises in OML 25 area, but Shell says spending N263m on projects to appease Kula people IGNATIUS CHUKWU

V

illagers who occupied Shell facilities more than one year ago have stayed put, but attempts by rival groups to push them out have increased tension in Oil Mining License (OML) 25. Now, Shell says it is not behind violence in the area, but it is rather spending N263 million in a new special project to give the Kula community more economic benefits through projects, as recommended by a state government intervention committee.

One year ago, the people of Kula community in Akuku-Toru Local Government Area of Rivers State occupied the facilities in the area, and have remained put to this day. They had demanded the handover of the oil field to a company formed by their son, Belemaoil, saying Shell’s license on OML 25 had expired.

Now, on Sunday 16 September 2018, the group reiterated calls that Shell must vacate their community. Sources said the agitation was made by thousands of women from the community.

They were said to have insisted that for over 40 years of Shell’s operation in their community, nothing had been done for the development of their land.

They insisted that for the company to

operate in their land, SPDC, NNPC, the Rivers State government and the local government who allegedly brought in Navy and JTF and over 10 gunboats, should be ready to kill all of them.

The women who led the protest at the company’s operational base in the community, shut down since August 11, 2018, assured never to allow Shell to operate in their land again.

Reacting, Shell Petroleum Devel-

Groups call for prioritization, monitoring of government’s interventionist agencies to avoid wastage of resources IDRIS UMAR MOMOH, Benin

A

coalition of independent civil society organizations monitoring Niger Delta Institutions (NDIs) projects have called for a deliberate prioritization, strict monitoring and regular maintenance of projects embarked by the Federal, states and their interventionist agencies, to avoid waste of valuable resources.

The coalition coordinated by Africa Network for Environment and Economic Justice (ANEEJ) and Leadership Initiative for Transformation and Economic (LITE-AFRICA), said, a total of 60 out of the 232 projects of the Federal, states and interventionist agencies monitored in the nine Niger Delta oil-producing states were either abandoned or uncompleted.

David Ugolor, executive director of ANEEJ, made the call at a media briefing during a project close-out of Niger Delta Institutions (NDIs), as a project under the Strengthening Advocacy and Civil Engagement (SACE) funded

by USAID through Chemonics a its secretariat in Benin-City on Tuesday.

Ugolor, listed other civil society organizations in the coalition to include

Bayelsa Non-Governmental Organization Forum (BANGOF), Community Empowerment and Development Initiative (CEDI), Delta State, Green Concern for Development (GREENCODE), Cross River state, Support Training and Entrepreneurship Programme (STEP), Akwa Ibom and Melville Women’s Initiative, Ondo State.

Other organizations are Josemaria Child Rights Network, Edo state, Social Action, Rivers state, Leader Initiative for Transformation and Empowerment (replaced Grassroots Network on Girl Child Education), Abia state and Good Governance and Accountability in Government, Imo state.

He said the 232 projects were monitored in 164 communities of the 61 selected local governments across the three senatorial districts of Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers States.

Ugolor said 110 projects assessed have been completed and are in use, 25 completed but in bad shape and cannot be used, nine completed but not in use, 25 in progress, nine uncompleted and were already in use, four project sites not existing but have visibility (signboards) and one deviated from what was stated as the project.

opment Company of Nigeria Limited (SPDC) debunked what it called allegations in paid radio announcements, falsely linking it to reported incidents of clashes between a group of invaders who have been in unlawful occupation of the company’s production facilities at Belema Flow Station and Gas Plant since August 11, 2017, and a group of people protesting the continued occupation of the facilities by the invad-

ers. SPDC said it has also restated its commitment to dialogue and peaceful resolution of disagreements with the invaders.

Shell’s External Relations General Manager, Igo Weli, said: “SPDC believes that all stakeholders in the matter should give the Rivers State Government-initiated mediation process the chance to resolve the disagreement peacefully. Contrary to the false claims in the paid radio announcements, SPDC will only resume operations at the facility when it is safe to do so.

“Our primary goal is the safe and peaceful resolution of this dispute, and we encourage all parties to return to dialogue to protect the safety and security of all concerned, including those occupying the facility, community members, SPDC staff and contractors,” Weli added.

He said, SPDC and its Joint Venture partners would continue to implement multi-million Naira social investment programmes to the benefit of the people of Kula Kingdom, in Akuku Toru Local Government Area of Rivers State, notwithstanding that the company has not been allowed to operate the facilities, since the illegal occupation began 13 months ago. He noted that this has also impacted the revenue base of the State and the Federation at large.

The SPDC external relations general manager said the mediation process initiated by the Rivers State Government led to the creation of the Kula Project Implementation and Monitoring Committee (PIMC) with all contending parties providing members. The PIMC is intended to serve as an interim platform for the delivery of social investment initiatives and programmes worth over N263 million in the Soku-San Berth Project, which is separate from the GMoU projects that have been initiated by the communities using funds provided by the SPDC JV. Weli restated the company’s commitment to implementing the social investment programmes for the communities, including the Global Memorandum of Understanding, which has suffered delay in implementation, due to in-fighting among the different communities in Kula Kingdom, including Belema and Offoin-ama.

He noted that notwithstanding the prevailing situation in the area, the host communities of OML 25, including Belema and Offoin-ama, have continued to benefit from contract awards, employment of unskilled labour and SPDC’s social investment programmes, including yearly award of regular and special scholarships to eligible candidates from the area.

University don charges Igbos on utilizing capacities, creative spirit for practical achievements in south east EFEGADIRIM MADU, Calabar

D

eveloping a strong self-reliant economy based on manufacturing and commercial expertise, technological prowess and advancement, if carefully adopted by the Igbos, is the only sustainable approach to get the South East geopolitical zone out of its present infrastructural impoverishment, Geoffrey Chukwuemeka Duruamaku–Dim, a professor of Business Education and Vocational Studies, University of Calabar, has advocated.

Duruamaku–Dim,therefore,charged Igboyouths,especiallythoseininstitutions of higher learning, to “harness our high intellects and heroic leadership capacities forpracticalachievementsindifferentfields of thoughts and endeavour.”

The eminent professor, who delivered akeynotelectureinCalabarweekend,during the maiden Igbo Economic Summit, organised by the post-graduate students association (IGBOGRASA), University of Calabar, encouraged the students to quickly move in the direction of: “utilizing theIgbos’individualisticnatureandspiritof independenceasameansofcreativityand inventions in diverse walks of life.

He said, it was not time for Igbos to continue to whine over their marginaliza-

tion in Nigeria, but rather they should rally themselves up and engage into projects that would advance the Igbo nation.

“Ndi Igbo, my beloved brothers and sisters, please let us stop the life of apology, and squarely confront and gainfully defeat our internal and external detractors and distractors,” said the professor of Business Education and Vocational Studies.

Duruamaku – Dim, a venerable in the AnglicanCommunion,spokepassionately to a crowded Naks Hotels & Resort conference hall of Igbo community in Calabar; reminding them that Igbos were highly competitive in their nature, and should “stimulate themselves and one another through healthy competition, which affords us a competitive edge or advantage in almost all spheres of life.”

“Originality: Igbos are the ones sustaining the economy of Nigeria and most Africancountries,becauseoftheirabilityto create value to satisfy human wants. They believeincreatingtheirownlocalproducts and services, instead of depending on foreign made products and services.

“Igbos can survive anywhere they find themselves in the world, given their natural abilities to create wealth and settle down anywhere they are. They have the abilitytosurviveinadverseconditionsand circumstances,”theprofessorstated;urging theIgbocommunityinCalabar,CrossRiver

State, who had gathered to take-in what he was offering as panacea to better the lot of the Igbo race, especially at a time majority of them were clearly excluded from the current Nigerian governance system.

Duruamaku – Dim, an outstanding professor of Business Education and VocationalStudies,withmanyyearsofconsultancy on vocational/ skill training, went ontoprofferapproachesandstrategiesthe Igbos could adopt to advance their region economically,technologicallyandsocially.

“Given the above compelling ideologies, mission, the challenge of building the required human resources to achieve the stated goals in Igbo land is an enormous task on the part of the Igbos. They require more aggressive and comprehensive approachesandstrategiesviarevolutional,reforming,achievementandresult-oriented and adventurous approaches.”

Other approaches to develop the Igbo land include: creative and innovative, flexible or dynamic, knowledge base, technological and Onye aghala nwanne ya (mentor-mentee) strategies.

Duruamaku – Dim further proffered that Igbos should employ other development strategies like “trust relationship, Obodo di nma (caring and forgiving), accommodating and tolerance, unity (carry along), ‘for-our-sake,’ Obodom Alaomam and living-by-example strategies.

1,200 Abia youths undergo skills acquisition training UDOKA AGWU, Umuahia

A

t least 1,200 Abia youths are being trained in various skills for five weeks at the Ibeku High School, Umuahia, Abia State by United Delta Youths for Peace and Development (UNDYPD), in collaboration with Gift Care Foundation.

Anya Okorie, the executive director of Gift Care Foundation, said, both bodies found out that the level of crime in the society has reached an alarming proportion, and decided to gather professionals in various skills to train the youths to make them self-employed and reduce crime. He noted that the training would inculcate values on the youths

after the training.

Okorie further said the training would also afford the trainees how to start-off with little or no fund after acquiring skills.

He said the money which youths use in playing Naija bet could be used to start off on their own after the training.

Angel Njoku Ukah, the Abia State chairman of UNDYPD

said since he became the chairman of the organization seven years back, he had travelled far and wide in all the nine oil producing states, and found out that they were areas where NDDC could assist the states.

He hinted that youths from Akwa Ibom, Cross River and Edo had benefitted from NDDC while only Abia is yet to benefit.

“I decided in my magnanimity to welcome Free Care Foundation to partner with us for the training for Abia youths to learn various skills” said Ukah.

Areas of training include: Bead and hat making, Shoe and bag making, Fashion and Design, Computer Appreciation, Events Management, Photography and videography,

36

BUSINESS DAY

C002D5556

Friday 05 October 2018

Live @ The Exchanges

Capital Bancorp sees investor apathy hindering issuers capital raising plans Stories by Iheanyi Nwachukwu

L

everaging its experience of over 30years, Capital Bancorp Plc, a multi-faceted company with operations across Nigeria’s capital and financial markets is of the view that investor apathy is hindering issuers from executing their equity capital raising plans.

Tola Mobolurin, chairman, Capital Bancorp Plc who noted this while addressing investment journalists ahead of the company’s 30th anniversary celebration in Lagos emphasized the importance of equity capital in companies, saying it helps to reduce the risk of failure.

Furthermore, he noted that government should address uncertainty at every level of our development efforts in order to rebuild investor confidence in Nigeria.

“Equity investment helps to reduce the risk of companies’ failure. Equity capital raising is affected by investor apathy. Nigeria needs

enough domestic savings to counter the impact of the exiting foreign investors. Overselling and mis-selling of the stock market have negative impact on investments. We must get people back to the stock market if we want the country to progress,” Mobolorin added.

Mobolurin, who attributed Capital Bancorp’s success story spanning 30 years of corporate existence to adherence to ethical standards and innovativeness, bemoaned the negative effects of domination of Nigeria’s stock market by foreign portfolio investors.

He explained that uncertainty in the economy, polity and fears that 2019 general election might throw Nigeria into deep crisis among others, have led to massive dumping of shares by both foreign portfolio investors and their Nigerian counterparts on the Exchange.

Speaking further on the negative impact of pre-election year on stocks, he said: “everywhere in the world, politics and elections affect the stock market. I don’t

think we should worry too much about it.” He added, “However, people may worry about what can happen after the elections. It may turn some people totally away from Nigeria if they

perceive it is an unstable country. If you scare people by giving them the impression that this is a country that is about to breakup, that is where I see a problem. Politicians need to watch their ut-

S&P affirms Access Bank ratings, says outlook stable

S

&P Global Ratings affirmed its long and short-term issuer credit ratings on Access Bank Plc at ‘B/B’, saying the bank’s outlook is stable.

At the same time, S&P Global Ratings affirmed its Nigeria national scale ratings on Access Bank at ‘ngBBB/ngA-2’.

The affirmation of its ratings on Access Bank reflects the rating agency’s view that the bank will continue to report good asset quality and profitability indicators as the Nigerian economy slowly recovers.

S&P said its ratings on Access Bank are supported by the bank’s good competitive position as one of the top-five banks in Nigeria by market share in total assets, backed by its well-established corporate franchise, growing retail franchise, and robust risk management framework and risk culture compared with Nigerian peers.

The stable outlook on Access Bank reflects S&P Global Ratings expectation that its financial and risk profile will remain broadly unchanged over the next 12 months.

“We also expect our riskadjusted capital (RAC) ratio before adjustment for diversification to decline, ranging 4.4percent-4.8percent over the next 12-18 months, following the initial implementation and application of International Financial Reporting Standards (IFRS 9), which had affected retained earnings by N78.3 billion at as of March31, 2018”, S&P Global Ratings stated.

“However, when adjusted for regulatory risk reserves, the net impact on retained earnings is N49.5 billion at the same date.

On December 31, 2017, the group’s RAC ratio before adjustment for diversification was unchanged at 5percent (5.1percent at year-end 2016)”, the rating agency stated.

“Our view of capital and earnings remains neutral to the ratings. In addition, we expect Access Bank’s capital adequacy ratio to remain above the minimum regulatory requirement of 15percent, supported by good earnings generation and measured asset growth.

According to S&P Global Ratings, “The bank’s loan-loss experience com-

pares favorably with the Nigerian banking sector average. Access Bank started reducing risk on its balance sheet before the first naira devaluation in November 2014 by cutting foreign currency lending.

At year-end 2017, the ratio of nonperforming loans (NPLs) to total loans at Access Bank rose to 4.9percent from 2.1percent at year-end 2016 after a large exposure in the telecommunication sector defaulted. We expect this NPL ratio to gradually decline to below 4percent in the next 12-18 months and the cost of risk to marginally improve to 1.5percent in 2018 from 1.7percent in 2017”.

Access Bank’s stable funding ratio reached 126percent at year-end 2017, supported by its high proportion (68percent) of deposit funding. Net broad liquid assets covered 39percent of short-term deposits and short-term wholesale funding twice over.

However, similar to other banks operating in Nigeria, Access Bank’s deposit base is confidence-sensitive due to its contractually short-term nature.

“Although the bank’s foreign currency deposits are short-dated, we take comfort from the bank’s large domiciliary deposits base, which tends to be stable. Moreover, Access Bank has raised longerterm dollar funding over the past three years. The bank’s long U.S. dollar position provides a natural hedge to its capital position should the naira be devalued. We do not believe the bank faces significant off-balance-sheet foreign currency requirements or substantial refinancing risk.

We could lower the rating on the bank if we lowered the ratings on Nigeria.

The ratings on the bank could also come under pressure if its asset quality indicators deteriorate significantly below our expectation for the sector average”, S&P Global Ratings further noted.

It noted that a positive rating action appears remote in the next 12 months, “because it would hinge on an upgrade of Nigeria as well as an improvement in banking risks in Nigeria, while all other factors remain equal.”

terances”, he added.

Also speaking at the briefing ahead of the company’s 30th anniversary celebration, Aigboje Higo, Chief Executive Officer, Capital Bancorp Plc said, “It is difficult to call, but

if I have to hazard it, we will see more of the downward trend till the first-quarter (Q1) of next year. We expect this trend to continue till year end, aside any destruction that can make things worse.”

Stocks’ value declines further by N11bn ...as investors sell Okomu, Nigerian Breweries, 16 others Iheanyi Nwachukwu

T

he value of listed stocks on the Nigerian Bourse declined further by N11billion at the close of trading on Thursday October 4 as investors moved to sell the stocks of Okomu Oil Palm Plc, Nigerian Breweries Plc and many others. Trading data from the Nigerian Stock Exchange (NSE) showed 19 stocks gained as against 18 losers. The year-to-date (YtD) returns stands at -15.22percent.

Waning buy decisions on Customs Street have further helped deplete the value of listed stocks from preceding day high of N11.848trillion to N11.837trillion.

As losing streak persists, the Nigerian Stock Exchange All Share Index (ASI) declined by 0.09percent, from 32,454.03 points recorded the preceding day to 32,423.57 points as at close of trading Thursday.

Okomu Oil Palm Plc recorded the highest decline, from N77 to N73.2, down

by N3.8 or 4.94percent; followed by Nigerian Breweries Plc which declined from N89 to N86.5, losing N2.5 or 2.81percent.

Also, the share price of GlaxoSmithKline Consumer was down from N14.5 to N14, losing 50kobo or 3.45percent; ETI Plc also declined, from N17.85 to N17.5, down by 35kobo or 1.96percent; while that of Dangote Sugar Refinery Plc dipped from an open price of N14.5 to N14.35, representing a decline of 15kobo or 1.03percent.

Cement Company of Northern Nigeria Plc recorded the highest rally after its share price increased from N23.2 to N25, up N1.8 or 7.76percent.

Forte Oil Plc followed after its share price increased from N21.4 to N22.1, up by 70kobo or 3.27percent; while Zenith Bank Plc share price gained 60kobo or 2.75percent, from N21.8 to N22.4.

Cutix Plc share price increased from N4.3 to N4.73, up 43kobo or 10percent; while Flour Mills Nigeria Plc stock price increased from N19.75 to N19.95, up by 20kobo or 1.01percent.

In 2,356 deals, stock traders exchanged 151,346,953 units valued at N1.542billion. FCMB Plc, Fidelity Bank Plc, GTBank Plc, NASCON Plc and RT Briscoe Plc were actively traded stocks Thursday on the NSE.

