BusinessDay 06 Aug 2019

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Nigeria records mixed success since FX restriction on 43 items ODINAKA ANUDU & CALEB OJEWALE

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he story of Grif, Federated Steel, Universal Steel and other wheelbarrow and aluminium drum manufacturers should serve as a lesson to Nigerian monetary and fiscal policy authorities.

These companies had been known for producing aluminium drums and wheelbarrows in Nigeria over the years, employing

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Inside AMCON: The last big push before sunset P. 41

L-R: Samuel Chidoka, director of treasury, AIHN; Ike Chioke, 1st vice president, AIHN; Olakunle Alake, representative of Aliko Dangote, recipient of the Capital Markets Titan Award; Mary Uduk, Ag. DG of SEC, and representative of the special guest of honour/vice president of Nigeria; Chuka Eseka, president, AIHN; Abubakar Sanni Bello, governor, Niger State/guest of honour; Gboyega Soyanwo, representative of the Lagos State governor; Olawale Edun, recipient of the Lifetime Achievement Award; Babatunde Obaniyi, director of publicity, AIHN; Oyinda Akinyemi, director of finance, AIHN, and Kayode Akinkugbe, 2nd vice president, AIHN, at the 2nd annual dinner and awards night of the Association of Issuing Houses of Nigeria (“AIHN”) in Lagos.

Nigerians dare security agencies to hold #RevolutionNow protests

…9 arrested in Lagos, journalists arrested in Calabar …DSS storms Observer Newspaper’s premises in Benin …protesters vow to continue today JOSHUA BASSEY, Lagos, IDRIS UMAR MOMOH, CHURCHILL OKORO, Benin, INNOCENT ODOH, Abuja, REMI FEYISIPO, Ibadan, & MIKE ABANG, Calabar

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he ‘RevolutionNow’ protests planned for Monday were disrupted nationwide by the operatives of the

Nigerian Army, Department of State Security (DSS) and Nigeria Police Force (NPF) who fired teargas canisters as well as

deployed Amoured Personnel Carriers to strategic areas where the protesters planned to gather and mobilise themselves. But in

spite of the security presence, the protests still held in some parts of the country.

In Abuja, amid heavy police presence to stop the proposed protests, residents defied the

early morning heavy downpour to protest against “oppression and bad governance” in the country, even as they demanded

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Tuesday 06 August 2019

BUSINESS DAY

news ABC Orjiako rakes in N1.8bn from sale of 3.5m Seplat shares IHEANYI NWACHUKWU & OLUFIKAYO OWOEYE

B L-R: Debo Fagbami, chairman, Society of Petroleum Engineers (SPE) Nigeria; Mele Kolo Kyari, GMD, NNPC; Folashade Yemi Esan, permanent secretary, Ministry of Petroleum Resources, and Sami Alnuaim, international president of SPE, at the official opening of the SPE Nigeria annual international conference and exhibition (NAICE) 2019 in Lagos.

Pic by Pius Okeosisi

Fresh threat for Nigeria’s revenue as US-China trade war intensifies

…China devalues Yuan, continues to buy Iranian oil ...halts import of US agric products ...opportunities open for Nigerian soybeans DIPO OLADEHINDE & MICHAEL ANI

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igeria’s revenue projections may be facing a fresh threat as the trade war between the United States and China gets fiercer.

The intensifying trade war could see oil price sink to as low as $30, Bank of America Merrill Lynch warned on Monday.

In its 2019 budget, Nigeria projected oil to sell at an average price of $60 and national production was projected to grow to 2.3 million barrels.

The proposed Federal Government budget estimates N6.97 trillion revenue for the 2019 fiscal year. The oil sector is expected to contribute around N3.73 trillion, while N710 billion will come from

the proceeds of government equity in Joint Ventures.

But the Bank of America Merrill Lynch, an American multinational investment bank, noted that a further deterioration in relations between the US and China could set off a chain of events that would push oil down more than 50 percent to as low as $30.

“While we retain our $60 a barrel Brent forecast for next year, we admit that a Chinese decision to reinitiate Iran crude purchases could send oil prices into a tailspin,” a Bank of America Merrill Lynch Global Research report said, warning that prices could sink by as much as $20-30 a barrel in that scenario.

The US and China, two

world superpowers, account for about 34 percent of the global crude oil. The commodity also accounts for 2/3 of Nigeria’s revenue and nearly all of foreign exchange earnings.

China, the single largest buyer of Iranian crude oil before the US sanctions hit the Islamic Republic’s oil exports, continues to import oil from Iran despite the ‘zero exports’ maximum pressure campaign of the United States. China has said that it wouldn’t comply with the US sanctions on Iranian exports.

According to sources, China and other countries are receiving oil shipments from a larger number of Iranian tankers than was previously known, defying sanctions imposed by the

United States to choke off Tehran’s main source of income.

International Brent crude oil stood at $60.53 per barrel by 3pm Nigeria time on Monday, indicating there is nothing in excess of Nigeria’s 2019 budget benchmark.

When oil prices found a floor around $40 in the first quarter of 2016, the Nigerian economy slid into a recession and the Central Bank of Nigeria (CBN) began restricting scarce forex for what it considers important items and began to artificially prop the naira to maintain exchange rate stability. The long-term effect of these controls is an

•Continues online at www.businessday.ng

FG/Siemens power deal alone is no fix for Nigeria’s broken electricity market ISAAC ANYAOGU

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h e d e a l Ni g e r i a signed with Siemens, a leading German power solutions provider, last month could double Nigeria’s current installed generation output of around 12,000MW after 2023 and improve distribution and transmission assets.

Siemens will build new power plants and try to resolve gas constraints to existing power plants by seeking to tap into the AKK pipeline for fuel supply so abandoned turbines can be restarted, according to the agreement.

BusinessDay analysis of the comprehensive plan, however, shows the deal will fall short of fixing the broken electricity market.

A copy of the Technical and

Commercial proposal of the Electrification Roadmap for Nigeria prepared by Siemens, obtained by BusinessDay, reads like a catalogue of technical hardware.

The proposal is premised on fixing broken transmission and distribution infrastructure necessary to allow free flow of electricity along transmission lines, including rehabilitating defective connections of key substations to the existing control centre in order to improve the operation of the transmission network.

The plan is divided in three phases. The first phase focuses on improvements that are visible, have immediate benefits, and can be delivered quickly after the project begins. It involves measures to increase the system’s endwww.businessday.ng

to-end operational capacity from around 5GW currently to 7GW by fixing 132/33Kv interface between the Transmission Company of Nigeria (TCN) and distribution utilities in 15 locations, including Lagos, Abuja, Port Harcourt, and Cross River.

The second phase targets remaining network bottlenecks to enable full use of existing generation and “last mile” distribution capacities, bringing the system’s operational capacity to 11GW, while Phase 3 involves developing the system up to 25GW capacity in the long term, with appropriate upgrades and expansions in generation, transmission and distribution.

A review of the document suggests the company is focusing on solutions it can sell

to Nigeria in terms of network infrastructure and technology because it does not address key industry challenges, especially fixing the market where only a quarter of market invoices get settled and huge debts remain unresolved.

“The Siemens deal looks good but the market and tariff issues have to be fixed first before it can work,” said Chuks Nwani, an energy lawyer based in Lagos.

Nwani, who said he had proposed similar plans, said the government needed to create a separate instrument to warehouse current debts, until the market corrects within five years after progressive tariffs reviews and new investments into the sector.

•Continues online at www.businessday.ng

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illionaire chairman of Seplat Petroleum Development Company plc, ABC Orjiako, is richer by N1.8 billion (£3.99 million) after selling 3.5 million units of ordinary shares he indirectly held in the company at £1.14 per share.

The transaction was done in London, United Kingdom, on August 1, 2019.

Following the share sale, Orjiako now holds a direct interest in 16.151 million ordinary shares and an indirect interest in 26.3 million ordinary shares of the company totalling 42.45 million shares which equate to a voting interest of 7.21 percent (based on Issued Share Capital of 588.44 million).

Analysis of the company’s share structure as at December 2018 indicates that 16.15m ordinary shares were held directly by ABC Orjiako and Shebah Petroleum Development Company Limited while 29.8 million shares were held indirectly.

The sold shares are reg-

istered in the name of Vitol Energy Limited held for the benefit of Shebah Petroleum Development Company Limited, which is an entity controlled by ABC Orjiako and members of his family.

The company notified the Nigeria Stock Exchange (NSE) on Monday about the share transaction in accordance with Rule 12 of the Amendments to the Listing Rules of the NSE and Article 19 of the EU Market Abuse Regulations.

Further breakdown of the indirect shares shows 16.3 million ordinary shares are held by Vitol Energy Limited for the benefit of Shebah Petroleum Development Company Limited; 900,000 ordinary shares are held by Pursley Resources Limited, a company owned by Orjiako’s wife; and 12.6 million ordinary shares are held directly

by Orjiako’s siblings.

The first-half (H1) 2019 results of Seplat further emphasise its strong cash generation potential even as it targets both organic and inorganic opportunities in the oil and gas industry to grow shareholder returns.

Moody’s gives thumbs up to FBN Holdings on NPL reduction to 14.5% Endurance Okafor

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BN Holdings (FBNH), the parent company of First Bank of Nigeria Limited, has been applauded by Moody’s Investors Service, an American credit rating agency, for driving down its non-performing loan (NPL) ratio to 14.5 percent.

“The decline is credit positive because it shows the bank is making progress cleaning up its balance sheet, which will support its solvency,” Moody’s said in its financial institution report dated July 30, 2019.

According to the second quarter report of FBN Holdings as analysed by BusinessDay, its NPL ratio, mainly from First Bank, declined by 10.8 percentage points from 25.3 percent in the first quarter 2019 to 14.5 percent, which is also 11.4 percentage points lower than the 25.9 percent reported in 2018.

A l t h ou g h st i l l h ig h, FBNH’s problem loans have dropped by 49 percent since the end of 2018 to about N273 billion after the bank wrote off N127 billion worth of loans that were fully provisioned coupled with some NPLs that were recovered.

“First Bank’s NPLs are concentrated among a few borrowers, with the top five defaulters accounting for @Businessdayng

about 35 percent of the total, after writing off some of the large bad loans. As a result, reaching workout agreements with just a few defaulters can significantly reduce the ratio,” Moody’s said in the report released Monday.

FBN Holdings is targeting an NPL ratio of lower than 10 percent by the end of 2019.

The bank’s asset quality deteriorated sharply after the oil price collapse in 2015 and recession in Nigeria in 2016. In the period, the bank reported NPLs of 18.1 percent at the end of 2015 from 3.9 percent in the first quarter of that year.

Since then, the bank has struggled to reduce its NPLs and FBNH’s quarterly NPLs averaged 19.3 percent of gross loans between the first quarter of 2015 and the first quarter of 2019.

At the end of the first half of 2019, FirstBank Holdings of Nigeria reported a profit before tax of N39.9 billion.

This was an increase of 2.6 percent over N38.9 billion made a year ago.

In the six-month period ended June 30, 2019, gross earnings of FBHN stood at N294.2 billion, up 0.3 percent year-on-year from N293.3 billion in the corresponding period of 2018.

•Continues online at www.businessday.ng

Tuesday 06 August 2019

BUSINESS DAY

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Tuesday 06 August 2019

BUSINESS DAY

NEWS

Emirates ties increase in frequency to temporary Hajj operations

IFEOMA OKEKE

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mirates Airlines says its recent increase in flight frequencies into Abuja is to meet its Hajj demands between July 27 and August 22.

Recall that on Sunday, August 4, 2019, the Airline Operators of Nigeria (AON) in a statement lamented the recent commencement by Emirates Airlines of an additional flight, now increasing its frequency to four flights daily into Nigeria on the eve of when a Nigerian carrier began flights to UAE operated with 100 percent Nigerian pilots, cabin crew, engineers and dispatchers.

Nogie Meggison, president of AON, stated that it was very unfair for Emirates to be allowed such increase barely two weeks after the launch of flights on July 5, 2019, to Sharjah, UAE, by Air Peace, our very own Nigerian airline, adding that the move effectively placed indigenous carriers at a massive disadvantage, the Nigerian economy and the jobs of our youths and huge capital flight.

However, in a statement sent

by Emirates, it said, “Emirates would like to clarify that we have not increased scheduled flight services to Abuja or Lagos. We had only operated extra flights to Abuja and Lagos for a very

limited period, for the sole purpose of serving Nigerian pilgrims travelling to the Kingdom of Saudi Arabia for Hajj.

“Some detractors like to claim that Emirates receives government subsidies and therefore represent unfair competition.

But these allegations are patently false, and we have repeatedly debunked these myths over the years. Our audited financial reports for the past 20 years are published on our website for anyone to inspect.

“Emirates has always been run on a commercial basis. In fact, our success is driven by the very fact that we must stand on our own feet – which means we must keep winning over customers with the best possible services, while closely watching our costs so that we can return a profit to our shareholder.

“International carriers operating in Nigeria offer a greater choice for consumers, and are also crucial to supporting Nigerian tourism and trade. Emirates first started operations to Lagos in 2004, and we have since remained committed to Nigeria.

During this time, we have helped facilitate trade between Nigeria and other international markets, and provided travellers coming into, or travelling from, Nigeria the option of enjoying the awardwinning Emirates experience.”

Developed Cold Chain industry critical to success of CBN’s policy on milk – experts Daniel Obi

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hile some Nigerian stakeholders are still thinking over the recent Central Bank of Nigeria’s (CBN) policy on restriction of foreign exchange for the importation of milk, others are expectant of the investment spin-off the policy will create in the Nigeria’s fledgling economy.

In analysing the policy, industry operators believe that CBN may have focused only on reducing the quantum of forex expended on importation of milk and pushing operators to think local, but they said the policy, taken from broader perspective, would also be a catalyst to developing the Cold Chain sector and Logistic industry, which are critical to the success of the intension of the policy.

These two sectors alone, when developed, have the capacity to employ many Nigerians in a country where unemployment is presently at 23 percent. The

way it stands, the present poor developed Cold Chain industry will likely frustrate intensions of the policy, the experts say.

Assessing the policy, especially in line with CBN thinking, Tunde Okoya, managing director of Lange and Grant firm that specialises in the construction of large prefabricated structures and cold rooms, told BusinessDay that it was absolutely impossible to develop dairy industries, especially in tropical climate like Nigeria, without Cold Chain.

“Milk is highly perishable and it could be pasteurised to extend shelf-life but it still needs to be preserved before any other processing is done. Hence, the need to keep it in a cold temperature in order to prevent it from going bad before it is processed,” he said.

To make the intension of the policy a success, Okoya, who is also the Vice President of Organisation for Technology Advancement of Cold Chain in West Africa (OTACCWA), said there was need to have a Cold Chain system in

operation right from the farm gate where the milk was obtained, to the aggregation point, where all the milk was collected before sending it to a major processor or packaging company. Even after it has been processed and bottled into Tetra packs or bottles, it still must be transported (which could require Cold Trucks), he said.

Reminded that Nigeria has a poorly developed Cold Chain industry, Okoya noted that some challenges would obviously be recorded with the absence of matured Cold chain operation in place. “This is why the government must come up with strong policies to salvage the situation.

Industry and government policies are made to develop sectors that are perceived to be glitch and such policy (like that of CBN) at the end of the day have impact of cascading to other sectors. That is why this new CBN policy is a welcome development,” he said.

“Currently Nigeria has one of the lowest cold chain penetrations compared to its size. So the

AELEX sensitises private sector on DFIs’ funds HOPE MOSES-ASHIKE

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s part of its corporate social responsibility, AELEX Legal Practitioners and Arbitrators, has engaged the private sector on awareness of the existence of the Development Finance Banks (DFIs) and the need for the to leverage same for their business expansion.

Some of the DFIs include African Development Bank (AfDB), Export–Import Bank (Afreximbank), Africa Finance Corporation (AFC) and Africa50.

Adesegun Akin-Olugbade, International Council to AELEX Legal Practitioners and Arbitrators, said the private sector should be aware that these DFIs exist, particularly the pan-African ones, adding that they could package their projects to make them attractive for financing by these DFIs. Speaking at the banking and finance roundtable themed, ‘Unlocking DFI Funding for the Private Sector,’ he said the roundtable was a knowledge sharing session where the private sector operators were ex-

pected to be aware that in an environment where access to credit was shrinking and where interest rates in Nigeria, for example, were in double-digits, this was an opportunity to get funding at reasonable rates and in foreign currency.

Responding to questions on the risks associated with accessing the DFIs particularly, the foreign exchange risks, he said, “You have constraints in terms of foreign currency funding; you have constraints in terms of interest rates, so DFIs are an option because they are able to raise funding at cheaper rates at investments grade.”

Akin-Olugbade was concerned that Nigerian projects are not properly packaged, adding that most of the projects are not bankable to attract the financing required to implement them.

Lawrence Fubara Anga, partner, AELEX, said purpose of the roundtable was capacity building and knowledge sharing.

He explained that the banking and finance roundtable was the first one held with AkinOlugbade who joined the firm as international council a few months ago.

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government should explore more innovative ways to address the development of cold chain in Nigeria to develop the industry rapidly.”

It is expected that the embrace of local production of milk following CBN restriction of importation on the product, will create opportunity for investment in cold chain.

To checkmate smuggling of milk in the short term due to the policy, Okoya recommended to government to build strong policies that will guide activities at the border. Government has to invest into the industry to help Nigeria catch up quickly with the necessary requirement, demand of cold chain and increase supply for effective operations, he said.

Regretting that the rate at which Nigeria imports basic needs (mostly agricultural produce) is alarming, Okoya said the CBN policy will increase income and earnings for cattle rearers and encourage them develop ranching settlement rather than moving around.

L-R: Paul Oluikpe, assistant director, finance development, Central Bank of Nigeria; Ronke Kuye, chief executive officer, SANEF; Nelson Osazua, assistant commissioner of police; Esaie Diei, chief executive officer, EFInA, and Uche Uzoebo, head of distribution and engagement, SANEF, during Financial Services Agents Forum, in Lagos.

EFCC investigates Festac Phase 11 over illegal land sale CHUKA UROKO

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he unwholesome activities of land grabbers leading to illegal land sale in areas within the Festac Phase 11 Estate has attracted the attention of the Economic and Financial Crimes Commission (EFCC) who recently toured those areas and mounted ‘Caveat Emptor’.

BusinessDay gathered

that the commission mounted the caveat signpost in the course of the tour in order to show areas where status quo should be maintained. The aim, according to a statement obtained by BusinessDay at the weekend, was to sensitise the general public on the need to maintain status quo on the land.

“This is to inform the general public about the illegal sales, economic sabotage

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and unlawful alienation of Federal Government’s land in Festac Phase 11 by unauthorised persons,” the statement explained.

Continuing, the statement disclosed, “The fraudulent transactions by the unauthorized persons and their representatives are presently under scrutiny by EFCC. This is, therefore, to notify and warn members of the public and any interested party to be wary of any transaction

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involving any portion or part of the land as such transactions will be visited with the wrath of the law.”

Tony Orilade, EFCC’s spokesman, had told journalists that the commission was only investigating the land. “We are investigating the matter you are talking about and at the appropriate time, we shall make our findings known to you and other members of the public,” he assured.

Tuesday 06 August 2019

BUSINESS DAY

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Tuesday 06 August 2019

BUSINESS DAY

NEWS

Cheap borrowing, capital inflows are opportunities for Nigeria as Fed cuts rates ENDURANCE OKAFOR & OLUWASEGUN OLAKOYENIKAN

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he US Federal Reserve last week lowered interest rates for the first time in 10 years to help stave off the possibility of an economic downturn, a move which analysts say holds opportunities for Nigeria.

Top on the list of benefits Nigeria stands to gain from the rates cut, according to the analysts, include capital importation in form of foreign portfolio investment (FPI) and cheap cost of borrowing for Federal Government and corporates that may want to go to the international market for bond issuance.

“Rate cut by systemically important central banks like the Fed simply means possibility of increased FPI flows into emerging markets,” said Ayorinde Akinloye, a consumer goods analyst at Lagosbased CSL Stockbrokers.

“Nigeria’s money market instruments remain a big attraction for foreign investors, thus Nigeria may see more inflows into that space,” Akinloye said.

He, however, does not expect such inflows into equities market considering foreign investors still maintain a risk-off approach to investing in Nigerian risk assets.

The Boards of Directors of the Federal Reserve Banks of Philadelphia voted 8-2 in favour of a small cut in the federal funds rate, and recommitted to their promise to “act as appropriate” to sustain the country’s longest eco-

nomic expansion in history.

The Fed unanimously approved a 1/4 percentage point decrease in the primary credit rate to a range between 2 to 2.5 percent. This is 25 basis points lower than the primary credit rate of 3 percent voted on December 20, 2018. Fed Chairman Jerome Powell, however, left the door open as he signalled that the Fed was prepared to ease monetary policy further if necessary.

Lowering interest rates tends to reduce the value of a currency. If the US dollar reduces in value, then nonUS importers like Nigeria will benefit because their goods will become relatively cheaper.

A depreciating dollar could also prompt a fresh outflow of capital from dollardenominated bonds and instruments away to higheryield but riskier investments in the emerging markets.

“A rate cut is good for FPI inflows into the country because with a rate cut, our currently low yield environment will have a wider spread which will attract FPIs. However, the magnitude of the rate cut is also important,” Yinka Ademuwagun, research analyst at United Capital plc, said.

Kalu Aja, CEO of AfriSwiss Capital Assets Management Limited, however, does not expect the rates cut to “automatically lead to a surge in FPI into Nigeria”.

A look at capital inflows into Nigeria after the US Fed

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Reserve cut its key lending rate in December 2008 showed that the total value of capital importation into the country rose 85 percent to $681 million in January 2009 from $367 million in the previous month, according to data obtained from the National Bureau of Statistics (NBS).

Thereafter, the US apex bank left the monetary policy rate unchanged at a record low of 0.25 percent for seven years until December 2015 when it raised the rate by 25 basis points to 0.50 percent.

Conversely, total value of capital importation dipped some 73 percent on a yearon-year basis to $710 million in the first quarter of 2016 from $2.67 billion in the comparative period of 2015. The decline was sustained by 61 percent to $1.04 billion in the second quarter; 34 percent to $1.82 billion in the third quarter; and 1 percent to $1.55 billion in the last quarter of the year.

Similarly, foreign portfolio investment to the country fell 70 percent in 2016 to $1.81 billion compared with $6 billion recorded a year earlier.

Despite Fed’s hawkish stance, capital importation into Nigeria improved in 2017 but waned when it raised rates at all its 4 meetings in 2018. This was evident in the value of foreign portfolio investment into equities, which dipped 35 percent to $2.36 billion from $3.63 billion, even as aggregate capital importation rose 37 percent to $16.81 billion.

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Tuesday 06 August 2019

BUSINESS DAY

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Union Bank partners TEDxLagos to host entrepreneurs, innovators, thought leaders forum Daniel Obi

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nion Bank recently partnered the organisers of TEDxLagos to host entrepreneurs, social advocates, innovators and thought leaders at the 2019 TEDxLagos event tagged “Spring.”

TEDx is a global platform created in the spirit of TED’s mission, “ideas worth sharing”.

The event was a celebration of brilliant ideas and inspiring talks organised by members of the local and international TEDx communities, including Michael James Ryan from TEDx partnerships international and Mercy Akamo, organiser/ licensee of TEDxLagos.

According to a statement, the day-long event featured an interesting line-up of speakers including the founder of Slumto-School, Otto Orondaam; renowned actress, Nse IkpeEtim; TV show director, Victor Sanchez Aghahowa, and corrective skin-care expert, Vivian Oputa.

Speaking on the bank’s partnership with TEDxLagos, Ogochukwu Ekezie-Ekaidem, head of corporate communications and marketing at Union Bank, said, “Union Bank is pleased to partner with TEDxLagos for the second consecutive year. As a Bank committed to enabling success in our host communities,

we identify with the objective of the TEDx platform which is to unravel and amplify brilliant ideas that cause positive change and move our society forward.

We look forward to seeing the impact of the insightful conversations that have taken place today in the society.”

Other prominent attendees included the Chief Digital and Innovation Officer of Union Bank, Lola Cardoso and other Senior Executives of the Bank. Also in attendance was Claire Wathen, Community Manager at Skoll Foundation, co-sponsors of the event.

A major highlight of the day was the session The Springboard - Enabling Conversations for the Common Good, hosted by Union Bank.

This was an interactive panel discussion that highlighted the importance of innovation, creativity, community development, and sustainable practices in shaping a better future for Nigeria. Panelists included Funto Boroffice, founder/ CEO of Chanja Datti Limited; Bankole Williams, founder, LYD Consulting; Nkem Okocha, Founder MamaMoni Empowerment Foundation, and award-winning performing actress, Bikiya Graham Douglas.

Union Bank’s partnership with TEDxLagos reiterates its continued commitment to innovation, creativity and support for Nigeria’s growth.

SystemSpecs announces Remita summer coding camp for students ISRAEL ODUBOLA

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ystemSpecs Limited has announced the forthcoming Remita Summer Coding Camp for secondary school students in Nigeria.

The fully funded camp scheduled to hold from August 12 - 23, 2019, in Lagos and Abuja, is conceived to equip participants with digital skills in an accelerated and practical learning environment that aims to improve access to technology education in Nigeria.

The firm also announces a call for entries into the 2019 Remita Summer Coding Camp designed to prepare Nigeria’s teeming youngsters to take advantage of the myriad of current and future technology opportunities presented by the Nigerian and global markets.

With entry open to only secondary school students, the programme offers twenty openings for the inaugural edition holding in Lagos and Abuja.

Till August 7, 2019, students or their parents, teachers or friends are to apply for the 2-week IT training camp by submitting their details on the programme’s application site. Selected participants would be announced and contacted on August 9, 2019.

The two-week Remita Summer Coding Camp holds from August 12 to 23, 2019 and would empower participants in various aspects

of computer programming such as the fundamentals of the web, animation, robotics, game design, among others, using various tools and a curriculum that helps participants have an accelerated understanding of the concepts being taught opens their minds to the limitless technology possibilities and actively prepares them for the innovations of the future.

“At SystemSpecs, we recognise the rising impact of technology in our world today and the even more significant place it would occupy in future. We also are aware of the importance of building ICT capacity across the technology ecosystem, not only for the present but for the future,” said Deremi Atanda, executive director, SystemSpecs.

“With the Remita Summer Coding Camp, we continue to invest in the next big technology innovators from Africa to the rest of the world as we have done in the past, working with Lagos State on Code Lagos, and other partners on the Girls-in-ICT initiative, among many other indigenous capacity development initiatives on which we have chosen to focus,” he said.

Also speaking on the initiative, Akor Akpenyi, SystemSpecs’ CSR programme administrator, noted that the fully hands-on Remita Summer Coding Camp promises to be an exciting time for young Nigerians of different backgrounds and experiences. www.businessday.ng

L-R: Habeeb Alebiosu, CEO, Viathan; Alok Sharma, UK secretary of State for International Development; Catriona Laing, UK High Commissioner to Nigeria; Faruk Agoro, director, Viathan, and Graham Wrigley, chairman, CDC, during the Secretary of States visit to Viathan Engineering Limited power plant in Lekki, Lagos

Media ineffectiveness in Nigerian democracy blamed on ‘media capture’ ISRAEL ODUBOLA

... as Osadolor urges industry be a watchdog, not a lap dog

Fellow of the Nigerian Guild of Editors, Kingsley Osadolor, has identified the phenomenon of media capture as a primary threat to the ability of the media to exercise its constitutional and professional powers to foster best practices in democracy in Nigeria.

Other encumbrances include failure to deploy the tools of journalism adequately, failure to utilise the legal backing to the media and inadequate rigour in reportage of issues in Nigeria’s democracy all resulting in lack of credibility of the media as a driver of citizen participation in democracy.

Osadolor was the best graduating student of the University of Nigeria class of 1984. He delivered the 2019 Jackson Annual Lecture of his alma mater, the Department of Mass Com-

munication, on the subject, “Media Freedom: Utilitarian Imperative and the pursuit of democratic ends” on Thursday, August 1, 2019. Osadolor is also a lawyer and broadcaster and has served as Commissioner for Information in Edo State and advisory capacity at the federal level.

Osadolor is a former Editor of The Guardian on Sunday and East Africa correspondent of The African Guardian. He declared, “Perhaps the greatest impediment to the full realisation of the watchdog role is media capture, which results in deference and subservience to the other Realms and influential citizens, including powerful corporations, over whom the Fourth Estate is supposed to play the role of sentinel. Ownership, commercial influence, ideology, governmental and partisan political pressures, as well as advertiser blackmail, are

key factors in media capture.”

While many external factors impinge on the profession, Osadolor submitted that the media need to strengthen its ranks by deploying the tools of the trade as well as existing legislation that empowers it to hold the government accountable to the people.

Osadolor recognised the damage done to media credibility by fake news often peddled by social media platforms but held that the solution lies in better journalism by professionals.

“Good journalism … will further drive social media purveyors of fake news, hate speech, and blatant exaggeration into the periphery. The Fourth Estate must constantly remind itself of its mission, which is to be a watchdog and not a lapdog,” Osadolor stated.

Significant failings on the media side include failure to follow up on stories of signifi-

cance, inadequate attention to matters at the state level as well as in the local governments and state assemblies.

Osadolor identified three principal sources of “media enablement” in legislation to be the 1999 Constitution, pieces of municipal law; and Treaties, International Agreements and Protocols, which Nigeria has ratified. He cited the Act establishing the National Broadcasting Commission, the Nigerian Communications Commission and the Freedom of Information Act as containing provisions that empower both the media and citizens.

International laws include Article 19 of the Universal Declaration of Human Rights, Article 9 of the African Charter on Human and People’s Rights, Article 66 of the ECOWAS Treaty and Goal 16 of the United Nations Sustainable Development Goals (SDG).

These are genuine questions we really need to ask ourselves. Big data have come to stay and the old industry has outlived all the other dinosaur industries,” the conference organisers say this is what they want to address.