Friday 05 October 2018

BUSINESS DAY

37

38 BUSINESS DAY NEWS FG goes borrowing while idle assets waste...

Continued from page 1

sets that are just lying idle and people have come and said, ‘These things you are not using, can we lease it from you?”

That was a statement made in 2016 by then finance minister of Nigeria, Kemi Adeosun, as net commodity exporters searched for alternative revenue sources after low commodity prices battered revenues and widened budget deficits.

Two years on and Adeosun’s resignation later, those people she referred to in the opening statement still wait.

In 2016, Nigeria having just slipped into its first economic recession in 25 years, was faced with a more than 50 percent drop in revenues caused by the crash in global oil prices and production shut-ins and was desperate to bridge a yawning budget deficit.

There were two options for Africa’s most populous nation as it adjusted to life after an oil boom: rack up debt or raise equity capital by privatising some government assets, an option many economists and government officials including Adeosun talked up.

Opportunities abound to raise equity capital in Nigeria, whether it’s relocating idle government assets like the Federal Secretariat in Ikoyi or Dodan Barracks, from the prime locations they are situated, before leasing the land out to private investors to generate substantial rental income like Hong-Kong does; or selling some stake in state-owned Nigerian National Petroleum Corporation (NNPC) like Saudi Arabia plans to do by selling 5 percent of Saudi Aramco.

Other public assets that can be privatised include the Nigerian Postal service (NIPOST), Nigerian

commodities exchange, the National stadium and the Nigerian Security and Minting company.

“This idea will not only yield revenue for government and lighten its debt burden, but will also ensure that some of the public assets which are under-utilized are fully utilized”, MKO Balogun, CEO, Global Properties and Facilities International (Global PFI) Limited, stated in a telephone interview.

Balogun advised that where such public assets as National Arts Theatre, Tafawa Balewa Square, National stadiuminLagosandAbujacannotbesold outright,theycouldbegivenoutonlong lease, in which case, the government can eat their cake and still have it.

Experts cite examples of countries, especially Hong Kong, China, where a significant portion of government budget comes from rents on public assets. They advise that a special purpose vehicle (SPV) should be created to handle the relocation of public assets on prime land on which luxury apartment blocks could be developed and given out for rents.

These are hardly new counsels, but they have so often fallen on deaf ears. In cases where they have not, the government has hesitated on the back of pressure from Nigerians who have occasionally threatened protests if the country’s assets were sold to private investors.

There is a misconception that privatisation is like selling off properties that will only enrich the rich and impoverish a generation of Nigerians to come. Rather than tap private capital waiting to be deployed, the country has turned to borrowing as a way out of its revenue crisis.

Between 2016 and 2017, the federal government borrowed N3.2 trillion, according to a budget implementation report published on the

C002D5556

website of the national Budget Office.

In those two years, the government raised N5 billion ($16 million) in privatisation proceeds, 14 times less than it made from selling only one company in 2006, following the $225 million sale of Port-harcourt based olefins and polyolefin’s maker, Eleme Petrochemical to Indorama Group.

The FG had planned to raise N710 billion from proceeds from restructuring of government’s equity in Joint Ventures and N306 billion from sale of non-oil assets which together is projected to raise over N1 trillion between 2016 and 2019.

Though provision was made for N10 billion (USD$ 32 million) in privatisation proceeds in the 2017 budget, not a single kobo was raised from asset sales despite the fact that the country could not find enough revenues to funds its expenditure plans that year.

The euphoria elicited by the reconstitution of the National Council on Privatisation in 2017 has turned sour as the belief that it would pave the way for the commencement of the sale of government assets to raise cash has not happened.

The minister of budget and national planning, Udo Udoma, had said the country would raise N35 billion to help fund the 2017 budget, yet even the target of N10 billion stated in the budget was not met.

That amount (N10 billion) was 0.2 percent of the Federal government’s N4.9 trillion revenue projection for 2017. Oil revenue was expected to contribute the most to total earnings that year (N1.9 trillion), 40 percent of the total, while 32 percent would come from independent sources (N1.58 trillion) and 27 percent from non-oil sources (N1.37 trillion).

The difference between expected revenue target and expenditure in 2016 and 2017 was to be funded by a mix of domestic and external debt

L-R: Farouk Umar, president, Association for the Advancement of the Rights of Nigerian shareholders; Seye Kosoko, company secretary, FBN Holdings plc; Sabiu Bako, chairman, Kano Zone Shareholders Association; Tolu Oluwole, head, investor relations, FBN Holdings plc; Isma’il Adamu, chairman, audit committee, FBN Holdings plc; Debola Olatubosun, analyst, investor relations, FBN Holdings plc, and Bode Oguntoke, head, internal audit, FBN Holdings plc, during the FBN Holdings investors forum at the Central Hotel in Kano State.

Primaries: APC governors appeal for Buhari’s...

Continued from page 1

Abuja, the Governors are said to be losing out as most of their protégés have been defeated in the primaries.

The Governors fearing they may not be able to influence the outcome in their favour, resorted to running to the President for help.

The Governors told President Buhari that this is the only way they can guarantee him maximum votes, come 2019 general election.

But speaking with State House Correspondents after

their meeting with President Muhammadu Buhari, the Chairman of the All Progressive Congress APC Governors Forum, Rochas Okorocha of Imo state, said they were at the Presidential Villa to “make a way for “everybody to contest.”

BusinessDay gathered that the Governors are kicking against attempts by the National Executive Committee of the party to hijack the process.

“We are here with a view to finding a solution. We are looking for a way out in this,” Okorocha

said.

Adding that “we are going to find solutions; our party believes in justice, equity and fairness.

“Governors present at the meeting included the Chairman of the Nigeria Governors Forum, Abdulaziz Yari of Zamfara, Rochas Okorocha of Imo, Rotimi Akeredolu of Ondo and Abubakar Bello of Niger State.

Others include Ibikunle Amosun of Ogun, Atiku Bagudu of Kebbi, Abiola Ajimobi of Oyo and Simon Lalong of Plateau states.

The APC governors also met with the chairman of the party, Adams Oshiomhole, at his campaign office along Aso Drive, Abuja.

and because the revenue projections fell short of expectations by about 50 percent, it meant even more debt had to be tapped.

Enter 2018 and the Federal government’s domestic and external debt (excluding the states) is up 73 percent to N18.9 trillion as at June 2018 from N10.9 trillion as at the end of 2015, according to the Debt Management Office (DMO).

The nation’s total debt including the states currently sits at N22 trillion and the country’s debt to revenue ratio has climbed to as high as 63 percent this year.

“There is a need to build revenue so that there is space to spend for infrastructure and social safety nets, otherwise interest is eating up most of your revenue,” said Catherine Pattillo, an assistant director, fiscal affairs department at the IMF. The IMF advised the government to broaden its tax base- given that a tax to GDP ratio of 6 percent leaves room for improvement. Even the DMO is unsettled by the rising debt after urging government to cut down on fresh borrowings “A country that wants to develop fast should always borrow; despite all

Friday 05 October 2018

the argument against Nigeria’s borrowing from China, I have nothing against that. My concern, however, is on the conditions that may be attached to the loan which we may not know about”, explained Uzzah Mena, an economic analyst who spoke to BusinessDay. Ayo Teriba, one of the country’s leading economists, warns that the country is headed in the wrong direction by amassing expensive debt when there are alternatives that won’t cost as much.

“The shortfall in government revenue is a fall in income, if the fall is temporary then you can borrow but you can’t solve a lingering revenue slide with short-term debt,” Teriba said.

“We need fresh sources of income, the government wants to boost tax receipts to make up for the revenue shortfall, but that is a mirage because the private sector is also hit by weak economic activity.”

“This is the time to raise equity not debt and we can learn from countries like Saudi Arabia which plans to raise about $200 billion by privatising about 16 sectors of its economy. Ethiopia is doing same,” Teriba said.

A former bank MD explains lessons from Skye...

Continued from page 2

test the director’s personal liability in court.”

“Shareholders should go after the personal assets (both local and foreign) of the former directors of Skye bank. I will be willing to work with any group of shareholders to point out these assets, if only to teach people a lesson that if they are placed in a position of trust, you do not loot the asset that you were meant to look after and grow.”

“Shareholders should be asking the board come they did not know that management was keeping two books. This because there are reports that show that at some point, the board also became aware. What did they do? They were put there to protect shareholders’ investments.”

“My investment in Bond bank ended up in Sky bank by default, I never wanted to be part of Sky because Bond bank and Prudent bank (Two of the banks that formed Skye Bank) did not have anything in common.”

There exists in the public domain audit reports done by two big accounting firms that exposes the systemic and cruel manner in which Skye bank was looted. The question that should agitate shareholders is “what has the regulators done to these people that looted the bank?

“They must not go scot free because it will make other people daring and encourage them to also loot other institutions. They must be used as an example, so that people will know that when one is placed in a position of trust to protect other people’s investment, do not loot it for your selfish interest.”

Darlington said that while he had sympathies for the regulators, he would not shield them from blame on what happened to Skye Bank.

“It is high time the regulators stepped up their supervisory role and commitment to the industry and society. A lot is demanded of regulators but when you have fictitious and fraudulent management, it is difficult to see beyond what they say they are doing.”

However, if the regulator is diligent; from the field officer that is sent, from industry information, from market information, they should that something is wrong with an institution. We must admit that there is corruption among the regulators. Without pointing fingers, it is

not that difficult to spot a bank that its books are not presenting a fair and true story of its performance.

“But we must also question the role of the auditors. The auditors should not go home smelling like a rose flower. They were paid to do a job but failed. Even though, if you have a managing director that keeps two parallel books, you can only audit the one you were presented with.”

“However again, if you are diligent in your work, there will be staff that will tell you what is going on.

Market information will tell you.

Insider information will tell you. If you are diligent, so therefore make your conclusion.”

“If the regulators erred at some point, if the auditors erred at some point, if the management erred at some point, collectively they all failed the shareholders.”

“Some of the shareholders have been sent home with zero kobo in their pocket and their investment ruined. Someone should be made to pay for this. This fraud must not go unanswered.”

“If the regulators fail to deal decisively with those caught, then these acts will continue. It is only when people are sanctioned, that they will behave.

“I am not here to protect anybody but I am not also here to destroy anybody. I am here to speak for what will make the system better for tomorrow. Collectively, banking is an issue of character, ethics and values.”

“There are lessons to be learnt from different perspectives. The regulator must re-apprise their approach, their methodology, their commitments and their obligation to all stakeholders.”

“Shareholders must live up to their responsibility and start being critical about their investments and not delegate their responsibility to any umbrella body called shareholders association. Shareholders must start engaging professionals to look into the accounting report that companies issue and get informed opinion and not just allow management take them for a ride.”

Customers must also be diligent in reporting bad conduct. Also the press, most especially financial journalists, should start doing investigative journalism and expose red flags.

We must start putting people on their toes and make people accountable for their actions.”

Friday 05 October 2018

C002D5556

39 nEWS

BUSINESS DAY

Ibadan, Owerri get Taxify ride-hailing service

R

ide-hailing service provider, Taxify, recently launched its operations simultaneously in Ibadan and Owerri, becoming the first top-tier e-hailing service to expand beyond Lagos and Abuja connecting passengers with drivers.

The launched is in response to requests from passengers and drivers, becoming the third and fourth cities in Nigeria that Taxify operates in, in addition to Lagos and Abuja.

Uche Okafor, Taxify’s country manager for Nigeria, says ride-hailing company is introducing safe, reliable and affordable ride-hailing services on demand, thereby creating flexible employment opportunities to thousands of drivers and vehicle owners in both cities.

“After our successful launches in Nigeria’s main centers, expanding to the cities of Ibadan and Owerri is a natural next step for Taxify,” he says.

“Taxify will be offering a 20% discount on all fares for the month of October to celebrate the launch, and passengers can enjoy a free first ride with the promo codes HELLOIBADAN and HIOWERRI when they apply the promo

codes using their debit cards,” Okafor says.

According to Okafor, the ride-hailing service is easy to use; passengers simply download the secure and free Taxify app from the iOS or Android app stores and set up a user profile. “When they’re ready to ride, users open the app, set their location and their intended destination. The app will then give a cost estimate for the trip. Once passengers request the ride, the app alerts drivers nearby who accept the ride,” Okafor states.

Once a driver has accepted the ride, passengers will be able to see their driver’s name, photo, car make and model, registration, and will also be able to track the driver making his or her way towards them in real time. Passengers can also share their trip details using the “Share your ETA” function on the app, as an extra layer of security.

Speaking further on the service, Okafor said both passengers and drivers could rate each other out of five stars and leave any comments using the Taxify app, while payment is made with cash, or via the debit card details the rider entered into the app when the ride is completed.

L-R: Yahaya Yahaya, company secretary and legal counsel, Equipment Protective Applications International Limited (EPAIL); Kola Balogun, chairman, Equipment Protective Applications International Limited (EPAIL); Bamidele Ogunkale, director general of the Defence Industries Corporation of Nigeria (DICON), and Kikelomo Bello, secretary/ legal adviser, Defence Industries Corporation of Nigeria (DICON), during the signing of Memorandum of Understanding (MoU) between EPAIL and DICON at the EPAIL factory in Mowe, Ogun State

A farewell to innocence would continue.

Part of the problem of the Nigerian present is that the country is yet to come to terms with its past. A vague effort at ‘Truth and Reconciliation’ in the form of the Oputa Panel degenerated into an avenue for grandstanding and stone-walling. Nobody has attempted any serious discus-

sion of Asaba, or Abagana, or any of the dozens of incidents that still touch a raw spot in many people’s souls today and influence their behavior towards other people.

In Nigeria, everyone is self-righteous about their position, and nobody is accepting they erred or could have done anything better.

Nobody is apologizing for anything.

In the light of the absence

of a unified narrative, there is a big question to be asked of the managers of the Nigeria Project. Without a common story, what are the children of Nigeria to be taught as their history? Or are they to be given to understand they have no history, when the unhealed wounds of that History are actually determining the power play of their everyday lives?

Irrespective of its technical limitations, ‘While Dust Howled’ is recommended reading for anyone who wants a three-dimensional ‘inside’ to look at the Nigerian Civil War, and the collective past of Nigeria’s diverse peoples.

While Dust Howled is published by VestaAfric and is available on Amazon and in some local bookshops.

2 million souls. But the war economy was well managed by the Gowon administration and his de facto second in command and finance minister Obafemi Awolowo.

One of the lowest points was in 1968 when GDP fell to -4 percent. Even then, we did not borrow from the international financial markets. The entire post-bellum reconstruction was also miraculously undertaken without external borrowing. Contrast this to the humongous loans we have incurred to fight the insurgency in the North East.

During those years economic planning was a central pillar of public management.

The Second National Development Plan 1970-1974 was anchored on the 3Rs of Reconciliation, Rehabilitation and Reconstruction. The results were outstanding. That was also the period when oil replaced agriculture as the mainstay of the economy. The Dutch Disease Syndrome expressed itself in high exchange rates that discouraged agriculture and manufacturing.

Ours became a chronically import-dependent petrodollar economy. The Naira was at par with the US dollar. Our legal tender currency was even accepted as a medium of exchange in London, Frankfurt, Paris, Mecca and Medina and indeed throughout West Africa. But it was all built on sinking sands.

The Gowon administration made two ghastly mistakes.

The first centred on the Udoji salary increases that served to fuel inflation while creating a new entitlement mentality among the general populace.

The second had to do with the cement importation scandals that clogged our ports and made us the laughing stock of the world.

Gowon was overthrown in 1975 whilst attending a Commonwealth Summit in Kampala. His successor General Murtala Mohammed came in with a mission to clean the Aegean stables of corruption and inefficiency across the public sector. His mass public purges had the unfortunate impact of destroying the civil service. It also, paradoxically, reinforced corruption: if I have no tenure as a civil servant then I’d better make hay while the sun shines.

Murtala was assassinated in February 1976 and his second-in-command Olusegun Obasanjo took over. Obasanjo introduced such schemes as Operation Feed the Nation (OFN) to bolster food production and promote agrarian transformation. This period also coincided with the ambitious Third National Development Plan 1975-1980 which aimed to triple public expenditures on infrastructures, agriculture and manufacturing.

One of the mistakes made by the administration centred on the nationalisation of British Petroleum and Barclays Bank, all with the aim of punishing our former British colonial masters for supporting Apartheid South Africa.

Nationalisation led to massive capital flight from which our economy has never quite recovered. We sent the wrong message that foreign capital was not welcome. The socalled Indigenisation Decrees aimed at securing “the

commanding heights of the economy” further reinforced that unfortunate message.

The 1980s were to be a watershed. The short-lived Second Republic 1979-1983 coincided with the period of the Fourth and last National Development 1981-1985. The Shehu Shagari administration was marred by both incompetence and corruption and was overthrown by the military in December 1983. The so-called Buhari/Idiagbon administration came with a mission to restore discipline and fight corruption, with very marginal success. Muhammadu Buhari was soon replaced by a smiling tooth-gapped general by the name of Ibrahim Badamasi Babangida in the summer of 1985.

The Babangida years coincided with an ambitious plan to restructure the economy anchored on a home-grown structural adjustment programme. The impact was, at best, questionable. The social gains that had been made over decades were wiped off, even as the manufacturing sector was overtaken by deindustrialisation.

The replacement of Babangida by the interim administration of Ernest Shonekan, a technocrat, in the summer of 1983, provided only a brief interlude. The real power behind the throne was the defence minister General Sani Abacha. Abacha ruled with ferocious brutality until his demise in June 1998. But Abacha was also a sounder manager of the economy. The naira got stronger and public financial management actually improved. Abacha had

zero tolerance for corruption except that which emanated solely from him. His successor General Abdulsalam Abubakar ensured a successful transition to the Third Republic in 1999.