This year’s theme is “Artificial Intelligence, Big Data, and Mobile Technology: Changing the Future of the Energy Industry” and had in attendance industry operators and experts drawn from various fields.

Leye Falade, general manager, production, Nigeria LNG Limited, in his presentation harped on the critical aspect of limited skill in the country. “We need to review and identify the skills we need that would help us move with the new changes. The skills we need for technology has to be enhanced as technology is changing our world and has come to stay.”

Without investments to take investment decisions on critical

projects including the Bonga South West project among others, the required skill to compete in the emerging tech-driven oil sector will be lacking. This will continue to cede the market for talent to operators outside Nigeria Yet, technologies like artificial intelligence and blockchain are on the rise. Oil giants BP, Shell, Norwegian-owned Equinox (then Statoil), had announced plans to develop a blockchain-based digital platform for energy commodities trading as far back as 2017.

In oil trading, blockchain can be used as a shared database that updates itself in real-time and can process and settle transactions in minutes using computer algorithms, with no need for third-party verification. Experts say the benefits are enormous including cutting the cost of oil trading.

In February this year, American oil giants such as ExxonMobil and Chevron, agreed to form the first

industry blockchain consortium to set up a digital ecosystem for physical post-trade processing.

Analysts say the benefits of blockchain in the oil and gas sector are enormous. Through blockchain, crude oil transactions can be digitised, ensuring enhanced security, improved transparency, and optimised efficiency. It can also offer improved data storage.

It can foster the development of a cryptocurrency pegged to oil which could be a viable replacement for traditional financial transactions. This cryptocurrency could enable direct transfer of value between various parties in the industry without the need for a trusted intermediary like a bank.

Governments could better regulate the industry because all the transactional data is stored on a blockchain network, which can be accessed in real-time for taxation, hydrocarbon tracking and environmental impacts.

A

Investment starved oil sector looks to big tech ISAAC ANYAOGU

T

he possibility that oil rigs could operate like UBER taxis and technology tools like artificial intelligence and robotics could be implored in wells and reservoirs to evaluate their potential in driving oil sector operators to discuss the future of an industry starved of investment dollars.

This is why the organisers of the Nigeria Annual International Conference and Exhibition (NAICE), the Society of Petroleum Engineers (SPE) Nigeria say the petroleum industry was moving towards the advancement of artificial intelligence, big data as well as mobile technology, and operators need to catch up.

“The opportunities of big data hold unlimited potential. Will the energy industry tag along or be left behind? Can the energy industry harness big data for its benefits?

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The “technology train” is moving: Is Nigeria onboard?

STRATEGY & POLICY

MA JOHNSON

T

he First Industrial Revolution of the 18th and 19th centuries mechanized profoundly, for the first time, most human activities. The Second Industrial Revolution which dominated the 20th century with the development of the nuclear technology was a mixed blessing. And since the end of the Cold War in 1989, technology has become more pronounced. Although, the 20th century was primarily the century of the Cold War and ideological struggle, the later part of the 20th century and the early part of the 21st century gave rise to a world dominated by the Third Industrial Revolution.

Mind-numbing discoveries such has laser, fibre optics, super computers, biotechnology, robotics and genetic engineering are among the hallmarks of the Third Industrial Revolution. With a world on the threshold of the Fourth Industrial Revolution, one can safely say that the 21st century is surely a century for advanced technology. We are likely to witness more trade wars based on technological supremacy as we have seen in the past three years between the USA and other productive economies in Europe and Asia.

The industrial revolutions have positively improved the living standards of developed countries but virtually institutionalized poverty through the widening gap between developed and developing countries.

Even as globalization has led to unprecedented gains for many countries ranging from the movement of goods, services, people and ideas, there are those who have lost out economically, politically and culturally.

Today, we live in a complex and fast changing world; technology runs our daily lives. We have witnessed a change from analogue to digital, from electric typewriters to multimedia meshed in worldwide computer networking; a change from copper-wire communication system to either fibre optics or wireless cellular, and even the satellite systems, a change from mono-component to hybrid component of telephone, television and computer all in one. We’ve witnessed a change from manual to robotics; from fossil to nuclear then to solar energy. These changes are products of the fast-changing technology. We therefore live in a world in which the primary indicator of progress is its level of technological development.

The technology train is on the move. There are no clear indications that Nigeria with a population of almost 200 million is onboard. With each industrial revolution, the world we live in has undergone science-led development. Nations that want their citizens to be prosperous have embraced science, technology, engineering and mathematics (STEM).

In Nigeria, the dismal performance in STEM-led development has been blamed on political instability by those in government. To an extent, this is true. But not completely; the root cause of political instability is purely economic. Worsening economic problems have resulted in political instability which we witness today. The result is insecurity across the entire country. Democracy is capital intensive. And if the cost of governance isn’t reduced, there won’t be enough funds to fund critical sectors of the economy such as education, health, transport

and energy amongst others.

The Fourth Industrial Revolution refers to “how technologies and current trends such as the Internet of Things (IoT), robotics, virtual reality (VR) and Artificial Intelligence (AI) are changing the ways people live and work”. “The Fourth Industrial Revolution will usher in a new era rather than a continuation of the Third Industrial Revolution because of the volatility of its development and the disruptiveness of its technologies.”

To deal with unprecedented challenges globally, the World Economic Forum is creating a network of centres for the Fourth Industrial Revolution, enabling businesses, governments, start-ups, academia, and private organizations to work together to ensure human-centred future for innovation.

Is Nigeria onboard this technology train? Where is Nigeria’s Fourth Industrial Revolution Centre? Countries such as Japan, China, India, and the USA have all established the Fourth Industrial Revolution Centres showing craving for new approaches and creating innovative ways of doing things. These countries have boldly expressed their mission statements as follows: a. USA: “How can we maximize the benefits of science and technology for society? That’s our mission. To achieve it, we’ve created a global hub of expertise, knowledge-sharing and collaboration, based in San Francisco.” b. India: “As the world’s largest democracy and the country with one of the highest number of scientists and engineers, India is a key political, social and economic player that will shape the course of the Fourth Industrial Revolution”. c. Japan: “Emerging technologies are advancing at unprecedented speeds, changing the world as they blur the boundaries between the economic, social and political spheres.” d. China: “We must proactively

‘

The technology train is on the move. There are no clear indications that Nigeria with a population of almost 200 million is onboard.

Nations that want their citizens to be prosperous have embraced science, technology, engineering and mathematics (STEM)

work together to harness the full potential of the Fourth Industrial Revolution.”

Nigeria has no Fourth Industrial Revolution Centre, hence no objective for now. Policy makers are reminded that modern technology has overwhelming influence on us as a nation, and we either become part of it or be its victim. It is only technology as a factor of production that can make Nigeria’s economy competitive and sustainable. New technologies such as AI, precision medicine, autonomous vehicles and many others, offer great potential to lift humanity to new levels of well-being.

The Fourth Industrial Revolution has brought fresh opportunities but also new questions about how economies, particularly those in subSaharan Africa can best integrate technologies for a faster path to broadbased prosperity. It has become very clear but disturbing to policy makers that manufacturing-led development model that lifted millions out of poverty in Asia is unlikely to be viable or possible soon in Africa.

So, there is a call for more dynamic education systems and labour market policies to cater to a wide range of new technology-intensive, high skilled occupations which will be in demand in the future. This is along with new growth envisaged broadly across sectors such as health, education, and energy amongst others. There is need for the Federal Ministry of Science and Technology to determine ethical rules and policies around these technologies in collaboration with the ministries of education, health, trade and industry. Thank you.

The article was first published in this column on 30 October 2018.

Johnson is an author and a retired naval engineer who has passion for African development and good governance

Tariff damage spreading in US, China within target in H2 2019

I

n the second half of 2019, US economic prospects will soften, despite the Fed rate cut, whereas Chinese growth target is likely to prevail. It’s time to prepare for diminished global economic prospects in 2019-20.

After an important meeting of the Central Committee of the Communist Party of China (CPC), participants said that China seeks to make its fiscal policy more effective and to maintain “reasonably ample” liquidity.

Instead of resorting to a stimulus in the real estate market, the emphasis will be on “proactive fiscal policy and prudent monetary policy.” It is a challenging balancing act, but the right stance in the right time.

Meanwhile, President Trump pledged to impose an additional 10% tariff on Chinese imports to the US, which caused US stocks to tank 280 points. The White House needs a scapegoat as the Fed cuts cannot offset Trump’s tweet policies, US growth is slowing and a slowdown is looming in 2020.

China’s 2019 growth within range Clearly, the CPC Central Committee seeks to avoid targeted but costly stimulus policies, which could exacerbate new risks of asset bubbles over time, but it will ensure adequate fiscal support.

Since infrastructure investment remains relatively soft by historical standards, fiscal easing on investment may prove likely in the second half of the year. It could be biased toward small enterprises and startups.

Moreover, fiscal easing is likely to be coupled with monetary support, including cuts of the banks reserve requirement ratio. Although the

easing bias could cause downward pressure on Chinese bond yields and corporate spreads in the near future, the big picture suggests stabilization and resilience.

In the second quarter, Chinese economy grew 6.2%, a drop relative to 6.4% in the first quarter, yet hardly a surprise in view of global challenges.

China’s economic growth is within the target range of 6% to 6.5% set by the government.

Indeed, the full-year 2019 growth rate of 6.2% remains achievable, even if growth stabilizes around 6% to 6.2% in the second half.

In view of the CPC Central Committee meeting, policy authorities are likely to stick to the effort to cap debt growth. While that will support Chinese economy in the long term, the potential risk in this approach is premature tightening in the short-term. To avoid adverse outcomes, fiscal easing is likely in the second half of the year, while monetary easing will be likely to offset riskier scenarios.

Such stances could benefit Chinese stocks, which will also be supported by the anticipated foreign inflows, thanks to the inclusion of Chinese assets in international benchmarks. Despite the relatively benign macroeconomic prospects, more optimistic scenarios are constrained by the lingering trade-war uncertainty and caution in economic sentiment.

The US economy is a different story.

Fed cuts cannot contain White House’s policy mistakes In the second quarter, US GDP grew at a 2.1% pace, which heralds “slowing economy.” Last spring, I predicted in China Daily that collateral www.businessday.ng

damage in the US economy would begin to be felt more broadly by the summer. And a month ago, I argued that this damage is spreading, particularly as the White House is initiating new tariff wars against other countries around the world.

That is one reason why the US Federal Reserve - in a widely expected move, but one that critics see as a sign of diminished independence - cut interest rates by 25 basis points to a range of 2% to 2.25%, for the first time in more than a decade. The Fed also declared a premature end to its balance sheet reduction.

Ironically, the Fed’s statement – unchanged economic conditions, solid job gains, moderately-rising economic activity, though soft business investment – did not necessarily warrant a rate cut (the decision was not unanimous).

What motivated Fed chair Jerome Powell’s decision may well have been the muted inflation pressures and particularly global growth concerns, which the Trump White House has undermined since the onset of its tariff wars in spring 2018.

Interestingly, the Fed cut did not cause a rally; it stumped the market. S&P 500 dropped almost 2%; 10-year Treasury yields to about 2%.

The Fed cut does not imply a start of a new ratecut cycle, but it does mean that the post-2008 recovery is now over with darker clouds looming in the horizon.

Trump tariff wars cloud US and global forecasts When President Trump arrived in the White House, he pledged GDP growth at 4%. More recently, he projected US growth at 3%. Yet,

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Dan Steinbock analysts estimate US growth this year at 2.5% or less. Qualitative assessments suggest deterioration, as growth in domestic demand is slumping.

Worse, US GDP growth forecasts for 2020 indicate softening to 1.8%, possibly a (nearrecession) slowdown – especially if trade and tech wars still escalate.

In the absence of negative surprises, Chinese GDP growth is likely to stay within the target of 6.2% in 2019 and possibly in 2020 as well, with supportive fiscal and monetary conditions.

US tariff wars are likely to penalize Chinese economy by less than 0.5% of GDP, which could be offset by just a modest depreciation of the renminbi.

Note: the rest of this article continues in the online edition of Business Day @https:// businessday.ng Dr. Dan Steinbock is the founder of Difference Group and has served at the India, China and America Institute (US), Shanghai Institute for International Studies (China) and the EU Center (Singapore). For more, see http://www.differencegroup.net/

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Mobile phones, internet and jobs in Africa (3) Table 5: New e-Commerce jobs by 2025 Sectors

Jobs (millions) 1.7 Consumer goods Mobility 0.5 Travel & hospitality 0.3 Other categories 0.4 Source: BCG1

Rafiq Raji

M

y column this week is the third part of my recent paper for the NTU-SBF Centre for African Studies at Nanyang Business School, Singapore, where I am a research fellow. References are in the original article.

E-Commerce to boost growth in retail, transport, & hospitality industries Online marketplaces are digital platforms that match suppliers of goods and services with customers.

They are generally classified into four types: business-to-consumer (B2C), business-to-business (B2B), consumerto-consumer (C2C), and consumer-tobusiness (C2B).

Jumia, an Africa-focused online retail marketplace is an example of a B2C and B2B platform. Uber, an online ride-hailing, ride-sharing and food delivery marketplace, and Airbnb, an online hospitality brokerage marketplace, are C2C platforms. Thundafund, a South African online crowdfunding marketplace for entrepreneurs is an example of a C2B platform. These few examples of online marketplaces and others are disrupting the retail, transportation and banking industries on the continent.

And they are doing so for the better.

Not only are they rendering legacy services in these sectors more efficiently, there are also tapping hitherto suboptimal opportunities in profitable ways and creating new jobs in the process. Some are peculiarly African.

In Angola, there is a service for the online purchase and delivery of goats, for instance.

Commerce on these digital platforms, generally termed “electronic commerce” or “e-commerce”, could create as much as 3 million jobs by 2025. That is one new job opportunity for every 15 unemployed African youth. Only 100,000 Africans would be directly employed by these online marketplaces, though. So, the real effect would be in the increased economic activities and efficiencies they instigate in other sectors.

These are the creation of new products, reduction or elimination of supply chain bottlenecks, and the expansion of customer bases. As shown in Table 5, 1.7 million (60 percent) of these new jobs would be in the consumer goods sector, 500,000 in mobility services, and 300,000 in the travel & hospitality industry. As some jobs would also be lost in the process, these are clearly net estimates.

The African opportunity is underpinned by the still early lifecycle stages of its economic sectors. In retail, for instance, there are 15 formal stores for every 1 million Africans. (Compare with 930 per million Americans, 568 per million Europeans and 136 per 1 million Latin Americans.) Online retail marketplaces could easily increase the coverage at less cost and without the need for as much brick-and-mortar. Additionally, because almost 40 percent of sub-Saharan African economy is informal, there is an ample portion of the labour force that is not unionised or organised. So they are more amenable to new employment norms.

Of course, this varies by country and industry. For example, established taxi services are unionised and well-organised in most African countries. So naturally, there has been resistance to digital taxi services, resulting in bans or partial bans, in at least seven African countries.

The forms of this resistance in the various African countries are noteworthy. It is mild and increasingly collaborative in Nigeria. In South Africa, however, the re-

sistance is strong and sometimes violent.

In other words, the expected jobs boost from e-Commerce would likely vary from country to country. Thus, culture and attitudes in each country are huge factors.

Prospects of gig economy are huge but mixed Online gig work is short-term paid labour via online or digital employment platforms. The resultant ecosystem is referred to variously as the “on-demand economy”, “gig economy”, “sharing economy”, or “platform economy”. Online gig work is enabling Africans participate in the global economy, with the resultant effects of increased incomes and poverty alleviation.

Still, there are reservations. Wages are relatively lower, working hours are longer, and labour protections are weak or nonexistent. Because of the enormity of the unemployment problem in most African countries, these are not likely to be much of a concern for their eager labour force.

The gig economy would be crucial to creating the more than 18 million new jobs Africa needs per year for its expected 1.3 billion working population by 2050.

Digital labour takes various forms.

One example is online freelance contracting work like web development, book editing, and reporting. Crowdsourcing is another example, whereby firms get external personnel to do certain jobs for them via the internet. Freelance contracting and crowdsourcing differ in the number of contractors involved. A firm could hire just one freelance contractor. But it would only be deemed to be crowdsourcing if the contractors are more than one. Both are outsourcing in any case. Crowdsourcing can be classified into the following forms: “intelligence, crowd content creation, crowd voting, funding and microwork.” Major crowdsourcing platforms are Amazon Mechanical Turk, CrowdFlower and Microworkers. Crowdsourcing tasks include online customer service, data processing, content review and tagging.

‘

The African opportunity is underpinned by the still early lifecycle stages of its economic sectors. In retail, for instance, there are 15 formal stores for every 1 million Africans.

(Compare with 930 per million Americans, 568 per million Europeans and 136 per 1 million Latin Americans.)

Table 6: 10 highest paying gig economy jobs of 2018 Job Rate per hour Artificial intelligence/ Deep learning $115.1

Blockchain architecture $87.1 Robotics $77.5 Ethical hacking $66.3 Cryptocurrency $65.3 Amazon web services Lambda coding $51.0 Virtual reality $50.0 $40.8 React.JS developers Final Cut pro editors $37.1 Instagram marketing $31.2 Source: Investec There are 10-12 million new African workers every year. Only about 30-40 percent would get a job. That 77 percent of African workers in non-agricultural employment work in the informal sector lends itself to the burgeoning African digital on-demand or gig economy. And even though gig economy jobs are still considered vulnerable employment, being as they lack labour protections, they are relatively better organised and formalised. In any case, there are increasing calls for a fit-for-purpose “social contract” to address some of the current shortcomings of digital employment.

As more jobs become on-demand, a lot is also increasingly technology-based in tandem. Consequently, job profiles are constantly changing. Unsurprisingly, many new vacancies go unfilled for lack of skills. While the disruption is global, it is happening in African countries as well.

The extent to which African jobs rely on internet technologies is rising but varies from country to country. For instance, 18 percent of formal jobs in Kenya have high ICT intensity, while only 7 percent do in Ghana.

While much of the current ICT intensive jobs in Africa are low-skilled, research shows greater benefits are to be garnered from advanced ones in digital design and engineering. African countries have to start positioning their labour forces for these opportunities. In this regard, curricula would have to be revamped. And greater emphasis would need to be placed on science, technology, engineering and mathematics (STEM) education.

“Dr Raji is chief economist at Macroafricaintel.

He was previously an Africa Economist at Standard Chartered Bank, London, UK. (Twitter: @ DrRafiqRaji)”

Princeton Lyman greatness to irrelevance thesis: Deep thinking Nigeria’s future

R

ecently, an article version of a panel discussion of the former United States Ambassador to Nigeria and South Africa, the late Princeton Lyman trended on WhatsApp.The panel discussion was at the 2009 Achebe Colloquium at the Brown University, United States. The article is titled “The Nigerian State and the US Strategic Interests.”

That Lyman’s presentation still resonates almost nine years after its thoughts were brilliantly and forcefully presented from the deep perspectives of experience and perspicacity is a testament to the fundamental significance of the arguments of the seasoned diplomat as to the present global condition of the Nigerian state. The ambassador deconstructed the basis of Nigeria’s strategic influence in Africa and the world.

He argued eloquently that to still insist that Nigeria’s population, for instance, constitute a strategic strength for Nigeria is to simply be playing the ostrich while other truly strategic states have already transformed the dynamics around the issues of global strategic thinking.

And they have done this in ways that have truly transformed their global positioning. According to him, to keep repeating the national cliché that Nigeria is a great nation (or that one out of every five Africans is a Nigerian) is a national sentiment already defeated by Nigeria’s underdevelopment.

I understand where Ambassador Lyman’s conceptual and practical challenges are coming from. The idea of “strategy” is a discourse in international and global relations. It points at those significant elements of a state’s sovereign existence that could count as bargaining chips in the state’s relationship with other states, and in ways that could also enhance the state’s developmental efforts. It is in this sense that Nigeria’s huge population and status as a global oil player become critical strategic factors.

We all are familiar with the stakes of crude oil and the politics of international regulatory organizations like OPEC. We all are equally familiar with Nigeria fundamental roles in shaping the political and cultural discourses and dynamics on the African continent. When the last xenophobic attacks occurred in South Africa, Nigerians indignantly reminded the South Africans about the role of Nigeria not only in the agitations against apartheid, but also about the critical assistance Nigeria provided in securing the release of Nelson Mandela and ultimately in ending the apartheid system. We have equally pointed at the various peacekeeping campaigns in ECOMOG in which Nigeria is a critical partner.

What we are missing in this rhetoric of relevance is the crucial fact that the concept of strategy in international relations is not founded on any static framework. Strategy keeps evolv-

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ing. States adjust their strategic reflections to deep global challenges and the dangers or possibilities that such challenges and events pose to their existence and development.

Let us return to the politics of global oil. It is increasingly becoming clear that the strategic role of crude oil in the international markets has changed radically, especially for countries like Nigeria where it constitute the major economic product. The United States that once was Nigeria’s biggest buyer of oil has ceased been so.

And this is because the United States, like most other states, keeps reflecting on its economic status and how it can cancel out their strategic weaknesses. It is simply bad strategy for the United States to keep itself enslaved to Nigeria’s oil and the terrible fluctuations of the global oil market and pricing dynamics.

Immediately the United States stopped importing Nigeria’s oil the reality of global strategy ought to have dawned on us. That was the period the Nigerian state ought to have commenced another level of serious national conversation and strategic reflection on the economic dangers of perpetual mono-economy as well as the inherent virtues of getting diversification to happen as not just an emergency, but a national survival issue. Unfortunately, we are not there yet. Nigeria is still marinating in the illusion of national and continental grandeur founded on

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Tunji Olaopa a rapidly diminishing sense of our relevance and significance.

I read this illusory sense of grandeur and Nigeria’s present underdevelopment as arising from a fundamental difference between triviality and the substantive elements that makes for strategic decision making in any state. As far as I am concerned, the difference between strategic relevance and strategic irrelevance of any state is a function of such a state’s decision-making quotient.

Note: the rest of this article continues in the online edition of Business Day @https://businessday.ng Prof. Tunji Olaopa, retired Federal Permanent Secretary & Professor of Public Administration. tolaopa2003@gmail.com, tolaopa@isgpp.com.ng

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EDITORIAL Is there a business case for backward integration?

Publisher/CEO

Frank Aigbogun editor Patrick Atuanya

DEPUTY EDITOR John Osadolor, Abuja NEWS EDITOR Chuks Oluigbo EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, STRATEGY, INNOVATION & PARTNERSHIPS Oghenevwoke Ighure GENERAL MANAGER, ADVERT Adeola Ajewole ADVERT MANAGER Ijeoma Ude FINANCE MANAGER Emeka Ifeanyi MANAGER, CONFERENCES & EVENTS Obiora Onyeaso BUSINESS DEVELOPMENT MANAGER (South East, South South) Patrick Ijegbai CIRCULATION MANAGER John Okpaire

P

olic ymakers’ case for backward integration, as the solution to growing the economy and generating jobs, needs to be better thought out.

It has become a catchy phrase in Nigeria as the debate for sourcing manufacturing inputs locally of gathers momentum.

The reasons given often come across as socialist or populist rather than economic. The case for milk is an ample example. The Governor of the Central Bank of Nigeria (CBN) lately announced plans to restrict importers of raw milk from accessing foreign exchange. The CBN governor argued that it was high time dairy makers embarked on backward integration to source their raw milk locally.

Backward integration only makes business sense when inputs are available in the required quantity and quality. In the case of milk, for instance, the cows that are available are low-yielding

owing to die-hard traditional rearing practices that have been with herders for years.

The maximum yield of local breeds, even when cross-bred, is one and a half litre per cow per day.

In several developed countries, a cow can produce 60 to 90 litres per day at peak periods. In that case it makes sense for entrepreneurs and dairy makers in those countries to invest in dairy production.

Nigerian manufacturers still struggle to get some of their inputs locally. For some time cement makers that have invested billions in backward integration had to import gypsum and limestone due to quality and availability issues.

Backward integration won’t work when it is cheaper to import than source some inputs locally.

Only multinationals or large enterprises can afford to pump in billions into backward integration projects. Several have pumped billions into such projects. But that is because they have the resources and technical know-how. The dairy

industry has a lot of small- and medium-scale players that cannot afford backward integration by any means.

Yes, the CBN may have pledged willingness to support those that cannot afford such projects or even those that can. Still, backward integration is not a one-off project because companies consistently seek new projects to invest in. Will there always be funds when these small and medium enterprises want to expand their projects? No one needs to be an economist to know that every rational chief executive would import a ton of wheat at $30 rather than try to produce it locally at $120 just because he wants to create jobs. Only profitable and competitive companies generate jobs.

Manufacturers that venture into supplying their own raw materials need to acquire land, often some are under contention, leading to litigations that last for years.

When In 2008, BUA, a conglomerate, acquired 15,000 hectares

of land for a sugar production at Lafiagi in Kwara State. It took the company eight years to use the land owing to community land cases. Within these years, the government could not get the case out of courts. Many manufacturers are also mired in legal cases because they invested in backward integration. It’s hard to convince such companies to invest more in backward integration.

Backward integration is neither a silver bullet nor a one-size-fitsall solution to manufacturing in Nigeria. Companies should be allowed to choose any trajectory that best suits their interest. Restricting foreign exchange to a dairy industry with a 600,000 metric ton gap distorts the market. Jobs are lost, smuggling will increase and stunted economic growth will continue. Worse still, a number of briefcase traders will be handy to present themselves as would-be investors in dairy backward integration projects in order to access the cheap CBN loans.

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Mr President, Please talk to us!

The Reformer

JOE ABAH

G

overnment communication in Nigeria has been historically weak. Citizens hardly know what government is doing and government does not engage sufficiently with citizens.

The communication gap between government and citizens provides ample opportunity for mischief-makers to fill the gap with fake news, unfounded rumours and the most outlandish conspiracy theories. Because the government communication machinery is so fragmented, it takes government an inordinately long time to counter erroneous narrative. Often, no one in government knows who should be speaking on what topic and who shouldn’t, or what they should be saying and what they should not be saying.

Various organs of government give conflicting information and quote inconsistent statistics. A recent example of this was in December 2018 when one of the President’s spokesmen, Garba Shehu, cast aspersions on the job creation and unemployment data presented by the credible National Bureau of Statistics, led by the very able Dr Yemi Kale. Thankfully, in this case, the public did not have to think for too long before deciding who to believe. Dr Kale’s reputation and that of his Bureau are unimpeachable. The whole world knows that.

Government communication is often reactive, rather than proactive, and government often only comes out to challenge wrong narrative very many days after news has developed wings and flown to all corners of the land. By the time government comes out with a response, the damage has been done.

The few people that will even get to hear

government’s side of the story will treat the response as an afterthought and doubt its credibility. Unfortunately, people tend not to believe the police when, after killing a citizen, they say “We came under heavy fire from some unknown hoodlums and returned fire for fire, following which one of them died.”

The lack of faith in what government says is worse in pre-election periods.

People tend not to believe government’s claimed achievements, particularly when they are hearing about them for the first time in the run up to elections.

The damage is worse when government spokespersons use fake images of projects in other countries, culled from the internet, and claim they are projects executed by government in Nigeria.

When the people feel that they cannot trust their government, there is a serious problem. It makes it much more difficult to demand patriotism and personal sacrifice of the citizen.

The communication architecture of the Federal Government is fragmented and lacking in cohesion. The current President does not engage enough with citizens. For some reason, he seems to be more at home talking to the international press while he is out of the country than engaging with the local press or directly with citizens.

Interactions with citizens are carefully scripted and it appears that every effort is made to avoid live interactions.

Therefore, any human, humorous and compassionate side that the President may have is invisible to the public.

We have a Ministry of Information whose job appears to be to dish out unidirectional government propaganda, with little or no effort to listen to citizens or actively engage them. The name of the Ministry itself is indicative of its approach. The agencies and parastatals under the Ministry, such as the Nigeria Television Authority and the Federal Radio Corporation of Nigeria, adopt the same approach of simply eulogising government. Quite often, what they announce as their news headlines are completely at odds with the hot topics being discussed by citizens, nationally and internationally, particularly when the news does not favour government.

Again, this has meant that many people, particularly the youth, do not believe anything coming out of government news channels.

Next, we have Special Advisers and Special Assistants to the President on Media and Publicity. These are the people that speak on behalf of the President specifically, and whose sole job appears to be to attack perceived enemies of the President and to defend the President from attack. Occupants of these posts are usually journalists, for reasons that are really not clear to me.

Bizarrely, although they tend to appear on television very often, they hardly ever write articles in newspapers. In recent times, government has also engaged some Special Assistants on New Media to manage its social media platforms. Apart from those that make efforts to inform the public, one or more of these Special Assistants on New Media tend to settle into the role of an “attack dog.” Their unassigned role appears to be to pour invectives and insults, some of them potentially libellous, on members of the opposition and, sometimes also, members of the public.

Given the nature of social media, communication by those government officials in charge of new media are more immediate, responsive and interactive than those of traditional media. The immediacy of interaction required to engage on social media is something that is unusual in traditional government communications. Many governments around the world struggle with this.

Finally, government has a National Orientation Agency that has been so ineffective over the years that citizens argue among themselves whether or not it is still in existence. Even lawmakers have questioned the usefulness of having the agency and appropriating billions of Naira to it every year. Not many people know that the National Orientation Agency even has offices in all 774 Local Government Areas of Nigeria. Apart from this, Ministries, Departments and Agencies each have their own information or communication functions, with widely variable quality.

The Directors of Information in the ministries are staff of the Federal Minis-

‘

Engaging with citizens and communicating government activities is of vital importance.

Many people erroneously think that you only need to do job and that the results will speak for you.

It does not work that way in government.

The image is as important as the substance

try of Information posted to the various ministries as the Ministry of Information deems fit. They are often too far removed from the action to know what is really happening in the ministries, especially as Ministers will often arrive with their own media advisers.