Chief Olusegun served as pioneer president under the Third Republic from 1999 to 2007. He restored Nigeria’s credibility in the comity of nations. His National Economic Empowerment and Development Strategy (NEEDS) spurred spectacular growth averaging an annual 7 percent for the better part of a decade.

The administration negotiated the country out of the Paris Club of creditors. The banking sector was reformed and key sectors were opened up to foreign investors. It was a great boon for growth. Subsequent administrations from Umaru Yar’Adua to Goodluck Jonathan only built on these achievements. The economy grew to a peak of US$510 billion during the 2014 rebasing, overtaking South Africa and Egypt as numero uno in Africa.

The Buhari administration came to power in 2015 when global oil prices had collapsed.

The regime had no plan. They were only prepared for war and were startled when Goodluck Jonathan surrendered precipitately. Our country is now on the brink of self-immolation.

We have become more divided than ever before. Rural banditry and lawlessness have driven investors away in droves and destroyed the vital social capital necessary to drive economic transformation. Nigerians are full of gloom and despair; the youth robbed of any hope about the future.

Continued from back page

In praise of economic ...

Continued from back page

the American economy into “one-in-a-lifetime housing bust…and ultimately, a deep recession”.

Yes, some people did see it coming, but they were regarded as mere bleating lambs on the margins of the economics discipline. The mainstream regarded them as mere alarmists. I believe that if economic science were better steeped in history and knowledge of evolutionary forces, more people would have seen it coming and taken the necessary policy actions.

German economics seems well ahead on this score.

From Friedrich List to Werner Sombart, Hans Tietmeyer and Axel Weber, German economics has been anchored on historical-institutional analytics. For them, history profoundly matters, as do institutions and their evolutionary dynamics. This partly explains why Germany has been such a stable and prosperous economy since 1945.

Much the same could be said of the Japanese paradigmatic tradition.

We would never advocate throwing away the baby with the bathwater. The rigours of mathematics remain of paramount importance in economics pedagogy and research. But it must be complimented with understanding of historical, institutionalevolutionary dynamics.

The great economist John Maynard Keynes defined the qualities of the professional economist as being, “conspicuously historian and mathematician, a dealer in the

particular and the general... as aloof and incorruptible as an artist, yet sometimes as near the earth as a politician”.

In concluding this piece, let’s consider the key milestones in our economic evolution since independence.

In 1960 Nigeria emerged as one of the most hopeful countries in the Commonwealth of Nations, with a population of 56 million and a GDP of US$4.196 billion. We had only one university and less than 100 secondary schools.

The late American economist Wolfgang Stolper was one of the technical advisers on the team that designed our First National Development Plan 1958-1962. Stolper was impressed with qualities of the Nigerians he met, describing our civil service as one of the best in the Commonwealth -ahead of India, Malaysia and Singapore.

Agriculture was the mainstay of the national economy – palm produce, cotton, groundnuts, coco and the likes. In the West and Eastern regions, sophisticated agricultural settlements were established to promote “integrated rural development”. There was a healthy competition amongst the three regions to out-do each other in terms of economic development. Public finances were prudently managed. Grand corruption was yet to rear its ugly head as a national pastime.

The crises years 1966-1970 were to exert a heavy toll on the economy. The praetorian intervention of the military exacerbated a political crisis that led to a tragic civil war that consumed an estimated

Friday 05 October 2018

C002D5556

We’re winning war against illicit financial outflow - AGF FELIX OMOHOMHION, Abuja

A

ttorney General of the Federation and Minister of Justice, Abubakar Malami, said on Thursday, this present administration had gone a long way in curbing corruption in the country.

Speaking at a two-day Thabo Mbeki High Level Panel (HLP) on Illicit Financial Flows, chaired by former South Africa President, Thabo Mbeki, in Abuja, Malami said through legislation and commitment of the President Muhammadu Buhari-led administration, corruption was being fought to a standstill.

He said the political will of the President has also helped in stopping the illicit flow of funds from the country. Various policies adopted by this govern-

ment, he noted, had helped in no small measure to stem the tide of financial outflow from the country.

Policies like Treasury Single Account (TSA), Biometrics Verification Number (BVN), whistle blowing, are all geared towards ensuring that corruption is reduced to the barest minimum, he explained.

He stressed that there was need for African countries to collaborate with other nations of the world to block those who have stolen from the African countries from enjoying the loot.

He said there was need for African countries to collaborate with the international community to fight illicit financial outflow from Africa cannot be over emphasised.

He advocated for visa restriction, tracing and repatriation of stolen funds wherever they are found as a way to help curb corrup-

tion in the continent.

“We have gone a long way in stopping financial flow through quality decisions. Above all there is need for collaboration with international community in the fight against illicit financial outflow.

“Nigeria has built institutions through quality legislation to curb this. We have created the EFCC, ICPC, , Code of Conduct Bureau, Code of Conduct Tribunal, Financial Intelligence Unit, among others to stem the tide of illicit financial flow.

There is also Proceeds of Crime Act, Terrorism Act; they are targeted at financial crimes and in support of these other institutions.

“Biometrics Verification Number (BVN) is also a policy introduced by this government to trace ownership of bank accounts of illicit funds.

“TSA was also introduced to identify move-

ment of funds.

By way of this administration’s desire to block the flow of illicit funds , according to the Minister, this government has encouraged the policy of whistle blowing. “This was why other colleagues of the President asked him to lead the anti corruption war in Africa,” he said.

In his opening remarks, Chairman of the summit, Mbeki, said African countries must act to retain about $80bn annually lost to illicit financial flows out of the continent.

Mbeki said this money when retained in the continent, could be used to tackle some of the infrastructural challenges faced by countries in the continent.

He said African countries have to act practically with other nations of the world to stop the out flow and free the fund for use in developing the continent.

Buhari not comfortable with certain aspects of PIB - Kachikwu FRANK UZUEGBUNAM

M

inister of state for petroleum resources, Ibe Kachikwu, says President Muhammadu Buhari is not comfortable with certain aspects of the Petroleum Industry Bill (PIB) passed by the two chambers of the eighth National Assembly.

“It is wrong for people to insinuate that President Buhari does not want to sign the PIB. You do not expect the President to assent to a bill he is not comfortable with certain aspects,” Kachikwu said, while performing the groundbreaking ceremony for the 5,000 barrels per day Waltersmith modular refinery located at onshore Ibigwe field in OPL 2004.

“We all need to work to-

NJC recommends dismissal of Ofili-Ajumogobia, Agbadu-Fishim ODUNAYO OYASIJI

… rejects voluntary retirement of a judge

ational Judicial Council (NJC) through a statement released by its spokesman, Soji Oye, yesterday said it recommended Justice Ofili-Ajumogobia of the Federal High Court and James T. Agbadu-Fishim of the National Industrial Court for dismissal by the President.

These recommendations came after the investigation of the allegations contained in the petitions written against them by the EFCC. The basis for the dismissal as contained in the statement was “that Hon. Justice R. N. Ofili-Ajumogobia is a director/CEO and sole signatory to Nigel and Colive Company contrary to the

Code of Conduct for Judicial Officers of the Federal Republic of Nigeria; Several personalities, individuals, government officials and business partners lodged funds into various accounts belonging to the Hon. Judge; and there was an ex-parte communication between the Hon. Judge and Mr. Godwin Oblah, SAN, during the pendency of his matter before the His Lordship.”

Other allegations in the EFCC petition against the judge could not be looked into as the she is already standing trial before a court in respect of those matters.

On the other hand, Justice Agbadu-Fishim was recommended for dismissal on the basis that the “Judge

N

received various sums of money from litigants and lawyers that had cases before him, and some influential Nigerians, under the false pretence that he was bereaved or that there was delay in the payment of his salary. This is contrary to the Code of Conduct for Judicial Officers of the Federal Republic of Nigeria.”

It must be noted that one of the people Justice Agbadu-Fishim received money from was the current president of the Nigerian Bar Association - Paul Usoro.

Chidi Odinkalu, while commenting on the situation through his twitter handle, said “James AgbaduFishim is fired for taking money three times from

Paul Usoro, who has rather been rewarded with election into office as the President of the Nigerian Bar Association.” The two judges were suspended by the council pending when their dismissal would be confirmed by the President.

Also, the council rejected the letter of voluntary retirement written by Justice Joshua E. Ikede of the High Court of Delta State.

This is due to the fact that the allegation of falsification of age against the judge was found to be true, as he ought to have retired since 2016.

His retirement was backdated to 2016 and the Delta State government was asked to deduct two years’ salary from his benefits.

gether to get the bill to the point the president will be comfortable enough to give his assent,” the minister said, without giving details of those aspects of the bill that the President is not comfortable with.

Nigeria moved closer to turning the oil industry bill into law after over 16year struggle to complete the legislation, which aims to increase transparency and stimulate growth in the country’s oil industry.

Nigeria’ House of Representatives had passed a version of the first part of bill, the Petroleum industry Governance Bill (PIGB), which is the same as one approved by the Senate, the first time both chambers of the National Assembly approved the same version of the bill that the President refused to sign into law.

Obaseki inspects new projects, sets December completion date

G

L-R: Brian Hammond, MD, IMC Limited; Solape Hammond, co-founder, Impact Hub Lagos; Emily Sheldon, director, health innovation, Impact Hub Lagos; Ebi Ofrey, co-founder/CEO, Gerocare; Abimbola Adebakin, CEO, Advantage Health Africa (mymedicines.com), and Segun Akintemi, MD, PAGE Financials, at the health innovation roundtable in Lagos. Pic by Olawale Amoo

A1 NEWS

BUSINESS DAY

overnor Godwin Obaseki of Edo State, on Thursday was at the State Secretariat to inspect ongoing building projects and assured that the new High Court and Secretariat buildings would be ready by December.

The governor, who was also at the new wing of the Specialist Hospital in Benin City, said his administration had started test-running the facilities to prepare the hospital for a smooth take-off by the end of the year.

The governor said a lot of departments would be moved from the old buildings to the new wing of the hospital while some of the old buildings would be refurbished to house the state’s primary healthcare board.

“We have set up a Primary Healthcare Board, separate

from the Hospital Management Board,” he said.

He added that his administration is doing everything possible to ensure that the High Court extension is completed by the end of the year.

“We have received feedback from judges that will use the facilities and we are incorporating their feedbacks and reactions into the design to enable the contractor make the necessary adjustments before leaving the site,” he said.

On the office of the Accountant General, the governor said “We saw the abandoned building at foundation level, we looked at the design, redesigned it and commenced the construction which will now house the office of the Accountant General and will be called Treasury House, on completion.”

Indimi receives accolades for contributions to Nigerian economy

N

igerian Defence Academy (NDA) has conferred an honorary Doctorate in Management Sciences on the executive chairman of Oriental Energy Resources Limited, Muhammadu Indimi, at its 26th convocation ceremony in Kaduna.

Founder of the Nigerian upstream oil and gas company was honoured by the NDA along with president of the African Development Bank, Akinwumi Adesina, and a former military adviser to the United Nations, C.I. Obiako, all of whom are leaders who have distinguished themselves in service to the nation through significant contributions to social and economic development.

In a statement, the NDA commandant, Adeniye Oye-

bade, said the honour was in recognition of Indimi’s outstanding accomplishments as an indisputable icon in Africa’s business world.

“His immense contributions to Nigeria’s socio-economic development through investment in diverse sectors deserve accolade. Moreover, his positive impact though provision of employment as well as philanthropic gestures cannot be glossed over,” the Commandant said.

In his acceptance, Indimi expressed his gratitude for the honour: “I am very thankful to the NDA for honouring me and recognising my humble contributions to the development of the Nigerian economy, sustainable development initiatives in the areas of education.

A2 BUSINESS DAY NEWS

C002D5556

Friday 05 October 2018

Property market plunges into deeper crisis as flood submerges homes FOU Customs impounds 22 exotic CHUKA UROKO

T

he impact of submerged homes and washed away farmlands in many states of the federation by flood incidents in the last couple of weeks goes beyond displaced persons and threat to food security, BusinessDay can reveal.

In about 10 states of the federation including Anambra, Bayelsa, Kogi, Niger, Lagos, flood has wreaked havoc, leaving in its trail destruction of immense proportion, including loss of lives. Over 100 lives have been lost and properties worth billions of naira have been destroyed.

This has made the situation in the property market much worse. This is a market that has been in crisis even before the economic recession with falling demand and rising vacancy rates in both residential and commercial buildings. The market has

plunged into deeper crisis because the flooding incidents have not only raised the vacancy level, but also lowered property value and house rents in the affected areas.

“The real estate market of which housing is part is the weeping child of this economy,” notes Johnson Chukwuma, a structural engineer, citing an estimated 300,000 square metres of empty apartments and 200,000 square metres of empty office space in the residential and commercial segments of the market, respectively.

The market is also struggling from the negative impact of infrastructure deficit which constitutes over 30 percent of construction cost, regulatory policies which make land acquisition and title registration cumbersome, high cost of funds at over 30 percent rate, unstable foreign exchange rate, lack of functional mortgage system, etc.

Figures from the Nigeria Bureau of Statistics (NBS) show that the sector contracted by -9.40 percent in Q1 2018, down from -5.92 percent in Q4 2017 and -4.12 percent in Q3 2017. The first quarter contraction was -6.3 percentage points worse than the -3.10 percent reported in same period in 2017.

“It is this same sector that flood has been ravaging almost since the beginning of rainy season this year, putting both landlords and their tenants in dire situation,” Chukwuma observed, saying that the flooding incident is one too many for a market where there is a big shortfall in terms of demand and supply.

Unconfirmed report has it that in Niger State where about 100 houses were submerged by flood about two weeks ago, about 7,000 residents were displaced in the Zungeru area of the state.

This year’s flood incidents

have been quite devastating, but they have not been the worst of their kind as similar incidents had occurred in the past, specifically in 2012, when hundreds of people were killed and countless houses were submerged and residents displaced.

The Nigerian Meteorological Agency (NIMET) had, earlier in the year, urged state governments to take proactive actions against flood disasters but nothing could be done to mitigate the challenge.

According to the agency, states like Kogi, Niger, CrossRiver, Benue, Anambra, Delta, Anambra, Ogun-Osun, and Yobe states which have high risks of river flooding would be heavily impacted, adding that Lagos, Bayelsa, Rivers, Delta, Ondo states, etc might experience coastal flooding as well as contribute significantly to incidences of building collapse. Virtually all these have happened.

cars, cartons of fake drugs in Lagos

SEYI JOHN SALAU

F

ederal Operations Unit, Zone ‘A’ of the Nigeria Customs Service (NCS) on Thursday, said its had impounded 22 exotic cars, 283 cartons of fake drugs imported into the country and 11, 303 bags of foreign parboiled rice, equivalent of 18 trailer loads and other contrabands with a total Duty Paid Value (DPV) of over N2 billion in Lagos.

The seized items include 22 exotic vehicles, 11, 303 bags of foreign parboiled rice (equivalent of 18 trailers), 2, 410 frozen poultry products, 853 jerry cans of unprocessed wood, 2,017 bales of used clothing, 283 cartons of various pharmaceuticals without NAFDAC registration number, among others.

Aliyu Mohammed, area controller of the unit, while addressing journalist on Thursday, said after reviewing the unit’s operational modalities towards sustain-

ing the statutory mandate of anti-smuggling operations, his men intercepted various contrabands with a duty paid value (DPV) of N2,017,953, 507 between September and October.

According to Mohammed, the 22 vehicles seized are nine bullet proof vehicles including four Lexus jeep LX570 (2016 model), three land cruiser jeeps (2016) and two Mercedes Benz G63 and S550 (2014/2015, other vehicles include one Toyota Prado (2018), one Toyota land cruiser (2016), one Toyota Corolla, one Toyota Furtuner (2017), one Toyota Sequoia, one Lexus RX 350 among others.

“These 22 exotic vehicles alone have a DPV ofN1, 179, 889, 909.8 while some of the vehicles were intercepted at Ogere and Ijebu Ode Expressway, the bullet proof vehicles were trailed and evacuated from some private residence in Victoria Island based on credible information,” Mohammed said.

Court slams EFCC with N600m fine for declaring two Rivers officials wanted IGNATIUS CHUKWU

T L-R: Francis Olawale, chairman, Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN), Lagos State chapter; Nkechi Anyimah, vice chairman; Olekamma Ekekeme, publicity secretary; Onifade Hauwa, editorial member, Flagship, and Efosa Ewere, assistance secretary, during a courtesy visit by ICSAN Lagos State chapter to BusinessDay head office (The Brook) Apapa, in Lagos, yesterday. Pic by Olawale Amoo

CBN, Bankers’ Committee to set up mobile court for naira abusers HOPE MOSES-ASHIKE

C

entral Bank of Nigeria (CBN) and the Bankers’ Committee on Thursday resolved to establish a mobile court to try on the spot erring Nigerians who abuse the naira.

Abuse of the local currency as explained by Isaac Okorafor, director, corporate communications department, CBN, includes spraying it at a party, hawking, writing on it, squeezing or dancing on it, among others.

The CBN would be working collaboratively with the Ministry of Justice and the Nigerian police to enforce this.

“We are going to be issuing communiqués, disseminating information about the correct way to handle the naira so that the people do not handle the money incorrectly.

Specifically, one of the things that we severely frowned at and that action is to be taken soon has to do with people who actually sell the currency notes,” Hamda Ambah, managing director/CEO, FSDH Merchant Bank Limited, said, while addressing the media after the bankers committee meeting in Lagos.

Others who addressed the media include Ahmad Abdullahi, director, banking supervision, CBN, Herbert Wigwe, group managing director/CEO, Access Bank plc, and Emeka Emuwa, group managing director/CEO, Union Bank plc. Abdullahi said the committee looked at the economy in terms of the global challenges, specifically as it related to interest rate hike in the US, which he said had led to outflow of capital in emerging markets.

“Confidence in the econ-

omy is seriously high, there is stability in the FX market, also oil price is strong, about $80 and that is what is giving confidence in Nigeria economy,” Abdullahi said.

He further said, “However, we noted this development and we recognised that all hands should be on deck towards working together to ensure that slow down in economic growth is reversed.”

Wigwe said it was resolved at the bankers committee that the discretionary cash reserves that have been built up over time should be channelled towards agriculture in a very approved manner.

“Apart from agriculture, the deliberations were that most of money should be channelled towards the manufacturing sector, basically looking at the entire agric value chain and the manufacturing sector,” Wigwe said.

he face-off between the Rivers State government and the Economic and Financial Crimes Commission (EFCC) has taken a new turn with a Port Harcourt high court intervening by slamming a N600 million fine on the financial crimes commission.

The Rivers State governor, Nyesom Wike, has consistently faulted the EFCC on its attempts to pry into the finances of the administration, saying there is a subsisting court order since

2007 stopping the commission in any such action. He says no Rivers government official would honour any invitation by the EFCC, but the commission says if Wike had immunity, other officials did not.

Now, Justice George Omereji, in a fundamental human rights matter brought by the Accountant General of Rivers State, Frederick Abere, and a retired permanent secretary of the Ministry of Local Government Affairs, Lekia Bukpo, restated that the EFCC had no right to investigate the Rivers State government or its officials.

Huawei sponsors 10 Nigerian youths to China for ICT training

I

n line with the commitment of Huawei Technologies Co. Nigeria Limited to the Federal Government of Nigeria to provide ICT training for youths, 10 qualifiers will be sent to China from the ongoing Huawei Authorised Information and Network Academy (HAINA, also called the Huawei ICT Academy).

HAINA is a partnership project between Huawei and selected universities offering Huawei ICT courses to encourage students to attain Huawei certification in support of subsequent careers in the ICT industry.

After an intensive training programme, examination and interview performance, 10 beneficiaries were finally selected. The successful candidates will proceed on training in Beijing and Shenzhen from October 5 – 20, 2018,

under the Seeds for The Future Programme.

The send-forth ceremony had in attendance the Huawei managing director, Liteng, minister of Industry, Trade and Investment, Okechukwu Enelamah, the ICT director of Ahmadu Bello University Zaria, Bashir Muazu, deputy managing director of Huawei Technologies Co. Nigeria, Kelvin Yangyang, special adviser to the minister of Industry, Trade and Investment, Bisi Daniel, sales director Huawei Technologies Co. Nigeria, Nihinlola Fafore, and the top 10 students from across different universities in Nigeria.

Speaking at the ceremony, Liteng said, “Through the Seeds for Future and ICT academy, Huawei has tried to enhance knowledge transfer and talent growth in Nigeria.

“Today’s ceremony is not

only to see off Nigeria’s most outstanding ICT students to China for Seeds for the Future 2018, but also to plant seeds for a prosperous future enabled by ICT for the beloved country and for us all.”

The ICT Director of Ahmadu Bello University Zaria, Professor Bashir Muazu, in his speech said “the HAINA program ICT competition, and internship by Huawei Technologies is a welcome development in adding value to the joint efforts at improving the quality of education in Nigeria by way of emphasis on skills acquisition relevant to the 21st Century”.

He congratulated the ten beneficiaries and encouraged them to make use of the opportunity to explore the immense possibilities that lie ahead of them as the future IT movers and shakers in Nigeria.

Politics & Policy Friday 05 October 2018

C002D5556

BUSINESS DAY

A3

Oyetola and the aroma of victory ZEBULON AGOMUO

T

he battle is over.

Victory has been won. The gubernatorial election in Osun State has come and gone. The contest was essentially between the All Progressives Congress (APC) and the People’s Democratic Party (PDP), represented by Gboyega Oyetola and Ademola Adeleke, respectively.

It was a tension-soaked election. Analysts say it is time for all the parties and their candidates to come to the realisation that in the game of life there are losers and there are winners, and that players must be ready to accept whatever that comes to them at the end of the day.

They also believe that the narrative this time around should change from who was right or wrong in some of the lapses noticed at the polls, to looking at how to mitigate such occurrences in the future.

The pundits believe that those who are dissatisfied should avail themselves of credible means of pressing their grievances, such as going to the tribunal, or “let the sleeping dog lie.”

“We must begin to imbibe the spirit of sportsmanship by being gallant in defeat and magnanimous in victory. This is not the time to sulk over loss or bear grudges against one another,” they said.

For them, what is important is to move Osun State forward from wherever Governor Rauf Aregbesola would stop on May 29, 2019.

Savouring the aroma of his victory shortly after he was declared the winner of the keenly-contested election, Oyetola, in his acceptance speech, promised to run an all-inclusive and participatory government.

He said that his administration would run an open-door policy and would consult so much with the party, workers, traditional institution, youths, civil society, women, and other relevant stakeholders to foster steady social and economic growth of the state.

“I will run an inclusive and participatory government. I will consult with the party, workers, communities, traditional rulers, the civil society and the people of the state in their heterogeneity.”

“This election is primarily a victory for democracy, rule of law and due process. It is a victory for the right of every citizen to participate in their own government which democracy represents.”

According to him, “The victory is an affirmation by the people of Osun in the APC government that has been on the saddle in the past eight years; and the acceptance of our ideology. It is a positive affirmation of our people-friendly policies and the way we have steered the ship of state, even under the most challenging circum-

Oyetola

stances.”

While congratulating the governor-elect, President Muhammadu Buhari had urged him to always “remember that the electorate expects unreserved commitment to delivering results that directly impact their lives and families.”

Buhari, who described the exercise as successful, also commended all contestants in the election for putting in their best to be elected to serve the state.

“President Buhari affirms that the successful election in the state further strengthens the democratic culture in the country, extolling INEC for, once again, making the country proud,” a statement said.

A number of civil society organisations (CSOs) have since commended the conduct of the exercise, regardless of whatever lapses that may have been noticed in the election.

A few days ago, some of the CSOs gave their seal of approval and praised the Independent National Electoral Commission (INEC) “for exhibiting professionalism and neutrality despite threats, intimidation and blackmail.” before and during the election.”

In a statement issued in Lagos, the groups said the election was largely peaceful and congratulated the people of Osun State for “their civil, peaceful and orderly conduct

in jealously guarding their mandate and proving that the will of the people is supreme in a democracy.”

The statement reads in part, “We, the undersigned civil society organisations as election observer groups, heartily congratulate the good people of Osun State for trooping out to the polls both on the 22nd of September and on the 27th September, 2018 rerun election, to elect the state’s helmsman whose outcome is a reflection of the will of the people as expressed at the polls.

“We also congratulate the people of Osun State for their civil, peaceful and orderly conduct in jealously guarding their mandate and proving that the will of the people is supreme in a democracy.”

“We as well congratulate the Independent National Electoral Commission (INEC) for exhibiting professionalism and neutrality despite threats, intimidation and blackmail before and during the election. We note with gladness that INEC deployment of its personnel and materials on Election Day was timely, efficient and has received accolades from all relevant stakeholders for a superlative performance,” they further said.

According to them, “We equally commend the international and local observers for their high sense of responsibility in observing the process according to global best practices.

“We commend the media for its professional and unbiased coverage which is critical to deepening democracy and ensuring societal stability.”

The statement further said that while there were noticeable incidents of violence on the day of the rerun election, there was no doubt that the most popular candidate won the race.

“However, we observe that unlike in the first round of election on the 22nd of September, 2018 which was largely peaceful and orderly, there were reports of pocket of violence in some areas far away from the locations of polling stations where the rerun elections took place on Thursday, 27th September, 2018.

“In as much as we recognise that no election anywhere in the world can be perfect, we call on the security agencies to investigate these allegations and do the needful. However, we make bold to state with all emphasis, that these allegations do not in any way distract from the fact that the will of the people as expressed at the poll, has triumphed.”

Oyetola has been advised to embrace every Osun indigene, irrespective of their political or party leaning. He must see himself as father of all, who cannot afford to “love some, and hate some.”

For the good of Osun, he must ensure that justice and equity will be served and remain his watchwords.

Group commends Buhari over retention of service chiefs, IGP

A

pro-Buhari organisation, Re-elect Buhari Movement (RBM), has commended the foresight of President Muhammadu Buhari in not yielding to calls for the sack of Service Chiefs and the Inspector-General of Police.

The RBM in a statement from its convener, Emmanuel Umohinyang, a lawyer, noted that recent experience has shown that the President digs deep in arriving at decisions on important national affairs, stressing specifically that, “recent successes in the war against terrorism and criminality have shown that the security heads have the capacity to deliver.”

According to Umohinyang, though Nigeria was still facing some challenges in tackling insecurity, the armed forces and the police have shown that they are on top of the game, judging by recent developments.

The group boss, therefore, stressed that what the security chiefs needed was the support to forge ahead in carrying out their assignments instead of needless criticisms.

The statement said: “Since their appointment, the service chiefs and the IGP have shown character. They have shown quality leadership, and we have equally seen from the results from the field security wise, especially the decimation of Boko Haram in the North East. We cannot but give them kudos.

“This could not have happened if the President had not been diligent in selecting these characters, so my take is that generally, the service chiefs have performed, though we still have incidents of attacks here and there.

“These attacks are unlike what we had in the past. You can see that for the first time after a long while in our history, we can now hold our

Buhari

Independence parade at Eagles square. Don’t forget that since the attacks alleged to have been carried out by the Niger-Delta militants under Goodluck Jonathan, during almost all independence anniversaries, they have avoided the Eagles Square.

“But the President has

shown that leadership is not about carrying a baggage of degrees, leadership is all about vision, direction, leading on the frontline. “This president has shown that he is a true Commander-inchief of the Armed Forces.

He is not the president who sits and gives direction from

the comfort of the presidential villa. No. “We must appreciate what the government is doing. We must also thank our brothers and sisters who are fighting in the North-East so that they can perpetually keep the Boko Haram insurgents out of the territory of Nigeria.

“Most of the people can attest to it that they can now sleep with their two eyes closed. Several roads that were closed in that region have been re-opened, thanks to our military.

“That is not to say they have completely eradicated B/Haram. No, but what we have seen is that some misguided fellows have attacked soft spots like markets, mosques, etc. That is not to say government is not working towards complete eradication of Boko Haram.

“In a game of football, you don’t change a winning team. A coach who does that, gets his fingers burnt. The

service chiefs are doing well, why change them?”

“The call for the removal of the IGP is not new to our political system. In every election era, you have people who want the IGP to be changed.

“IGP Idris came in 2016.

I think it was one appointment the government hit the nail on the head. His appointment was purely square peg in square hole.

“Don’t forget there were over 30 AIGs pushing to replace the former IGP, but I think the president was not looking for name, he was looking for a man who would get the job done. IGP Idris was the best man for the job.

“Idris is not the conventional policeman. He is UN-trained. That is why if you look at how he has gone about his job, he has led by example. He took time to constitute his management team, and today, Nigeria is better for it.”

A4

BUSINESS DAY

C002D5556

Friday 05 October 2018

Politics & Policy

Fela Durotoye remains our presidential candidate - ANN …As party disowns Olawepo’s planned primaries INIOBONG IWOK

A

head of the 2019 Presidential election, the National Chairman of the Alliance for New Nigeria (ANN), Emmanuel Dania, has said that Fela Durotoye remained the party’s presidential candidate duly elected in the party’s recent presidential primaries supervised by the Independent National Electoral Commission (INEC).

The national chairman stated this in an interview with BusinessDay in Lagos yesterday, stressing that the process that led to the emergence of Durotoye was transparent, free and fair, and was in accordance with the guidelines of the party.

Dania described plan by a presidential aspirant of the party, Gbenga Olawepo, to hold another presidential primary as illegal, noting that Olawepo had earlier written a letter to the party seeking a change of date in the initial party’s presidential primaries which was rejected by the party.

He added that Olawepo subsequently wrote a letter to the party

Fela Durotoye

and INEC withdrawing from the presidential primaries, wondering why he was now desperate to be its presidential aspirant through the backdoor, stressing that any move by him to hold another presiden-

Bayelsa: Ex-SSG, four others emerge PDP House of Reps candidates SAMUEL ESE, Yenagoa

A

former Secretar y to the State Government, Steve Azaiki and four others emerged as candidates of the Peoples Democratic Party (PDP) for the elections into the House of Representatives in the primary elections held on Wednesday across five venues.

Azaiki won the ticket to fly the PDP flag in Yenagoa/Kolokuma/ Opokuma Federal Constituency in the election held at the Samson Siasia Sports Stadium, Yenagoa amidst gunshots, according to eyewitness accounts.

In Sagbama/Ekeremor Federal Constituency, Fred Agbedi retained the party ticket after his

Steve Azaiki

main challenger, Preye Godswill stepped down and he was therefore returned unopposed.

Speaker, Bayelsa State House of Assembly, Friday Konbowei Benson clinched the ticket for Southern Ijaw Federal Constituency, Fred Obua won in Ogbia Federal Constituency and Marie Ebikake emerged victorious in Nembe/ Brass Federal Constituency.

Apart from Agbedi, no other member of the House of Representatives from Bayelsa State won a ticket for a second term in the primary elections.

Governor Henry Seriake Dickson who voted in Sagbama/Ekeremor Federal Constituency described the election as peaceful and fair and urged other political parties to be peaceful and civil.

Speaking to newsmen, Agbedi thanked the people for his victory and also congratulated his opponent who stepped down for his show of sportsmanship.

When contacted over the shooting at the Samson Siasia Sports Stadium, Police Public Relations Officer (PPRO), Asinim Butswat said the Divisional Police Officer; ‘A’ Division told him there was no shooting.

tial primary would be resisted by the party.

“We set out to carry-out our primaries like it is written in our guidelines; we fulfiled all conditions like other parties; the process

2019: Two PDP Reps members lose return tickets in Ondo YOMI AYELESO, Akure

was open for all to see, but a few days before the primaries one of the presidential aspirants has been requesting for a change of date and we had said there would be no reason to change the date.

“But he also wrote a letter withdrawing from the race, while also copying INEC; let us say that in this party we are not aware of such primaries and it is illegal. Fela Durotoye was duly elected as the presidential candidate of the ANN and the primary was observed by INEC and he remains our Presidential candidate”. Dania said.

He lamented incidents of votebuying in recent elections across the country, while advocating for a mental shift among Nigerians for the country to attain its desired position.

“Our plan is to deliver a new Nigeria for Nigerians; we have seen the effect of bad democracy, you can see the effect across the country. Nigerians are hungry; they are now buying your votes. If a man has paid for your votes he does not owe you anything.

“This party wants to be involved in the country, we want to change the way things are done and deliver dividend of democracy to Nigerians,” Dania added.

T

wo members of the House of Representatives in the People’s Democratic Party (PDP) from Ondo State on Tuesday lost their bids to return to the National Assembly in 2019.

The duo were defeated at the party’s primary election conducted across the state.

In Owo/Ose federal constituency, Bode Ayorinde, who got 73 votes, was defeated by Oluwole Obaneyen who polled 107 votes.

Also in Okitipupa/Irele federal constituency, Akingboju Gboluga scored 119 votes to defeat the present occupant, Mike Omogbehin who garnered 43 votes, while Omoniyi Ogunwa scored 49 votes and Bimpe Olatemiju scored 22 votes.

In other results of the Primaries, a member representing Ilaje/EseOdo federal constituency, Kolade Akinjo clinched the return ticket of the party with 177 votes to beat his closet contender, Benson Amuwa who scored 71 votes.

A one-time chairman of Akure South local government area, Omolafe Adedayo defeated three other contestants to become the

Ogun: APC NWC panel disowns Amosun’s caucus primary, declares Abiodun governorship candidate RAZAQ AYINLA, Abeokuta

M

uhammed Ndabawa-led electoral panel deployed to Ogun State by the National Working Committee (NWC) of All Progressives Congress (APC) to supervise the governorship primaries in Ogun State has disowned primaries conducted by Governor Ibikunle Amosun’s caucus of APC in the state.

Recall that Governor Amosun’s caucus of Ogun State APC on Tuesday held “an unauthorised” governorship primary poll in the 236 wards of the state for which the state party chairman, Derin Adebiyi declared Amosun’s anointed candidate - Adekunle Akinlade, winner of the primaries in Abeokuta.

Adebiyi, who addressed some journalists at APC state secretariat in Abeokuta on Wednesday, declared that Adekunle Akinlade, a member of Federal House of Representatives, representing Egbado South/Ipokia Federal Constituency, who polled 190,987 votes defeat Jimi Lawal, that scored 5,046 votes; Dapo Abiodun who had 3,648 votes; Abimbola Ashiru with 898 votes; Gbenga Kaka with 833 votes and Abayomi Hunye, who scored 208 votes.

But, in a swift reaction to the declaration of Akinlade as the winner of the governorship primaries, the chairman of the electoral panel designated for the primaries by APC National Working Committee, Muhammed Indabawa disowned the governorship primaries that purportedly produced Akinlade, saying the panel was “not aware of such primaries.”