The Directors of Information also tend to be more comfortable with traditional media and distrustful of new media. Apart from their instinctive cautiousness as civil servants, it is also very difficult for the Director to make any money from new media. With traditional media, they can get commissions, through proxies, for any advert they place in the newspapers or on radio and television. With traditional media also, they need not make themselves available for the immediate attacks and challenges that come through social media.

The websites of many government ministries, departments and agencies are out-of-date and non-interactive. In many cases, the email address and the phone numbers on the websites are non-functional. I have been contacted on Twitter at least twice by foreign investors that were looking to invest in Nigeria but could not find a way to reach the relevant ministry. I have had to personally call the concerned ministers to put them in touch with the potential investors. Surely, this does not connote seriousness on the part of government.

Between the Ministry of Information, the Special Advisers and Special Assistants on Media at the Villa, the National Orientation Agency and the communication functions of the Ministries, Departments and Agencies, there is no apparent coordinating mechanism. There was some talk of a comprehensive communication strategy some time ago but some of the relevant stakeholders were not even invited to, or were not available to attend, some of the discussions. I do not believe that the initiative ever really took off.

Note: the rest of this article continues in the online edition of Business Day @ https://businessday.ng Dr Abah is a development practitioner and the immediate past Director-General of the Bureau of Public Service Reforms.

The Democratic party’s quiet abandonment of Barack Obama Donald Trump’s scorched earth war on the previous presidency has destroyed its premise

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t is one thing for Donald Trump to reverse everything Barack Obama did. His quest is nearing completion. From the Iran nuclear deal to the Paris climate agreement, Mr Trump is stamping on anything with his predecessor’s name on it. The unfinished task is Obamacare, which Republicans have only partially disabled. It is thus ironic that most Democrats vying to replace Mr Trump would finish the job for him. Very few are promising to restore Obamacare. The main exception is Joe Biden, who, as Mr Obama’s number two, helped enact the Affordable Care Act. Even Mr Biden, however, is conflicted about whether to boast of his Obama association, or change the subject.

Nobody in the Democratic presidential debates has attacked Mr Obama directly. Their distancing is no less emphatic for its stealth.

This too can be blamed on Mr Trump. In addition to his scorched earth war on the Obama presidency, Mr Trump has destroyed its premise. Mr Obama was elected on the lofty vow of finding what Americans have in common.

There was no red or blue state America in his worldview — only a united America. Was that only a decade ago? To Democrats, Mr Trump’s

presidency started in the year zero. Their continued shock at Mr Trump’s election outweighs their nostalgia for Mr Obama’s 2008 campaign.

That is one reason Mr Biden’s lead is so shaky. Unlike the other 23 candidates, Mr Biden believes Mr Trump is an aberration. Defeat him in 2020 and the US can return to the certainties of the Obama years. Few others share Mr Biden’s upbeat vision. America is too bitterly divided to be healed by gauzy hopefulness. Mr Obama came from a place of magnanimity.

That is also Mr Biden’s sentiment. Most other candidates have moved on to vengeance. It would make no sense for Democrats to revive talk of “purple America” when they are calling for Mr Trump’s impeachment.

Mr Trump has also radicalised Democrats.

In retrospect, the Obama administration looks like the epitome of the establishment. It was full of Wall Street alumni. As the writer, George Packer, put it: “Obama was a technocrat disguised as a visionary.” Reaction against his lack of vision is one reason why many of the leading candidates, including Elizabeth Warren and Kamala Harris, have joined Bernie Sanders’ call for single payer healthcare. It is also why Mr Biden

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was grilled so hard by fellow candidates about whether he privately objected to Mr Obama’s deportation of more than 2m illegal immigrants.

Mr Biden pleaded confidentiality. It is an awkward fact that Mr Trump has not yet come close to emulating Mr Obama’s deportation record.

In another age, Democrats would be vowing to restore what Mr Trump is undoing. Instead they are promising a radical departure. Not even Mr Biden would be content with rejoining the Paris climate agreement. By the standards of the “green new deal”, the accord Mr Obama negotiated reeked of caution. Mr Obama pursued an “all of the above” energy strategy. Mr Biden on Wednesday came close to vowing to abolish all fossil fuels. In 2009, Mr Obama told Wall Street executives that he was all that was standing between them and the pitchforks.

Today’s Democrats are the pitchforks. Bill de Blasio, the mayor of New York, has even set up a website called “tax the hell” out of the rich.

What then will remain of the Obama legacy?

The most radical aspect of Mr Obama’s election was his ethnicity. As America’s first nonwhite president, he made history. Mr Trump’s racial goading has complicated that national

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Edward Luce redemption. Yet there is nothing Mr Trump can do to eradicate Mr Obama’s example. Half of the candidates on the stage with Mr Biden on Wednesday were non-white, including Ms Harris, his chief rival. His other rivals are a white woman, Ms Warren, a gay married man, Peter Buttigieg, and a socialist, Bernie Sanders. Next in line are Julian Castro, a Mexican-American, and Cory Booker, an African-American.

Such a field would have been inconceivable a few years ago. As he surveys today’s wreckage, Mr Obama can draw on one other consolation: at least he merits the occasional mention. Bill Clinton, by contrast, has vanished. In the age of #Metoo, America’s 42nd president is persona non grata. Democrats are busy purging the past.

Given the mood, it would be a surprise were Mr Biden to make it to the finishing line. ed.luce@ft.com

@Businessdayng

Manageme He can be c

14

Tuesday 06 August 2019

BUSINESS DAY

Media business Building ethical organisations involves sacrifice, painstaking but rewarding - Udeme Daniel Obi

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n a challenging environment, managers are usually under pressure to meet business targets and this often leads to desperate short-term measures that compromise ethics and values of individuals and organisations.

However organisations that resist such temptation to compromise but maintain ethical standards and values, under any circumstance, are building strong future organisations by giving customers hope and confidence on their products and services.

Underscoring the importance of ethics, defined as maintaining high standards and meeting legal and moral obligations, to sustainability of businesses, Udeme Ufot, the Group Managing Director of SO&U Limited, advised that commitment to ethical conduct by organisations must be seen as part of a holistic business strategy and an extension of the company’s corporate social responsibility programme.

Udeme who spoke on ‘Ethics and sustainability in marketing’ at the Investiture of Tony Agenmonmen as the President of National Insti-

L-R: Femi Olubanwo, founding Partner, Banwo & Ighodalo; Tobenna Erojikwe, chairman, Mentorship Committe, Nigerian Bar Association, Lagos Branch; Asue Ighodalo, founding Partner, Banwo & Ighodalo, Seyi Bella, partner, Banwo and Ighodalo and Yemi Akangbe, chairman, Nigerian Bar Association, Lagos Branch at the NBA Mentorship Session - “An Evening with Asue Ighodalo”

tute of Marketing of Nigeria, NIMN recently in Lagos however warned that building ethical organisation can be painstaking. “It requires consensus building, sacrifice, focus and determination. It requires long term commitment to stay on course no matter the seductions for short term

benefits” He also cautioned that being ethical organisation without capacity to create value where it matters for clients will not take such organisation very far. “Being ethical is not a replacement for capacity and effectiveness”, he warned.

Citing some Nigerian companies that have maintained ethical behaviours, Udeme who established SO&U in 1990 and had served as chairman of Association of Advertising Agencies of Nigeria, and chairman of APCON said that many Nigerian companies have established

a set of shared values and principles that can serve as moral compass in navigating the unpredictable waters of Nigerian business environment.

These principles are in the form of Code of Conduct or Table of Values that define conduct in the organisation; what must be done and what must not be done and this is clearly communicated and understood by all staff.

Also speaking at the forum used to induct new fellows in NIMN, Agenmonmen who took the mantle of leadership of the institute in 2016 and was re-elected in 2019 said he has been encouraged to lift the institute from the stage he met it initially.

He said since then, with the support of his council members and other stakeholders, the leadership has made some strides in re-repositioning the institute. He commended NIMN members for the peace in the institute which has enabled some progress. Among those inducted Fellows are Ayeni Adekunle, CEO of Black House Media (BHM); Charles Aigbe, Divisional Head, Brand and Communication Fidelity; Sampson Oloche, Business Development manager for low and no Alcohol category for AMEA and Pacific at Nigerian Breweries; and among other, Adenusi Omotunde, a marketing expert.

Survival of Nigeria’s marketing communication industry threatened

APCON, OAAN, LASAA begin investigations on indecent truck mobile Advertisement seen at Lekki Toll-Gate

…As clients’ prolong payment period on contracts

Daniel Obi

Daniel Obi

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any of the operating agencies, from Outdoor, Creative to Public Relations businesses in Nigeria’s over N150 billion marketing

communication industry are complaining but not stridently over the poor payment attitude of their clients.

Both local and multinational companies who contract the agencies for professional media businesses have in the recent time extended period of payment to these agencies from 30 days to 90 days to

L-R: Ijedi Iyoha, acting Registrar/CEO of APCON, administering the Oath of Advertising Practice to Olufunke, Ajayi, executive vice chairman of Osun State Signage & Advertisement Agency; Adegbiti, Y. Adekemi, general manager/COO of Serengeti OOH, and Adetona, A. Jamiu, managing director/CEO of Absolute Outdoor Advertising Ltd., during the 2019 Induction Ceremony held recently in Lagos. www.businessday.ng

180 days (6 months) and sometimes 10 months.

“While the agencies and the media were believed to have fulfilled their own part of the contractual agreement by executing the contracts, they are now faced with the challenge of getting the clients honour their own part of the bargain by paying the invoices that have over -stayed agreed working grace period of 45 days”, an analyst said recently. This can be described as being against ethical standard.

This is obviously negatively impacting the operations of the agencies, especially when it is considered that the agencies borrow money from banks and other financial institutions as high as 25 per cent interest rate to finance the given contracts from clients.

What these companies in various sectors are doing is to use our capital to finance their marketing businesses instead of going to the banks themselves to borrow money, one of the worried operators told BusinessDay in Lagos.

“Many of us owe salaries, it is threatening our business and this clients’ attitude is gradually forcing some agencies to head southwards”, he said.

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igeria’s advertising regulatory bodies have started investigation to unravel the agencies and brands behind a repulsive viral video of semi-nude ladies in a see-through mobile advertisement truck along Lekki Lagos and which is circulating on social media .

The offensive mobile advertisement for a yet-to-be identified product or service was exposed and driven along Lekki-Epe Expressway in Lagos in a truck with registration number APP 713XL. Condemning the advertisement, Advertising Practitioners Council of Nigeria, APCON, the apex advertising regulatory body said it has activated all necessary measures to ascertain the persons or advertising agency or agencies or organisations behind the act.

The acting registrar and CEO of APCON Ijedi Iyoha said the organisation shall also be working with other relevant government agencies and advertising stakeholders to ensure that the rule of law is applied and to further ensure that such and similar abhorrent forms of advertisements @Businessdayng

are avoided in future.

“APCON strongly condemns the advertisement which is grossly indecent, disrespectful to Nigeria’s culture and prepared with little or no sense of social responsibility.

It violates the common principles of decency promoted in the Code of ethics of advertising practice and unnecessarily exploited and depicted unwholesome sexual behaviours”.

Iyoha said APCON is committed to ensure that all advertisement in Nigeria directed at the Nigerian market shall be legal, decent, honest, truthful, respectful and mindful of Nigeria’s culture, constitutional tenets and relevant lawful enactments as well as having a high sense of social responsibility.

Also, the Outdoor Advertising Association of Nigeria (OAAN) has condemned the outdoor Mobile advertisement.

According to OAAN President, Emmanuel Ajufo, the organization does not subscribe to the show of shame on the streets of Lagos by nude or semi-nude ladies . ‘’OAAN is a responsible association and our members are disciplined and would not be involved in unprofessional campaign such as seen in the viral video.

Tuesday 06 August 2019

BUSINESS DAY

15

Branding

We’re constantly improving customer service quotient - Awasthi Recently, Chief Executive Officer of foremost internet service provider Spectranet 4G LTE, Ajay Awasthi, spoke with journalists on issues in the industry including price war, broad brand penetration and the company’s new Spectra-cular data plans, investment strategies. Excerpts What needs to be done to accelerate broadband penetration in Nigeria to the next level? igeria has actually made rapid strides in broadband penetration. The regulator NCC has played a key role in proactively driving this through relevant policy interventions. While a lot has been achieved in terms of penetration, a lot more needs to be done to improve the basic quality of available broadband services in terms of consistency and reliability. Non-availability of affordable/reliable metro and national optic fiber networks poses a key constraint on offering high quality broadband services. Similarly, the tower companies can do better by addressing the issues of tower downtimes by improving the quality of infrastructure on- theground like diesel generating sets.

Digital transformation is cutting across the globe. What is the contribution of ISPs to help Nigeria key into digital transformation, where everything including household devices will be connected to the internet?

ISPs have stayed at the cutting edge of innovation. Spectranet, for example, launched 4G LTE technology in Nigeria way back in 2013.

I’m sure, the same will happen for the introduction of the latest 5G technology. This technology will be instrumental in driving the transformation to a digital world through applications driven by enhanced Mobile Broadband (eMBB), massive machine type communications (mMTC) and Ultra Reliable and Low Latency Communications (uRLLC).

This leap into a digital world, however, needs to be preceded by a massive effort to improve availability of infrastructure like metro and national optic fiber network, far more granular availability of tower infrastructure and significant improvement in tower uptime (to near 100%).

There has been a price war on data plan among internet service providers in recent times, where prices of data are slashed repeatedly. How will this help the internet data market to grow?

War of any kind is destructive by nature. A price war is no exception. It is a short-sighted ploy to gain market share. In the near term it may be touted as a “customer friendly “ move but over a period of time a price war results in significant destruction of value for the industry, forcing the players to degrade quality of services. A price war is not sustainable in the longer term and a lose-lose proposition for both the operators and the

N

Ajay Awasthi

customers. The hapless customers finally end up at the receiving end and are made to suffer through poor quality.

How does Spectranet manage to stay ahead of the curve in delivering customer service?

At Spectranet, we constantly remind ourselves that Customer Churn is just one bad experience away. This bad experience can be on account of a delayed On line payment transaction, an unsatisfactory response from an AI powered Chat bot (we call it EVA) or even a slight delay in retrieving a forgotten log-in user Id! We call these bad

‘

If we understand it well, we can deliver it well! The whole organization needs to understand “Customer service excellence” in the same manner and then each employee needs to deliver it in a form which is the most relevant to the customers

‘

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experiences “customer pain points” and assiduously work on getting down to the causative factors and addressing them. Proactive customer service (anticipating customers’ needs and pain points) is like a religion at Spectranet. The focus always is on eliminating these pain points or bad experiences by staying ahead of the causative factors.

A critical factor which drives proactivity is the design of Customer Service Delivery (CSD) organization and the hierarchical distance from the front-end Customer Service Executive to the CEO. At Spectranet we have managed to keep just two layers between CSE and CEO and that helps significantly in staying tuned to customers’ requirements.

You have spoken in the past about customer service excellence and how it can be a strong differentiator in the market place.

Would you like to let us know what specific initiatives Spectranet has taken in this context?

It’s a journey we embarked on early last year. The first step was to sharpen our understanding about Customer service excellence, define it in simpler terms and articulate the various steps leading to excellence.

The idea was simple – if we understand it well, we can deliver it well! The whole organization needs to understand “Customer service excellence” in the same manner and then each employee needs to deliver it in a form which is the most

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relevant to the customers.

The second step was to align all the external stakeholders like Tower companies, lease line companies who play a critical role in ensuring network uptime- a basic requirement towards delivering excellence in customer service.

The third and the most critical step we undertook was to bring about a transformational shift in the employees’ mindset to deliver what can be termed as excellent customer service –proactive, uncomplicated, personalized and based on deep respect towards the individual.

Though, we have heard all of it before, it’s the implementation which needs rugged perseverance on the part of the team. While we talk, team Spectranet is undergoing this transformation.

Recently also you spoke about improving the Customer Service Quotient (CSQ) of the organization. How has been the progress?

Before starting on an arduous journey, it’s good to assess your capabilities. In this case, it was important to measure the CSQ of the organization, its employees and assess the gaps. Based on the first score, the team defined the next milestone and a set of measures to achieve that – like training, imbibing the culture of putting customers in the center of decision making, smoothening inter-functional working etc.

We, as a team, have done well in this respect and have been able to improve our CSQ quarter-onquarter.

How do you differentiate your customer service from competition?

We at Spectranet believe that excellence in customer service is the Holy Grail of differentiation in the market place. Excelling in customer service is a part of the organization’s DNA. How else one can, otherwise, explain huge costs incurred on account of having our own vans with Diesel Generating sets mounted on them to ensure the power to our network equipment is restored immediately, without depending on the tower company!

So, at a very high level, we fundamentally differentiate vs other operators through the way we approach customer service – which is proactive, personalized and respectful– placing significance on respect for the individual and her time. This philosophy drives the organization to treat our customers with utmost dignity and place huge emphasis on finding a speedy solution to a pain point.

At times your service delivery depends on infrastructure provid@Businessdayng

ers like tower companies, payment gateways, optic fiber leasing companies. How do you factor in downtimes on account of service deficiency from these Infracos?

Frankly, we face serious challenges at the ground level due to erratic service from Infracos. In order to ensure that our customers are not pained, we have to build back- ups. For example, we have Diesel Generating sets mounted on vans which are rushed to the respective sites facing downtime due to power outage, to power up our network equipment! In order to guard against downtimes due to fiber cuts, we invest on multiple fiber routes to build redundancies.

This obviously leads to higher cost of operations, but at Spectranet we choose to walk the talk- Customer first.

Spectranet recently launched new Spectra-cular Data plans for the customers? What is unique about these Data plans and how will these benefit the customers?

In a rapidly evolving Data market like Nigeria, the subscribers most often get confused by extremely complex and difficult -tounderstand Data plans offered by various operators.

The core idea behind the launch of these plans is to offer Data users superior value through simple, uncomplicated data plans packing in either bonus night time GBs or Unlimited Night time browsing. Our subscribers in all usage categories can now enjoy seamless Day-Night access to Internet without having to worry about paying exorbitant charges. Spectra-cular Data Plans empower subscribers to “Do More” and “Save More” with reliable and affordable internet.”

In this era of the digital engagement why are you doing the physical outlets. What significant message do you want your customers to take from this?

Firstly, the customer engagement with the service provider is most often non-linear and through multiple channels. Secondly, the customer base contains different segments of customers- some of them find it convenient to interact through digital channels like Spectranet App, AI powered Chat Bot (EVA), while others are more comfortable with calling up at the Call Centre or walking into a brick and mortar Spectranet Experience Center.

We believe a complete switch over to digital access channels will take a while. At present balanced development of an Omni channel footprint helps us customize our touch points’ basis for the customer’s convenience.

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Tuesday 06 August 2019

BUSINESS DAY

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Tuesday 06 August 2019

BUSINESS DAY

Linkage Assurance’s profit rises 16% to N573m in H1 Pg. 19

COMPANIES & MARKETS

17

COMPANY NEWS ANALYSIS INSIGHT

BANKING

Jaiz Bank records highest H1 profit in 4yrs as investment income soars ISRAEL ODUBOLA

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aiz Bank, Nigeria’s pioneer non-interest lender, grew mid-year profit to the highest level in four years despite the paucity of non-interest banking liquidity management instruments.

Net income of the lender almost quadrupled to N815.6 million in six months to June 30, 2019, indicating some 615 percent surge over N114 million reported similar period in 2016.

The sharp growth in profit was spurred by massive increase in receipts from investment activities and consequently buoyed gross earnings by 58 percent to N5.75 billion in the period.

A further look at the bank’s earnings report revealed that proceeds from Sukuk, which accounted for 82 percent, spiked to N1.99 billion from N509 million last year.

The lender paid N1.19 billion as profit to investment account holders, bringing its share for being an equity investor to N4.55 billion, twice that of last year.

The bank set aside N294 million as impairment change, with net spread after provision doubled to N4.26 billion.

The bank made N99 million less proceeds from electronic business, which took a toll on fees & commission income. Jaiz Bank incurred N11.8 million as operating loss driven by N108.6 million deficit from foreign exchange transactions.

However, total income for the period appreciated to N4.82 billion from N3.39 billion last year.

Total expenses of Jaiz Bank rose to N3.94 billion mid-year 2019 compared to N3.16 billion a year ago. Staff costs (+30%) rose the most among other cost components.

The lender grew pre-tax profit four-folds to N906 billion, while tax expense climbed N67 million higher.

Given improvement in its bottom-line, profit allocated to each unit of shares rose to N2.77 from 78 kobo last year.

As at June 30 2019 period ended, the bank total assets and liabilities stood at N144 billion and N81 billion respectively.

Cash sourced by the bank from Central Bank of Nigeria (CBN) stood at N12.9 billion as at half-year 2019.

The bank explained that the sum represents the onlending facilities granted by the CBN in collaboration with the Federal Government under the Commercial Agriculture Credit Scheme (CACS) with the motive of providing concessionary funding for agriculture to promote commercial agricultural enterprises in Nigeria.

The lender during the year

invested N17.98 billion in Sukuk issued by the Federal Government. The Sukuk has 7-year tenor due 2025 at a return of 15.74 percent.

The bank had in the early

period of 2019 expressed commitment to support small and medium scale enterprises despite the sluggish recovery of the Nigerian economy.

Jaiz Bank was established about 16 years ago, and provides Islamic banking products and services, online banking, leasing, bond (sukuk) and guarantee.

L-R: Egie Akpata, Director, Union Capital Markets Limited; Chuka Eseka, President, Association of Issuing Houses of Nigeria (AIHN), and Sola Carrena, Executive Director, Stanbic IBTC Capital; during the 2019 AIHN Dinner and Awards where both companies were presented with the “M&A Deal of 2018” award.

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

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Tuesday 06 August 2019

BUSINESS DAY

COMPANIES&MARKETS

Business Event

CONSUMER GOODS

Unilever Nigeria’s Q2 profit grows by 26% OLUFIKAYO OWOEYE

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nilever Nigeria, a listed consumer goods company, turned the corner in the second quarter of 2019 after a somewhat lacklustre first quarter.

The company reported a growth of 21.8% in its turnover from N19.2 billion in Q1 2019 to N23.4 billion in Q2 2019, althoughtheresultshowsadecline of 11% in its half year turnover fromN48.1billioninJune2018to N42.6 billion in June 2019.

The Company reported an increase of 26 percent in profit after tax from a profit of N1.5 billion in Q1 2019 to a profit of N1.9 billion in Q2 2019. However, compared to last year, the company’s first half profit was down 37.5% to N3.5 billion in June 2019 from N5.6 billion in June 2018.

Cost of sales decreased by 4.5% from N32.8 billion in June 2018 to N31.3 billion in June 2019 in line with the decrease in turnover while cost of sales increased by 3.6% to N15.9 billion in Q2 2019 from N15.4 billion in Q1 2019 also in line with the marginal increase in Q2 turnover.

In a statement released by the company, Unilever Nigeria

assured shareholders of its efforts to ensure a sustained and steady growth in the company’s operations engineered to achieve better returns on their investments.

“Although Unilever Nigeria continues to operate in a tough environment, we are now beginning to see momentum behind enhanced costs and operational efficiencies. Unilever Nigeria remains focused on its short- and long-term growth ambitions with clear emphasis on cost and operational efficiencies, increasing market share across key categories, reinvesting behind our iconic brands and improved route-to-market.” Said, the Managing Director, Unilever Nigeria, Yaw Nsarkoh.

Comparing Unilever’s H1 2019 to H1 2018, there was a decline in revenue across key product segments as both Food business and Home & Personal Care (HPC) business slumped 3.1percent year-on-year and 18.4percentyear-on-yearrespectively to N21.4bn and N21.3bn in H1 2019 from N22.0bn and N26.1bn in H1 2018.

Notably, the previously vibrant HPC segment in Unilever’s revenue mix is now at par with the Food business due to sustained weakness.

On a positive note, food revenue recovered during the quarter climbing 6.3percent quarter-on-quarter to N12.1bn. Unilever’s HPC business remains pressured as the business segment recorded a 9.0percent quarter-on-quarter decline to N11.3 billion.

While Unilever’s Knorr and Royco seasoning cubes continue to sustain the Food business, the Home and Personal Care (HPC) business remains pressured from the presence of several competing choices on retail shelves across the country.

Trade receivables ballooned 67.2percnt to N50.5bn in H1 2019 from N30.2bn at the end of 2018, the jump was driven

by N5.8bn and N6.5bn increase in Gross Trade Receivables as well as Advances. The steep rise in Trade receivables has seen Days of Sales Outstanding ratio expand to 163 days as at H1 2019 from 114 days as at FY 2018, an attempt to drive sales by extending better credit repayment conditions to distributors given weaker sales and tighter margins.

Shares of Unilever traded at N32.00 on the floor of the Nigerian Stock Exchange on Friday with its one year return down 36.8percent.

L-R: Osman Tat, acting United States consul general; Josiah Samuel, group managing director, Coscharis Group; Cosmas Maduka, president, Coscharis Group, and Fabrice Cambolive, chairman, Groupe Renault, at the official announcement of Coscharis partnership with the Renault group as the exclusive representative of Renault in Nigeria at the Coscharis Assembly plant in Lagos.

L-R: Babatunde Ruwase, president, Lagos Chamber of Commerce and Industry (LCCI), receiving a Plaque from Babajide Sanwoolu, governor, Lagos State, at a courtesy visit by Ruwase to the governor in Lagos.

COMPANY RELEASE

Explicit Communications announces new members of staff

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unde Asekun joins the team as a Director, Strategy and Business Management; Ayokunumi Kehinde joins as Group Head, New Business Development and Brand Management and Daniel Ibekwe joins as a Senior Executive, Concept.

Tunde joined Explicit Group after spending some good number of years working at reputable agencies.

Worthy of mention is his years at Brooks and Blake where he worked as a consultant and project manager.

He earned his stripes on almost all arms of Integrated Marketing Communications.

He will be responsible for planning and implementing strategic marketing plans with cross-agency and brand team collaboration to execute clients’ briefs across Advertising, Events & Experiential, Media Buying and Placement and Audiovisual Production.

Our new Group Head, New Business Development and Brand Management, Ayokunumi Kehinde joined Explicit Communications from Dijo Communications where she worked as the Head, New Business Development. She has worked across different arms of Integrated Marketing Communications. She will be responsible for New business Development, Managing Client services, Strategic Integration and Planning of all inputs into Brand Management.

To further strengthen our creative team, we are pleased to bring on board, Daniel Ibekwe. He is a seasoned copywriter who has worked on Alcoholic, non-alcoholic, FMCG, Telecom and other interesting accounts. His works have won in LAIF Awards and other marketing industry awards.

Speaking on the new addition to the team, The

Group Managing Director and Chief Executive Officer, Mr. Tunde Thani said, “it is with great excitement that we welcome the new members of staff into the Explicit family where we thrive on big thinking for our clients. The marketing industry needs passionate and vibrant business development managers who will not only identify innovative ways to add value clients’ businesses but also seek opportunities for Agency to deliver on ROI and its bottom-line hence the reason for these new talents.

Explicit Communications was established in 1996 to deliver marketing communications solutions that transcend the realm of common advertising. Over the years, the Agency has remained vibrant and resolute in delivering top-notch and cutting-edge solutions across Advertising, Media, Experiential, Creative and Strategy.

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L-R: EVP & MD, BET Int›l & Viacom Africa, Alex Okosi ;President & Chairman Council NIMN, Tony Agenmonmen & CEO/Founder BHM Group, Ayeni Adekunle at the National Institute of Marketing of Nigeria Investiture Ceremony in Lagos

L-R: Ali Mustapha Bello, banking officer, micro enterprises division, BOI; Maryam Uwais, Special Assistant to the President, National Social Investment Programme (NSIP); Aisha Abdullahi, manager, micro enterprises division, BOI; Vice President Yemi Osinbajo; Kayode Pitan, managing director/CEO, BOI; Abimbola Soyode, deputy manager, micro enterprises, BOI, and Nnaemeka Nwosu, senior banking officer, micro enterprises, BOI, as the Bank received the award for the Outstanding MSME Partner at the 2nd National MSME Awards, at banquet hall, Abuja

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Tuesday 06 August 2019

COMPANIES&MARKETS

BUSINESS DAY

Business Event

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INSURANCE

Linkage Assurance’s profit rises 16% to N573m in H1 MODESTUS ANAESORONYE

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nderwriting firm, Linkage Assurance Plc has recorded a 16 percent growth in profit after tax for the half year unaudited financial statement ended 30th June 2019.

The figure rose from N439.77 million in the half year period of 2018 to N572.76 million in the same period in 2019.

According to the financial statement made available to the Nigerian Stock Exchange (NSE), Linkage during the period under review posted a Gross Premium Written (GPW) income of N4.130 billion as against N3.650 billion the previous year.

With efficient risk management, the underwriter during the period returned

to profitability in underwriting performance, posting a 176percent increase, as the figure moved from negative N367.11 million in 2018 to positive N296.06 million.

Linkage Assurance total assets also grew by 8 percent, moving from N23.146 billion to N24.869 billion at the end of June 2019.

The Company is optimistic that it will sustain this growth all year around, as its growth initiatives already deployed were beginning to add value to performance of the company.

Daniel Braie, managing director/CEO of Linkage Assurance Plc said the Company has diversified its portfolio to achieve income efficiency with quality risk management, noting that management is actively watching its cost to ensure that it delivers value to shareholders.

In terms of compliance

to regulatory requirements, we are up and doing to ensure we remain above board and maintain our position in the industry, Braie said.

Linkage Assurance Plc. (“LINKAGE” or “the Company”) was incorporated in Nigeria on 26th of March 1991 as a private limited liability company domiciled in Nigeria. It was registered by the National Insurance Commission on the 7th of October 1993 to transact general insurance business and commenced operations in January, 1994.

The Company’s high standard in corporate policies and governance are designed to encourage transparency in all its activities as well as ensure the protection of the long term interest of all stakeholders.

The business of the Company is conducted with high level of integrity.