Declaring the result of the primaries conducted by the electoral panel in all the 236 wards of the state in Abeokuta on Wednesday, Indabawa said that Dapo Abiodun polled 102, 305 votes in the primaries and he was therefore declared winner, having satisfied all the electoral requirements.

He added that other contestants - Jimi Lawal scored 51,153 votes; Abimbola Ashiru polled 29,764 votes; Gbenga Kaka had 17,771 votes; Abayomi Hunye 9,110 votes, while Adekunle Akinlade scored 23,443 votes.

Indabawa also noted that the declaration of Dapo Abiodun as winner of the primaries and governorship candidate of APC in Ogun State for 2019 governorship election was “subject to ratification by the National Working Committee” of the party.

Bode Ayorinde

party’s flag bearer for Akure South/ North federal constituency with 138 votes, while Kemisola Adesanya got 57 votes, Dayo Awude polled 14 votes.

In Akoko South East/South West Federal Constituency, Martins Abiloye was declared winner with 177 votes, while Debo Ologunagba got 55 Votes and Lawani Busuyi with 30 votes.

Also in Akoko North East/North West federal constituency, Olawale Ogunleye with 109 votes clinched the party’s ticket, ahead of Adeyinka Banso who polled 52 votes and Fatai Adams with 44 votes.

A former commissioner for Information in the state, Kayode Akinmade was declared winner unopposed to represent Idanre/ Ifedore federal constituency.

Friday 05 October 2018

FT

C002D5556

BUSINESS DAY

FINANCIAL TIMES Ireland backs Theresa May’s plan for all-UK customs union with EU

A5

Midterm elections: ‘Trump effect’ weighs on US economic boom

Page A6

Page A7

World Business Newspaper

Sovereign bond sell-off spreads worldwide

Rising optimism over US economy triggers sales in Treasuries and Bunds MICHAEL HUNTER AND KATE BEIOLEY

A

brutal bond sell-off that began on Wall Street rippled out across global markets on Thursday, leaving investors on edge ahead of a jobs report that is expected to underline the US economy’s momentum.

German, UK and Italian bonds all came under sharp pressure as yields on 10-year Treasuries surged to the highest level since 2011, hitting an array of emerging market currencies and sending EM stocks to their biggest one-day decline since early 2016.

A US economy turbo-charged by fiscal stimulus has strengthened the conviction of some investors that 2018 will mark the end of a 30-year bond bull run, already threatened by central banks from the Federal Reserve to the European Central Bank unwinding their quantitative easing programmes.

The sudden pressure on bonds over the last 24 hours was triggered in part by a survey of the US services sector that raised expectations for Friday’s jobs report, which economists forecast will show the economy added another 180,000 jobs last month and delivered American workers wage growth of close to 3 per cent.

“The US economy is boiling hot,” said Chris Iggo, chief investment officer for fixed income at AXA Investment Managers “The bond market has been very complacent recently but has potentially underestimated just how strong the economy is.”

In a day of frantic trading, the

yield on the 10-year Treasury touched as high as 3.23 per cent, extending a sell-off on Wednesday that saw the steepest daily jump in yields since the turmoil that followed the election of Donald Trump in 2016.

Across European markets, the yield on the 10-year German bund, a benchmark for the eurozone, jumped 6 basis points to 0.53 per cent, the yield on the 10-year gilt rose 9 basis points to 1.66 per cent while the equivalent French gilt rose 6 basis points to 0.87 per cent.

“Expectations of a blockbuster payrolls report on Friday are also playing a role in the sell-off,” said Jabaz Mathai, an analyst at Citi. “[US economic] data has continued to be strong, but are mostly meeting already bullish expectations.”

The renewed vigour of the US economy, which expanded 4.1 per cent in the second quarter, has been one of the defining features of markets this year and helped suck money from emerging markets. A string of EM currencies fell on Thursday, with the Turkish lira losing more than 3 per cent before recovering somewhat, and the Argentina peso falling as much as 4.4 per cent.

The MSCI EM index, which captures large and mid-cap stocks in 24 EM countries, dropped more than 2 per cent. The move higher in yields also sapped the strength of the US stock market, which set a fresh record high earlier this week. The S&P 500 was down 0.7 per cent in afternoon trading, with financials the only sector to escape the declines.

Oil industry snubs EU effort to defy Trump sanctions on Iran

Big companies say payments plan would not protect them from US penalties MICHAEL PEEL, DAVID SHEPPARD, AND DAVID KEOHANE

B

ig European oil companies are spurning the EU’s attempt to shield Iranian crude from US sanctions because of fears the effort would leave businesses exposed to harsh penalties from the Trump administration.

The EU has announced plans to create a special payments channel for crude from Iran, but oil executives and lawyers said the move was largely symbolic because

there were no guarantees it would protect big multinationals from US retribution.

Patrick Pouyanné, chief executive of Total, said this week the French oil company would not join EU efforts to bypass US sanctions on Iran. “We cannot afford to take the risk to be banned from using the US financial system,” he told a conference in Russia.

The corporate resistance underlines the struggle faced by EU governments that are trying to Continues on page A6

Federal Reserve governor Jay Powell © FT montage; Bloomberg

US Senate passes $60bn foreign development bill Rare bipartisan move aimed at countering China’s growing global influence DAVID PILLING AND JAMES POLITI

T

he Senate has passed a bill that will create a $60bn agency to invest in developing countries in what has been sold to Donald Trump, the US president, as a way of countering China’s growing global influence.

In a rare spirit of bipartisanship, on Wednesday the Senate passed the Better Utilization of Investments Leading to Development (Build) Act by 93 votes to 6.

The bill, which was included in legislation to reauthorise the Federal Aviation Administration, could reach the president’s desk as early as Friday, people with close knowledge of its progress said. The White House has already indicated that the president will sign it into law.

The Build Act has been packaged as vital to counter what has been described as China’s “debt trap diplomacy” — ensnaring developing countries by loading them up with unpayable loans.

Until a year ago, the US Overseas Private Investment Corporation,

which makes loans to businesses in the developing world, had been in danger of being scrapped. Although it makes commercial investments and turns a profit, the Trump administration had viewed it as dispensing aid and what many Republicans described as “corporate welfare”.

Aubrey Hruby, co-founder of the Africa Expert Network, said that Ray Washburne, Opic president and chief executive, had changed the narrative by persuading legislators that the organisation was an essential tool for US commercial diplomacy.

“This administration is very governed by the view that the US needs to be more competitive vis-à-vis China,” she said. “This is something that those of us in Washington who care about emerging markets, business and American competitiveness have been working on for years.”

Mr Washburne said: “This is a huge shake-up.” Speaking from Cartagena, Colombia, where he had watched the Senate vote on his mobile phone, he said an enhanced

Opic offered “a financially sound alternative to the state-directed initiatives pursued by China that have left many developing countries deep in debt”. It would increase the US’s soft power and help it to bring jobs and stability to countries that might otherwise be a danger to US national security.

Beijing has strongly rejected claims that it uses debt to gain political supplicants, arguing that it has lent to developing countries in the spirit of co-operation and trade promotion. China has financed tens of billions of dollars of infrastructure in Asia, Africa and Latin America.

Republican senators have accused Beijing of gaining control of Hambantota port in Sri Lanka after Colombo was unable to repay its debts.

Opic will now be folded into a new agency called the International Development Finance Corporation, which will incorporate some functions of USAID. For the first time, it will be able to take equity stakes in what advocates say will allow it to invest more effectively and match its European counterparts.

Company raised eyebrows by taking big accounting charge over its $10bn ED CROOKS

W

hen General Electric replaced its chief executive this week, it also said it would write off $23bn from the value of one of its core divisions, the business supplying equipment to the power industry.

Most of the charge relates to its 2015 purchase of the energy businesses of Alstom of France for $10.1bn, and it raised a question that has been widely asked in the days since: How is it possible to take a writedown that is greater than the cost of the acquisition?

The Alstom deal is not the sole reason for the writedown — the rest of GE’s power division is also sinking fast— but the accounting for the purchase reveals how GE was so keen to get the deal done that it paid too much.

After taking control of Alstom in November 2015, GE spent about an-

other year working out exactly what it had bought. It gave a final reckoning in its annual 10-K report for 2016 — and the numbers were startling.

The Alstom businesses had gross assets of $21.3bn, including $2.8bn of property, plant and equipment, and $4.4bn of intangible assets, principally in customer relationships, patents and technology, and capitalised software.

But they also had liabilities of $23.2bn, including $10.7bn of expected costs to fulfil contracts with customers.

Taking into account minority interests that were left in some of the operations, that meant the businesses acquired by GE had a negative book value of $7.2bn. Under standard acquisition accounting, the difference between that figure and the purchase price of $10.1bn was added to the balance sheet as goodwill.

The company justified that hefty difference as reflecting “estimated GE-specific synergies”, including “additional revenue from cross-selling

complementary product lines”.

Paul Chaney, a professor of accounting at Vanderbilt University, has a sceptical view of that kind of claim. “A lot of analysts view goodwill as the size of the amount that you overpaid for the acquisition,” he said.

Jeffrey Sprague, an analyst at Vertical Research Partners, called attention to the issue in a note this week, describing the Alstom acquisition as “the most unusual deal we have ever seen”. In similar industrial sector acquisitions over the past five years, goodwill was on average 65 per cent of the price paid. Accruing more goodwill than the price paid for the deal, as GE did with Alstom, is rare.

Accrued goodwill does not have to be written down on a regular basis — a process called amortisation — but it does need to be tested at least once a year to see if its value on the balance sheet is fair and whether the assumptions about future benefits from the business are still justified.

A6

BUSINESS DAY

C002D5556

NATIONAL NEWS

FT

Pence accuses China of anti-Trump midterm meddling

Oil industry snubs EU effort to defy...

Continued from page A5 keep a landmark Iran nuclear deal alive in the face of US sanctions, which are due to be reimposed on oil exports and Iran’s central bank in November.

The biggest European buyers of Iranian oil have included Total, Italy’s Eni and Saras, CEPSA and Repsol of Spain, and Greece’s Hellenic Petroleum. But the US has vowed to punish any company that defies its Iran sanctions.

Many big businesses have pulled back from Iran even as their governments seek to maintain commercial ties, which were vital in persuading Tehran to agree to curbs on its nuclear programme under the 2015 atomic accord.

An Eni spokesperson said: “We have no presence in [Iran] any more and our trading contracts will naturally expire in November.

We will entirely comply with all the sanctions and rules decided by the international community.”

CEPSA, a Spanish refiner that said Iranian oil made up 13 per cent of its purchases in 2017 and the first half of 2018, warned in a share prospectus this week of the risks that sanctions posed to its business.

In mid-October a CEPSA refinery in Spain is due to receive 1m barrels from an Iranian tanker named Monte Udala, a shipment that a company spokesman stressed would be its last from Iran.

“All the companies are going to think of their shareholders first, regardless of what the EU does,” one oil industry executive said. “No one is going to run the risk of falling foul of US sanctions.”

Data from Kpler, a tanker tracking company, show that Iranian oil shipments to Europe have fallen.

They dropped to 422,000 barrels a day in September, down from 843,000 b/d a year ago and the lowest since early 2016.

The remaining signatories to the nuclear deal last week formally unveiled a Europe-led plan to create a special purpose vehicle to maintain commercial ties with Iran, including for oil exports. The nuclear accord was signed by China, Russia, France, Germany and the UK, as well as Iran and the US. Federica Mogherini, the EU foreign policy chief, said the proposed new payment channel would “facilitate legitimate financial transactions with Iran”, to allow companies in Europe and perhaps outside to continue to trade there.

Mohammad Javad Zarif, Iran’s foreign minister, told reporters last week that he was hopeful agreement could be reached to allow Tehran to “sell our oil and get the proceeds”.

Tehran is adamant that its oil exports will not be shut off and hopes it will be able to sell crude to small and medium-sized businesses in Europe that have scant ties to the US. But John Bolton, national security adviser, last week mocked the EU as “strong on rhetoric and weak on follow-through”, noting that the mooted special purpose vehicle did not exist and had no official target date for its creation. “We do not intend to allow our sanctions to be evaded by Europe or anybody else,” he added.

Friday 05 October 2018

US vice-president says Beijing interference a bigger threat than Russian efforts DEMETRI SEVASTOPULO

M

Theresa May

Ireland backs Theresa May’s plan for all-UK customs union with EU Support from Dublin lifts hopes of breakthrough in Brexit talks ARTHUR BEESLEY AND GEORGE PARKER

I

reland has boosted Theresa May’s hopes of breaking the impasse in Brexit talks by backing her emerging plan for an all-UK customs union with the EU. Ahead of a crucial EU summit this month, the British prime minister is seeking to resolve a dispute over the “backstop” to avoid a hard border on the island of Ireland.

One of the proposals she is working on — to take effect if no other solution to the Irish border issue is found — is for the whole UK to participate in a customs union with the EU. Michel Barnier, chief EU negotiator, has rejected the idea but officials in Dublin privately argue it could settle the border question and open the way to a deal. “It looks like it would resolve that issue [of the border],” said a senior Irish official involved in Brexit talks. “Whether Europe accept it or not is another conversation.”

The Irish intervention will help Mrs May in the run-up to the EU summit on October 18 as she attempts a delicate diplomatic docking exercise on Brexit. The prime minister may have more freedom to manoeuvre, now that her ruling Conservative party has concluded its conference.

She will offer to meet the EU half way on the vexed issue of the Irish backstop, agreeing to Brussels’ demands that Northern Ireland stay part of the single market regulatory area of the bloc.

But, in return, she wants the EU to concede to Britain’s demands that under the backstop plan the whole UK, rather than just Northern Ireland, would stay in the customs union for a limited period until a UK-EU trade deal was finalised.

The “temporary” extension of the customs union would prevent Northern Ireland being carved off from the rest of the UK into a separate EU customs territory. Some British ministers expect the arrangement might in practice extend well into the next decade.

The main attraction of the plan for Leo Varadkar’s Irish government is that it would remove the need for customs checks on the land border between the Irish Republic and Northern Ireland. It would also avert the need for customs checks on Ireland’s €65bn annual trade with Britain.

But Brussels is reluctant to give its legally binding agreement to provisions that could keep the UK in a customs union with the bloc after Brexit, because it is concerned this could serve as a back door into the

EU’s trade and regulatory regime with none of the obligations of membership.

Mr Barnier has also argued that the customs relationship should be settled in the second phase of Brexit talks on Europe’s new trading relationship with the UK. The Irish official added: “If [the UK is] accepting a customs union, what are they leaving? That’s the big question. If effectively they accept the customs union, they’re not leaving anything really.”

The hardening stance of Northern Ireland’s Democratic Unionists, whose support Mrs May needs for her parliamentary majority, is a further source of anxiety in Dublin.

Arlene Foster, DUP leader, has insisted she would not accept new regulatory checks in the Irish Sea that would still be required under Mrs May’s new attempt to revive the talks. Mrs Foster warned at the Conservative conference that the DUP’s red lines were “blood red”, raising fresh questions over the all-UK customs proposal from the prime minister.

But, by keeping the whole UK in a customs union with the EU, Mrs May’s plans would avert any requirement for custom checks between Britain and Northern Ireland, one of the DUP’s prime concerns.

South Africa finance minister says Zuma sacked him over nuclear deal Nhlanhla Nene claims he was dismissed after refusing to approve Russian project JOSEPH COTTERILL

S

outh Africa’s finance minister says he was sacked by Jacob Zuma because he refused to approve a multibillion-dollar nuclear deal with Russia that could have crippled the South African economy.

Nhlanhla Nene told a judicial inquiry on Wednesday that the refusal was behind his dismissal in 2015 which triggered a sharp sell-off in South African markets.

The revelation by Mr Nene, who returned to South Africa’s treasury this year, sheds light on the single biggest scheme to divert state funds as part of alleged rampant corruption under Mr Zuma, who was forced from office this year.

“I was seen as the person standing in the way” of the deal for Rus-

sia’s Rosatom to construct power plants for more than R1tn ($69bn), Mr Nene said, after he resisted writing a letter of guarantee that the project would go ahead.

Mr Nene is the first cabinet minister to testify before the inquiry, which is focused on the influence allegedly wielded by the Gupta business family, who are friends of Mr Zuma, over state appointments and contracts.

“I believe that I was removed from office because of my refusal to toe the line in relation to certain projects,” Mr Nene said. “In hindsight, it seems that those projects may have benefited the Gupta family and other close associates of the president.”

In evidence that will bolster claims that Mr Zuma and Vladimir Putin personally arranged the

nuclear deal between themselves, Mr Nene added that his Russian counterparts were unaware of the letter of guarantee.

There was speculation that the Guptas stood to gain from the nuclear deal because they owned a uranium deposit in South Africa as part of their mining-to-media business empire. The Guptas and Mr Zuma have denied involvement in corruption.

Cyril Ramaphosa, Mr Zuma’s successor as president, reappointed Mr Nene as finance minister this year as part of a drive to root out state corruption.

Mr Ramaphosa rose to the presidency after wining a power struggle against Mr Zuma in the ruling African National Congress.

He inherited badly strained public finances.

ike Pence, the US vice-president, has accused China of trying to sway the outcome of the midterm elections through propaganda and influence operations in an effort to damage Donald Trump with voters.

According to excerpts from a hard-hitting speech that Mr Pence will deliver on Thursday, Mr Pence accused China of doing more to meddle in US democracy than the accusations levelled against Russia.

“Beijing has mobilised covert actors, front groups, and propaganda outlets to shift Americans’ perception of Chinese policies,” Mr Pence said. “As a senior career member of our intelligence community recently told me, what the Russians are doing pales in comparison to what the China is doing across this country.”

Mr Pence said China was using a “whole-of-government approach” to boost its influence and was using it “in more proactive and coercive ways to interfere in the domestic policies and politics of the United States”.

“To put it bluntly, President Trump’s leadership is working.

China wants a different American president,” Mr Pence said.

The speech, which Mr Pence was expected to deliver at the Hudson Institute, comes just days after Mr Trump accused China of meddling in US politics in a speech to the UN General Assembly in New York. The comments are part of an effort by the White House to take a more assertive approach to countering China on everything from trade and economics to foreign policy and maritime disputes in the South China Sea. Mr Pence said US intelligence agencies believed that China was “targeting US state and local governments and officials to exploit any divisions between federal and local levels on policy” and was “using wedge issues, like trade tariffs, to advance Beijing’s political influence.”

He added that Beijing in June circulated a document entitled “Propaganda and Censorship Notice”, which said China should “strike accurately and carefully, splitting apart different domestic groups” in the US. China has imposed tariffs on a range of US exports — from soyabeans and bourbon to Harley-Davidson motorcycles — to retaliate against the tariffs Mr Trump has imposed on more than $200bn worth of Chinese imports.

China has targeted products in key US congressional districts in the hope that it will put pressure on Mr Trump, who is desperate to keep Democrats from winning control of the House of Representatives in the critical midterm elections next month. But so far, the Chinese campaign appears to have had little influence on the US president.

In one example of Chinese “aggression,” Mr Pence slammed China over a recent incident in the South China Sea in which a Chinese destroyer engaged in dangerous behaviour within 45 yards of a US navy ship. The Chinese vessel forced the American navy ship to make emergency manoeuvres in order to avoid a collision.

“Despite such reckless harassment, the United States Navy will continue to fly, sail and operate wherever international law allows and our national interests demand.

Friday 05 October 2018

FT

C002D5556

BUSINESS DAY

A7

ANALYSIS North Korea lashes out at US ahead of Pompeo summit Pyongyang reverts to tough talk despite Kim Jong Un’s effusive public attitude BRYAN HARRIS

Midterm elections: ‘Trump effect’ weighs on US economic boom Business in Minnesota is thriving but Republicans fear their president is a polarising influence in the state as poll nears SAM FLEMING

I

t may dismay relatives in his native Belgium, not to mention his wife’s family in Mexico, but Laurent Deconinck counts himself an enthusiast for the policies of Donald Trump.

The benefits, he says, walking across his factory floor in a northern suburb of Minneapolis-Saint Paul, are all around him.

Mr Trump’s tariffs on imports of steel and aluminium may be pushing up metals costs, but Mr Deconinck is passing that on to customers — clearly itemised in his invoices. Meanwhile investment write-offs encouraged by the Republicans’ tax cuts have freed up cash for spending on new kit to make metal components, he says, gesturing at a $300,000 machine he bought as a result.

And last year the prospect of a trade war with Beijing prompted a customer who sells knee braces for hobbled pets to ditch a Chinese supplier and shift the work to Mr Deconinck’s Minnesota factory.

“A lot of people don’t want to be associated with Trump because they don’t support the bad language and nastiness of what he is saying, but they do like the action,” he says, raising his voice over the din of the production floor of his company Machining Technology. Mr Trump is “trying something new”.

Americans go to the polls on November 6 in midterm elections that have the potential to make or break the Trump presidency.

Facing the threat of losing one or even both houses of Congress, which could open up a torrent of investigations into the Trump White House, the Republicans are counting on a booming economy to give them an edge with voters in places like Minneapolis.

Unemployment in the metropolis is 2.6 per cent, lower than in any other US urban area with a population of at least 1m people, and a far cry from the 8 per cent joblessness rate blighting the region during the financial crisis.

Yet as the president prepared to hold a rally in Minnesota on Thursday to galvanise his party, Republicans in the state were looking at the elections with anxiety.

Two incumbent Republican congressmen in the Minneapolis-Saint Paul suburbs are under threat. Republican gubernatorial candidate Jeff Johnson, who has enthusiastically embraced Mr Trump, trailed in a recent opinion poll behind Tim Walz of the Democratic-Farmer-Labor party — the Democrats’ Minnesota affiliate.

And Democrats are looking to make

inroads into the Republicans’ lead in the state legislature.

Simply put, the president’s message of economic resurgence may be resonating with business owners such as Mr Deconinck, but it is being drowned out in many parts of the state by the polarising influence of Mr Trump as well as highly charged issues including healthcare and the nomination of Brett Kavanaugh to the Supreme Court.

According to Real Clear Politics, the Democrats are 7.4 per cent ahead of the Republicans in the polls for the November Congressional election.

Recent polling from the Pew Research Center showed that, while interest in the midterms was strong among both parties, 67 per cent of Democratic voters across the US were more enthusiastic than usual about voting, outweighing the 59 per cent of Republicans. This is adding to the Democrats’ hopes of winning at least one of the two chambers of Congress.

“Let’s just say there are a lot of Democrats who would walk over a lot of hot coals to vote right now,” says RT Rybak, the former Democratic mayor of Minneapolis.

For many Republican candidates, the economy, surging stock markets and December’s tax cuts are the cornerstone of their bid to retain power in Washington and state capitals. Congressman Jason Lewis, for instance, who faces a tight battle for suburban voters against Angie Craig, a former healthcare technology executive, has been hammering home the bounty he says was unlocked by the tax-cutting package.

Mr Trump in June told a rally in the city of Duluth, near Minnesota’s Iron Range mining region, that wages were rising for the first time in 20 years and that no one had ever seen the kind of growth he was presiding over. Leaving aside the inaccuracies in his statements, the president had plenty of reason to tout the US expansion. Annualised growth across the country was at its quickest pace in four years in the second quarter, clocking in at 4 per cent, and the Federal Reserve forecasts that joblessness is set to plunge to a near-record low of 3.5 per cent next year.

While some manufacturers are being hurt by the president’s tariffs, Fed chairman Jay Powell said no damage is yet visible in the aggregate data. Indeed, manufacturing, a key sector for Minnesota, has added more than 7,400 jobs in the past year, and headcounts in construction are up by more than 6,800. Job vacancies, up 16 per cent year on year, have hit records.

Less qualified workers are beginning to feel more benefits. Hourly

wages for jobs aimed at candidates with a high school qualification are being advertised at a median rate of $14 an hour, up 15 per cent over the past two years, according to state government figures.

There are pockets of serious deprivation in the MinneapolisSaint Paul region, but businesses say the biggest constraint on their growth is a lack of candidates to fill vacant positions. Data from the state’s department of employment and economic development show there are two open posts available for every unemployed person in the metro area, leading to a frantic scramble for workers.

Jim Johnson, who runs two branches of recruitment agency Express Employment Professionals, says clients are easing back on criminal record checks and drug tests, as well as loosening requirements that candidates upgrade their wardrobes before starting a new post, because they are worried that creating barriers could deter applicants.

Lucas Nathan, a 22-year-old welder who recently moved from North Carolina, says he got his first job in the area on the basis of a single phone interview. In September he secured a new job in less than a week, having been offered positions by three of the four companies that interviewed him. Two of them tried to outbid the employer he opted for.

“I was very surprised by how easy it was,” he says, sitting in a local coffee outlet in Minneapolis.

“Welders are needed everywhere.

The economy is going up — a lot of people are building businesses.”

Yet Mr Nathan, who says he will probably vote Republican in November, does not appear to link the economic surge with the policies pushed through since Mr Trump’s election. Strikingly, the Pew polling from late September showed the Republicans and Democrats level pegging nationally in terms of voters’ views of the best party to run the economy.

While Republicans point to December’s tax reductions as they take credit for an economic rebound that began eight years ago under Barack Obama, some also privately acknowledge the success Democrats have had in branding the tax package as a giveaway to the rich and big companies.

Rhonda Sivarajah, the chair of the Board of Commissioners in Anoka County, which stretches north of Minneapolis, worries the strong economic backdrop could induce complacency among Republican voters at the midterms.

“If they feel ‘my life is great, the economy is doing great’, they don’t have that same energy level. They take it for granted,” she says.

N

orth Korea has lashed out at US sanctions as the regime again reverts to tough talk just days ahead of a crucial summit in Pyongyang.

Mike Pompeo, US secretary of state, is on Sunday due to meet North Korean leader Kim Jong Un, in a bid to restart denuclearisation talks, which have made little progress this year despite a series of high-profile summits among the leaders of Pyongyang, Seoul and Washington.

The visit to Pyongyang by the top US diplomat comes just

the DMZ Many analysts do not believe Mr Kim is sincere in any of his pledges to denuclearise. They point to the regime’s development of advanced weapons since a landmark summit with the US in June as evidence.

“The creation of the peace mood on the Korean peninsula due to Mr Moon’s summits with Mr Kim have neutralised the US’s tough negotiating strategy.

North Korea is now moving ahead with denuclearisation talks on their own terms,” said Kim Jin-moo, a professor of international relations at Sook-

Mike Pompeo, US secretary of state, is on Sunday due to meet North Korean leader Kim Jong Un in a bid to restart denuclearisation talks © Reuters

weeks after Mr Kim renewed his commitment to nuclear disarmament and pledged concrete concessions during a summit with South Korean President Moon Jae-in.

Since then, however, North Korea has once again returned to rhetorical broadsides, which highlight the gulf between Mr Kim’s effusive public attitude — including gushing letters sent to US President Donald Trump — and the hard line of his official government statements.

On Thursday, the North Korean newspaper Rodong Sinmun praised the dictator and slammed the US for its continued enforcement of international sanctions that have left the regime isolated from global trade and finance.

“The US is coming up with a thorny stick of maintaining or intensifying sanctions. How senseless and rude they are!” the state-run newspaper said.

“Sanctions are a major source of cause for our growing mistrust with the US.” The comments come days after Ri Yong Ho, North Korea’s foreign minister, blamed the US’s “coercive” sanctions policy for the diplomatic deadlock and said the nation would never denuclearise “without trust” in Washington.

The remarks are likely to contribute to concerns in the US that North Korea is manipulating Mr Trump by dragging out talks.

From flashpoint to peace park: Koreas eye new future for

myung Women’s University.

“North Korea seeks nuclear state status just like Pakistan and will drag its feet to exhaust the US.” During his meeting with Mr Moon last month, the North Korean leader doubled down on earlier pledges to denuclearise, vowing to permanently dismantle a key missile testing site and allow the process to be monitored by international inspectors.

He also said he would close North Korea’s sprawling Yongbyon nuclear complex if the US took “corresponding measures”.

However, he did not specify what those measures could be.

In addition to sanctions relief, North Korea has repeatedly demanded the US make a declaration ending the officially unfinished Korean war — a statement that would in theory provide the regime with a form of security guarantee.

The tough rhetoric from Pyongyang on Thursday contrasted with the positive overtures struck by Mr Pompeo, who said he was “optimistic” that this weekend’s meeting would result in “better understandings, deeper progress and a plan forward”.

He brushed off concerns about North Korea’s tough tone.

The summit in Pyongyang would be Mr Pompeo’s first since a diplomatic disaster in July when the regime accused Washington of “robber-like behaviour” in its demands for “unilateral denuclearisation”.

A8

BUSINESS DAY

Friday 05 October 2018

BUSINESS DAY

C002D5556

news you can trust I FRIDAY 05 october 2018

Opinion

In praise of economic history

I

congratulate my gentle readers on the occasion of the 58th anniversary of our independence which was celebrated last Monday. My condolences to the family of Squadron Leader Bello Mohamed BabaAri who died when two NAF F-7Ni aircrafts collided in air during rehearsals in Abuja on Friday 28 September.

Last Wednesday I appeared on the flagship NTA programme Good Morning Nigeria to review the economic history of our country since 1960. It set me thinking.

It is sad that our universities hardly teach economic history anymore. Once students are introduced to the basic methodology of econometrics à la Anna Koutstoyiannis, they go on a rampage subjecting anything and everything to Dynamic Stochastic General Equilibrium (DSGE) modelling. And they do it with total disregard to economic history. Things have been so bad that when the subprime crisis blew up in Wall Street in the summer of 2008 many traders were totally lost. Many had no

idea that there had been such similar crashes before, going back to 1929. If they had had such knowledge they would have had some basic notions of how financial actors and markets are likely to react under such conditions and they would have factored these into their risk mitigations.

Unfortunately, they behaved like ships that were lost at sea.

The study of economic history is extremely important, in my view. There is an entire new sub-field known as evolutionary economics, borrowed from the science of evolutionary biology. It posits that economic systems and institutions tend to evolve according to their prevailing path-dependencies and that understanding those path-dependencies is crucial to understanding how the economy works.

In this country, two of the greatest economic historians we have produced have been Olufemi Ekundare and Joseph Inikori. Professor Ekundare’s book, An Economic History of Nigeria 1860-1960 (Methuen 1973),

remains the standard text to this day. Nothing better has been added to the literature since he wrote that classic some 45 years ago.

Joseph Inikori was one of our most respected professors during my undergraduate days at Ahmadu Bello University, Zaria. He later immigrated to the United States where he is currently based at the University of Rochester, New York. Inikori is one of the leading authorities in the world on the economic history of the Atlantic slave trade, for which he has received several prestigious awards and fellowships.

During a visit to the London School of Economics and Political Science (LSE) in November 2008, Queen

‘

Elizabeth II was briefed by academics on the nature and roots of the financial crisis that seemed to have taken the economics profession by surprise. Her Majesty, who personally lost an estimated UK£25 million of her UK£320 million fortune, asked a simple question to which no one could proffer a credible answer: “Why did nobody notice it?”

One of the leading LSE economists, Luis Garicano, later confessed: “She was asking me if these things were so large how come everyone missed it”. Garicano tried to explain to the Queen in the best possible way he could: “At every stage, someone was relying on somebody else and everyone thought they were

The regime had no plan. They were only prepared for war and were startled when Goodluck Jonathan surrendered precipitately. Our country is now on the brink of self-immolation

,

HumanAngle Femi olugbile Physician, psycho-profiler and essayist

not a monochromatic work.

There is an authorial voice that manages to provide context for the unfolding events.

Ekenta helps the reader, even while following a horrendous event such as the infamous Asaba Massacre, to see not devils and saints, but flawed human beings in difficult situ-

A farewell to innocence

(A review of the book ‘While Dust Howled’ by Ifeanyi Ekenta)

I

t is often said that every human being has at least one story to tell.

Ifeanyi Ekenta is an economist and a chartered accountant who has been carrying his story around inside him for half a century. He has just succeeded in unburdening himself of it, in a book.

The author was born and raised in Kano. He was a carefree student in a secondary school there when The Nigerian Troubles came calling to disrupt the carefully laid out pattern of his life and take him and everyone around him on a trajectory they could never have anticipated.

‘While Dust Howled’ is Ekenta’s story, told through the eyes of a young protagonist – Amaechi. It is a powerful story, and a complex story.

It is the story of a nation called Nigeria, which wobbled, and even teetered on the brink of collapse. And it is the story of a project called Biafra, which sprang to life on the back of horrendous travails of some Nigerians. More than everything else, it is a story of the resilience of the human spirit – a spirit that is able to

endure the unendurable, to witness the unspeakable, to survive the un-survivable, and to emerge strengthened and reinvigorated from hell

‘

Part of the problem of the Nigerian present is that the country is yet to come to terms with its past. A vague effort at ‘Truth and Reconciliation’ in the form of the Oputa Panel degenerated into an avenue for grandstanding and stone-walling

,

fire. There are no heroes in the book, really. There are just human beings, seeking to make their way in a living drama, much of which is outside their control.

The title of the book – ‘While Dust Howled’ is something of an oxymoron. This is acknowledged by the author

himself.

‘Dust does not howl. But it did for four years, in Nigeria’.

‘While Dust Howled’ is written simply and without artistic pretensions. It is the honest portrayal of an author whose sole concern is to get his story out for posterity.

There are no elegant flourishes of language.

There have been many efforts to capture the story of the Nigerian Civil War, its antecedents and its aftermath, in the written word.

These include such works as General Alabi Isama’s ‘The Tragedy of Victory’, General Obasanjo’s ‘My Command’, Ben Gbulie’s ‘The Fall of Biafra’, and Chimamanda’s ‘Half of a yellow sun’.

The stories have been told from ‘Biafran’ and ‘Nigerian’ perspectives, depending on the author. Invariably each story is coloured by the author’s perspective.

The unique value in Mr. Ekenta’s book is that it is, from beginning to end, a human angle story, focusing on the life-changing events affecting a growing boy, his family and their associates. And yet, it is

ations taking faulty decisions that would sometimes end in disastrous consequences.

He is the first author who deems it fit to ask, and try to answer, the question ‘What happened before Asaba that put the attackers in a such a foul mood?’

The same instinct for ‘360-degree’ empathy makes him reveal with eye-witness certainty the story of another dramatic event in Kano after the first coup. ‘A madman

THE NEW WEALTH OF NATIONS doing the right thing”.

Well, as a matter of fact, there were a few contrarians who warned that things were not what they seemed. A young Indian economist at Chicago, Raghuram Rajan, had warned during a 2005 festschrift for outgoing Reserve Bank Chairman Alan Greenspan that things were about to unravel. In a paper titled, “Has Financial Development Made the World Riskier?” Rajan predicted that disaster loomed ahead if care was not taken. He endured an infamous put-down by former Treasury Secretary and ex-Harvard President Lawrence Summers who dismissed his warnings as “misguided”. For all his pains, Rajan later became a highly successful Governor of the Reserve Bank of India during 2013-2016.