COMPANY RELEASE

Netcore solutions industry report highlights Nigerians engagement with emails KELECHI EWUZIE

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etermined to provide valuable insight into email re c e p t i o n a n d marketing for Nigeria customers, Netcore Solutions is set to launch a 2018 email reception report into the country.

The report according to the company shows how average Nigerian customer reads marketing emails, adding that with this report, email marketers can now tailor their communication to ensure they are delivering the right content at the right time.

Chukwudi Nwokike, client success manager, Netcore solutions, a technology and marketing company whose footprints started from India said Nigerian brands would always have the need to communicate with their customers on a frequent basis, adding that what to communicate is as important as when and where to communicate.

Nwokike observes that about 15 years ago during data collection Nigerians would often give invalid email addresses. SMS has

long been the major player in mass communication to customers.

According to him, “This is majorly be caus e the most accurate data held by brands has always been SMS numbers. SMS marketing was also declared a nuisance by NCC and the rise of DND occurred.

Suddenly brands SMS delivery rates dropped to as low as 40 percent. Brands now need to turn to other channels of communication to engage with their customers”.

Nisham Chhabra, country manager of the company with presence in India, Malaysia, Indonesia, Nigeria, Vietnam, Philippines, USA, UAE and UK, said the rise of GSM and 3G Technology in Nigeria had given multiple communication channels at the fingertips of every user.

Chhabra opines that now a large percentage of the population have valid email addresses that they check on a regular basis. Social media platforms such as Facebook, Instagram and Twitter play a valid role in their life.

“It is no longer about what you communicate alone. www.businessday.ng

When you communicate, how you communicate and the channel you use for communication would play a big role in converting the sale”, Chhabra said.

He further disclosed that the report http://bit.ly/Nigeria-email-2018-report was compiled by the Client Success Manager Team (Smartech Product) for Netcore Solutions in Nigeria.

Netcore solutions have 3000 global clients with over70 clients in Nigeria using one of their solutions.

Netcore’s Smartech is an AI Powered Growth marketing platform that is capable of delivering cross-channel automated communication on 10 Channels (Email, SMS, Voice, Whatsapp, Facebook, Instagram, Browser Push Notifications, Web Message, In-app message, App Push Notifications).

By combining these 10 channels of communication in one highly customizable platform, S ma r t e c h e mp ow e r s marketers to engage with their customers and increase conversions on website and mobile app using triggered notifications and deep analytical insights.

Babatunde Ruwase (l), president, Lagos Chamber Chamber of Commerce and Industry (LCCI), presenting a Plaque to President Muhammadu Buhari, during a Courtesy Visit by the Chamber to the State House in Abuja recently

L-R: Babajide Sanwoolu, governor of Lagos State; Jacky Hathiramani, GMD/CEO, Dana Group and Kia, Obafemi Hamzat, deputy governor, Lagos State, at a courtesy visit, at Lagos house, Ikeja, Alausa, Lagos State

L-R: David Adegboyega, character coach; Olajumoke Akinyemi, HOD education, Alimosho LGA.; Moyinoluwa Olutayo, actress; Doyin Ogunbiyi, chairman, Ogun state BTPE; Bosede olusola Obasa, convener; Morayo Afolabi Brown, host, your view, Tvc, and Susan Tayo, parenting coach, during the 2019 National Character Parenting summit in Lagos.

Don Okonkwo, honorary counsel of Congo DRC to Nigeria; receiving the Felix Tsisikedi, President of Congo DRC, and others, in the Presidential wing of Abuja Airport.

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BUSINESS DAY

property&lifestyle

Bad structure, not capital base seen as mortgage industry’s major challenge Endurance Okafor

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ontrary to the belief that lack of long term capital or low capital base is the main challenge of Nigeria’s mortgage industry, stakeholders in the industry and property sector analysts have spilled the beans, revealing that the structure of the industry contributes the most to its set back.

Over 10 industry players and analysts polled in a BusinessDay survey have, therefore, recommended a restructuring, not recapitalization, of the country’s mortgage system.

The industry has, in the last couple of years, seen far-reaching recapitalization and loans refinancing by the Nigerian Mortgage Refinance Company (NMRC), yet it is neither growing nor meeting market expectations, meaning that the problem of the industry goes beyond liquidity issues.

“The structure of the mortgage industry is the problem; there is high interest rate and this is coming

on the back of economic condition,” Adeniyi Akinlusi, president of Mortgage Bankers Association of Nigeria (MBAN) and CEO, Trustbond Mortgage, told BusinessDay. Akinlusi added that recapitalisation is not the main challenge, considering that mortgage banks do not “give loans from shareholders’ but fund from deposits.”

Nigeria has over 17 million housing deficit. According to the Association of Housing Corporation of Nigeria (AHCN), an umbrella organization for all federal and state housing agencies, more than 90 percent of new homes are funded from personal savings for incremental construction.

“The structure is the challenge; there is high default rate in the mortgage industry which is, most likely, because funds are diverted and not returned,” Adekunle Abdul, managing director, Metro & Castles Homes, said.

Kehinde Ogundimu, MD/CEO, Nigerian Mortgage Refinance Company

International Real Estate Federation (FIABCI)-Nigeria President, Adeniji Adele (centre) and members of the federation during a courtesy visit to Deputy High Commission at Nigeria Embassy in Russian recently after the 70th FIABCI World Congress

(NMRC), the company “has refinanced mortgage loans totalling N18billion as at December 2018.”

He said it was in line with the company’s mandate to promote affordable home ownership in the country by leveraging funding from the capital market to deepen liquidity in the primary and

secondary mortgage markets.

Imade Omogiafo is a single parent and a manager in one the consulting firms in Lagos. According to her, she has been trying to access a mortgage for the past two years without any positive result. “I sincerely cannot even tell what the problem is; I have signed up with

more than three mortgage banks, but none has been able to come through with a mortgage,” Omogiafo lamented.

According to Abdulmalik Mahdi, managing partner at Modern Shelter Systems & Services Limited, an Abujabased real estate firm, the players in the industry par-

NMRC, GIZ seal pact to tackle constraints to affordable housing delivery CHUKA UROKO

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he Nigeria Mo r t g a g e R e f i nance Company (NMRC) and the Deutsche Gesellschaft für Internationale Zusamm e na r b e i t ( G I Z ) hav e joined forces, through a collaborative agreement signed in Abuja recently to tackle constraints, especially finance and data, to affordable housing delivery in Nigeria.

This is good news, especially for low income earners in Nigeria for whom the affordability factor in the country’s housing market is a big issue, having denied them the opportunity to own homes. The partnership is expected to address challenges associated with finance and data.

NMRC is Nigeria’s secondary mortgage institution that is private sectorled with the mandate to increase liquidity in the country’s mortgage system and also to catalyze affordable housing delivery. GIZ is an agency that implements technical cooperation projects on behalf of the German Government and other development partners. Its activities in Nigeria which date back to 2002 are focused on

sustainable economic development programmes.

The collaboration of the two companies targets affordable housing value chain, focusing on synergizing and deploying their capacities and expertise which Kehinde Ogundimu, NMRC’s CEO, hopes will bring about access to finance while also driving the creation of an economy around affordable housing.

GIZ’s cluster coordinator for sustainable economic development, Hans Ludwig Bruns, explained that both firms recognised the great potential in joining forces and leveraging synergies for the benefit of affordable housing in the GIZ-SEDIN targeted states, including Ogun, Plateau and Niger states.

Nigeria’s housing market comprises two major divides that continue to influence the dynamics of demand and supply as well as affordability. The premium end is oversupplied with few off-takers while the lower end is undersupplied, leading to the growing housing deficit in the country.

“The GIZ-NMRC collaboration is in furtherance of the efforts of the government in Nigeria to www.businessday.ng

resolve the housing crisis in the country, through collaboration with the World Bank and international cooperative institutions like GIZ. It is expected that NMRC in collaboration with GIZ will promote housing accessibility through financial innovation as well as foreclosure mechanisms that facilitate the creation of an enabling environment for mortgages and investments in the housing sector of the targeted states.

The collaboration will also facilitate housing growth and development and also credible data collection from the participating states. “The data component of the collaboration will help to identify gaps, specific constraints and analyse needs in affordable housing demand and supply that form the basis for the agreement,” Ogundimu assured.

He assured further that the parties will jointly explore and coordinate training and capacity building activities that have mutual interest, adding that these activities would be implemented by separate agreements in mutual understanding and in conformity with the regulations and policies of both parties. https://www.facebook.com/businessdayng

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ticularly financial institutions need to be innovative in approaching fundraising for mortgages.

“There is a lot of scope for financial engineering if the banks are willing to think out of the box,” Mahdi said, adding, “the primary mortgage banks in Nigeria are part of the problem. They are not efficient in their transaction processes; it takes ages to process simple loans and a lot of their staff lack capacity.”

Industry players are of the view that the key culprit for the housing challenges in Nigeria is the mortgage rate. Typically, mortgage interest rate in Nigeria ranges between 7-10 percent for Federal Mortgage Bank of Nigeria (FMBN) and between 15-25 percent for commercial mortgage institutions, making it one of the highest in the world.

In advanced economies, the mortgage industr y makes significant contribution to economic development with single digit interest rates. Nigeria’s roaring inflation rate and the at-

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property&lifestyle Experts see sustained supply of prime office space amid softened demand …as Landwey upscales high-rise market with 28-floor Audacious Skyline in Eko Atlantic CHUKA UROKO & ISRAEL ODUBOLA

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he property market has, in the last five years, seen a spike in the supply of prime office space and experts say there will be sustained supply of these prime products despite softened demand and fragile, sluggish recovery of the wider economy.

This, they explain, is because investors with patient capital now take long view of the market even as investment interest remains strong and the current economic condition, a boon for smart investors.

In the Lagos property market, Victoria Island and Ikoyi are the most active sub-markets for state-of-the art structures, though recent developments have shown that the latter has outpaced the former as a destination for iconic structures.

However, the upcoming Eko Atlantic City, an ambitious city development sitting adjacent to Victoria Island is ahead of competitions in terms of location, project size and superior infrastructure.

This is where Building Landwey Investment Limited, a real estate investment company, is planning its topof- the-range The Audacious Skyline— an iconic mixeduse development designed to rise 28 floors on 3,500 square metres land.

LandWey operates within the commercial, retail and residential property segments and provides real estate advisory services.

In recognition of its strong footprints in these space, the company was chosen as the ‘Real Estate Investment Company of the Year’ in BusinessDay’s ‘Nigerian Business Leadership Award’ held in Lagos at the weekend.

The Audacious Skyline is a piece of architecture that promises tastefully finished beach-front residences and

Continued from page 20 tendant high mortgage rate dampen housing demand and blunt developers’ investment appetite.

This is why Nigeria has one of the world’s lowest mortgages to Gross Domestic Product (GDP) rate at about 0.6 percent, which lags Ghana’s 2 percent, South Africa’s 30 percent and crawls after the US and UK rates of 60 percent and 70 percent respectively.

“There are some devel-

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

Professionalizing the FM sector: The real deal

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penthouses, commercial spaces, multi-level parking, designated elevators, personalised concierge services, etc. All these, according to Olawale Ayilara, the company’s Founder/CEO, will be executed with topnotch construction procedures and standards.

“As a brand, we are ready and equipped to take on the project armed with robust experience in construction as well as our strong partnerships with world class architects, engineers and designers,” Ayilara assured.

Ikoyi, formerly known as a residential enclave, is home to many high-rise edifices on the Alfred Rewane axis, with the likes of Temple Tower, British America Tobacco (BAT) Rising Sun, Lake Point Towers, Alliance Place, Famfa Oil Tower and Heritage Place competing for skyline of the highbrow area.

Chances are high that more of such high-rise structures would find their way to the market in the next couple of years, which would consequently transform the axis to a major commercial hub, expert says.

“If you look at the master plan of Ikoyi, it’s only Awolowo and Alfred Rewane road that are designated for iconic structures, indicating

that supply will be maintained at current levels going forward,” said Yemi Stephen, partner at Estate Links.

Stephen noted that owners of unutilized landed assets facing the road would likely sell or sign a joint venture to construct office building, even though there is excess supply in the market.

According to experts, period when the broader economy is in downturn or gradually picking up is the best bet for investors to put in their funds into real assets to leverage capital appreciation when market rebounds.

“This is the most suitable time to build such that when your building is almost completed, by then the market would have expanded rapidly”, Stephen stated, adding that market outlook holds prospects if the fiscal authorities get it right.

Najeem Adeyemi, realtor at Ewenla & Mustapha, hopes that value will trend upwards but will be determined by how sophisticated the properties are along with theirs service offering.

“Land value alone on Alfred Rewane axis is about N400, 000 per square metre. That axis commands higher value than Ozumba Mbadiwe axis in VI,” Adeyemi said, noting that land value drives prop-

erty yield.

The market in the first quarter of 2019 saw the entry of Kingsway Tower, standing tall on 15 floors and contributing 13, 317 square meter space to an already oversupplied market place.

The mixed-use building was designed for mid-sized corporates as well as multinationals that seek presence in Nigeria’s economic heartbeat, Lagos. It offers retail space as well.

Also during this period was the arrival of Famfa Oil Towers situated on the corner of Alfred Rewane on Olawole Dawodu road in Ikoyi, courtesy of Dayspring Property Development Company, chaired by Africa’s wealthiest woman, Folorunsho Alakija.

A report by Lagos-based real estate consulting firm, Knight Frank, notes that vacancy rates for prime office space remains high as market has not fully recovered to bolster demand for rental per square metre, which is a bit high.

Rent for Grade ‘A’ office space market has headed south in both asking and achievable rents from $1, 000 per square metre to about $850, but this trend may not linger as supply is expected to maintain tempo in the short to medium term.

he call to professionalize the facility management industry continues to grow. With so many companies and individuals joining the bandwagon of FM practitioners, one begins to wonder how many of these organizations and individuals have the competence to deliver FM services.

The question, therefore, is whether it is too late to make this move? The answer depends on what we are prepared to do. The other question may be, should we give up on it? And the answer will emphatically be no. However, there will be a need for a different approach.

The approach looks less than certain at the moment because it will require developing and nurturing.

Whilst there’s been a great shift in awareness in both private and public sectors on the benefits of FM services, our maintenance culture remains low. Many organizations are still struggling to create a positive and safe work environment which, no doubt, will increase productivity and, most residential estates could do with improved maintenance.

The prevailing economic conditions have not helped but what I believe is that many workers will like to see their workplaces better managed.

If good FM support is a critical part of the solution, why then are these organizations not reaching out to FM practitioners for assistance? The answer is because we don’t have sufficient profile or credibility nor sufficient qualifications and professionalism to be accepted as the go-to problem solvers.

Yet, collectively, we are good at thinking differently and creatively about the issues within organizations and what it takes to fix the problematic ones. There are many solutions that FM service providers can deliver to enhance buildings

Bad structure, not capital base seen as mortgage industry’s ... oped projects that do not have the right documentation, making it hard for such properties to be used for mortgage. This is coupled with the economic challenges; people in the middle class cannot afford a double digit mortgage rate,” Abiodun Akanbi, Head of Strategy at Infinity Trust Mortgage Bank, said.

Ayo Ibaru, COO/Director , Real Estate Advisory at www.businessday.ng

Northcourt, agrees, noting that both recapitalisation and the structure of the mortgage industry need to be improved. “The structure of the mortgage industry and the cost of funds need help; it takes too long to get approval and documentation for real estate projects, the land also costs too much and about 90 percent of the raw materials used by developers are imported,”

Ibaru explained.

Despite the real estate sector getting out of the woods as it broke its 12 consecutive quarters of decline by recording 0.93 percent growth in the first quarter of 2019, banks’ confidence in the sector waned as reflected in credit allocation to the sector which tumbled to its lowest level at 3.92 percent in four years.

Sectorial credit alloca-

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tion to real estate shed 0.2 percentage point quarteron-quarter and 2.49 percentage point year-on-year.

Of the N15.21 trillion combined credit given to 17 sectors by banks, real estate got N596 billion in the first three months to March 2019, N26 billion or 4 percent lower than N622 billion received in the preceding quarter.

On the way to go in solving the problems in the in@Businessdayng

and support their occupants in being more engaged, comfortable, efficient and productive. We just need clients to re-appraise their requirements and strategies.

We also need a clearer vision and strategy for professionalizing FM. How many facilities managers have qualifications in FM or attended courses related to FM? The total figure is probably low within a sector that represents billions of Naira in value and arguably one of the biggest employers in the country.

We won’t surmount this challenge quickly as there’s no indigenous professional body in the sector to address these issues. The existing international FM bodies – IWFM and IFMA— have not achieved much despite their tangible efforts. Within the industry itself, there’s precious little history of vision sharing, effective collaboration or sustained coherent communication. The truth is FM practitioners should be equipped to be transformational leaders influencing them to think and take courageous action to help their colleagues make positive difference for FM to be a strategic resource to organisations.

There are clearly challenges on both sides of the fence because there is no incentive to learn new skills which is bad news for all organizations especially those involved in any aspect of FM. What our industry needs right now is new people (young people in particular), new skills, new insights and more creativity, all adding up to more credibility around how FM can add real value to organizations in numerous ways.

The advancement of the practice of FM is not limited by organizations; rather it is limited by FM leaders who are to be the voice of change, showing the courage to lead change that add value to their organizations’ business success.

dustry, Ibaru said “there should be a rethink on how the structure of the mortgage industry should function and in doing that; the point of the consumers should be taken into consideration.”

“There is a need for greater regulation of the activities of some primary mortgage banks (PMBs) as they get away with a lot of things such as charges that make transaction costs too high for clients,” Mahdi recom-

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BUSINESS DAY

23

PHOTO SPLASH BusinessDay Nigerian Business leadership Awards 2019

Frank Aigbogun, publisher/CEO, BusinessDay, giving his welcome address

L-R: Yinka Sanni, presenting lifetime achievement award to Pascal Dozie, founder/chairman, Kunoch Limited, and Frank Aigbogun

L-R: Yinka Sanni, presenting lifetime achievement award to Tunde Afolabi, chairman/CEO, Amni International Petroleum Development Company, and Frank Aigbogun Pascal Dozie, founder, /chairman, Kunoch Limited, giving his speech

L-R: Yinka Sanni, CEO, Stanbic IBTC Holding, presenting lifetime achievement award to Haresh Keswani, GMD, Artee Group, and Frank Aigbogun

Bashirat Oduewu (r); Funmi Adeyemi (l), both of First Bank, receiving lifetime achievement award on behalf of Ibunkun Awosika, chairman, First Bank Nigeria Limited from Yinka Sanni (m).

Yinka Sanni (l), presenting lifetime achievement award to Layi Francis Fatona, managing director, Niger Delta Exploration and Production Plc. www.businessday.ng

L-R: Layi Francis Fatona, managing director, Niger Delta Exploration and Production Plc, presenting transformational leader in the public sector award/government agency for enabling business award to Simbi Wabote, executive secretary, Nigerian Content Development and Monitoring (NCDMB), and his wife Sotonye

L-R: Oke Maduewesi, founder/CEO, Zaron Cosmetics Limited, receiving the B2C SME CEO of the year award from Muda Yusuf, director-general, Lagos Chamber of Commerce and Industry (LCCI), and Frank Aigbogun

Deji Balogun (2nd r), COO, Terragon Group receiving B2B SME CEO of the year award onbehalf of Elochukwu Umeh, MD/CEO, Terragon Group from Muda Yusuf (r), and other staffs of the company

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BUSINESS DAY

Tuesday 06 August 2019

BUSINESS DAY

25

PHOTO SPLASH

BusinessDay Nigerian Business leadership Awards 2019

Victor Okoronkwo (m), GMD, Aiteo group, receiving business leader of the year award onbehalf of Benedict Peters, founder, Aiteo Group and upstream oil and gas company of the year award for Aiteo Exploration and Production Company Limited, from Pascal Dozie (l), and Muda Yusuf (r).

Ebenezer Kolawole (l), executive director, Unity Bank receiving corporate board leader of the year award onbehalf of Aminu Babaginda, chairman, Unity Bank Plc from Frank Aigbogun

Fisayo Duduyemi, head of strategy, Axxela Limited, receiving the most innovative CEO of the year onbahalf of Bolaji Osunsanya, MD/ CEO, Axxela Limited/midstream oil and gas company of the year award from Frank Aigbogun

Rajiv Sharma (l), program director, NLP Nigeria Limited receiving the global learning organization of the year award from Frank Aigbogun

Frank Aigbogun (l), presenting the household products and personal care company of the year to Hakan Misri, MD, Hayat Kinya Nigeria Limited

Adetokunbo AyoOgunsanya (m), group head, HR and administration, INLAKS, receiving the technology solutions company of the Year award from Frank Aigbogun (r), publisher/CEO, BusinessDay, with the staff of the company

Sijibomi Ogundeke (l), CEO, Sijimoto Construction Limited, receiving the luxury property developer of the year award from Frank Aigbogun

Ade SunBasorun, CEO designate, Foodco Nigeria Limited, receiving the multigenerational company of the year award from Frank Aigbogun.

Rotimi Adenigba (l), director, internal audit, IHS, receiving telecoms infrastructure company of the year award from Frank Aigbogun, with other staff of the company

Wale Olafisan (l), GMD, Amni International Petroleum Development Company Limited, receiving the PanAfrican energy company of the year award from Frank Aigbogun

Abiola Kasumu (l), director, Essenza Nigeria Limited, receiving the luxury company of the year award from Frank Aigbogun (l), publisher/CEO, BusinessDay

Ayoola Oduntan (l), chairman, Amo Farm Sieberer Hatchery Limited receiving diversified business group CEO of the year/Agribusiness company of the year from Frank Aigbogun

Victoria Uwadoka (l), corporate communications and public affairs, manager, Nestle Nigeria Plc, receiving most admired CEO of the year award onbehalf of Mauricio Alarcon, MD/CEO, Nestle Nigeria Plc, from Frank Aigbogun

Brian Efa (l), director of finance, Ibom Hotel and Golf Resort, receiving tourism and hospitality brand of the year award from Frank Aigbogun

Rahul Keswani (l), director, Spar receiving the retail brand of the year award from Frank Aigbogun

Olubunmi Ogun (l), deputy general manager, sales MainOne, receiving connecticivity company of the year award from Frank Aigbogun

Pat McMichael (l), MD/CEO, Eat’N�Go Nigeria Limited, receiving the most entrepreneurial CEO of the year award from Frank Aigbogun www.businessday.ng

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Babatunde Gbadamosi (2nd l), chairman, Redbricks Homes International Limited, receiving the real estate company of the year award award from Frank Aigbogun (2nd r), publisher/CEO, BusinessDay, with them are other staff of the company

Frank Aigbogun (r), publisher/CEO, BusinessDay, presenting the real estate investment company of the year award to the representative of the company

Ngini Sylvester (2nd l), director, Vedic LifeCare Hospital Limited, receiving the healthcare award of the year from Frank Aigbogun (2nd r), with other staff of the company @Businessdayng

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PHOTO SPLASH BusinessDay Nigerian Business leadership Awards 2019

Frank Aigbogun (3rd r), publisher/CEO, BusinessDay, presenting the automobile brand of the year award to Jubril Arogundade (3rd l), general manager, commercial, GAC Motor, with them are other staff of the company

L-R: Tajudeen Ahmed, group head, business development, BUA Group; Yinka Adeyemi, chairman, Crownsworth Marine Development Limited, and Ebenezer Kolawole, executive director, Unity Bank plc.

L-R : Henry Efe, of Amni International Petroleum Development Company Limited; Didi Akinyelure, and Thelma Osadebay, Nigeria lead/ chief operating officer, Spac Initiative .

L-R: Paul Zuhumben, GM, projects certification and authorization division, Nigerian Content Development and Management Board (NCDMB); Terhemba Makeri, GM, HR, NCDMB; Isaac Yalah, director, finance and personnel management, NCDMB, and Mohammed Umar, GM, legal division, NCDMB

L-R: Osayande Ede, director, Niger Delta Exploration and Production plc (NDEP); Ilesanmi Francis, chairman, Matpatson Drilling, and Seun Dania, partner, Reify Integrated Solutions

L-R: Oghenevwoke Ighure, executive director, strategy , innovation and partnerships; BusinessDay; Rajiv Sharma, program director, NLP Nigeria Limited and Fabian Akagha, executive director, operations, BusinessDay.

L-R: Tokunbo Sangosanya, legal advisor, Park ‘N’ Shop, and Chidi Okoro, CEO, Drugs and Medicaments Nigeria Limited

R-L : Victoria Uwadoka, CCPA manager, Nestle Nigeria Plc; Nwamaka Onyemelukwe, head, public affairs and communications, Coca-cola Nigeria, and Yebettal Getachew, MD, Coca-cola Nigeria

L-R: Adeniyi Jaiyeola, lean value stream manager; Foluke Jaiyeola, senior HR, business partner; Victoria Uwadoka, corporate communications and public affairs manager, and Rashidat Badmus, executive, assistant to MD, all of Nestle Nigeria plc.

L-R: Ndiana Mathew, Odiansen Masade; Chike Evulukwu , and Mike Fashina, all of Aiteo Exploration and Production Company Limited.

Pictures by Pius Okosisi, Olawale Amoo and David Apara www.businessday.ng

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Why a leader’s past record is no guide to future success Successful leadership depends on context, collaboration and character

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There goes that queerlooking fish with the ginger beard again. Do you know who he is? I keep seeing him creep about this place like a lost soul with nothing better to do.”

That was the verdict of the then Bank of England governor on Montagu Norman, who, five years later, was to take over the top job.

“Nothing in his background suggested that he would be well suited to the work of a central banker,” Liaquat Ahamed wrote in his prizewinning book Lords of Finance.

Plenty in Christine Lagarde’s background suggests she will be much better suited to run the European Central Bank: her political nous, her communication skills, her leadership of the International Monetary Fund through turbulent financial times. Critics, though, have focused on the former corporate lawyer and finance minister’s lack of deep academic economic training, and her dearth of experience with the technicalities of monetary policy.

But how much should the past record of a candidate be a guide for how they will handle their next job? Not as much as we might think.

The truth is that successful leadership depends on context, collaboration and character as much as qualifications.

For all the efforts to codify and computerise the specifications of important jobs, the optimal chemistry of experience, aptitude, potential, and mindset remains hard to define.

Throw in the imponderable future in which such leaders are bound to operate and it is no wonder that sometimes the seemingly best-qualified stumble, while the qualification-free thrive.

For one thing, even if the challenge confronting a leader looks the same as one they handled in the past, it is very rarely identical — and nor is the leader.

That is one reason big companies offer their most promising executives experience across countries, cultures and operations, from finance to the front line, and why some recruiters emphasise potential as much as the formal résumé of their candi-

dates. Curiosity is a big predictor of potential — and of success — according to Egon Zehnder, the executive search company.

It asks referees what the candidate they have backed is really curious about.

“It is a question that takes people aback, so they have to think anew about that person,” Jill Ader, chairwoman, told me recently.

I think there are strong reasons to back master generalists for senior roles.

Polymathic leaders offer alternative perspectives and may even be better at fostering innovation, according to one study.

In his new book Range, David Epstein offers this warning against over-specialisation: “Everyone is digging deeper into their own trench and rarely standing up to look in the next trench over.”

Take this to the other extreme of ignoring specialist qualifications, however, and you are suddenly in the world of blaggers, www.businessday.ng

blowhards and blackguards, who bluff their way up the leadership ladder until the Peter Principle applies, and a further rise is prohibited by their own incompetence.

The financial crisis exposed the weaknesses of large banks, such as HBOS and Royal Bank of Scotland in the UK, chaired by non-bankers. Some of the same concerns about a dearth of deep financial qualifications now nag at the leaders of fintech companies, whose promise is based in part on their boast that they will be “different” from longer established incumbents.

In a flailing search for the reasons for its current political mess, the UK has blamed the self-confident dilettantism of some Oxford university graduates, while the US bemoans the superficial attractions of stars of television reality shows.

These parallel weaknesses for pure bluster over proven expertise have brought us Boris Johnson and Donald Trump, respectively.

A plausible defence of both Mr Johnson and Mr Trump is that they should be able to play to their specific strengths, while surrounding themselves with

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Everyone is digging deeper into their own trench and rarely standing up to look in the next trench over

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experts who can handle the technical work.

Ms Lagarde, too, will want to draw on the team of experts around her.

She is wise enough to know she cannot rely on silky political skills and neglect the plumbing of monetary policy.

At the same time, history suggests she should not assume her paper credentials or wide experience will be enough to guarantee success in Frankfurt.

The Bank of England’s Norman was eccentric and neurotic, and his counterpart at the Banque de France, Émile Moreau, had a “quite rudimentary and at times confused” understanding of monetary economics, whereas Benjamin Strong at the New York Federal Reserve, was a born leader, and Hjalmar Schacht of Germany’s Reichsbank “came to the job with an array of qualifications”.

Yet together this quartet of the under- and overqualified made a series of mistakes that pitched the world into the Great Depression.

Tuesday 06 August 2019

BUSINESS DAY

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In today’s Business Schools, ethics take centre stage

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usiness schools are stepping up efforts to equip future finance leaders with the skills they need to navigate ethical dilemmas.

But recent research should give them pause. In 2018, more chief executives were ousted from the world’s largest companies for ethical lapses than for poor financial performance or boardroom battles, according to analysis by Strategy&, PwC’s consulting division.

It was the first time in the report’s history that ethical reasons for leader exits outnumbered other business considerations.

The question for business schools is how they can help to reverse this trend.

Many are simulating real-life experiences for students to practise ethical decision-making, but some argue that schools need to go further and rethink their approach to teaching business.

As a minimum, finance leaders need to know the rules.

“Understanding the regulatory and legal environments in which businesses are operating is critically important,” says Colin Mayer, professor of management studies at the University of Oxford’s Saïd Business School.

Yet students will face many complex questions for which the rule book will not provide an answer.

“Figuring out the ethical is-

sues is pretty simple; what’s hard are all the collateral issues,” says Stephen Arbogast, professor of the practice of finance at the University of North Carolina’s Kenan-Flagler business school.

He says these range from a boss giving instructions to do something unethical to a corporate culture that pushes for financial results without questioning how they are achieved.

Students need practical strategies they can use at work.

“In 2018, more CEOs were ousted from the largest companies for ethical lapses than other reasons For this, many business schools look to the Giving Voice to Values curriculum developed

by Mary Gentile, a professor at the University of Virginia’s Darden School of Business.

This approach argues that the key to making ethical decisions is practice and being well prepared for each scenario.

The GVV curriculum provides practical exercises, case studies, scripts and teaching plans on issues from conflicts of interest to gender bias.

At Kenan-Flagler, students play ethics games based on reallife scandals, such as the 2007 Abacus transaction, over which the US Securities and Exchange Commission accused Goldman Sachs of committing fraud by selling clients a mortgage-based collateralised debt obligation the www.businessday.ng

SEC alleged had been designed to fail.

The case was settled out of court without Goldman admitting liability.

Students play different roles and decide what their response would be if they were involved.

“There’s no script and every game goes differently,” says Prof Arbogast.

“You’re putting them in a realistic situation and having them work through it.”

In the Daniels Fund Ethics Consortium Case Competition, teams of business students from schools in New Mexico, Colora-

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In 2018, more CEOs were ousted from the largest companies for ethical lapses than other reasons

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do, Wyoming and elsewhere play consultants hired by a fictional company to manage its ethical challenges and risks.

The winning team must correctly identify the ethical issues in the case and suggest solutions such as introducing a code of ethics, hiring a chief ethics officer or reducing the chief executive’s voting power.

Some say, however, that until broader changes are made to finance teaching, particularly the focus on maximising profit, ethics training will remain little more than window dressing.

“In most cases [ethics teaching] is on the periphery. Courses start from a presumption that the role of business is to pursue shareholder value,” says Prof Mayer, adding that business schools need to change their mindsets.

At New York University’s Stern School of Business, Jonathan Haidt, professor of ethical leadership, applies moral psychology to the way ethics is studied and integrated into the business curriculum.

He says if students are taught how to integrate social and environmental considerations into decisions, ethics will follow.

He argues against “the shareholder primacy view” and encourages students to think in the long term. “When you do that, ethics flows naturally,” he says. @Businessdayng

Schools face many barriers to shifting to a more holistic teaching of the purpose of business, from the cost of redesigning courses to academic inertia.

Prof Mayer even says business school rankings that emphasise postgraduate salaries can influence student recruitment and the nature of what is taught.

“People pursuing social entrepreneurship won’t earn the same salaries, so it does to some degree discourage that focus [on ethics],” he says.

As a result, some schools are moving more slowly towards ethics than businesses themselves, says Judith Samuelson, founder of the Aspen Institute’s Business and Society Program.

Until 2012 it published a global ranking, Beyond Grey Pinstripes, that assessed the integration of social, environmental and economic business factors in MBA programmes.

The 2011-12 rankings found the number of schools requiring students to take a course focused on business and society had risen from 34 per cent in 2001 to 79 per cent in 2011.

Even so, Ms Samuelson believes some schools lag behind the corporate world in shifting views away from pure profitmaking.

“The world has moved,” she says. “And finance classrooms need to catch up. ”

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Tuesday 06 August 2019

BUSINESS DAY

EDUCATION Weekly insight on current and future trends in education

Primary/Secondary

Higher

Human Capital

Students display literary skills to emerge winners at Mike Okonkwo essay competition KELECHI EWUZIE

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sigbone Ferdinard, a 16 year old pupil of Roshallom International Secondary School, Egbeda, Lagos, Oluwaseun Aremu of Shepherd International College Ado-Ekiti, Adeola Ifeoluwa from Chrisfield College, Itamaga, Ikorodu have emerged first, second and third respectively at the 2019 Mike Okonkwo National Essay Competition.

Akachi Ezeigbo, chief examiner, while announcing the 2019 results of the competition, discloses that a total of six hundred and twelve (612) essay entries were sent in for assessment, representing a drop of about 28 percent when compared to the eight hundred and forty-eight (848) that were received and assessed last year.

Ezeigbo pointed out that the drop in the number of entries compared to last year arises in part from new management strategies introduced by the organisers to ensure that only credible entries are sent in for assessment.

“Based on the positive feedback and to further the institutionalisation of the Bishop Mike Okonkwo Lecture Series, we urge the organisers to put the winning entries in a book form, as had been done to the adult version of lectures, in order to make the materials more portable and accessible to teachers and students”, Ezeigbo said.

Speaking further, Ezeigbo opines that the teaching of responsible internet usage in secondary school curriculum has become very paramount and of necessity submitting that, “The fact that almost any material is available and accessible via a click makes a compelling case for us to introduce the teaching of responsible Internet usage in the secondary school curriculum. We recommend a review and expansion of the syllabus of a subject like civic education to include teaching students

to understand that plagiarism violates Intellectual Property (IP) rights, and that referencing the literatures they consult as they make their points is a key aspect of their academic development.”

In the first round of the 2019 edition of the competition a total of 612 entries were received from Junior and Senior Secondary Schools across different states of the federation and the Topic was Justice as an Instrument of Enduring Peace in Nation building while the second round topic was Entrenching Tolerance as Solution to Nigeria’s Ethnic

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gainst the regular summer classes offered during the long holiday in most Nigerian schools, Greensprings School has decided to introduce a Man O’ War summer camp for children.

Oluranti Bankole, Head of Admission when asked why Greensprings School decided to organise a Man O’ War camp, said that: “As we have known, Man O’ War is a regimental organisation that is saddled with the responsibility of developing patriotism, self-reliance, and self-discipline in Nigerian citizens.”

“For this reason, as a school that’s childcentred, we believe young children in their formative years can learn a lot from the practices of the organisation. We are confident that by participating in G-Camp, children would be able to develop themselves mentally, physically, and emotionally – and be able to face challenges of life.”

The other winners will get a consolation price of N20, 000.

The prices for the winners of the 16th Mike Okonkwo National Essay Competition for Secondary Schools in the country will be presented at this year’s Mike Okonkwo Annual Lecture, at the Shell Hall Muson Center, Onikan, Lagos, on Thursday September 5, 2019.

The theme for this year’s lecture is “Justice as an Instrument of Enduring Peace in Nation Building”. The Lecture will be chaired by Folake Solanke (SAN) while the lecture will be delivered by Femi Falana (SAN).

L-R: Aremu Esther Oluwaseun, Esigbone Omagbemi Ferdinard, Anazia Rita, Olaitan Olajuwon, Patric Oloko, West Tamunoye, Adeola Ademuwa Ifeoluwa and Ajayi Ibukun, winners of the Mike Okonkwo National essay competition.

Greensprings School G-camp deepens pupils’ mental, physical capacity KELECHI EWUZIE

and Religious Crises.

For coming top in this year’s competition, Esigbone Ferdinard will get a cheque of N100, 000, a personal Laptop, a trophy, a plaque, while the school gets three sets of Computer and a printer.

Oluwaseun Aremu, who came second, will go home with a cheque of N75, 000, a plaque and the school will get two sets of computers and a printer. For emerging the third position in this year’s competition, Adeola Ifeoluwa will go home with a cheque of N50, 000, a plaque and the school gets a Computer set.

The camp, which is named G-Camp, is designed for children between the ages of 9 and 18, and it is open to students from all schools across Nigeria.

While in G-Camp, children will undergo numerous Man O’ War training such as obstacle course, assault ground, leopard crawl, muddy mayhem, get a grip, warrior dash, tug of war, among others. Aside from the paramilitary-themed activities, the children are also expected to take part in leadership training, and sporting activities – including swimming and indoor games.

Uche Ogbu, the school’s Head of Corporate Strategy, also talked about the importance of the Man O War camp. He stated that the initiative will help children to develop endurance, selflessness, grit, and team spirit.

G-Camp runs in weekly batches, with the first batch running from July 21st – July 27th; the second batch from July 28th – August 3rd; and the last batch from August 4th – August 10. At the end of each batch, participants take part in a passing out parade and are awarded a Certificate of Achievement by the Camp Commandant.

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OAU fixes dates for students’ admission screenings RAZAQ AYINLA

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he authorities of the Obafemi Awolowo University, Ile Ife, have scheduled five days for the conduct of the students’ admission screenings popularly known as Post Unified Tertiary Matriculation Examinations (PostUTME) screening exercise.

A Press Release by Abiodun Olanrewaju, Public Relations Officer, of the University, indicates that the exercise, which will start on Saturday, 31st of August, 2019, will come to an end on Wednesday, 4th of September, 2019.

The Press Release added that candidates who made OAU as their first choice and scored 200 and above, and those who applied for Direct Entry are inform to log on to the admissions portal, admissions.oauife. edu.ng or the Obafemi Awolowo University,

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Ile Ife to start registering for the Post UTME screening exercise.

The registration will close by Sunday, 11th day of August, 2019 while the Direct Entry applicants will NOT be participating in the screening exercise.

Olarewaju further stated that candidates are required to visit admissions.oauife.edu. ng and log in with their JAMB registration number to commence the registration process for the screening exercise, and to also obtain a Remita Retrieval Reference and use same to make payment online or at any commercial bank.

Apart from updating JAMB data, candidates will also upload their results, scanned copy of credentials, passport photograph, and print completed Admission Screening form. Meanwhile, any candidate discovered to have provided false information or uploaded incorrect credentials will automatically be disqualified.

@Businessdayng

Tuesday 06 August 2019

BUSINESS DAY

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EDUCATION

Success in the workplace is not for a limited few – Adebola Idowu Adebola Adelaja Idowu, a seasoned corporate strategy and finance expert and author of Unclip Your Wings: Strategies for Career and Life Success, discusses her book in this chat with CHUKS OLUIGBO, news editor.

In writing the book Unclip Your Wings, what did you set out to achieve? he major objective was to make an impact. I wanted to share my career journey and learnings from my own experience with others. I thought of people who were unhappy with their current career situations and were looking for guidance and answers to certain questions, so I decided to share thoughts, ideas and things I have come to understand about the corporate world and how to navigate without falling into ditches or making certain mistakes. I imagined and still imagine that all of these could guide others not only in growing their careers, but to find happiness, satisfaction and fulfilment while they are at it.

If you were to sum up the core message of the book in a few sentences, what would you say?

The core message is that success in the workplace is not for a limited few. Everyone can have a sterling career and fulfilling life if we have the knowledge and understanding of what we must do.

We can all be shining stars if we get deliberate about gaining clarity of our destination; having defined objectives; developing the strategies to achieve these objectives and executing these strategies.

At what point in your life/ career did you decide to write such a book and what particular experience or observation prompted it?

I honestly can’t tell. I don’t remember that point in particular, but here is what I remember: I have always loved to write – I kept diaries when I was younger, I wrote stories and poems and I could rewrite a whole textbook.

Writing for me is natural.

I also love to teach. I passionately seek knowledge and when I learn something new either by reading or by experience, I share.

If I wasn’t a strategy and finance professional, I would have been a teacher. I love to see people improve as a result of my intervention.

I think both passions conspired and ordered me to start typing things out in a word document.

Another kick from these passions made me realise that I could make what I was typing out into a book.

I was happy about this because it became clear that I would now be able to impact many people

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outside my immediate circle. The books will be able to get into places where I might never be able to reach, and so people would learn from me and feel my impact even if I do not get to meet or speak to them personally.

The title of the book puts the responsibility of rising to the top squarely on the shoulders of the individual. It may well be so, but some may argue that it is not always so. So many have tried to unclip their wings, but unforeseen circumstances keep clipping the wings and holding them down. What would be your response to such arguments in

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the context of the book?

You are right – As we journey through life, we may experience situations that will make us want to hide our heads beneath our wings and just fade into oblivion. Life will always happen. Something to take note of, however, is the beauty of creation and the human mind that allows us evolve and metamorphose into whatsoever we desire regardless of what we have been through. Irrespective of the situation we find ourselves in, we must continually find our best selves and ensure we stay committed to our truth, without losing focus and resolve. It is only when we

We have strategised on how to get the message out, and one of our strategies is to hold book tours in different organisations, where we will emphasise the need for people to change their careers by applying the strategies shared in the book Unclip Your Wing

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have this zeal and determination that we can begin to ask the right questions from the right people and also ask for help. I have been through unpleasant situations in my life that could have pulled me down, but I choose to see past them. We owe that to ourselves.

No matter how tough it gets, we are tougher.

Going through the book, I can say honestly that you have a good product. My worry, though, is that given the muchtalked-about poor reading culture around here, not many may get to read it. Does that worry you as well? How do you intend to ensure that the message gets across to those for whom it is meant?

It does bother me, not just because many may not get to read my book but because as a nation we are missing out on opportunities that come with acquiring knowledge. Our personal and professional development is stunted because we do not feed our minds. Seeking and applying knowledge would eliminate illiteracy and alleviate poverty, which have enveloped the citizenry.

Knowledge would fast-track the achievements of laudable goals for us as individuals and as a nation.

We have strategised on how to get the message out, and one of our strategies is to hold book tours in different organisations, where we will emphasise the need for people to change their careers by applying the strategies shared in the book Unclip Your Wings.

We believe these book tours will be mutually beneficial to the employees and their employers or organisations as it is strongly believed that an engaged employee will contribute positively to the growth and productivity of the organisation.

With 23.1 percent unemployment rate and an equally high rate of underemployment in the country, the major worry for quite a good number of the working-age population would be landing a well-paying, satisfying job. How does this book apply to such people?

This book talks about what companies look for in their employees; Unclip Your Wings will unveil the secrets to landing and holding down well-paying jobs to those who are seeking. Getting a good job is one thing, keeping it is another, and thriving in it is @Businessdayng

a different kettle of fish. While looking for that well-paying job, it is important to start learning the skills that will make you keep it and excel in it. I also shed some light on what C-suite executives look for in employees, and clearly described why some staffs are classified as A-star employees and the rest as ‘others’.

In chapter six of the book you write about role modelling. Many young people today find it hard to find models. Ask them who their model is and they would tell you Dangote or Otedola – for the sole reason that these guys are wealthy. Do you think role modelling still works here? Can the young still find models today?

Role modelling does work, and I agree that it is easy to want to be like the rich and successful until it is time to put in the time, effort, energy and knowledge these people have put into becoming the success they are. I have realised that being interested is different from being committed.

I advise that everyone defines what success means to them and then find people who are already in that space. This doesn’t have to be about money alone. I admire different people for different reasons, and I’m happy to learn from them, as I build myself to become a better and successful person. Of course, our young ones can still find models today. Their success at this, though, is heavily dependent on where they are searching. If you want to be the CFO of a multinational company, you wouldn’t find your role models on Instagram. Your chances of finding one on that platform are slim. I will suggest you try networking with people who are already in this career path on LinkedIn, where you find a lot of professionals. If your role model is not in the career space but in the entertainment industry, more social and informal platforms like Instagram will work perfectly for you.

A point I like to emphasise about role models is that you don’t even need to meet your role model(s) personally. You can mirror and learn so much from them just by researching, reading about them to understand key things like their course of study, the professional qualification they possess and things that have helped their journey to the top.

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Tuesday 06 August2019

BUSINESS DAY

INTERVIEW ‘The real business of HR is in developing talents to solve business challenges, innovative solutions’ Temitope Akinsanya, human resources director, British American Tobacco Nigeria (BAT) West Africa is a highly experienced human resources professional and business leader. In this interview with select journalists, including Modestus Anaesoronye shares her career experience, motivation for the job and future of human recourses ptofession in Nigeria. Excerpt: Tdell us about your first job in HR, and how you got into HR? didn’t really set out to be a HR professional; my first interaction with the HR profession was through a consulting engagement, while working as a Tax consultant in KPMG in 2005. At that time, a coalition of Oil companies required a reward benchmarking exercise and I was assigned to the project as a senior consultant. The project was very successful and inspired KPMG to carve out a Compensation & Benefits Consulting Unit. I practised as a Compensation & Benefits consultant for about four years and later became the Head of the Practice for KPMG Nigeria.

Did you face any challenge during your early days in the career?

Once I got exposed to the HR profession, I became deliberate about being a commercial-focused HR Professional, using creative and innovative people practices in delivering tangible business results. My background in consulting and accounting, alongside a sound understanding of financial and non-financial business requirements provided the platform for me to connect with the business side of things.

I think my first challenge was the need to quickly upskill myself with functional HR skills and competencies. I focused on obtaining relevant trainings, certifications and critical learning experiences on the job. I was also very fortunate to have worked with world-class organisations that prioritised my professional growth and development.

What is a normal work day like for you in BATN? My day is typically filled with engagements or meetings. I spend about 40 percent of my time in business discussions on key business insights, products, brands, trade and supply chain, etc. For every major business decision, I ask important questions like – how does this affect people?, what is the need required in this space from a talent perspective?, what do we need to do differently to make sure that we can have the right level of alignment and engagement across the organisation to achieve this business objective? I spend the rest of my day working with my HR team to design effective people solutions for the business and ensure the effective running of HR systems and processes.

Give us an insight into BATN talent export scheme and how the company is driving global mobility of talents?

BAT is a multinational organisation. Giving an international edge to your career is part of our employee value proposition (EVP). It is a natural aspect of leadership development for us because your ability to truly lead in a multinational requires that you have exposure to different cultures

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Temitope Akinsanya

and build a broader network of stakeholders across other countries. These experiences are built into our short or long-term international assignment programmes.

We use internal sourcing as a mechanism to promote international career opportunities; vacancies are posted on a central website where all employees, regardless of their country of residence, are given equal opportunity to apply and interview for jobs. Where they are found suitable, the employee is transferred to another country with suitable relocation support to aid his or her ability to settle down comfortably in the new country. Our talent export scheme is truly global; BAT Nigeria’s talents are represented in every continent of the world. We have several Nigerians who have been transferred to various countries, including the UK, Canada and South Africa under this platform.

BATN was recently certified as a ‘Top Employer’ by the Top Employer Institute which particularly recognised the company’s leadership status in HR and its consistency in nurturing and developing

talents. What are the key drivers of this achievement?

The global BAT group is keen on talent development. We have several programmes that we have run over the years which we constantly revive and make more appropriate for our next generation of leaders.

One of such programmes is our Global Graduate programme where we identify bright young graduates, profile and develop them within their area of interest and expertise within BAT, expose them to targeted training and development within a global context and also provide them with the opportunity to network with other managers and peers via crossfunctional projects across the world.

How often do you have to hire expatriates to fill vacancies considering how hard it is to get competent persons locally, and what is the ratio of expatriates in BATN to your total staff strength?

Our preferred approach for leadership succession is to develop our local West Africa talents, who have a good understanding of our business environment and realities as well as

“ The real business of HR is in www.businessday.ng

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developing talents to solve business challenges and develop innovative solutions

the right culture. However, in some instances, the need may arise to bring in expertise at certain levels or specialist areas to support the Nigerian business and transfer skills to the local talent. Our expatriates are less than two percent of the Nigerian workforce and are hired within the BAT Group, which also creates opportunities for talent swaps to ensure that we get the right balance and can send our Nigerian talents across the globe.

How does HR function impact the bottom-line?

There are at least three ways the HR function impacts the bottom-line.

First is through employee acquisition.

Having the right talent in the right roles makes an organisation very efficient, acquiring and retaining the right talent will help ensure the right business decisions are taken for the company. The next, and equally important, is through employee engagement. This has significant impact on productivity and profitability. Ensuring clear alignment on goals and objectives and putting in place necessary controls, policies and frameworks on legislation and labour relations, can help a company avoid leakages and liabilities.

How does BATN drive talent retention as well as recognise and reward diligent employees?

BATN is proud of its high-performance culture, hence, our remuneration structure is fully linked to performance and positioned to motivate employees. All employees have clear performance objectives annually, and their remuneration is tied to the achievement of these objectives. We also have very competitive incentive and non-monetary recognition schemes to reward overall organisational excellence. In my experience, the biggest motivation for star performance is an opportunity for growth.

So, if an employee can demonstrate excellence above expectations, they are rewarded with an opportunity to fill bigger shoes.

You have traversed different careers and industries, such as consulting, banking and manufacturing. What is your biggest learning?

Ultimately, what really matters is your attitude, learning agility and mindset. Of course, there are peculiarities in the different industries which shape their talent requirements but what I’ve realised is that regardless of what obtains in these different industries, employees get paid to figure out how to create solutions and introduce innovations that improve the environment. So, if you have that mindset, you can grow in any industry.

What do you think will change about HR in the next three to five years?

I think there will be more automation and outsourcing around administrative HR functions, which @Businessdayng

will create increased efficiencies as we can now find faster and better ways of carrying out routine HR tasks.

However, the real business of HR is in developing talents to solve business challenges and develop innovative solutions. So, with efficiencies and automation, HR will focus on strategic business partnering, talent management and organisation effectiveness, which will remain valuable to forward-looking businesses.

What are the biggest talent challenges we face in Nigeria?

The biggest challenge is getting the right kind of talent. So, when you look at the unemployment rate in Nigeria and the number of graduates churned out every year, you wonder why we say we still have challenges with talent sourcing. The challenge is really about the quality – getting the best and the brightest. There is indeed a dearth of numerous functional capabilities within the environment. Organisations need to invest more in nurturing and developing people.

What’s your career advice for a job seeker aspiring to join BATN? Anyone who wants to join BATN must have a growth mindset and be clear about their career aspirations.

Furthermore, they should be open to new opportunities and ideas because the demands of the industry constantly compel us to change and improve on the way we do things.

Integrity is also very important to us; we strongly adhere to our ethical standards. Once a prospective candidate shares our values, he will have the opportunity to grow within BAT to achieve his career aspirations.

The real business of HR is in developing talents to solve business challenges, innovative solutions –BAT boss Temitope Akinsanya, human resources director, British American Tobacco Nigeria (BAT) West Africa is a highly experienced human resources professional and business leader. In this interview with select journalists, including Modestus Anaesoronye shares her career experience, motivation for the job and future of human recourses ptofession in Nigeria.

Excerpt: Tdell us about your first job in HR, and how you got into HR? I didn’t really set out to be a HR professional; my first interaction with the HR profession was through a consulting engagement, while working as a Tax consultant in KPMG in 2005. At that time, a coalition of Oil companies required a reward benchmarking exercise and I was assigned to the project as a senior consultant.

The project was very successful and inspired KPMG to carve out a Compensation & Benefits Consulting Unit. I practised as a Compensation & Benefits consultant for about four years and later became the Head of the Practice for KPMG Nigeria.

Tuesday 06 August 2019

BUSINESS DAY

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INTERVIEW ‘Our locally developed IoT solution will curb financial losses due to fuel theft in organisations’ Oluwasegunfunmi Sanni, the founder and chief executive officer of Bizsoft Solutions Limited, an indigenous information technology (IT) company that developed Cloudsens, an application that uses internet of things (IoT) to help business owners significantly reduce their cost on fuel supplies. In this interview with Jumoke Akiyode-Lawanson, he speaks about the complicity in organisations and how businesses can save million of Naira with the right technology solutions. Excerpts.

Bizsoft Solutions Limited has been in the ICT ecosystem for some time; what is the unique tech solution that you have developed? s a n i n f o r mat i o n technology (IT) firm, our aim in the ICT space is to provide innovative solutions for businesses and since our inception, we have deployed two solutions. The first solution (Bizsoft HRM) was developed to handle human resource information challenges and has been in the market since 2015. The second solution was recently deployed in June 2019, and it aims to reduce diesel purchase and storage costs by combating fuel theft during delivery and storage. Ours is a firm that is always trying to solve problems in the society. We look at challenges that businesses face and try as much as possible to solve them.

What prompted you to develop and implement an IoT based solution that monitors fuels such as diesel, petrol etc.?

The public power supply in Nigeria still leaves a lot to be desired and that has prompted many organisations to seek alternative means of obtaining power. The most common one is by using diesel generators and thus the need for purchase and storage of diesel fuel. However, we noticed that a lot of firms suffer from under-delivery of diesel fuel from their suppliers who in most cases have adjusted meters which tends to inflate the amount of fuel delivered; this is apart from the prohibitive cost of diesel in the country. On the average, we noticed from our tests that the inflation of fuel delivery can short-change the customer by up to 15 percent of the diesel purchased which translates to a huge sum for medium to heavy fuel users. We also noticed that complicity is usually present in these organisations, thus ensuring that the under supply of diesel goes unnoticed at great cost to the company. Finally, we found out that most organisations are aware of the losses to theft, but are unable to quantify or do anything about it. These findings led us to develop a solution which makes it easy for administrators to view their diesel level from any internet enabled device including notifications and reports to help them

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Oluwasegunfunmi Sanni

keep track of diesel consumption and delivery. We have deployed this solution in a couple of firms and they have saved millions of Naira on their annual diesel cost.

Developing software can be onerous, how were you able to collaborate with the hardware manufacturers to integrate your software in their products?

The truth is that standalone products already exist which allows viewing of fuel levels on site. However, what we wanted to achieve was the ability to view such information from anywhere and from any internet enabled device; this is one of the things that differentiates us from these stand alone offerings. Furthermore, the software is engineered and developed by us not some foreign software that some firms might dump on clients. We wanted a solution that will provide insights to fuel

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usage and one which aggregates all the various tanks owned by the organisation into one easy to use portal. We set out by speaking to various manufacturers and based on the need to balance cost with durability and reliability, we settled for our current hardware partner. It took a lot of collaboration between our development team and the manufacturer’s team including physical visits to manufacturing plants to overcome identified challenges and come up with a device which is fully integrated with our software solution and which is cost effective, durable and reliable.

One of the challenges of this type of this type of technology solution is resilience and durability. How durable is this your fuel monitoring device?

One of our aims when we were putting the solution together is

We have uncovered collusions surrounding fuel theft and undersupply in organisations, thus making it imperative to speak to company owners, or c-level executives who are interested in saving cost

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reliability and we are confident about our devices which all come with a one year warranty from date of purchase. We have gone into rigorous research and development and also considered the nature of our environment and we can tell you that the solution is robust and resilient.

Deploying the internet of things (IoT) in today’s everyday solution becomes imperative.

With this device running on IoT, do you think that Nigeria is ripe for it?

Indeed I do. I believe businesses are beginning to see the benefits of embracing technology in their operations. Over the last few years, the communications sector in this country which serves as a backbone for IoT solutions and web applications has progressively gotten better. This has provided the right conditions for an array of solutions such as ours to be deployed, some of which would not have been possible just a decade ago.

Organisations like banks, churches, filling stations and hotels are few of the companies that use high volume of petroleum products. How can this be of use to them?

All of these companies will see an immediate benefit of up to 15 percent reduction in diesel procurement cost just from theft prevention alone. In addition to theft prevention, organisations will get efficiency savings as they can remove the human element from the fuel monitoring process. Organisations will be able to get insights into their usage and get predictions on depletion date. The solution puts all information about their fuel levels right at their fingertips with powerful historical reporting delivered directly to the user’s email inbox. Aside from banks, churches, filling stations etc already mentioned, organisations such as construction companies can combat siphoning of fuel when requisitions are made to fuel their heavy equipment, event centres and electronic outdoor billboard companies will also benefit immensely from this solution.

What are the strategies that you have in place to ensure sales and after sales support?

Support is something we take very seriously because it has a @Businessdayng

direct impact on client’s satisfaction with the solution. Once a client comes on-board, initial training will be provided and we have dedicated support staffs that are available to provide technical support through our support channels such phone, email or support website.

What are the challenges you are having deploying these solutions in Nigeria?

The major challenge with this product is getting the right person to speak with. We have uncovered collusions surrounding fuel theft and under- supply in organisations, thus making it imperative to speak to company owners, or clevel executives who are interested in saving cost. But unfortunately the fuel or diesel supply system in most companies in the country are run like a cartel where those that are in charge of supply give us a brick wall actively stonewall us, hence, engaging the owners or decision makers becomes hard or virtually impossible.

In today’s world, mobility is the key. Is the platform mobile, adaptable and do you think that government can key into this?

Absolutely, users will be able to access all the software capabilities directly from their mobile phone.

Our software is a responsive web application which means it adapts to the form factor from which it is being viewed; be it a laptop, desktop, tablet or mobile phone. I believe the Government can key into this solution, there are lots of government agencies which are heavy users of diesel, and these agencies can benefit immensely from using our solution thereby translating to big savings to Government and improving efficiency. This can cut down their budgetary expenses with respect to diesel purchases by up to 15 percent and this is a lot.

What is your advice to IT firms like yours that try to solve problems in the country by deploying IT products?

My advice to such firms will be to ensure you provide affordable solutions that work and solve problems. It is imperative to do proper market research to ensure that the problems you are trying to solve do exist. If they do and by the time you successfully deploy such solutions, you will be soothing the pain points for your customers and in my view, they will gladly pay for such solutions.

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Tuesday 06 August 2019

BUSINESS DAY

Investments

ENERGY INTELLIGENCE

Market Insight Companies Commodity Tracker Policy

OIL

GAS

PETROCHEMICALS

POWER

POLICY

NNPC’s oil search in northern Nigeria is not going according to plans ISAAC ANYAOGU

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ive months after the contractor handling the drilling of the Kolmani River-II Well in Bauchi State said it would be completed in sixty days, NNPC’s new report says roughly half of the depth has been reached, an indication that the project is not proceeding according to plans.

Abdulrahman Bashir, the chief executive of Etihad Oilfield Services, the contractor handling the project had said that drilling activities which started February 2, would be completed in sixty days.

NNPC’s monthly financial and operations report for May however, says otherwise. “The Kolmani River-II Well which spud-in was flagged off last month by President Muhammadu Buhari is progressing satisfactorily, with drilling so far of 6,700 feet and target feet is 14,200 feet,” the report said.

The report further said: “Although the depth could be longer

depending on findings, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, has

said. Prospecting for oil and gas in Kolmani River-II Well is one of the recent foray of the government into inland exploration in parts of

the country.”

Former NNPC group managing director Maikanti Baru had in April hinted that drilling was now around

had reached depths of 10,075 feet.

But even this figure, if it were accurate is widely off the mark from the initial target of 14,200 ft in sixty days.