Yet another economist who saw it coming was Nouriel Roubini of New York University’s Stern School of Business. Uncannily enough, it was in the same 2005 that he predicted that home prices were riding on a wave of specoutside the market’ began to make fun of the locals, mimicking politicians who had died at the hands of the soldiers. This drew amusement and open appreciation from nearby traders, most of whom were from the East. The anger of the locals boiled over and they moved to attack the man, but the traders rescued him.

The locals, incensed, went for reinforcement. The police moved in to nip a riot in the bud. It was a prelude to the horrific massacres that were to come.

‘Amaechi’ was born in 1948 to an Ibo policeman who worked in Kano. Soon after his birth, his father was transferred to Maiduguri. After a spell of home-schooling from his mother, he was admitted to a Mission Primary School in Kano. He would go on to Secondary School, still in Kano, several years later.

Things were already beginning to go awry in the Nigeria project. In the Police Force, Ameachi’s father found his less qualified Northern contemporary being promoted above him. A national census led to widespread controversy and rejection. There were murmurings among the local people about Nyamiri domination of positions in the civil service.

The first military coup came, then the second. Gangs of youths piled into the streets of the city, shouting ‘Araba’.

As the saga unfolds, the reader is brought face to face with the evolving Nigerian crisis. The chaos and killings spread to the Kano metropolis, despite the best efforts of the Emir to protect and reassure the Easterners in Sabon Gari. School was deserted, as children and their families fled the city and returned

Obadiah Mailafia 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) ulative bubble that would send them crashing disastrously. And in a September 2006 IMF position paper he elaborated on how the housing bubble would push Continues on page 39

East. Travelling conditions were horrendous.

There is a real-life story of one of ‘Amechi’s’ older friends – Nnamdi Ozobia, who was also ‘born and bred’ in Kano, riding on the steps of an overcrowded train to escape Kano and meet his relatives in Ibadan. He would fall from the steps, break his arm, and continue the ride anyway, bleeding profusely, his broken arm dangling uselessly by his side, till a sympathetic adult put him in hospital in Ilorin, where his broken arm was reset by a surgeon who himself was on the point of leaving the city.

His uncle would later send a vehicle for him from Ibadan.

He would survive to become a big name in the private sector in a post-war Nigeria, and to write the foreword to Ekenta’s book.

Indeed, at a chance encounter with Dr Ozobia recently, he would show the reviewer the scars on his head, as well as his broken arm. ‘I died that day. I’m living over-time’.

Amaechi’s story continued in the understated, matter of fact manner of its unfolding in the book. The war began to wind its way towards denouement and disillusion. The initial ‘success’ of the Mid West.

The radio talk of ‘Marching into Lagos’. Then the loss of the Midwest. The confusion in the minds of people at the killing of Colonel Banjo, who many had considered a hero.

The big cities began to fall, and families retreated to the countryside, amidst mounting hardsdhip. The rationalizations and repositioning as the end neared, and people realized life, and Nigeria, Continues on page 39

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Ghana office: Business Day Ghana Ltd; ABC Junction, near Guinness Ghana Limited, Achimota – Accra, Ghana.

Tel: +233243226596: email: mail@businessdayonline.com Advert Hotline: 08034743892. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.

WOMEN’S HUB Friday 05 October 2018

ELISHAMA

ROSEMARY IDEH for the love of her country

BUSINESS DAY

2 BUSINESS DAY

EDITOR’S NOTE

I

t is a new month and we are excited to be in October.

Happy Independence in arears to us all.

Our Cover Personality and Leading Woman for this week is the undaunted and truly inspiring Elishama Rosemary Ideh, whose passion for Nigeria led her to run for the office of the President.

Find out all she has to say. This is truly revealing.

Despite bringing in about $50bn to Nigeria’s economy annually, the event management industry is challenged with obstacles that hinder their efficiency. Find out more on this in this edition.

The Nigerian fashion industry is about to experience a new development as Plus size Fashion Week Africa promises diversity.

There are lessons to be learnt from Ford, Kavanaugh’s case. You will find this an interesting read.

There is also the write-up on how brands should market to Millennials in Nigeria.

These and more we have for your reading pleasure.

Enjoy!

KEMI AJUMOBI kemi@businessdayonline.com

Graphics by David Ogar

E

Friday 05 October 2018

lishama Rosemary Ideh was born in Lagos, Nigeria’s commercial capital in 1964. Her father was an officer in the Nigerian police, while her mother was a businesswoman. Both parents hailed from Ewohimi in Esan South East Local Government Area of Edo State, Nigeria.

She had her early education at the legendary Mayflower Primary School in Ikenne, Ogun State, and at the Federal Government Girls College (FGGC), Onitsha, Anambra State.

She thereafter left for the United States, where she enrolled at Bowie State College in Maryland for a degree course in Mass Communications.

On her return to Nigeria, she ventured into the challenging but exciting world of real estate. Armed with her American experience, her sagacity, and innovative business acumen were soon rewarded with outstanding success. She focused her trade on low-income traders and market people who ordinarily could not afford shops in upscale or medium-income locations. She later ventured into the oil and gas business, achieving further success in this very challenging sector as well.

In her quest to actualize her burden for social mobilization and empowerment, Ideh founded Christ the Ever-Present Ministry (CTEM) and the Elishama Ideh Ministries. Both are faith-based humanitarian organisations formed to support, strengthen and rehabilitate lives, especially among vulnerable groups such as widows, orphans and the destitute.

She was honoured with the award of an honorary Doctor of Mission degree by the Freedom Bible College of Holmes School of the Bible in the United States, as well as a Certificate from the International Executive Leadership Course (1-CEU 120) of the University of Sound Doctrine, also in the USA. Over the years, as her profile metamorphosed into that of a veritable voice for the voiceless, her concern for suffering humanity and her passion for empowerment has grown into a deeper concern for the state of her country as a whole, and a passionate desire for far-reaching and fundamental change in her nation. The contract of obligations, responsibilities, and rights between the government and the people, and especially the role of government providing for the people’s welfare and security, is one she feels has not been properly consummated – hence the need for the awakening of a new consciousness on the part of all stakeholders in the Nigerian enterprise in the quest for national rebirth.

To this end, Elishama Ideh set up the Partnership for a New Nigeria (PFANN) a social advocacy group aimed at promoting this rebirth by restructuring both the polity and it’s institutions on one hand, and the attitude of Nigerians (leaders and led alike) towards building a culture of patriotism and a stronger sense of civic duty on the other, not just to the society and the nation, but to neighbouring countries as well, especially to the less-privileged. Her decision to run for office of the President in 2019 is a bold move in a country where only few women would dare.

Earlier Years I grew up in a family of five children and I was the only girl. Well dotted upon by my parents and siblings. My late father was a police officer and my mum a business woman. My childhood years was growing up in a clean and green police barracks environment, nothing like what we see in this present day.

Nigeria at 58, anything to celebrate?

If we have to look at the present state of our Nation, the natural thing to say is that there is nothing to celebrate but we have to look beyond all that is happening and focus on love of the country, and celebrate the fact that despite all we are going through as a Nation, Nigeria is still standing; there are Nations that have not experienced 1/10th of what we have been through as a people and such nations are totally disintegrated and their social political stability has totally collapsed but that is not the case with us...that’s enough reason to celebrate and thank God and when we keep releasing such ‘spirit’ into the atmosphere, then hopefully we are held together as a people.

Why the decision to go into politics? Why the the office of the President?

My decision to go into politics came up by the reason of my work as an evangelist and witnessing first-hand the plight and suffering of the masses, taking care of a marginalized sector of our society like the homeless, displaced people, abandoned, widows, orphans, people who lived on the streets and others who the government should have made adequate provisions to take care of and rehabilitate because, the primary reason for governance is to take care of the security and the welfare of the people and there was a major void in our system concerning the fulfilment of the stated roles by the government. This void increased my passion for reformation of my land…Nigeria! I became a voice to the voiceless and through this burden to see a true change in our nation; I founded Partnership For A New Nigeria –PFANN, a socio-advocacy group committed to awakening the consciousness of all Nigerians towards engendering the birth of a NEW NIGERIA and the realization of God’s Agenda for Nigeria. I decided to run for the office of the president because I realized that the great problem plaguing our nation is that of bad leadership. For there to be a major change in the way the affairs of our nation is being discharged, we need a transformational leader and for that leader to be able to cause a shift in the present status quo, it has to be through the executive power of

Friday 05 October 2018

Leading Woman

good people from coming into the terrain so they can continue to have a filled day of ‘raping’ Nigeria but if we don’t give up and we keep pressing in, then there is hope for the average Nigerian in the near future.

The saying ‘The youths are the hope of tomorrow’. How feasible is this in the present day reality?

Yes...that saying still stands true but the youths themselves have to rise up to fight to take their future back from the people that are holding unto it, it will not be given to them on a platter of gold. The people holding it won’t it give up without a fight.

You recently stepped down for Fela Durotoye, why this decision? What next going forward?

I got involved in PACT(Presidential Aspirants Coming Together)which was a very laudable idea for us all to come together to pick one candidate amongst us so we can collectively push that person instead of running all over the place thereby scattering our votes making it so easy for the opposition that we are trying to push out come back unopposed. A lot of the aspirants fell off the table of agreement along the way but I gave my word in a public declaration and I had to honour that word because Fela Durotoye was elected as the consensus candidate so I could not run against him in our party again for the flag bearer of the party.

How many times have you contested? Will you run again?

This is my very first time and yes I will run again if the mandate I am pursuing is nowhere visible in governance.

What future do you see for Nigeria? What do you hope for?

I see a future in the new faces that are showing up in the political terrain, the ones that have the love of the country and the sincerity of seeing the birth of A New Nigeria emerge. If they are given the chance in governance, then there will be a shift over our nation and Nigeria can rise out of her abyss of hopelessness at this hour. I hope to see a New Nigeria where basic amenities are put in place and it works. Amenities like light, food, health care, education, good roads, clean water, security and affordable housing.

Challenges experienced in participating in politics in Nigeria?

Gender bias and money playing major ‘roles’ in politics

To every woman or young lady out there, what advice do you have for them?

Aim high, don’t be limited because of gender, be all God has created you to be.

Final words Nigeria belongs to all of us, we cannot sit on the fence and watch Nigeria disintegrate. We must all rise to our civic responsibility to salvage her by making sure we use our votes right in this season. Your vote is your life, whoever you give it to will determine the quality of life you will have in the next 4-8 years as a Nigerian.

ELISHAMA ROSEMARY IDEH For the love of her country

KEMI AJUMOBI

the president backed up with the power of the constitution, that is why I am running for the office of the president and again beyond that, Nigeria needs an equal representation of Women in governance for there to be a balance in building a very healthy nation.

Are there enough women in active politics? What in your view is responsible for this? What is the solution?

No there are not enough women. We have a society that is pre-dominantly patriarchal and also very gender biased, where the women have been programmed into a mind-set that they cannot aspire beyond a certain limit. Also, politics in this clime is very dangerous and it is all about money. These issues have really boxed women into a corner. The solution is that women should be encouraged to step out boldly, rise up to support aspiring women and not further castigate them because it takes a lot of boldness and courage for any woman to rise up in our society to say they want to run for any public office...that effrontery doesn’t come cheap at all, such women should be cheered on, supported and applauded at every level.

Do you foresee a day where a woman will be at the helm of affairs in this nation?

Of course, I see it in the very near future if someone like me came into the terrain and I ‘broke the ground’, then I believe the future is set for women in Nigeria.

With the way ‘democracy’ is being practised in Nigeria today, where is the hope of the average citizen?

The hope of the average citizen looks deem but we cannot give up because the intention of the political class is to scare

WOMEN’S HUB 7

3

BUSINESS DAY

Friday 05 October 2018

Do Do you you know know the the event event management management industry industry contributes contributes over over $50bn $50bn to to Nigeria’s Nigeria’s economy economy annually? annually?

Stories by DESMOND OKON

E

vents have become an essential part of human existence, no doubts. In this time, the evolution of the event industry has given rise to a trend of social ratings based on the kind of events one is able to pull off, and this, has also led to people having some sentimental attachment to events –whether corporate or social, it has to be ‘lit’ or a talk-of-the-state event because your social status depends

on it.

But what happens when you have to postpone that dinner or cocktail event because your event planner is grappling with clearing the materials needed to beautify it with the Nigerian Customs?

Apart from its sometimes unorganised nature, (which has always been an issue) the challenge the Event Planning industry is facing majorly, is customs and clearing, as players find it tough getting materials into the country, said Christine Ogbeh, founder Quorum West Africa, The Wedding Guru and The Wedding Mall, in an interview with Women’s Hub.

“Customs and clearing is one of our major challenges in the industry. We have serious limitations getting things into the country”, she reiterates.

Also finding the right staff with the right attitude, hardworking, well trained and ready to do the work poses another strong challenge, according to her.

But despite the stumbling blocks, her evaluation of the industry stemming from her long stay in it, was punctuated by positive remarks. She also expressed hopes that the industry would get to a point of competing with other countries.

“The Nigerian event industry has really evolved in the last couple of years. There are amazing event planners and designers out in Nigeria, and you can see from their work on social media –how everybody is just trying to push themselves and push beyond their current boundaries, and that’s what we would like the industry to grow into.

We want to be able to compete with other markets like the Middle East and America as well. We want to have our designs emerging from Africa, our own specific look, so that we are also on the events map of the world as Nigerians”, she said.

But to achieve this, “Some form of standardisation has to be enforced”, Ogbeh said. “I think what the Association of Professional Party Organisers and Event Managers of Nigeria, APPOEMN is doing now, getting all the event professionals registered on some form of body that provides that kind of backing, is a good move. So we would expect this sort of association to get people within this industry registered so that they are working at specific standards that can compete with the world,” she adds.

Early this year, APPOEMN said at the unveiling of its annual conference (which held last month) that professionals in the event management industry contribute over 50 billion US Dollars to Nigeria’s economy annually.

According to its Public Relations Director, Bose Abisagboola, the industry has continued to contribute to Nigeria’s economy directly as well as provide employment for Nigerians, who can be gainfully employed in different fields of the economy. This further shows that the event industry is a significant factor in boosting Nigeria’s economy.

However, Ogbeh advised starters to work very hard because it’s not a situation of getting rich overnight because a lot of people feel that the event industry has a lot of money. “You need to put in the work, stay ahead of the game, and constantly distinguish yourself to stay ahead of the game,” she said.

Plus-size Fashion Week Africa promises diversity T

he organisers of the Plus-size Fashion Week Africa, PFWAfrica, have said that lovers of fashion should look out for diversity at this years’ fashion show coming up in November 3 and 4, as plans are afoot for plus-size models of different kinds, skin colour, race to walk the run way.

The founders of PFWAfrica, Temi Aboderin-Alao and Wilson Alao made this known to journalists at a media chat, on Thursday, the 27th of September.

This promise of diversity is the distinguishing factor from previous editions, because “we are going to see different kind of models this time. It’s not strictly a certain kind of model you are expecting to see everything time, but this time, we are going in to make sure that we have diversity on skin, diversity in country, diversity in race and on the run way. And also we are making sure of having more from neighbouring African countries to come on board. We have some already on ground, and we have some from the UK and the US who are also going to be showcasing,” Wilson Alao, MD, and co-founder, PFWAfrica.

The fashion show will hold at Oriental Hotel, Lagos, and it will run with the theme “Beautifully Me” which aligns with the intention to promote the beauty and curves of the African thick and ‘bold’ woman, encourage her to feel beautiful, confident and comfortable in their own skin.

“This year’s theme is ‘Beautifully Me’ so what we are expecting is see designers to showcase that beauty, and also our exhibitors as well, they should bring in beautiful pieces, beautifully crafted for the curvy and plus size lady”, Aboderin-Alao stated while explaining her motivation for theme.

Plus-size Fashion Week Africa is an international standard platform that focuses on plus size industry, and caters for the needs of plus-size designers and plus-size models in order to get more jobs also and to get more exposure with the designers’ outfit on the runway.

Speaking about the idea to celebrate plus-size women and designers through fashion, and to popularize an aspect of the industry that has been overlooked for years, Adoderin-Alao said she realized there was a level of hostility towards the plus size brands while on the journey.

“We would be at shows and people will say ‘can these models walk?’, ‘they are going to fall’ or ‘you are promoting obesity’ and all kinds of negative things were said. But things have changed so drastically and I’m grateful to God for that,” she said with a

mirth that validates the huddles she’s crossed to get here.

In addition, it was learnt that there will be two runway showcases –“one in the afternoon and one in the evening”. Also, to further encourage pachydermous women to be positive about their form, and dispel criticisms that the show promotes obesity, there will be a master class on the 4th of November “where we’ll be talking about body positivity, mental health, and startup business”, Aboderin-Alao told newsmen.

Reacting to concerns about the age range of models and the process of selection, Wilson Aloa said models will be from the age of 16 to 25, and because he realized Nigerians have a knack for boycotting rules, they (the models) will go through two stages of rigorous auditions that will test their ability to work with their agency, Golden Curvy. “And if you can’t follow our rules (called the ‘Holy Grail’) you can’t work with us”, he said. “So on our runway this year, you have to pass through all the trainings that the Golden Curvy models are passing thorough,” he adds.

This year’s show will feature the AfricanNextPlussizeModel competition where the winner will get an international deal with an agency to be revealed during the event.

The members of the panel at the press conference included Yetty Ogunnubi head publicist and CEO.YD Agency, Olubukola Akanbi, PFWAFRICA Project Coordinator, Dumebi Agbakoba, award-winning Chef, Feyi Luther, Chef, Immaculate Dache, music ariste/influencer, Nkechi Blessing, actress, Monalisa Stephen actress, Mor Okonwo, music artiste, and Modavi Couture boss.