President Buhari has made drilling for oil a critical part of NNPC’s exploration activities but security concerns have largely slowed work.

Insurgents believed to be members of the Boko haram group attacked a group of oil workers two years ago and killing several people including military personnel. But this has not deterred the NNPC from proceeding with drilling plans.

The Kolmani River-II Well, a site near Barambu, a village in Alkaleri Local Government Area of Bauchi State, is one of four oil and gas wells that NNPC said were being planned for drilling this year on the Gongola Basin to further test the prospects identified around Kolmani River-1, Nasara-1 and Kuzari-1. Shell had in 1999 drilled the first well in the Kolmani Rever-I but according the Anglo Dutch oil giant the amount of hydrocarbon found was not commercial.

MARKET

Seven NNPC’s subsidiaries made a cumulative loss of N352bn in 2018 DIPO OLADEHINDE

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t’s meant to be a cash cow in first half of 2018 due to favourable oil prices, the reverse is the case as the state oil company of Africa’s biggest producer is bleeding money as its state subsidiaries continues to wallow in inefficiency and wastefulness.

Nigeria is dependent on oil for about two-thirds of state revenues and is among the countries worst affected by the plunge in International crude prices to below $30 a barrel in January — a level last seen in 2003.

A cursor y review of 2018 NNPC’s financial reveals seven subsidiaries such as Corporate Head Quarters (CHQ), Port Harcourt Refining Company (PHRC), Warri Refining Petrochemical Company (WRPC), Kaduna Refining Petrochemical Company (KRPC), Shipping and Nigeria Pipeline Storage Company Limited (NPSC) made a cumulative loss of N352billon.

The lion share of the loss was incurred by the Corporate Headquarters (CHQ) with an N158.7billion loss while Nigerian Petroleum Development Company Ltd (NPDC) emerged as a shining star in 2018 financial year with N301.88billion profits followed by Nigerian Gas Company

with N58.6billion and Pipelines and Products Marketing Company (PPMC) with N36.1 billion profits.

“These are basically the medium which lots of funds are stolen as they are basically used by government to do political patronage,” Adeoluwa Eweje, an International Energy Solution Consultant told BusinessDay. NNPC has struggled to keep the poorly-maintained state-owned oil refineries operating profitably with very little luck; in 2018 financial year these refineries in Kaduna, Port Harcourt and Warri incurred a cumulative loss of N126.2billion in 2018. They also had cumulative capacity utilization 8.27percent in the year under review.

In 2018, NNPC spent N140.57billion on pipeline mainwww.businessday.ng

tenance which was a 8.24percent increase compared to 2017 expenditure of N129.87 billion while the number of Pipeline breaks soared by82.86 percent to 2,048 break points from 1,120 break points in 2017.

According to Fixouroil an arm of BudgIT a civic organization that applies technology to intersect citizen engagement with institutional improvement, to facilitate societal change the Year-on-Year increase in pipeline breaks from 2017 was largely due to increased pipeline breaks at Mosimi as the number of pipeline breaks points in Mosimi area increased from 17 in January 2018 to 216 in 2018.

“Mosimi area accounted for as high as 84percent of all pipeline breaks in December 2018,” Fix-

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OurOil said.

FixOurOil noted that an important driver of pipeline breaks is the illegal refineries; there are at least 500 artisanal refinery camps in Niger Delta refining approximately 37,500 barrels of crude oil per day.

“These refineries and purchase their crude oil from the black market who ultimately get it breaking pipelines as cannot buy crude oil formally,” FixOurOil said.

Further, drilling reveals the biggest expenditure uptick amongst NNPC’s subsidiaries in 2018 occurred with Nigeria Gas Marketing Company whose expenditure increased by 824.02 percent from N20.1 billion to N186.3 billion.

Also, NNPC’s group 2018 expenditure increased by 28.75percent from N3.78trillion initially budgeted to N4.87trillion actual expenditure representing an N1.09trillion surge from its budgeted amount.

NNPC’s Kaduna Refining and Petrochemical Company (KRPC) subsidiary was the poorest in the year 2018 - experiencing a negative deviation of -98percent from an initial revenue projection of N321.6billion to actual revenue generated of N4.36billion.

NNPC’s CHQ and Ventures had the 2nd and 3rd highest negative revenue deviations with -98.58percent and -91.62percent from their initial projection, with NNPC’s @Businessdayng

CHQ making just N2.42billion as against N170.6billion revenue initially projected and Ventures earning N13.21billion as against N37.56billion projected in its 2018 budget.

Also in 2018, the sum of N2.8billion was recorded as crude oil losses from proceeds from domestic crude sales in addition to a further N25billion deducted for product losses before remitting to FAAC while another N730.85bn was also deducted from proceeds from domestic crude sales to cover losses incurred due to under recovery (petrol subsidy), representing a 405.8percent increase from the N144.5billion paid for under recovery in 2018.

Buhari had in 2015 promised to stop NNPC from falling back into bad habits by transforming Nigeria’s national oil company into a cost-effective, profit-driven and transparent institution; however data from NNPC reveals the perennial challenges confronting the organization still remain the same.

“We hope the Petroleum Industry Bill (PIB) will reduce or better still eliminate some of the huge transactions costs the NNPC currently bear,” National Petroleum Professorial Chair in Oil and Gas Economics at University of Cape Coast’s Institute for Oil and Gas Studies, Ghana, Wumi Iledare said.

Tuesday 06 August 2019

BUSINESS DAY

35

ENERGY INTELLIGENCE

Eland, Oriental first oil strikes bring over 20kb/d on-stream STEPHEN ONYEKWELU

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ondon-listed Eland Oil & Gas and Nigeria’s independent, Oriental Energy Resources have both struck first oil on their respective fields, adding over 20, 000 barrels per day of oil to Nigeria’s daily oil production.

Nigerian independent Oriental Energy Resources has hit oil at its deep subsurface exploration of the area surrounding oil producing Ebok field on Oil Mining Licence (OML) 67, located offshore in the southeastern waters of the Niger Delta.

Muhammadu Indimi, executive chairman, Oriental said he anticipates further evaluation and early production from what was initially called the Ebok Deep Prospect.

Similarly, Eland Oil & Gas has delivered first oil from an early production facility at the Gbetiokun field in Nigeria. This is its second field to be brought online their Niger Delta licence, Steve Marshall, an analyst at upstreamonline said in a report

of August 2.

The field in Eland-operated will produce at an initial gross rate rising to around 12,000 barrels per day of oil from two development wells, Gbetiokun-1 and Gbetiokun-3, over the next seven days.

Additional development wells will be drilled later this year to boost output to within the facility’s nomi-

nal capacity of 22,000 bpd.

Elands operates modular facility, which enables it to be expanded beyond its current capacity to allow higher production over the next 12 to 18 months, according to Eland.

Output will be transported via tankers between the Gbetiokun field and the main OML 40 export pipeline.

The company is already producing from the Opuama field in the licence where it also aims to exploit the Amobe prospect that is estimated to hold 78 million barrels of resources.

“Gbetiokun will deliver additional cash flow for Eland and we are excited for the development of the licence going forward, with the further infill drilling on Gbetiokun and Opuama and the near-field exploration of Amobe prospect in 2019,” George Maxwell, the chief executive said.

Eland aims to drill two backto-back development wells, Gbetiokun-4 and -5 that are expected to increase output from the field to 20,000 bpd before drilling at Amobe.

Furthermore, Nigeria’s independent, Oriental Energy had earlier this year begun appraising Ebok’s northern fault zone aiming to test the potential of deeper stratigraphic levels, kicking off with Ebok-45 (formerly EDN-1) in 135 feet of water and drilled to a total depth of 9169 feet.

Ebok-45 encountered 170 feet of gross oil pay from two reservoirs with

“wireline logging, pressure-tests, strain, and sampling confirming excellent reservoir and fluid characteristics in both horizons”, Indimi said.

Ebok-45 is described as having an additional upside – all the more interesting as it represents “the first significant new oil discovery inside Oriental’s existing development area”, according to Ignatius Ifelayo, managing director.

During the third quarter of 2017, the field’s production averaged 22,300 barrels per day of oil and the field surpassed 60 million barrels of cumulative production.

Other assets operated by Oriental include the undeveloped Okwok field, also in OML-67, and OML-115 abutting the maritime boundary with Equatorial Guinea where prospective resource potential is pegged at 205 million barrels.

Oriental aims now to extend the so-called Ebok Deep exploration concept into the south-eastern part of OML-115, which the company believes hosts the deeper portions of the Niger Delta toe thrust that yielded oil in the Ebok-45 appraisal.

Would NNPC model Brazil’s Petrobras Power sector: Why TCN suspension of Port Harcourt Disco’s worsen blame game planned sale of 8 refineries?

STEPHEN ONYEKWELU

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xecutives at Brazil’s statecontrolled Oil Company Petrobras want to cut down debt ratios boost profitability and payout more dividends to shareholders. To achieve this, they are embarking on aggressive divestments that will include a multi-billion sale of eight refineries.

The Ibovespa or Stock Marketlisted Petroleum Company plans to reach a net debt to earnings before interest, taxes, depreciation, and amortisation (EBITDA) ratio of 1.5. That ratio currently stands at 2.69.

Anelise Lara, Petrobras downstream head said in a call with analysts that Petrobras had received many expressions of interest in the refineries from trading firms, local distribution firms and international oil companies.

The Nigerian National Petroleum Company (NNPC) can learn two lessons from Petrobras. The first is to come to terms with the fact that Africa’s biggest oil producer’s refineries have continued to incur losses despite efforts at rehabilitating them, a sign that it is probably time the NNPC to divest from these oil asset classes.

At their establishment, operating capacity utilisation targets for Nigeria’s four refineries were meant to meet international standards of 90 percent capacity utilisation, secure crude supply to 95 percent availability and reduce the time needed for turnaround maintenance (TAM). Other operational targets were to produce at optimal yields as defined by the linear programming model and reduce the cost to $5 per barrel inline with international best

practice.

However, following the abysmal consolidated capacity utilisation of less than 30 percent for the four refineries in 2018, the NNPC embarked on a TAM starting with the Port-Harcourt Refining Company Limited in March last year. But uncertainty continues to surround the proposed rehabilitation of these refineries. And many experts have said the Federal Government has a track record of failing at running businesses from the Nigerian Telecommunication Limited (NITEL) to the National Electric Power Authority (NEPA).

Nigeria’s refineries have extended their losses, recording an operating deficit of N133.9 billion from January 2018 to January 2019.

“The Federal Government and NNPC do not have the funds to turn around Nigeria’s dwindling refining fortunes and there are other issues that are legal and legislative in nature” Maikanti Baru, NNPC’s group managing director said at his induction as Fellow of the Nigerian Academy of Engineering on recently at the University of Lagos.

This has not always been so.

The post-war Nigerian economy was growing in leaps and bounds and that drove high consumption of petroleum products particularly the premium motor spirit (PMS) or petrol. Consequently, inadequate local facilities to produce, refine and distribute caused tremendous shortages across the length and breadth of the country.

Nigeria’s good fortune was that it had square pegs in square holes at that time, people familiar with the matter have said.

Under the leadership of Shetima Ali Monguno, minister of www.businessday.ng

mines and power, petroleum and energy 1972-75 and president of the Organisation of Petroleum Exporting Countries between 1972 and 1973; there were technocrats and executors who laid the foundation of what still stands today in terms of refining and distribution capabilities. Monguno operated from a little office on the Island in Lagos.

The refineries were created in sequence. First, there was the expansion of the 50, 000 barrels a day Port-Harcourt Refining Complex (PHRC) to 60, 000 barrels a day.

Then there was the construction of the Warri refinery, the Kaduna refinery and subsequently new Port-Harcourt refinery that has the capacity of 210, 000 barrels a day.

A second lesson the NNPC can learn from Petrobras is the need to re-enter a pre-listing mode and set timelines for listing on the Nigerian Stock Exchange to facilitate raise funds and ensure accountability.

A listed NNPC will lift out Nigeria’s oil sector largely in recession and also uplift Nigeria’s oil and gas reserves which have remained stagnant or dwindling, while oil production declines.

Listed NNPC means huge gas reserves estimated at 182 trillion cubic feet (TCF) could help feed power generation for energystarved Nigeria, which have largely remained undeveloped 20 plus years after being discovered due to NNPC’s inability to either fund the capital expenditure needed to develop the fields or let go of the fields for private oil firms to develop.

Brazilian State Oil Company Petrobras which was created in 1953 sold its first shares to the public in December 1957.

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DIPO OLADEHINDE

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he blame game over the electricity shortage across the country continues to worsen after the decision of Transmission Company of Nigeria (TCN) to suspend Port Harcourt Electricity Distribution Company (PHEDC) from the electricity market.

The nation’s power sector is still in crisis with operators trading blame, more than five years after privatization which was widely expected turn Nigeria’s power sector around in a few years.

TCN, a government agency responsible for transmitting available electricity to distribution companies in the country last week announced that PHEDC was suspended from the market and a section of its transmission facilities have being disconnected.

The disconnection of the PHEDC, the main electricity distribution company in oil-rich Port Harcourt state is expected to lead to blackout in some location such as Borokiri, Secretariat and cities connected to 33kv Feeders.

Why PHEDC was suspended According to TCN, Port Harcourt Disco was suspended from the Electricity Market because of default in the Market Conditions/Market Participation Agreements.

“PHEDC has been suspended from the Market Operator Administered market due to an EVENT OF DEFAULT that was not remedied. PHEDC was notified of this EVENT OF DEFAULT by a NOTICE OF EVENT OF DEFAULT (NED2019/004) dated July 9th, 2019,” TCN said in its statement published July 29 2019.

PHEDC management was said to have responded to the suspension notice within five days or two business days stipulated by the market rules and requested for a hearing @Businessdayng

before the Market operator to present its case on why the suspension order should not be issued.

Similar sanctions against Ikeja, Kano, and Enugu DISCOs In the last one month, similar suspension disconnection orders were issued against the Enugu, Kano and Ikeja DISCOs over the same allegations of infraction of the market rules.

Although the two DISCOs said their managements commenced the process to get the TCN to rescind the action against them and restore their facilities and services, TCN is yet to provide any update over the matter.

Recall two weeks ago, TCN suspend Kano Electricity Distribution Company from the Market Operatoradministered market due to “an event of default” that was not remedied.

Provisions of electricity market rules The default the DISCOs were accused of failing to remedy was in line with the agreement TCN said they all agreed to comply with at all times. This has to do with Clause 3.2 of the electricity market rules on grid code, metering code, and market procedures.

Accordingly, the DISCOs were expected to, among other roles, provide metering information in a timely manner and in the approved format in accordance with the Metering Code.

Besides, they were to ensure compliance with the market procedures, provide security deposit when so required to serve as a guarantee of payment for all amounts due from their participant to the TCN as well as settle in a timely manner any payment due.

But, the TCN said all DISCOs now being sanctioned, contrary to the provisions of the agreement, failed to maintain a security cover, thereby breaching Section 45.3.1(d) of the market rules.

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Tuesday 06 August 2019

BUSINESS DAY

OFFGRID BUSINESS

Nigeria’s Distributed Renewable Energy may create more than 72, 000 new jobs by 2023 - Power for All Survey DIPO OLADEHINDE

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new survey conducted by Power for All a non-governmental organization fo cused on promoting renewable energy has revealed Nigeria’s Distributed Renewable Energy (DRE) would have created over 70,000 jobs in four years’ time- 2023.

The study titled Powering Jobs Census 2019: The Energy Access Workforce, revealed ambitious mini-grid plans in Nigeria mean that by 2022-2023, mini-grids could account for 96percent of the 52,000 anticipated direct, formal DRE jobs while another 24,000 jobs can also be created through direct or informal sectors.

“These estimates are speculative and depend on actual growth of the various DRE technology markets, but show that the nature of the DRE workforce will likely evolve over time,” researchers at Power for All said.

Currently, the DRE sector in Nigeria has created 15,000 productive use jobs, and that is expected to grow as the minigrid sector industry,” the survey released by Power for All recently in Abuja said.

The survey also stated that between 2017 and 2018, the country’s DRE market created 4,000 news jobs, and compared it to about 10,000 jobs her gas, electricity and air condition-

ing sectors created in the same period.

Dr. Rebekah Shirley, who is Power for All Chief Research Officer and census lead researcher, stated in the statement that, “Access to electricity means access to jobs.”

“The Powering Jobs census offers strong evidence of the important link between energy access and employment in countries where rural joblessness is at record highs,” Shirley, further said.

Shirley further noted that policy-makers, donors and the private sector have an opportunity to increase support for decentralized renewables and build a diverse, inclusive, and equitable workforce for the energy infrastructure of the future.

The survey by power for all discovered that Nigeria’s decentralized renewables were a significant employer of people, that is, relative to its penetration level in the market, the sector has already grown an impressive direct employee base.

“Nigeria survey results show that the country’s DRE direct, formal workforce may grow 13 times between 2017-18 and 2022-23 if the mini-grid market continues to expand at a rapid pace,” said the Power for All in its findings.

It added, “In 2017-18, the DRE sector provided about 4,000 jobs (compared to the gas, electricity and air conditioning sector,

which employed about 10,000 in the same year), most of which are from standalone and gridtied Commercial and Industrial (C&I) projects.

According to the survey, the DRE sector has a significant employment impact on the Nigeria’s informal sector as well.

“In 2017-18, the DRE sector provided about 9,000 informal jobs. The number of informal jobs would more than double in the next five years, reaching 24,000 informal jobs by 2022-23,” the survey result noted.

Further, it said the sector had a jobs multiplier character, noting that in addition to direct, formal employment, the sector also accounts for up to 3–4 times as many jobs created through the productive use of energy particularly in rural and peri-urban communities being electrified for the first time.

As well as employing a highlyskilled, middle-income workforce, the survey stated that the DRE companies delivering electricity access have created

skilled, middle-income jobs which also have longer employee retention than utility-scale power.

Similarly, the survey explained that there is a growing shortage of job-ready talent to finance, develop, install, operate and market in the sector.

It equally stated that responses from 50 companies in Nigeria across the DRE sector, including many major companies in the sector representing a large market share were captured in the research.

FUNDING

Power Africa helps Nigeria tap private sector to boost off-grid electricity for small businesses

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ower Africa, the U.S. government’s initiative to help improve access to electricity across the continent, is helping Nigeria to access innovative private sector financing that will provide clean, safe, affordable and reliable electricity to market places, shopping centers, and industrial facilities across Nigeria.

Fully funded by the private sector, a new Energizing Economies Initiative (EEI) by Nigeria’s Rural Electrification Agency (REA) will support rapid deployment of offgrid electricity solutions that aim to provide electricity access to

over 80,000 retail shops, empower 340,000 micro, small and medium size enterprises, and create over 2,500 jobs while serving over 18 million Nigerians.

Nigeria’s flagship Power Africa intervention, the Nigeria Power Sector Support Program (NPSP), worked with the REA and the Central Bank of Nigeria

ANALYSTS: Isaac Anyaogu (Team Lead), Stephen Onyekwelu, Dipo Oladehinde

to develop an innovative financing solutions that resulted in over $1.5 million of local lending into EEI, increasing Nigeria’s capacity to self-finance development objectives. NPSP is managed by the U.S. Agency for International Development (USAID).

To establish the financing scheme, Power Africa provided technical support to Nigeria’s Rural Electrification Agency, which is implementing EEI that is already transforming businesses in Sabon Gari market, Ariara market, Sura shopping complex and other “economic clusters” with sustainable, clean

and affordable power supply by increasing economic activities, spurring business growth, fostering job creation and enhancing the business experience.

“This is a significant milestone in the financing of the Energizing Economies Initiative,” said Damilola Ogunbiyi, Managing Director of the REA. “Since the deployment of off-grid electricity solutions at various markets, we are already seeing positive environmental and economic impacts. This is the sort of intervention we look forward to across the country with support from financial institutions.”

Feedback: 07037817378, 08137433034, 08135447789

email: isaac.anyaogu@businessdayonline.com, stephen.onyekwelu@businessdayonline.com, oladehinde.oladipo@businessdayonline.com

Tuesday 06 August 2019

BUSINESS DAY

BDTECH

37

In association with

E-mail: jumoke.akiyode@businessdayonline.com

‘Technology, a critical growth driver in Nigeria’s retail industry’ Stories by Jumoke Akiyode Lawanson

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perators within the Nigerian retail economy have been charged to integrate technology into their processes for better service delivery and in order to help the sector achieve its growth potential of $40 billion by 2020.

The call was made by Ade SunBasorun, executive director and chief operating officer, FoodCo Nigeria Limited, who was guest speaker at the just concluded Google Business Group Training, Ibadan Chapter.

Delivering a paper on the topic: “Leveraging Technology for Business Management and Growth,” Sun-Basorun stressed that while government continues to make efforts at diversifying the country’s economy, such investments will only be amplified in the retail sector if stakeholders key into technology to enhance their processes and harness the opportunities that abound therein.

He said: “The proper application of digitization has significant potential to improve the quality of service delivery for customers across key

Oni Joseph; team lead, Team TopHill, Femi Adeolu; managing director, Inlaks, Africa Operations and Omondia Vester; team member, Team Tophill, being presented the winning prize at the launch of thehatch/ maiden Insurtech Hackathon on in Lagos on Sunday July 28, 2019.

functions within the retail value chain. It has huge upsides for individual companies and the sector as a whole especially in the areas of predictive analytics, forecasting and demand for various products at different locations, better pricing

algorithms that can react to changes in the cost of import and cost for customer needs, pattern analytics of customer feedbacks to identify potential issues and risks before they become sources of customer dissatisfaction amongst others.”

“Since Nigerian consumers have welcomed the arrival of ecommerce, it automatically places a challenge on retail operators to work out how they can leverage on it to achieve higher levels of convenience and speed of delivery. With

the ever growing penetration of smart phones and mobile devices and an increased need for personalized service, the requirement for retailers to embrace big data, sometimes called business intelligence, to enable them understand the specific profile and needs of customers and connect with them at their point of needs is becoming as relevant for us as a Nigerian industry as it is for more western audience,” he added.

Retailers are going to have to employ innovative and collaborative mechanism in order to meet the talent needs of utilizing technology.

From partnering with small startups to specialist resources, we are going to have to employ those sorts of mechanisms, given the higher level of competition for skill technology resources in the country Founded in 1982, FoodCo is an indigenous consumer goods company with interests in retail, quick service restaurants, entertainment and manufacturing. The company currently has eight outlets and about 450 employees in its offices in Ibadan. It currently ranks among the Top-10 National Leading Supermarket Chains in Nigeria according to a listing by National Consumer Brands.

NCC holds forum to develop Nigeria’s tech ecosystem, improve local content

I

n a bid to promote ICT innovation and investment opportunities, the Nigerian Communications Commission (NCC) is organising the second edition of the Emerging Telecoms Technologies Research and ICT innovation forum designed for the NorthWest region of the country.

With the theme: “Developing Nigeria’s Tech Ecosystem; Imperative for Improving Local Content”, the forum presents a unique opportunity for NCC to

bring together key players/actors in the Nigerian tech-ecosystem to deliberate and suggest policy, framework/strategy that could further develop the sector, thereby serving as a catalyst for improving local content in ICT/Telecommunication sector.

The collaborative stakeholder’s meeting is a two-day event scheduled to hold at Bristol Palace Hotel, Kano State in August 14 and 15, 2019.

According to NCC, the first

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day is to identify the gaps in the ICT/Telecoms sector, and further strengthen the collaboration between stakeholders and the Commission. The second day will have a breakout session to discuss possible solution to the identified gaps.

Umar Danbatta, the executive vice chairman of NCC is expected to address the gathering comprising of stakeholders drawn from the Nigerian Tech ecosystem; Mobile Network Operators (MNOs) Internet Service

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Providers (ISPs) and Tech hubs. professional associations in the ICT sector, Original Equipment Manufacturers (OEM), consumer advocacy group and the financial sector will also be in attendance.

A lead paper presentation on the theme “Developing Nigeria’s Tech Ecosystem; Imperative for Improving Local Content” will be delivered by Chris Uwaje, Africa Chair, Institute of Electrical and Electronics Engineers Internet of Things (IEEE IoT). Other

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stakeholders participating in the forum have been slated as panelists in a discourse focused on: “Digital Skills Imperative for Retooling National Workforce and Developing Capacities for Future Work, Innovation Hubs as the Fulcrum of Local Content Development, Digital Inclusion, Employment and National Survivability”. Further discussion will also take place on the topic: “Legislative and Government support for enhancing tech eco system in Nigeria.”

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BDTECH

E-mail: jumoke.akiyode@businessdayonline.com

The evolution of television technology: Samsung 8k TV narrative Jumoke Akiyode-Lawanson

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he technology of television keeps evolving, as newer and more advanced systems are developed over time. By the turn of the 20th century, it was technically feasible to replace the analog signals for television broadcasting with digital signals.

Many television viewers no longer use an antenna to receive over-the-air broadcasts, instead relying on cable television systems which are now integrated with telephone, internet services and more advanced technologies.

There’s no doubt that watching television brings us all together. Even more incredible is the fact that you can now do so much with advanced connected TVs. Television history has been a remarkable march from standard definition to high definition (HD) to 4K. And now Samsung is again leading the way as the first to bring 8K to the market. 8K delivers four times the resolution of 4K and 16 times the resolution of FHD, which transforms flat images into a deeper, more lifelike experience.

We all got used to watching 1080p TV, and then it got to viewing on 2K, then 4K, now we’re seeing “upping the game” at its best, with Samsung unveiling its QLED 8K TV. Older TVs and many 32-inch models sold, have over a million pixels (720p). More recent and

slightly larger TVs (mostly 49 inches and below) have a little over 2 million pixels (1080p). Newer and bigger TVs (typically 50 inches and above, although many smaller sizes too) have 8 million pixels (for 4K Ultra HD). The newest and largest TVs have over 33 million pixels (8K).

The Quantum High Dynamic Range (HDR) delivers unprecedented depth of picture clarity, illuminating the smallest details in every scene. The brightest bright and blackest of blacks make colours look and feel significantly more vibrant and realistic. With this feature, users are closer than they can imagine to their favourite shows or documentaries and can even notice the smallest details, almost like they are immersed in a

perfected reality. Even if it wasn’t shot on an 8K camera, the TV will enhance the picture resolution using Artificial Intelligence upscaling feature to deliver the most outstanding 8K viewing experience.

Featuring the best HDR quality that there is to TVs, HDR 4000+, users can now enjoy the exact expectations directors intended when creating movies, not missing the minute details even in the dark, especially in horror movies. The standard powerful range on most TVs demonstrates a limited quantity of shading and difference that the human eye can see, while TVs with the new HDR innovation offers a more insightful degree of contrast, richness, and brightness.

HDR is one of the most

AADIF honours VoguePay for online payment transactions

V

oguePay, international payments platform has been honoured as African online payment company of the year at the 7th edition of the African Ambassadors and Diaspora Interactive Forum (AADIF) held in London recently.

The annual award honours the significant role that the Diaspora plays in the development of their countries of origin and brings together representatives of governments, private sector, Diasporas, as well as entrepreneurs

and investors focused on entrepreneurship, SME competitiveness, employment, women empowerment and economic growth.

While acknowledging the award, Michael Femi Simeon, VoguePay’s chief executive officer, reiterated that the company’s success story represents Africa’s potential.

He also called for collaboration between the Diasporas and local market operators to work closely together in order to unleash the potential of businesses in their home countries.

Mohammed Ibrahim Jega, VoguePay’s head of business development, used the occasion to share VoguePay’s new products that offer Diasporas the access to participate in investment marketplace and other financial products, thereby increasing foreign direct investment to their home countries.

The 7th edition of AADIF conferred recognition on several notable dignitaries, parliamentarians , captains of industry including Aisha Buhari; the first lady of Nigeria.

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recent advancements in TV tech, only being used by a few unique organisations yet. You won’t find 8K TV without HDR. Another very interesting feature about this new TV technology is its ability to blend with the interior decoration of any home, simply by choosing wallpaper backgrounds to match from the samples, or just taking a picture and uploading to the TV from your photos giving the room a magnificent look and feel thanks to the Ambient Mode feature.

The TV can also double as a piece of art in the living room or blend into the wall when wall-mounted as it can easily mimic the pattern on the wall behind the TV to create an astonishing visual effect in which the TV blends seamlessly into the

wall. If you are not watching TV, you won’t see a TV. The QLED 8K TV also comes designed with a really flat and classy exterior, which makes it an easy fit and design for any home.

Using Samsung’s proprietary No Gap Wall-Mount, when mounted on the wall, it leaves no gap or space between the wall and the television. The Q900R-series QLED TV comes with One Invisible Connection - an almost invisible fibre optics cable that transfers power, video, audio and network.

It is also easy to wrap the wires around the back of the TV to hide them.

It doesn’t end there, Samsung’s One Connect Box also comes with the package allowing users connect all their equipment in one box, with all the ports needed; from HDMI to USB, etc. to declutter space in your home and to allow for people who love tidiness to have peace of mind. Which means users can connect their laptop, phones or any other device using the One Connect Box, a brilliant way to minimize space.

The included One Remote Control is stylishly designed, with a gorgeous all-metal construction.

It is comfortable to hold, easy to use with one hand, and has a microphone for voice control. Samsung has also included direct access buttons for Netflix and Amazon along the bottom.

But if users decide remote controls just aren’t their thing, they can use their mobile phones to control

all the features on the TV. Also, instead of tapping on buttons, the remote control uses Google speech recognition which allows users say whatever they want and it does just that.

Another interesting and exciting feature of the QLED 8K TV is the ability of users to enjoy viewing their pictures or videos from their iPhone and even playlists and podcasts from their iPads on their Samsung TV. With AirPlay 2 feature available on select 2018 and 2019 Samsung TV models, users will be able to stream shows, movies, and music, and cast images from all their Apple devices directly to the Samsung QLED 8K TV. With the Ultra-Wide Viewing Angle feature, the 8K TVs are engineered to reduce glare and enhance colour, providing a vibrant picture no matter where you sit. Intelligent mode allows the TV adapt the picture brightness and sound to match the conditions of the room.

The Q900R-Series QLED 8K TV features an impeccable picture quality, inspiring style, and ingenious ways for users to find content. The company has definitely put a lot of thought into creating a device that would not only serve as an entertainment tool but also add to the glamour and panache that Samsung products bring to the home.

With this new TV, Samsung Electronics is set to maintain its market leadership in the TV segment.

Quickteller rewards customers with trips to New York, London, Dubai

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uickteller, a consumer payment platform of PanAfrican integrated digital payments company, Interswitch, surprised three lucky customers with an allexpense-paid trip to the Interswitch One Africa Music Fest taking place in New York this month.

The winners were drawn from a raffle draw that took place at Interswitch headquarters in Lagos, Nigeria on July 19, 2019, alongside the National Lottery Regulatory Commission (NLRC) and Federal Competition and Consumer Protection Council of Nigeria (FCCPC).

Olawale Akanbi, group

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head, Quickteller marketing said it is a way of giving back to the customers for their unwavering support and belief in the brand: “The success of Quickteller would not be possible without our loyal customers and we want them all to feel like a part of the family and that with Quickteller, everything is possible. So we will be sending a total of thirty lucky customers with an allexpense-paid trip to one of the Interswitch One Africa Music Festivals taking place in New York, London and Dubai.”

“In addition to the three winners we have already announced, we have twenty-seven more to go. In a couple of days, we will select and announce @Businessdayng

more winners for the London trip. Later in the year, we will conduct the draws for the Dubai trip,” Akanbi concluded.

The first three winners: Titilope Adedokun, David Eze and Owosegun Shonowo will be attending the Interswitch One Africa Music Fest in New York on Saturday, August 10, 2019.

Reacting to the surprise, Eze said: “I gave up on promos a long time ago. This is a huge surprise for me and I’m still in shock. Funny thing is, I applied just because I wanted to, and not really because I thought I would win.

I am totally elated that I get to have my vacation in New York at the Interswitch One Africa Music Fest.”

Tuesday 06 August 2019

BUSINESS DAY

39

Markets + Finance

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

Nestle is Nigeria’s most profitable consumer goods company BALA AUGIE

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he earnings of Nestle Nigeria have been rising steadily even as it operates in an industry beset by a myriad of challenges, a phenomenon spooking investors.

But investors are not only interested in a firm’s earnings growth, attractive valuation or future expansion plans. They also want to gauge corporate performance with competitors, so as to enable them make inform investment decisions.

A first glimpse of Nestle Nigeria’s book revealed that it generated N26.24 billion in net income in the first six months of 2019, making it the country’s most profitable company so far.

It handily beat Dangote Sugar (N10.97 billion), Nigerian Breweries,(N13.29 billion); Flour Mills Nigeria, (N4.23 billion); Unilever Nigeria, (N5.13 billion); Nascon Allied Industries, (N1.15 billion); Cadbury Nigeria (N669.83 million), and Guinness Nigeria (N4.25 billion).

Nestle Nigeria’s huge profit can be largely attributed to its diversified product bases that are increasingly making an inroad into the market.

For instance, its Maggi product is in the kitchen of every household, and house-

wives across the country are increasingly addicted to the seasoning. A pot of soup needs the seasoning to make it deliciously palatable while it simmers on the cooker.

Not only does the company have a robust product base, its ability to put in place an excellent distribution network that ensures these products reach rural areas is case study for MBA students at Harvard Business School.

Nestle Nigeria’s earnings have also been largely driven by growth in the Beverage business as the Milo Ready To Drink (MTD) pack continues to gain widespread acceptance in the market place.

It continues to deliver cost efficiency that has been underpinning margins, while a reduction in debt shows the consumer goods giant isn’t exposed to financial risk. In short, a low gearing position gives it the leeway to borrow more money to finance future expansion plans.

Nestle Nigeria has been turning each Naira invested into higher profit compared to peers as it is the only corporate entity to record margin expansion in the entire industry. It also uses shareholders’ assets in generating higher profit than peer rival, making its valuation attractive to investors that wish to magnify their earnings.

Nestles’ net margin stood at 18.15 percent as at June 2019, that compares with Dangote

Mauricio Alarcon, MD/CEO, Nestle Nigeria’s

Sugar,(13.45 percent); Nascon Allied, (9 percent); Unilever, (8.24 percent); Nigerian Breweries’ (7.81 percent); Guinness Nigeria (4.19 percent); Flour Mills (3.41 percent), Cadbury, (3.44 percent), and Dangote Flour Mills, (-12.11 percent).

Financial Highlights for H1 2019

For the first six months through June 2019, Nestle Nigeria’s revenue increased by 4.89 percent to N141.91 billion from N135.29 billion the previous year.

The company has been able to manage direct costs attributable to profit as gross profit increased to 18.87 percent to N66.08 billion in the period under review from N55.58 billion

as at June 2018; the gross margin expansion in the second largest among 10 consumer goods firms tracked by BusinessDay. Cost of sales increased by 5.13 percent to N79.71 billion in June 2019 as against N75.82 billion the previous year; the growth in input cost is, however, lower than the 11.22 percent July figure.

Cost of sales ratio moved slightly to 56.17 percent in the period under review from 56.04 percent the previous year. This means the company spent N0.56 on input cost to produce each unit of product.

Total operating expenses were up 9.48 percent ( lower than inflation figure) to N25.64 billion in the period under review from N23.42 billion the previous year; operating expense ratio increased to 18.07 percent in the period under review from 17.31 percent the previous year.

Nestle Nigeria’s profit, which includes operating performance, has been growing at a double digit, a feat that has not been surpassed by peer rivals.

Operating profit increased by 25.75 percent to N40.43 billion in June 2019 from N32.15 billion the previous year.

Profit after tax was up 22.34 percent to N26.24 billion in the period under review as against N21.45 billion the previous year.

Margins have also followed the same growth trajectory,

thanks to cost efficiencies and lower input cost, as the company plans to intensify its cost control strategies.

Gross profit margins increased to 46.57 percent in June 2019 from 41.11 percent the previous year while operating profit margin increased to 28.50 percent in the period under review as against 23.77 percent the previous year.

Pretax profit margin followed the same growth trajectory as it moved by 28.50 percent in June 2019 as against 23.55 percent the previous year while net margin, another measure of efficiency, increased to 28.50 percent in the period under review from 23.55 percent the previous year.

Nestle Nigeria deleveraging strategy has yielded fruit as the proportion of debt in its capital has reduced. This also means it has minimized the weighted average cost of capital, while contemporaneously maximizing the value of its owners.

With a market capitalization of N1 trillion as at the time of reporting, the company is Nigeria’s third largest company by market cap after newly listed firm, MTN Nigeria, and Dangote Cement.

Nesltes’ finance costs were down 20.57 percent to N888.67 million in the period under review from N1.18 billion the previous year. Its operating profit can cover interest expenses, and still deliver profit to be transferred to reserves, as times interest coverage of 2.10 times is above the 1.50 times global bench mark.

Total debt (Both long and short term) has fallen to N6.45 billion in the period under review from N6.85 billion the previous year.

Nestle Nigeria is awash with cash, that is to say it has the financial strength to pay dividend, settle debt, and fund future expansion plans.

Total net cash from operating activities has hit N33.03 billion as at June 2019, while it spent N2.55 billion on the acquisition of property plant and equipment.

The company has been spending money on the construction of new factories, as

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

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it continues to spread its tentacles across the country.

In 2018, Nestlé inaugurated its N4.10 billion Milo Ready-ToDrink (RTD) beverage production plant- in Agabra Ogun State-to meet the growing consumer demand. The plant has created additional 100 jobs.

While Nestle’ has been able to deliver higher higher returns to shareholders, it operates in a harsh and unpredictable macroeconomic environment.

Consumer goods firms in Africa’s largest economy can no longer pass on high input cost to the already beleaguered consumers that have refused to open their purse strings.

An increase in fuel prices and high inflationary environment dealt a blow on consumer wallets, leaving Nigerians impoverished.

Post-recession, growth in real household consumption peaked at 3 percent in the final quarter of 2017, before falling to 1 percent in the second quarter of (Q2) 2018.

Nigerians are getting poorer as over 50 percent of a population of 200 million live on less than $1.98 dollars a day, as the country overtook India to become the world’s poverty capital.

The road to higher margins and profitability for the firms appear to be increasingly uphill as economic recovery has been sluggish since the country existed a recession in the third quarter of 2017.

The country’s GDP expanded by 2.01 percent in the three months through March 2019, from a year earlier; that compares with 2.4 percent expansion in the fourth quarter.

While inflation figure for the month of June fell to a 12 months low of 11.22 percent, the figure, however, falls below the central bank’s target range of 6 percent and 9 percent.

Further exacerbating the already anemic position of consumer goods firms is the menacing Apapa gridlock, as goods remain trapped at the ports, resulting in disruption in production process, a situation that undermines profit margins.

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BUSINESS DAY

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Tuesday 06 August 2019

BUSINESS DAY

41

INSIGHT AMCON: The last big push before sunset “Every sunset brings the promise of a new dawn” - Ralph Waldo Emerson Bashir Ibrahim Hassan

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Ahmed Kuru

best achievable financial returns on eligible bank assets or other assets acquired by it. In the course of implementing its mandate, AMCON has bought huge toxic bank assets and injected huge amount of funds to stabilize our financial system from systemic collapse. But its successes in stabilizing the financial system will not be fully celebrated until it is able to recover those debts owed it by individuals and companies.

It is from these developments that I found the famous statement

by Ralph W. Emerson, 19th century American poet and essayist, “Every sunset brings the promise of a new dawn” descriptive of AMCON’s situation today. .

I see the current recovery effort of AMCON at its sunset as heralding a new dawn; a dawn that will give a big sigh of relief to government that its strategy introduced a decade ago has worked. And that may give genuine reason for AMCON to remain, as long as our financial institutions continue to lend money, and continue to do the good works. And can modern economy survive without loan facilitation by its financial institutions?

It is not as if Nigeria is the only country where the assets recovery model has been applied. The model has been introduced in other countries with the same grace period of ten years. But, while it was smooth sailing in such countries as Malaysia, Ireland and the US, in Nigeria, it is taking time and proving difficult because of so many factors. Among them is our snail-speed court process. www.businessday.ng

President is well deserved. The current management is proving to know its onions well. Since their assumption of duties they have not rested from applying one strategy or the other on how to recover the rescheduled debts AMCON acquired from financial institutions. Their measured successes are appreciable for those who know the Nigerian terrain and the arduous task of debt collection, which is very difficult everywhere in the world.

The list of the top 20 debtors is in the public domain already. The top four number companies were Capital Oil and Gas Industries, Nicon Investment limited and Bi-Courtney Limited and Arik promoted by Ifeanyi Uba, Jimoh Ibrahim and Wale Babalakin (SAN) and Chief Ararume Johson respectively. Each of the four companies owed AMCON the sums of

It is becoming a reality that in Nigeria, defendants are shielded from facing justice, while the complainants suffer unending court litigations.

At the last count AMCON has some 3000 court cases to contend with. And this is certainly not helping its asset recovery efforts. AMCON may have recovered a lot of these asset but they cannot dispose of them because the clients have run to courts and the courts are slow in deciding the cases.

Last June the Vice President commended the current management of AMCON for recovering some N1.22 trillion of the bad debt despites all the hurdles before it and pledges the Federal Government resolve to support the corporation, which he fulfilled by constituting the current debt recovery committee.

The commendation of the current management of AMCON by the Vice

‘

The intervention of the Vice-President, which is at the instance of the Corporation underscores the need to address the limitations AMCON has under its current law, which gives it power to prosecute but hamstrung it from enforcing compliance.

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‘

ast week the Federal Government made true its resolve last June to set up an inter-agency framework that would comprise relevant government Ministries, Departments and Agencies, under the supervision of the office of the Vice President, to ensure that institutions and individuals that are indebted to AMCON are not allowed to do business with government until they settle their debts. Of course, this is subsequent upon AMCON’s management noble and well informed request to the VP to pursue the criminal/legal angle on the whole transactions.

The Vice President, Prof. Yemi Osinbajo, announced the establishment of the committee under the leadership of the AMCON’s CEO, Ahmed Kuru, to recover the outstanding N5trn debt owed AMCON by institutions and individuals across the country.

Agreeing with AMCON’s request showed clearly that the federal government is committed to lending its weight to AMCON’s recovery efforts.

The intervention of the Vice-President, which is at the instance of the Corporation underscores the need to address the limitations AMCON has under its current law, which gives it power to prosecute but hamstrung it from enforcing compliance.

Therefore, the committee was populated with representatives from all our institutions with such powers to investigate, arrest and enforce compliance—EFCC, ICPC, NFIU and Ministry of Justice.

The debt at stake is monumental — N5 trillion. Astonishingly it is owed by few individuals and companies.

More annoying is the fact that 20% of the defaulters owe 80% of the money in question. No wonder that, for a start, the committee will be going after the top 20 debtors.

One may ask: why the sudden vigor in recovery efforts? Well, there are two key reasons.

First, our country needs that money to rejuvenate the economy. The debt is about 60% of the 2019 budget of the Federal Government. So, if that can be recovered, the level of infrastructural development we would witness, if used judiciously, would be great. And if nothing else, we shouldn’t lose sight that it is tax payers’ money. Secondly, AMCON’s sunset is looming. The 10year life span given to AMCON at birth, in 2010, to stabilize and re-vitalize our financial system, which was on the precipice, back then, is around the corner.

AMCON carried out the task by buying up non-performing loans from financial institutions. Its objectives included assisting eligible financial institutions to efficiently dispose of eligible bank assets; efficiently manage and dispose of eligible bank assets acquired by it; and obtain the

N115 billion, N59 billion, N40 billion and 200 billion respectively.

The bottom three debtors among the 20 top ones under debt recovery committee’s radar are Inoelle Williams, Wilcox Awopudagha and Prince Buruji Kashamu, whose businesses owe AMCON about N13 billion each.

It is instructive to realize that the concept of the Presidential debt recovery committee emanated from AMCON. Kuru and his management team thought of ways to circumvent the weaknesses of their operational structure by using the enforcement powers of existing institutions to achieve its goals. It is called operational mode adjustment within AMCON. It is a strategy that will see AMCON moving a step further from the conventional approach to enforcement one.

The approach is an ad hoc arrangement, though, until the National Assembly amended AMCON’s act comes to effect. It was once amended in 2015. But because of the new challenges that AMCON is experiencing now, the management has gone back to NASS for another amendment of areas that need to be sharpened and strengthened to enable timely recovery of debts.

But the success of this latest approach will largely depend on the political will that the federal government will bring to bear on the matter to ensure it recovers what is due to the state without necessarily emasculating the industries involved looking at their contributions to the economy in recent past.

There is no doubt in the integrity of the members of the committee, which comprises heads of Economic and Financial Crime Commission (EFCC), Independent Corrupt Practices Commission (ICPC), Nigerian Financial Intelligence Unit (NFIU) and permanent secretaries from ministries of Justice and Transport. The Vice President, whose office supervises the work of the committee, is a man of God with reputation to protect.

Nobody is untouchable with him if they have done something wrong.

And, he is the Head of the economic management team of the country.

So, as the committee starts its work, the doors of dialogue should not be closed totally on the faces of these captains of industries. On their sides, the industrialists must sit up, come up with genuine and sincere offers. There must be a way to recover these assets.

All eyes will from this moment be on AMCON as it tries its latest strategy of debt recovery. Could it be the last push before its sunset?

AMCON has been the sun of our financial institutions in the last one decade. Its twilight is nigh. Like Mehmet Ildan, another poet, would say, “Sunset is a wonderful opportunity for us to appreciate all the great things the Sun (read AMCON) gives us.

Hassan wrote from Abuja

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Tuesday 06 August 2019

BUSINESS DAY

Live @ The Exchanges Market Statistics as at Monday 05 August 2019

Top Gainers/Losers as at Monday 05 August 2019 LOSERS

GAINERS

Company

Closing

Change

N8

N7.2

-0.8

DEALS (Numbers)

DANGSUGAR

N10

N9.8

-0.2

FBNH

N5.6

N5.4

-0.2

VOLUME (Numbers)

N1.29

N1.18

-0.11

VALUE (N billion)

N2.15

N2.05

-0.1

MARKET CAP (N Trn)

Opening

Closing

Change

DANGFLOUR

N18.5

N20.35

1.85

ETI

MTNN

N127

N128.25

1.25

CCNN

N12.35

N13

0.65

N5.3

N5.8

0.5

NPFMCRFBK

N5.07

N5.57

0.5

NEM

NCR BOCGAS

ASI (Points)

Opening

Company

27,669.38 3,314.00 280,695,017.00 1.409 13.483

Global market indicators FTSE 100 Index 7,407.06GBP -177.81-2.34%

Nikkei 225 21,087.16JPY -453.83-2.11%

S&P 500 Index 2,924.50USD -29.06-0.98%

Deutsche Boerse AG German Stock Index DAX 11,872.44EUR -380.71-3.11%

Generic 1st ‘DM’ Future 26,326.00USD -217.00-0.82%

Shanghai Stock Exchange Composite Index 2,867.84CNY -40.93-1.41%

Dangote Flour, MTNN, CCNN, others lift NSE ASI into positive territory Stories by Iheanyi Nwachukwu

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i g e r i a n stock market closed positive on the first trading day of this week (Monday August 5) driven by increasing buy decisions in favour of value stocks like Dangote Flour Mills Plc, MTN Nigerian Communications Plc, Cement Company of Northern Nigeria Plc, among others.

The Nigerian Stock Exchange (NSE) All Share Index (ASI) increased by 0.15percent at the sound of trade closing gong, while the Year-toDate (ytd) return stood at -11.97percent.

Lagos-based research analysts at Afrinvest had expected to see some bargain hunting in early trades this week, “supported by positive earnings releases on some stocks.”

L – R: Folusho Philips, board member, Special Olympics Nigeria; Haruna Jalo-Waziri, board member, Special Olympics Nigeria; Bola Adeeko, head, shared Services Division, The Nigerian Stock Exchange (NSE); Victor Gbolade Osibodu, chairman Special Olympics Nigeria and the Athletes during a Closing Gong Ceremony to commemorate their outstanding performance at the just concluded 2019 Special Olympics World Summer Games at the Exchange.

Following the paucity of foreign portfolio investors’ participation in the local bourse, the analysts anticipate that the lingering bearish sentiments would drive a negative close at the end of this week.

The All Share Index closed at 27,669.38 points against the preceding day close of 27,630.46 points

while market capitalisation gained N19billion to close at N13.484 trillion against preceding trading day close of N13.465 trillion.

Dangote Flour led the gainers after its share price increased from N18.5 to N20.35, adding N1.85 or 10percent; followed by MTNNN which advanced from N127 to N128.25,

Nigerian Breweries earns N170bn revenue in H1, records profit of N13bn

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he Board of Directors of Nigerian Breweries Plc announced the Company’s results for the first half (H1) of the year ended June 30, 2019.

According to the unaudited and provisional results filed with the Nigerian Stock Exchange (NSE), the Company reported revenue of N170.2 billion for the period under review and Profit After Tax of N13.3 billion during the period.

While year on year there was a marginal revenue decline of 1.4percent compared to the N173 bil-

lion recorded in the corresponding period of 2018, the Company recorded a quarter on quarter 4percent revenue growth, buoyed by mid-single digit sales growth driven by strong performance in the Premium and Mainstream segments.

The strong performance in the quarter was despite the impact of the increase

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in Excise Duty cost and other costs due to inflation. Continuous focus on cost initiatives helped the Company to return an Operating Profit of N24.5 billion and a Profit after Tax of N13.3 billion for the period.

The operating environment remains challenging with another increase in the Excise Duty rate coming into effect at the beginning of June 2019. The Company remains confident that it has the right long-term strategy that will continue to deliver good return on investment to its shareholders.

after adding N1.25 or 0.98percent.

Also, Cement Company of Northern Nigeria Plc rallied from N12.35 to N13, adding 65kobo or 5.26percent. On the laggards table, ETI Plc led the pack after its share price declined from N8 to N7.2, losing 80kobo or 10percent. Dangote Sugar Refinery Plc also

dipped, from N10 to N9.8, losing 2kobo or 2percent, while FBN Holdings decreased from N5.6 to N5.4, after its share price lost 20kobo or 3.57percent.

The volume of stocks traded increased by 73.64percent, from 161.650 million to 280.695 million, while the total value of stocks traded de-

creased by 70.65percent, from N4.802 billion to N1.410 billion in 3,314 deals.

“While we expect the stock to continue to rally, we do not foresee the gains having significant impact on the Index”, said equity market analysts at Vetiva Securities.

As such, they expect the index to revert to its bearish trading pattern on Tuesday “in the absence of market catalysts”.

Also, Cordros Capital researchers had in their August 2 note said their outlook for equities in the short to medium term remains conservative, “amidst the absence of any catalyst to drive positive market returns.”

On Monday August 5, the Financial Services sector led the activity chart with 253.242 million shares exchanged for N968million, followed by Consumer Goods with 11.026 million shares traded for N250million.

C&I Leasing eyes fresh capital to boost performance through rights issue and conversion of Aureos $10 million loan stock into equity

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&I Leasing Plc plans to inject fresh capital into its operations to boost future performance.

Chukwuma Okolo, chairman, C&I Leasing Plc stated this at the 28th annual general meeting (AGM) of the company held in Lagos last week. According to him, the fresh capital will be through rights issue and conversion of Aureos $10 million loan stock into equity before the end of the year.

Speaking on the performance of the company for 2018 financial year, Okolo said gross earnings grew by 32 percent and 25 per cent for the group and company respectively in comparison

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with 2017 performance.

“The group’s profit before tax also grew by 22 per cent from N1.3 billion in 2017 to N1.5 billion in 2018, while the company recorded an increase in profit before tax by 32 per cent from N506.9 million in 2017 to N668.3million in 2018. Also, the group’s profit after tax grew by 9 percent from N1.1 billion in 2017 to N1.2billion in 2018 while the company’s profit after tax decreased due to the impact of back duty tax by three percent from N451.3million in 2017 to N437.5million in 2018.

According to him, the performance was a result of increased operational effi@Businessdayng

ciency, cost optimisation strategies and enhanced service delivery across the three major business lines which attest to the firm’s commitment to sustainable growth and undisputed market leadership in its chosen business. A dividend of N104.381 million was recommended for the shareholders for the 2018 financial year.

According to Okolo, the outlook for 2019 remains positive for the company despite it being an election year.

“We acknowledge the challenges posed by the rapidly changing geopolitical and social economic dynamics.

Tuesday 06 August 2019

BUSINESS DAY

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POLITICS Tribunal reserves judgment on petition

by HDP against Buhari, APC, INEC Felix Omohomhion, Abuja

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he Presidential Election PetitionTribunalJudgmenton Mondayreservedjudgment in the petition filed by the Hope Democratic Party (HDP) and its presidential candidate, Chief Albert Ambrose Owuru, in which they are challenging the conduct of the February 23 presidential election.

They are also challenging the declaration of President Muhammadu Buhari as winner of the election by the Independent National Electoral Commission (INEC).

Owuru and HDP had petitioned against Buhari, INEC and APC praying for nullification of the February 23 election on the ground that INEC acted in violation of the law by shifting the election from February 16 to 23 without meeting conditions precedents.

The two petitioners also alleged that a fake version of their party logo was on the ballot paper used by INEC and therefore prayed for the cancelation of the poll on the ground of unlawful exclusion.

The party also queried the qualification of Buhari to stand for the election and canvassed among others that the president be disqualified having not met the minimum qualification to stand for election in Nigeria.

At the resumed hearing at the Presidential Election Petition Tribunal on Monday parties in

the petition had adopted their finalwrittenaddressestoestablish their cases and as well defence in the petition.

Adopting the HDP’s final address, its lead counsel, Chukwunoyerem Njoku urged the tribunal to set aside the election of February 23 on the ground that the electoral body did not follow conditions precedent in the Electoral Act, 2010 before postponing the election earlier scheduled for February 16.

Njoku informed the tribunal that because INEC did not follow the condition precedent before postponing the election constitutionally, a referendum was conductedinlinewiththelawand that the presidential candidate of the HDP Chief Albert Ambrose Owuru emerged winner of the referendum with over 50 million votes.

Njoku submitted that Nigerian citizens participated in the February 16 2019 referendum as required by law and urged the tribunal to nullify the declaration of president Buhari by INEC as president and in his place restore Owuru as the authentic winner.

The counsel argued that Buharicannotbesaidtobepresident on the strength that the February 23 election did not follow electoral guidelines.

The petitioners described the election as unlawful, unconstitutional and illegal and prayed the tribunal to void the poll and declared them as the lawful winners as a result of the February 16 referendum.

Finally, court grants El-Zakzaky leave for medical treatment abroad Abdulwaheed Olayinka Adubi, Kaduna

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aduna High Court on Monday has granted the leader of the Islamic Movement in Nigeria, Ibraheem El-Zakzaky leave to go to India for medical treatment.

Justice Dairus Khobo, the presiding judge, had ordered that the Islamic Movement of Nigeria (IMN) leader and his wife be allowed to seek treatment in a Delhi hospital, India, as they requested, but that the officials of the Kaduna State government and personnel of the Department of State Security (DSS) should accompany them.

According to the presiding judge, the duo must return immediately after their discharge from the hospital to face their charges.

While speaking with the

media shortly after the judgment, the lead counsel to Kaduna State government, Bayero said: “This is not a bail, but a leave to travel. So, as soon as his discharged from the hospital and he returns to the country, and then his trial will resume.”

Bayero said the team of lawyers would study the ruling and explore whether there was need for appeal, saying, “We have a month to go through that.”

On his part, Marshal Abubakar, counsel to ElZakzaky, said, “It is not a bail application as is being wrongly reported by some media, it was an application to save the life of the applicants, ElZakzaky and his wife.”

According to Abubakar, “The ruling came up today and the court graciously agreed with Mr Femi Falana, SAN, and the various medical

reports that were attached to the applications.

“There were eight medical reports that clearly shows the applicants are in dire need of medical treatment abroad.

“The court agreed that they should be allowed to seek for treatment that they sort for and with supervision.”

In a swift reaction, chairman of the Free Zakzaky Campaign Committee, Sheikh Abdulrahman Abubakar Yola, issued a statement saying that the favourable ruling was a vindication that leaving all doors open to obtain favourable outcomes works. He therefore thanked all people of conscience, particularly some very senior citizens, diplomats, human rights activists and organisations, journalists and the general public who doggedly stood by us in the campaign for justice.

“We are all aware of the

blurred human rights records of the Nigerian government which hardly respects court orders in contravention of the constitutional provisions. “ P re vi ou sly, Sh e i kh Zakzaky and his wife were still kept in detention incommunicado in spite of previous court judgment ordering their immediate release, thereby further flaunting their fundamental rights and jeopardising their deteriorating health.

“With this recent ruling by the court today, we will finalise urgent plans to transfer them to a more appropriate foreign health facility for further expert management as we await the response of the Nigerian government. We expect them to act urgently to respect the Nigerian constitution and the ruling of this honourable court to grant the duo instant permit to travel for their treatment,” he added.

Gani Adams calls for immediate release of Sowore Iniobong Iwok

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ani Adams, Aare Onakakanfo of Yorubaland, has joined other eminent Nigerians to call for the release of the presidential candidate of the African Action Congress (ACC), Omoyele Sowore, saying the arrest portends grave danger for Nigeria’s democracy.

The publisher of Sahara Reporters and convener Global Coalition for Security and Democracy in Nigeria was arrested by the police and the Department of State Services (DSS) over a planned revolutionary protest which was scheduled to begin Monday, August 5.

The Police had accused the activist of a plot to force a regime change in the country.

Reacting in a statement by his Special Assistant on Media, Kehinde Aderemi on Monday, Adams said the arrest was a huge abuse of human right to freedom, stating that the planned revolutionary protest could not be said to be treasonable since it was yet to be implemented before he was arrested by the DSS. Adams faulted the rationale behind the arrest, saying it is unfortunate that Nigerians usually forget events and memories of the past.

He noted further that Nigeria’s problems emanate from the military’s dictatorship and tendency to gag the press and prevent freedom of speech and expression.

The Aare Onakakanfo, however, said with the information at his disposal, the convener did not consult many of the civic society groups.

The planned protest, he admitted, would have presented to Nigerians, the needed opportunity to express their feelings to president Muhammadu Buhari.

Frowning at the arrest, Adams noted that Nigerians are entitled to express their feelings, in as much as the protest is peaceful, and violence- free and also represents the feelings of Nigerians.

Adams urged the federal government to urgently free Sowore and formulate policies that will have direct impact on the lives of Nigerians.

According to the statement, “Not everybody can have access to the presidency in Abuja. This is democracy, not militarism, where people are cowed and jailed over issues relating to their welfare” “Sowore is an activist, and he was part of the struggle for this democracy. Therefore, he is entitled to express his feelings and that of Nigerians in a democratic setting.

“I think the FG must consider his freedom as a panacea for peace. For instance, I wonder how a peaceful protest by armless citizens will now turn to a treasonable felony.

“It is unfortunate that many of the people at the corridors of power today were part of the protests against former president Goodluck Jonathan in 2015, but today the situation has changed.

“I am afraid they wanted to draw the nation backward to those years of the military, where people’s rights to freedom and other fundamental human rights were alien to the military.”

L-R: Ahmed Idris Wase, deputy speaker, House of Representatives; Kabiru Gaya, chairman, Senate Committee on Electoral Matters; Boss Mustapha, secretary to the Government of the Federation; Mahmood Yakubu, chairman, INEC, and Mohamed Ibn Chambas, United Nations special representative of the secretary general for West Africa, during the biennial general assembly of the ECOWAS Network of Electoral Commission (ECONEC) in Abuja, yesterday.