4

BUSINESS DAY

Friday 05 October 2018

WOMEN’S HUB

Friday 05 October 2018

5 WOMEN’S HUB

In telling stories like The Boomerang, sexual abuse can be checked KEMI AJUMOBI

T

Challenges facing Nigeria’s Digital Technology Adoption MOMOH-ONIMISI-EBENEZER

I

n less than 20 years of Larry page and Sergey Brin breakthrough innovation of the Google, were in danger of turning the fictitious global connectivity into a reality; with internet connectivity soaring above global population index and internet accessibility easier than access to good toilet. While much has changed, what are the road blocks to Nigeria’s adoption of digital technology especially with global forecast pegged at 50% of global economy?

Telecommunication effectiveness With Nigeria’s 63 million internet users representing arguably the greatest market potential within Africa, effective and reliable internet access will not only propel business innovation but also reduce the cost through the use of cloud based applications. Take a look at the Chinese e-commerce giant “ Alibaba “ whose network based transaction has further fueled its dominant market share allowing market penetration and placing it at 7th most valuable company globally.

Cisco survey further explains that 89% of Chinese respondent use internet shopping apps on smart phones not less than once on a weekly basis against 40% globally triggering 1.1 million dollars in GDP of Chinese economy.

An effective blend of broadband access coupled with effective and reliable internet connectivity will also go a long way in fast tracking business productivity and thereby promote digitalized business behavior which in reality is the bone of future economy.

Digital adoption through education Ensuring that rising generations have the right skill

through the adoption of well-organized technology based curriculum can further advance knowledge pool and promote critical thinking, creativity and digital literacy. Emerging ideas from the 3d modeling to the dizzying pace of artificial intelligence calls for modification of school curriculums in accordance with modern global best practices. Better welfare and financial incentives for foreign based expatiates can be adopted in creating knowledge base of instructors who can further digitalize technological advancement. Especially with digital technology affecting global economy by almost 50%.

Effective electricity supply A recurring decimal in Nigeria’s economic backwardness has also been poor electricity supply which in recent years has fueled the exodus of large scale firm to neighbouring nations with adequate power supply. Going by the much publicized 1580MW of electricity is to go by; developing alternative energy source and decentralization of electricity supply may just be the antidote to Nigeria’s age long head ache. Following the footsteps of nations like America with coal-39%, natural gas-27%, hydro-19% other sources7%. Another flag ship for effective digital technology integration for business is cyber security and digital safety. The world cyber threat map ranks Nigeria in 16th position of countries with high cyber security risk. This however acts as a chick in the armour of business owner and repels easy adoption of digital banking mechanism which are fast becoming norms. However sanctions on intellectual property theft and cybercrimes through the adoption of individualized online identity password can ease fraud and help track down excess online fraud.

The listed policy imperative is to propel ideas, strategic guidance and innovations which can be adopted if Nigeria hopes to join the global league of digital frontiers.

here is hardly a day that goes by without hearing cases of sexual abuse in Nigeria especially with minors. As sad as it is, there are those who are still perpetuating this wicked act and are walking around freely like nothing can be done to them. I read recently of a man who had been molesting his two daughters and even when they told their mum, she was living in denial and by the time she found out, the children had been battered beyond measure.

Child sexual abuse is an offence under several sections of chapter 21 of the Nigeria’s criminal code. The age of consent is 18 but sadly, some 18 year olds are also victims of molestation so even adulthood doesn’t necessarily guarantee respect of choices, choices like “NO! Don’t touch me” doesn’t make sense to a desperate predator seeking young girls/boys they can suppress to their demands because they are stronger.

UNICEF reported in 2015 that one in four girls and one in ten boys in Nigeria had experienced sexual violence before the age of 18. According to a survey by Positive Action for Treatment Access, over 31.4 percent of girls there said that their first sexual encounter had been rape or forced sex of some kind.

Issues like these are reasons why Oluwaseun Adejumobi, a film maker recently produced a movie titled The Boomerang. A movie that addresses the ordeal of the sexually abused, “the movie comes

with a message of healing and restoration to the victims” he tells me and adds “it is my social campaign against Rape cases and I will love to show it in various places to create more awareness”.

In The Boomerang, a molested girl child whose voice and confidence had been taken away from her as a result of the traumatic experience of sexual assault and molestation was brought to the fore.

“It is no gain saying that we have a lot of such promising young girls in our society whose hope and aspiration in life appear to have been dashed. Interestingly, the movie comes with a soothing message of healing, hope and restoration.” He reiterates.

According to Adejumobi, “our plan is to premiere the movie in various places whilst counsellors, Psychologists and medical personnels who will be fully on ground will attend to persons that might have had such similar debilitating experiences in time past and are looking forward to restoration. As stated earlier, the essence of this is to restore and reignite the hope of glory in them and set them on the right pedestal of life and purpose again.”

Faced with challenges like lack of partnership, inability to reach a larger audience and most especially funding, Adejumobi says going to more places to show the movie and enlighten the public on child molestation has been daunting but he however remains optimistic that he will be supported to show the movie in more locations by organisations and even the government to take this message around Nigeria and beyond.

Lessons from Ford, Kavanaugh’s case DESMOND OKON

C

urrently married to Russell Ford with two children, Christine Blasey Ford is a Professor of Psychology at Palo Alto University and a Research Psychologist at the Stanford University School of Medicine. She was an undergraduate at the University of North Carolina and earned her degree in Experimental Psychology in 1988. She later went on to acquire more degrees.

Growing in the sub-burbs of Washington, D.C., Ford attended an all-girls school, the Holton-Arms School in Bethesda, Maryland, from 1980 to 1984. While as a teenager she had engaged in some frivolous social activities which altered Ford’s life, and is now about to toast Brett Kavanaugh’s career as a US attorney.

“During my time at the school, girls at Holton-Arms frequently met and became friendly with boys from all-boys schools in the area, including Landon School, Georgetown Prep, (Kavanaugh’s school at the time) Gonzaga High School, country clubs, and other places where kids and their families socialized. This is how I met Brett Kavanaugh, the boy who sexually assaulted me,” she told the Senate Judiciary Committee how she met Kavanaugh.

Ford claims to have been sexually abused by Kavanaugh 36 years ago, but had kept the details of her experience a secret while managing the emotional damage it had on her for those years, until recently.

Getting wind of Kavanaugh’s appointment to the US Supreme Court, by Trump, she came out to tell the world of her experience, accusing Kavanaugh of sexually abusing her when they were teenagers. “…Brett and Mark were visibly drunk. Early in the evening, I went up a narrow set of stairs leading from the living room to a second floor to use the bathroom. When I got to the top of the stairs, I was pushed from behind into a bedroom. I couldn’t see who pushed me. Brett and Mark came into the bedroom and locked the door behind them.

There was music already playing in the bedroom. It was turned up louder by either Brett or Mark once we were in the room. I was pushed onto the bed and Brett got on top of me. He began running his hands over my body and grinding his hips into me. I yelled, hoping someone downstairs might hear me, and tried to get away from him, but his weight was heavy. Brett groped me and tried to take off my clothes.

He had a hard time because he was so drunk, and because I was wearing a one-piece bathing suit under my clothes. I believed he was going to rape me. I tried to yell for help. When I did, Brett put his hand over my mouth to stop me from screaming. This was what terrified me the most, and has had the most lasting impact on my life….,” she said.

On why she came out with the allegation at this time, and whether there are political motivations behind it, she said “No.... and I’d like to reiterate again.” “I was trying to get the information to you while there were still others that looked like equally qualified candidates (for the appointment)” she said.

Although her very long testimony elicited lacrimation from many US citizens, she is currently having a hard time convincing the Senate Judiciary Committee of the veracity of her story, and its accuracy 36 years after, because some think her testimony could have sprung from a case of “mistaken identity”.

But she still believes that Kavanaugh tried to rape her that evening at the party. As the story unfolds, we patiently wait for the committee’s verdict.

There are however some lessons here that we can draw from.

First is that, teenagers, especially young women should learn to talk about their experiences. Although, with civilization being aggressively embraced, parenting has evolved, and the time for sitat-home ‘motherhood’ gone, parents should create time for their teenagers, and encourage them to talk about their experiences, no matter the nature.

Secondly, women generally should learn to speak up about abusive acts against them.

WOMEN’S HUB

6 BUSINESS DAY

M

How Brands Should Market To Millennials In Nigeria

A

s Nigeria recently clocked 58, even with an obviously low-key and gloomy Independence Day celebration due to the downtrend of the nation’s economic and social life, there has been more outcries that women should be given opportunities to handle the helm of affairs of the country, considering the fact that women given the chance, would perform better than their male counterparts.

This was the view of Appolus Chu, the Egbere Emere Okori Eleme, Rivers State, who chaired a women’s summit recently in Abuja.

According to the organisers, the summit was a deliberate women agenda to ensure a greater representation and participation of women at all levels of governance.

Subtlety tagged, “Increasing Women Participation in Nigeria Democratic Process”, the summit held in Federal Capital Territory, was organised by the National Centre for Women Development (NCWD), National Council for Women Societies and Women in Politics Forum in Collaboration with the Office of the Wife of the President.

Chu who applauded the role and contributions of women to the development of the society, describing them as effective managers who need to be encouraged, charged the women to be confident in themselves and learn to support one another.

“You would agree with me that women are leading and are doing extremely well in various organisations and in whatever portfolio they are given. Nigerian women are not known for sabotaging government efforts, they are diligent managers and we have seen that mostly from those occupying ministerial positions and other top offices across the federation. One advice I will give to you is to learn to support each other knowing that the men are your major competitors. The energy you would have used to campaign for a man, use it to support your fellow women”, the royal father noted.

The summit which is geared towards strategising means to strengthen women participation in politics and encourage gender equality had in attendance President Muhammadu Buhari and his wife, Aisha Muhammadu Buhari.

Chu was quick to applaud President Muhammadu Buhari and his wife for their contribution and support to women generally while also commending the President’s anti-corruption crusade.

He advised the men not to use their strength to dominate the

illennials (18-35yr olds) are a savvy and demanding bunch, often ruthless in destroying all preconceived notions brands have about them and quick to dissociate and call out the brands that are bringing less than their A-game to the market. What is however not in doubt is that in exchange for their attention and loyalty, Millennials expect to be entertained and the brands that can cleverly weave entertainment into their marketing communication in a genuine way will likely record greater acceptance from Millennials.

PEER-TO-PEER MARKETING Getting through to Millennials through their passion points is an effective way of reaching out, however, this shouldn’t be the only thoroughfare to reaching younger audiences. Today, Nigerian brands are all about music, dance and talent shows and Millennials are, quite frankly saturated by the onslaught of media hype around these passion areas. The average young Nigerian is well versed in digital and social media and there is an overwhelming need to be authentic and real in our marketing, in the same vein Millennials are quick to spot fake wanna be cool brands, who are looking for that occasional cheap high, without the corresponding value, authenticity and knowledge that is required to market to Millennials in the digital age.

THE MILLENNIAL SOCIAL MEDIA WARRIOR That the average young Nigerian is social media savvy is no story at all, however, what makes for a good story is that brands are still clueless on how to reach and engage with young audiences online. Every brand understands the need for a comprehensive social media strategy, but almost all brands pay lip service to this. Developing a social media strategy that influences your social media activities is the first step to reaching out to the target millennial audience.

EARNING THEIR ATTENTION Let them come to you, by creating content that is valuable, fun and entertaining you enjoy the attention of Millennials who crave to be entertained. Also Millennials are notorious for sharing content they find entertaining or informative, hence keep in mind that this demography is the reason why stuff goes viral on the Internet.

GET CREATIVE Using football news and content as bait isn’t a sustainable content strategy for social media, if your brand isn’t a sports brand, then think about using football or other sport related news sparingly. Instead, think creatively to come up with interesting areas that will get your followers engaged.

VISUAL STORYTELLING Millennials have notoriously short attention spans; a good content strategy to attract Millennials would have to invest in strong visuals to tell your brand story, use inspiration of real people using your product to emotionally connect with Millennials.

MEETING MILLENNIALS ON MOBILE 85% of millennials use their mobile phones to access the Internet; there also is a growing number of millennials using smartphones. Research indicates that by 2020, 4 in every 5 mobile phone will be a smartphone. How does mobile affect a brand’s long-term strategy to attract millennials? We have already heard that mobile is the future, apparently that future might be closer than we all- think it is. Whether it is planning an integrated marketing campaign across various customer touch points or developing a mobile marketing strategy that may include mobile applications or SMS marketing, the key to getting success with millennial marketing is to understand the various devices that Millennials use and then develop all platforms to suit these devices.

– Amplify Digital

Nigeria at 58: More women needed in politics IFEOMA OKEKE women while also tasking various political parties to accommodate women in their planning, so as to give space for the women to rule.

Present at the event were wives of governors, political party leaders, female political aspirants from the 36 states and other concern citizens.

One of the participants, Janet Febisola Adeyemi, a member of the Nigerian Society of Engineers and a fellow of the Geological Society of Nigeria, who has shown interest in running for Senate having notably served in Nigeria National House of Representative at several points, said,. “One of the critical points is that Nigeria cannot continue to slide down the robe. The National Assembly is supposed to be a place for making good laws. We need to revise our laws in Nigeria and make adaptable to the development of our country.”

Another woman, Roseline Ada Chenge, a female governorship aspirant in Benue State who has had unsuccessful attempts at politics in the past but has still not given up hope shared her bitter experience. “It has been pains all through.

We are grateful our Excellency is here today to hear us. I am re-contesting and this is my third time. I am so encouraged because I know that this time around, our pains will not be in vain.” She said.

BUSINESS DAY

Friday 05 October 2018

WOMEN’S HUB

Quotes on Nigeria Nigeria’s unity is one for which enough blood has been spilled and many hundreds of thousands of lives have been lost.

Many have paid for the unity of this country with their lives, and it will be wrong of us, as men and women of goodwill in this generation, to toy with those sacrifices that have been made.

-Prof. Yemi Osinbajo, Vice President of The Federal Republic of Nigeria

SOME FACTS ABOUT NIGERIA 1, The GDP of Nigeria is $481.1 billion 2, The nominal GDP per capita is $5,900.

3, There are over 250 ethnic groups that live throughout Nigeria.

4, While English is the official language, there are over 500 indigenous languages in Nigeria.

5, Seven per cent of the total languages spoken in the world are spoken in Nigeria.

6, Nigeria has a federal presidential republic government.

7, Nigerians must be at least 18 years old to vote.

8, Lagos is the most populous city in Nigeria.

9, Nigeria is the most populous country in Africa, and it is the 17th most populous city in the world.

10, Football is one of the Nigeria’s most popular sports. Its national team has won the Africa Cup of Nations a total of three times.

11, The religion practised includes Islam, Christianity and traditional 12, In terms of size, Nigeria is about double the size of the state of California.

13, Nigeria is rich in cultural heritage 14, Nigerians operate on what has become known as “African time.” This means that they are rarely on time. Sometimes, the more high class a person is, the later they sometimes show up.

15, Like other African countries, the left hand is considered dirty by Nigerians. It is in poor taste to eat, shake hands, or pass or receive items with the left hand.

16, The country is the 7th largest democracy in the world.

17, Oil accounts for over 70% of the country’s exports.

18, The Niger River, which spans 2,600 miles, is the third largest river in West Africa.

19, Speaking of the Niger River, it was the inspiration behind Nigeria’s name.

20, Nigeria’s movie industry is known as “Nollywood” and it is the second largest movie industry in the world.

21, The life expectancy on average is 52 years, one of the lowest in the world. This is primarily due to poor healthcare, a lack of clean water, and poor living conditions.

22, The city of Abuja was built in the 1980s and eventually replaced Lagos as the capital 23, Nigeria’s Third Mainland Bridge is the largest bridge in Africa 24, Nigeria is the 12th largest producer of crude oil, pushing out over 2.5 million barrels per day.

25, The nominal GDP of Nigeria is the 2nd largest in Africa.

26, The country’s cash crops include cocoa, wheat, peanuts, and cotton.

27, Nigeria is divided into 36 states.

28, The country’s cash crops include cocoa, wheat, peanuts, and cotton.

29, Nigeria’s population is estimated to reach 444 million by the year 2050.

30, Africa’s oldest boat and the third oldest boat in the world, was discovered in Yobe. The Dufana Canoe is over 6,500 years old.

31, Over 4,700 species of plants grow in Nigeria.

32, Nigeria’s nickname is “Giant of Africa” because of the size of its land and the diversity of its people.

33, The Niger Delta located in Nigeria is the third largest delta in the world.

Nigeria has had the misfortune - no, the fortune - of seeing the worst face of capitalism anywhere in Africa. The masses have seen it, they are disgusted, and they want an alternative.

-Professor, Wole Soyinka

I think one of the things that I picked up from Nigeria is the constant pressure to be excellent. Parents drill in this responsibility towards family, but also a responsibility toward making sure your family name is heralded.

-Jidenna

I consider myself a man of the world; I connect very strongly with Nigeria, but I see that the work exists all over the world, and I will go where the work is.

-Nonso Anozie

I’m not a propaganda machine.

I tell things how I see them.

When I say, for example, that corruption is not the only thing the West should think about when they think about Nigeria, I’m not saying it doesn’t exist but that people have the complete wrong focus. There’s music, there’s art, there’s culture.

-Uzodinma Iweala

Well, Nigeria has played a constructive role in peacekeeping in various parts of West Africa. But unless and until Nigeria itself is democratic and respects human rights, it too may well be a source of much greater instability as political repression limits the ability of the people of Nigeria to achieve their full potential.

-Susan Rice