Pic by Tunde Adeniyi

GoandbeinauguratedlikeBauchilawmakers, Group urges angry Edo members-elect … as Uzairue clan endorses Obaseki/Shaibu for second term

www.businessday.ng

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oncerned Citizens of Edo State, an umbrella body comprised of trade associations, youth and professional groups, market women among others, has urged the angry members-elect of Edo House of Assembly, currently in Abuja, to follow the example set by Bauchi State lawmakers and present themselves for inauguration.

According to the group, “We read with delight, news report of the inauguration of the factional lawmakers in Bauchi State. We laud their maturity and recommend similar bold and people-spirited move for our Edo members-elect.”

Chairman, Edo State chapter of Nigeria Labour Congress (NLC), Sunny Osayande, said, “We advise the 12 Edo House of Assembly members-elect currently in Abuja to put aside sentiment and come forward to be inaugurated so that they can assume their lawmaking function for which they were elected.”

He noted that the absence of the 12 members-elect from the activities of the inaugurated Edo State House of Assembly was denying those that voted for them representation in the Assembly.

The State chairman of National Union of Road Transport Workers (NURTW), Odion Olaye, said, “These members-elect were elected to represent their various constituencies in the Edo House of Assembly. But their absence means that the issues that affect people in their constituencies are not mentioned, highlighted or debated on the floor of the assembly.”

Lamenting the development, state chairman of butchers association, Akere Odigie, noted, “This is bad for our democracy. We urge the members-elect to put the interest of the voters, who stood in the sun and rain to elect them, ahead of personal squabbles.”

Recall that two people had emerged speakers of the Bauchi State House of Assembly during an

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inauguration that held on June 20.

Abubakar Suleiman was elected speaker by a faction of the House, which was presided over by the clerk at the assembly complex, while Damina was elected by another faction outside the complex.

Reports said the factions were said to have buried their differences as their inauguration was presided over by Danlami Kawule, the deputy speaker of the House.

Meanwhile, ahead the 2020 gubernatorial election in Edo State, Uzairue people in Etsako West Local Government Area of Edo State, have endorsed Governor Godwin Obaseki and Philip Shaibu, deputy governor for a second term in office.

The endorsement was conveyed in a letter by Jattu Progressive Union (JPU) and signed by the chairman, Felix Oshionebo; secretary general, Mohammed Kassim; vice chairman, J.A. Ukpokodu; public relations officer, TPL Bismark Oshiokpekhai; auditor general, Mu@Businessdayng

hammed Amionalumhe, and the Galadima of Uzairue, Yusuf Bello (ex. officio).

According to JPU, the endorsement was informed by the developmental strides of the Governor and his deputy in their community and the entire state.

“Members of Jattu Progressives Union, Benin Branch, and the entire Uzairue people wholeheartedly commend the Executive Governor of Edo State, His Excellency, Godwin Nogheghase Obaseki and the Deputy Governor, Rt. Hon. Comrade Philip Shaibu for the developmental strides in our community and Edo State at large,” the association said.

The letter added: “In the light of the above, members of Jattu Progressive Union, Benin Branch, and the entire Uzairue people hereby endorse the Governor and his deputy for a second term in office to continue the good work. God bless the governor, God bless the deputy, God bless Edo State.”

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Tuesday 06 August 2019

BUSINESS DAY

PHOTO SPLASH

NEWS

FG to pay cheapest rates in 1 year on August Saving Bonds Pictures from the ‘#RevolutionNow’ protesting at the OLUWASEGUN OLAKOYENIKAN

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fter lowering interest rates on Saving Bonds for three straight months, the Federal Government of Nigeria (FGN) will pay the cheapest rates in one year on borrowed funds from the August saving bond auction.

This became evident after the FGN disclosed an ongoing auction to receive offers for subscription for a two-year and three-year savings bonds for the month with interest rates at 10.301 percent and 11.301 percent per annum, respectively.

These interest rates promised on the two instruments are the cheapest since May 2018, and offer little or no spread from the nation’s inflation rate that moderated to 11.22 percent in June 2018, according to data compiled by BusinessDay. FGN Savings Bond is a fixedincome instrument issued monthly to deepen the savings and investment opportunities of the Nigerian popu-

lace and diversify funding sources for the government. The bond is also targeted at enhancing financial inclusion in the country, as income earned from it is exempted from taxes. With the FGN Savings Bond, low-income earners can save and earn more interests than regular bank savings.

The Debt Management Office (DMO), which is offering the debt instruments on behalf of the Federal Government, said the two-year tenor would be due on August 14, 2021, while the three-year savings bond would mature on August 14, 2022.

According to the state-owned debt agency, interested investors are expected to bid for the instruments at an auction, which commenced on Monday, August 5 and expected to end on Friday, August 9, with a settlement date of August 14, 2019.

To participate in the bidding process for the retail savings product, DMO advised investors to contact any of the 129 stockbroking firms appointed as distribution agents by

the office.

The bonds are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

The DMO assured that the bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of the country, implying there is no risk of default.

Furthermore, the debt office guaranteed a bullet repayment of the principal on the maturity date with quarterly interest payment dates of November 14, February 14, May 14, and August 14.

Also, bondholders can use their investment as collaterals to obtain loans, while those who do not wish to hold on to the securities till the maturity date can trade their investment at the secondary market such as the Nigerian Stock Exchange and the FMDQ Securities Exchange.

National Stadium in Iganmu, Lagos, yesterday

NNPC harps on growing Nigeria’s oil reserve to 40bn barrels Olusola Bello

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he Nigerian National Petroleum Corporation (NNPC) has insisted that the country’s ambition to grow her crude oil reserve to 40 billion barrels and three million barrels per day crude production by 2025 is still feasible.

It, however, gives conditions under which such an ambitious project is possible by stating that huge investments are required across the industry value chain.

Speaking at an international conference and exhibition organised by the Society of Petroleum Engineers, Nigeria chapter Monday in Lagos, Mele Kyari, group general manager of NNPC, said the corporation with its partners were driving the National aspiration to grow the National reserve to 40 billion barrels by 2025 and improve crude oil production to 3 million barrels/day.

“To achieve this ambition, huge investments are required across the

value chain,” he said, as the industry needed also to attract investments that would allow for the deployment of improved technology in the exploration and production of hydrocarbons from inland as well as the ultra-deep offshore basins.

We have to open up the midstream, complete all critical gas development projects targeted to deliver about 3Bscfd to gas market, ensure the closeout of investment decision on NLNG Train 7 and improve domestic utilisation to improve power generation and industrial growth, he said.

On the importation of refined products into the country, he stated that Nigeria was still a net importer of petroleum products due to the current state of our refineries, and the long absence of private investment in the refining sector.

He said more investments are required to revamp and expand our domestic refineries and associated infrastructures to support the growth of

the downstream sector and guaranty energy security to the nation.

To address the issue of the refineries and petroleum products importation, he explained that the country was progressing with the establishment of Condensate Refineries to fast-track domestic supply of petroleum products.

“In the same vein, the Corporation would support the actualisation of the 650K bbl/day Dangote Refinery, as well as other private initiatives along this line,” he said.

Hesaidtheplanofthecountrywas to become net exporter of petroleum products by 2023, stating that this would offer our Petroleum Engineers andotherprofessionalstheopportunity to render critical services and share in the drive to develop our country.

Kyari stated, however, that taking the first step to grow reserve, expand the frontiers of our production requires enabling environment to attract the investment that is being subdued by our fiscal regimes.

MTN pays N1.7trn as taxes, levies, regulatory fees in 18 years Iheanyi Nwachukwu

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TN Nigeria Communications plc says it has, since incorporation in 2001, invested more than N2 trillion into the Nigerian economy and paid more than N1.7 trillion in taxes, levies and other regulatory fees.

The telco, reacting to media reports (not BusinessDay) regarding the status of taxes relating to the 2015 fine imposed on MTN Nigeria Communications, states that it is committed to meeting its fiscal responsibilities and contributing to the social and economic development of Nigeria.

In a recent notice at the Nigerian Stock Exchange (NSE) signed by its company secretary, Uto Ukpanah, MTNN acknowledged that there was

a technical disagreement between MTN and the Federal Inland Revenue Service (FIRS) “as to how the fine should be treated for tax purposes.

“However, while the monies have been paid to FIRS, we have taken the disagreement to the Tax Tribunal set up by FIRS Chairman and Minister of Finance, and are awaiting a decision”, MTNN told the NSE, adding that it remains fully compliant with Nigerian tax laws and “will abide by the findings of the tribunal.”

In the first-half (H1) period ended June 30, 2019, MTNN sustained a solid performance, delivering double-digit growth in service revenue, underpinned by growth in voice and data revenue.

Its audited result for the H1’19 period shows service revenue increased

by 12.12 percent to N566.946 billion fromN505.667billioninthepreceding half-year (H1) period in 2018.

MTNN added 3.3million customers to its network, increasing its subscriber base to 61.5 million. It recorded11.4percentincreaseinVoice revenue;whileDatarevenuewasupby 31.7percent in H1’19.

Fintech revenue increased by 21.2 percent; digital revenue decreased by 64.5percent; capital expenses (capex) increased by 63.8 percent to N105.8billion; Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 40 percent to N304.9billion; while EBITDA margin increased by 10.7 percentage points to 53.8percent. MTNN increased its Mobile Subscriber base by 3.3million to 61.5million in H1’2019.

FG urged to ensure quality education in public schools IFEOMA OKEKE

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EO of Brookehouse School in Lekki, Lagos, Ifueko Thomas, has pleaded with the government to ensure that public schools get the same quality the private schools are getting by embarking on training and retraining of teachers.

This is also as Thomas disclosed that raising children to be intellectually and morally sound was essential in today’s world.

She made the disclosure at the second graduation and prize giving day ceremony of the school.

“For example, we have a fantastic relationship with the Eti-Osa Local Government Area and we are working with them to train public school teachers. We also have the Child Right Movement where we talk about every child’s right to quality education.

“Child Right is already in place in Nigeria; there is a Child Right Act that Nigeria signed to – the right to health, welfare, education, the right to be treated fairly, and the right to be heard. We teach our pupils these rights but we don’t teach them to be rude; it is part of www.businessday.ng

our curriculum,” she said.

She explained that education withoutcharacterwascounterproductive, calling on teachers to imbibe the values they teach children.

Thomas explained that in today’s society the level of corruption was high despite the rate of education, adding that education without character was nothing.

“Someone comes out with first class in Medicine, for example, but the person is not honest, not diligent, not trustworthy. So, whatever education you have without character is useless.” https://www.facebook.com/businessdayng

@Businessdayng

Tuesday 06 August 2019

BUSINESS DAY

news GAC Motor emerges Automobile Brand of the Year GBEMI FAMINU

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AC Motor beats off competition from other major brands to clinch the Automobile Brand of the Year Award at the Nigerian Business Leadership Awards hosted by BusinessDay in Lagos.

It was indeed a day of recognition and accolades for the Chinese automobile giant, which made an entry into the Nigerian market in 2014 through CIG Motors Limited. The GAC Motor brand won the coveted award ahead competitive brands like Hyundai and Toyota.

Ever since the first introduction of its models into the Nigerian market, the brand has continued to grow in leaps and bounds and has become one of major brands in the Nigerian automobile industry.

Indeed, the story of GAC Motor is one of success, as the brand has been able to grow its market share in the industry and has become one of the most sort after brands for Nigerian corporate organisations, governments and individual, who through various finance options with major Nigerian banks like Access Bank, Heritage Bank and major certified car dealers like Cars45 can purchase their models with ease.

At the heart of GAC Motor’s success has been a robust commercial and B2B strategy that

has seen the company sign purchase partnerships with several leading Nigerian companies, banks and state governments.

Earlier in the year, Dangote Foundation had purchased 150 units of the GA3S saloon for the Nigerian police.

The brand has equally invested in its own assembly plant in Nigeria. Located at Ojota in Lagos, GAC Motor is one the proud automobile companies helping Nigeria to reposition and revive the automotive industry.

The brand also invests heavily in supporting the Nigerian entertainment industry and sports through various partnerships, sponsorships and support programmes.

Under the leadership of Diana Chan, the chairman of CIG Motors, signed a distribution agreement with GAC Motor for Nigeria and the rest of Africa. Chief Diana Chan she has singlehandedly changed the automobile industry landscape in Nigeria by building within four years, an automobile company that is now seen as a major competition to beat by other automobile brands in Nigeria.

GAC Motor seems poised to increase its market share and become the market leader in the Nigerian auto market with its durable model options. GAC Motor currently offers three unique brands in Nigerian – GS4

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SUV, the GS8 SUV and the GA3S saloon car.

The company prides itself as one that understands the needs of Nigerians and a brand that offers unique products that soothe Nigerian tastes, hence the slogan ‘Made for You’. This slogan encapsulates its marketing strategy as a brand that is ‘Made for Nigeria’ and a brand that the average Nigerian man or woman would perceive as a close buddy or ‘My G’ as the company calls it.

GAC Motor’s nomination and eventual winning of the Automobile Brand of the Year Award at this year’s Nigerian Business Leadership Awards further lends credence to the fact that GAC Motor has become the brand of choice by Nigerians.

The BusinessDay Nigerian Business Leadership Awards recognise remarkable business leaders and organisations in Nigeria for their sustained commitment to excellence in enterprise. The Awards honour private sector leaders who have made significant contributions to the Nigerian economy, shaped the Nigerian economy through major strides in homegrown innovation and the opening new vistas of opportunity, demonstrated visionary capacity and nationalism through their investments, thereby pushing Nigeria’s rise in global competitiveness rankings.

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@Businessdayng

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Tuesday 06 August 2019

BUSINESS DAY

news L-R: Ngozi Akinyele, head, strategic brand management, Union Bank; Funto Boroffice, founder, Chanja Datti Limited; Bikiya GrahamDouglas, founder, Beeta Universal Arts Foundation; Nkem Okocha, founder, MamaMoni Empowerment Foundation, and Bankole Williams, founder, LYD Consulting, at TEDxLagos conference cosponsored by Union Bank.

Nigeria records mixed success since FX restriction...

Continued from page 1

hundreds of workers.

Today, the entire subsector is comatose as many exited between 2016 and 2018, sacking all their workers. Their exit is attributed to their inability to access the most important raw material – annealed cold rolled steel – due to foreign exchange restriction.

The Central Bank of Nigeria (CBN) and the Ministry of Industry, Trade and Investment had been convinced that Western Metal Products Company (WEMPCO) had the capacity to produce annealed cold rolled steel and sell to other downstream manufacturers who needed it for production of aluminium drums, wheelbarrows and other similar products.

Due to lack of due diligence and consultation, little effort was made to determine WEMPCO’s capacity. Industry players were perplexed that the decision to restrict annealed cold rolled steel from the FX market was taken because of just one company which claimed to produce the raw material. WEMPCO was accused of importing 90 percent of the product and in turn selling to downstream players who were not allowed to import.

For months now, WEMPCO is neither producing nor supplying annealed cold rolled steel and a number of downstream companies, including Wahum, cannot have access to the input and so risk closure.

All the industry players who spoke with BusinessDay over the weekend said the steel sector does not have the capacity to satisfy the local demand in most of the items on CBN’s list, including galvanised steel sheets, head pans, metal boxes and containers, wire mesh, and steel drums.

Nigeria imports roughly 7.1 million metric tonnes of steel annually, spending $3.3 billion a year.

Eighteen of the 30 func-

tional steel firms in Nigeria produce about 2.2 million tonnes a year with scraps and billets imported mainly from China. Manufacturers told BusinessDay that there is no new investor or evidence of any change in this number in four years since the FX restriction.

Oluyinka Kufile, chairman of Qualitek Industries, a roofing sheet maker, told BusinessDay that most manufacturers claiming to manufacture many of these products rather import them dubiously in the name of other items.

He pointed out that essential steel raw materials have had their duties increased from 15 to 45 percent since 2015, while some finished steel products are now imported at 15 percent duty.

Now enters palm oil, which is one of the items on the list. Ever since the restriction in 2015, importation has not ceased.

At a stakeholders’ meeting on the palm oil value chain in Abuja in March 2019, Godwin Emefiele, CBN governor, said Nigeria spends $500 million on importation of palm oil.

Nigeria’s production of palm oil has risen from 930,000 metric tonnes capacity to around 1.1 million tonnes, Henry Olatujoye, national president, National Palm Produce Association of Nigeria (NIPPAN), told BusinessDay in 2018. But demand is still high at 2.1 million tonnes.

In other words, there exists a gap of 1 million metric tonnes. As a result, Malaysian and Indonesian palm oil is increasingly smuggled into Kano through Benin Republic.

“Visit any supermarket or traditional market in Nigeria and you see that plenty of imported vegetable oil, which is banned in the country, are easily available. The leading domestic refineries in Nigeria are facing a crisis and many in the country are not operational,” Santosh Pillai, managing director, PZ Wilmar, complained in 2018. www.businessday.ng

Food and beverages companies using palm oil as input are also not finding it easy.

Nigeria ranks third in the world in terms of land area planted with oil palm, but it is only the fifth largest palm oil producer due to low yields. Much of Nigeria’s oil palm cultivation is grown by small-holders who grow oil palms – a specie native to West Africa – with other crops rather than the industrial oil palm plantation approach seen in Southeast Asia and Latin America, according to a Bloomberg report.

“Does it make sense when your factory stops because you don’t have the raw materials?” asked Mauricio Alarcon, CEO, Nestle Nigeria plc, at the 2019 BusinessDay Agribusiness and Food Security Summit.

For him, the question of investing in the production side of agriculture is not whether it is profitable, but if it makes business sense in the long term.

Nigeria has a deficit across every type of food produce. In fact, the Agriculture Promotion Policy released in 2016 showed a 20.14 million MT deficit across 13 major crops and 60 million poultry bird deficit. Three years later, with the rapidly growing population, this deficit has increased substantially, say experts.

Though tomato is still one of the 43 items, industry players say its case has worsened.

About $360 million is still spent on import of tomato paste. Industry players estimate that the number has risen to $1 billion. Much of the paste that comes into Nigeria is smuggled through Contonou. Local industries are not faring better, with Dangote Tomato just reopening its Kano plant. Others are either not functional or operating below 25 percent capacity.

Tomato growers continue to complain of huge losses every year, whereas processors equally operate haphazardly due to inconsistency in supply. The market and

supply chain inefficiencies remain a stumbling block to ensuring backward integration in that industry truly works.

Nigeria is the 14th largest producer of tomato in the world, while 45 percent of its annual production still gets wasted as a result of improper preservation and bad handling practices.

In terms of rice, importation into Nigeria through the ports has declined by over 96 percent, officials say, but smuggling from Benin Republic through the numerous porous borders is now a big business.

Furthermore, manufacturers told BusinessDay that restriction of glass from the FX market was a poor decision as only one company in Benin produces windscreen.

Textile is on the list even though the number of textile makers is less than four. There is no evidence of improved local production and new investments in textile production, industry players say.

In fact, most of the socalled textile makers are producers of rugs, handkerchiefs, and towels.

The World Bank estimates that textiles smuggled into Nigeria through Benin Republic are valued at $2.2bn annually, compared with local Nigerian production, which has dropped to $40m annually.

“The textile industry has been a beneficiary of several fiscal incentives and protectionist measures over the years, yet it has remained in stagnation,” Muda Yusuf, director-general, Lagos Chamber of Commerce and Industry, said in a recent statement. “Some of them have even gone into receivership as they could not repay their loans. The lesson is that we should deal with the fundamental issues of production competitiveness in our economy,” he added.

•Continues online at www.businessday.ng

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Nigerians dare security agencies to hold ...

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the release of one of the conveners of the protest march, Omoleye Sowore.

The protesters converged on the National Human Rights Commission (NHRC) office chanting anti-government songs and calling for a ‘revolution’ in Nigeria as they registered their displeasure with the state of the nation.

The ‘RevolutionNow’ protests had been made popular

by Sowore, who was arrested by the DSS on Saturday, following which also the Inspector General of Police (IGP), Mohammed Abubakar Adamu, described the protest as “treasonable” and warned against it.

In Lagos, Bala Elkana, spokesperson of the state police command, confirmed the arrest of nine persons to BusinessDay as at 4:58pm yesterday.

Earlier on Monday, sternlooking armed policemen and soldiers took positions at the Freedom Park, Ojota, and the National Stadium, Surulere, in Lagos. Exit and entry points to the stadium were locked up as the police stationed Amoured Personnel Carriers belonging to the Rapid Response Squad (RRS) at the main entrance in a show of force and readiness to crush any protesters.

At the Freedom Park, Ojota, which has become synonymous with protests, armed soldiers were seen on guard ostensibly to ward off protesters from the park, where an imposing statue of late lawyer and human rights activist, Gani Fawehinmi, stands tall.

But the protesters have vowed to continue their action on Tuesday (today) in defiance to the security operatives.

Conveners of the protests, comprising members of a coalition of different civil society organisations, who addressed the press after they were dispersed, said the police fired teargas at them as they gathered peacefully in Surulere for the protests.

It was a similar situation in Benin, Edo State, where the coordinator of #RevolutionNow, Osunbor Kelly Omokaro, was arrested by the police.

Omokaro, who is also the founder of Faculty of Peace, a nongovernmental organisation, was arrested and detained when he went to the police headquarters in Benin to seek permission for the protests.

He was said to be at the police command at about 7am when the Commissioner of Police (CP), DanMallam Muhammed, asked the activist to see him in his office. A member of Talakawa parliament, who broke the news to journalists, described it as an infringement of Omokaro’s fundamental rights.

“As at the time I left the @Businessdayng

command, he was busy writing statement,” the Talakawa parliament member told journalists.

CP Muhammed, however, said he was yet to learn of Omokaro’s arrest, even though he admitted that the activist was made to write a statement.

Similarly, a combined team of police and the DSS operatives stormed the premises of the Bendel Newspapers Company Limited (BNCL), publishers of the Nigerian Observer, at about 7am to prevent civil society members from embarking on the planned protest.

The civil society members had assembled at the media house for the take-off of the protest when the security operatives stormed the venue.

The security agencies also besieged the entrance to the secretariat of the Edo State Council of the Nigeria Union of Journalists (NUJ). They positioned their vehicles, including a Toyota Hilux truck, at the entrance to the Nigerian Observer and adjoining streets like the Vegetable Market Road and Observer Lane.

Speaking on the action of the security agencies, a member of the civil society, who pleaded anonymity, said the police and DSS warned them to call off the protest.

“The security agencies want us to tell them why we want to protest. But we told them that we want to protest the arrest of Omoyele Sowore, the presidential candidate of African Action Congress (AAC) in the February 23, 2019 presidential election,” he said.

In Ibadan, Oyo State, security operatives were stationed at the main entrance of the University of Ibadan.

The combined team comprising operatives of the police, DSS and army, and civil defence “Operation Burst” took position as early as 6:30am in anticipation of the protest said to have been planned to take off from the University Ibadan.

In a commando-style, the security team arrested a young man who was taking the pictures of the security agents.

The young man was not spared heavy slaps from the gunwielding mobile police officers and their SARS counterparts.

However, a supporter of the ‘RevolutionNow’ said the protest had been “technically stopped” for now.

A similar scenario played out in Calabar, the Cross River State capital, where some persons, including the state correspondent of the Nation Newspaper, Nicholas Kalu, were arrested at the Cultural Centre, where the #RevolutionNow protesters had gathered.

•Continues online at www.businessday.ng

Tuesday 06 August 2019

BUSINESS DAY

NILDS seeks collaboration among African countries to develop legislature James Kwen, Abuja

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ational Institute for Legislative and Democratic Studies (NILDS) has called on African countries to synergise efforts towards nurturing the legislative arm of government, which has suffered a lot of setbacks sequel to military interregnums.

Abubakar Sulaiman, NILDS’ director-general, made this call Monday at a training on the exchange of knowledge between Gambian National Assembly Committee Clerks and Nigerian National Assembly Committee Clerks in Abuja.

The African Parliamentary bodies have to learn from each other in terms of experience, comparative analysis and contrast, Sulaiman said, pointing out that the quality of the laws is based on the capacity of the legislators and effectiveness of the committees.

“For every legislature to thrive and work effectively, the Committee system is very key, whether it is unicameralism or bicameralism, what is important is that they have an organ that work for them, the same thing applies to Nigeria.

In terms experience, comparative analysis, contrast, I think we have too much to learn from each other,” he noted.

The NILDS director-general, who observed that the depth and breadth of work in a legislature could not be fully conducted in the plenary sessions, said specialised committees carry out detailed work of the legislature and these committees had clearly

defined mandates to carry out in-depth analysis and review public policy.

Sulaiman, while noting that one of the most critical factors for committee effectiveness was the quality of support staff and resources available to the committee, said, “To perform optimally, committees should be well resourced with the requisite skilled personnel, access to relevant and accurate analysis and information, and adequate logistical support.

“This underscores the importance of this study visit.

We have prepared a detailed programme to cover all aspects of work undertaken by committees including meetings, public and investigative hearings, oversight visits, interactive sessions, consideration of Bills and much more,” he said.

Landing Jobe, Gambia National Assembly Director of Committees in a goodwill message, stated that the well functioning of National Assemblies was supported by committees system whose effectiveness and efficiency was supported by clerks who provide administrative duties to achieve the objective of oversight function of the legislature.

Jobe, who acknowledged that the Gambian Committee Clerks would be exposed to new knowledge and also benchmark with their Nigerian counterparts to learn best practices, processes and procedures on committees’ effectiveness, commended NILDS for support to capacity building of Parliamentarians and Staff of the ECOWAS region.

Dangote Cement promo produces two car winners in Kano, Abuja BUNMI BAILEY

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s the Dangote Cement Bag of Goodies promo enters its fifth week, two winners, from Abuja and Kano respectively were presented with brand new saloon cars on Monday by the Management of Dangote Cement Plc. While Alhaji Sanusi Saíd, a businessman won in Kano, a bricklayer, Mr. Emmanuel Boye Won in Abuja.

Presenting the car in Kano, the Governor the state, Dr. Abdullahi Umar Ganduje, represented by the Permanent Secretary of the state Ministry of Commerce, Industry, Cooperatives and Tourism, Hajiya Binta Lawal Umar lauded the transparency of the promo and thanked Dangote Cement for adequately compensating their customers through the promo.

The Governor said, Dangote, being an honest man has further demonstrated his honesty with the way and manner the promo was transparently conducted.

He said the government recognised the immense contributions of Dangote Group in helping the nation to grow from strength to strength, adding that they were very happy and proud with what Dangote is doing in the state.

On her part, the Marketing Director of the company, Mrs. Funmi Sanni said the company will always

look for ways to make the customers happy and that this promo is just one of the many other lofty things that have been lined up for the Dangote Cement customers.

“Aside the fact that we have the best quality cement in the market, we also want to pride ourselves as the best company that give more to the customers in terms of what is due to them. We will ensure our customers are happy, we will always come up with ideas to make them proud of their partnership with our brand. “she assured.

In the same vein, the President of the Manufacturers Association of Nigeria, Engr. Mansur Ahmed who presented the car to the lucky winner in Abuja lauded Dangote for giving back to its customers’ in a very impressive manner The winner, who came with a retinue of his kinsmen, business associates and his family members said he could not express his happiness for the “big win”.

“I supply cement and mold blocks but I have not been patronising Dangote cement, so I did not believe the promo was real but the sales team of Dangote Cement visited me severally during the promo to enlighten, and persuaded me to try my luck.

“I sold my Toyota Corolla and invested money in five trucks of Dangote cement, my wife tried to discourage me but I persisted and my life changed for the better.

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Abiodun lied on borrowed N7bn to pay May salaries - Amosun RAZAQ AYINLA, Abeokuta

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mmediate past governor of Ogun State, Ibikunle Amosun, has faulted the claim by Governor Dapo Abiodun that he had to borrow N7 billion to pay workers’ May salaries.

Recall that Amosun, who is now a senator representing Ogun Central Senatorial District, left government on May 29, 2019, after the completion of two-term tenure as the governor of Ogun State, was alleged by Governor Dapo Abiodun and his government not to have made any provisions for the payment of workers’ salaries for the month of May, knowing full well that he would quit the seat on May 29.

Speaking through Adewale Oshinowo, the immediate past commissioner for finance’s statement made available to journalists in Abeokuta tagged’ “Governor Abiodun’s ‘Empty Treasury’ slogan: Setting The Records Straight,’ Amosun alleged that the claim attributed to Governor Abiodun could not have been true considering arrangements made before quitting government on May 29, 2019.

“Our attention has been drawn to the widely circulated reports in the media that the Prince Dapo Abiodun-led administration in Ogun State inherited an “empty treasury” and its only recourse was

a bank loan of N7 billion in order to pay workers’ salaries in May, 2019.

Nothing could be further from the truth!

“Indeed, during a political parley in Abeokuta on 24 June, 2019, ostensibly convened to discredit and denigrate his predecessor, Governor Abiodun was widely reported in the media to have made the infamous comments reproduced below: “So, I picked my phone and called my friends who are MDs in different banks. I told them I needed to pay salaries and this is the little I have; almost nothing in the state account. I requested for a credit facility to allow me to pay over N7 billion, which is the state wage bill.

That day, my intention was that may be one or two will oblige me, but the five banks I called obliged me.

“Contrary to the “empty treasury” slogan, the Dapo Abiodun led government inherited over N8.218 billion, comprising N5.735 billion from the Federation Account (FAAC/JAAC) and N2.483 billion from the Ministries Departments and Agencies (MDAs).

“What is more, the N10.6 billion refund for Pay As You Earn (PAYE) due to Ogun State, which the Amosun government had labored for three years to obtain, and which was due to be paid in May 2019, should have been part of the amount inherited by the Dapo Abiodun led administration.

Abuja records first kidney transplant … American surgeons to train Nigerian doctors on kidney transplant Nobody can do for us as Godsgift Onyedinefu, Abuja Nigerians unless we create n Abuja-based hos- the environment to allow pital, Nisa Premier, experts to do the job they has performed the can do,” he stressed. first kidney transplant in A urologist/transplant the Federal Capital Territory surgeon, Obi Ekwenna, not(FCT). The board chairman ed that Nigeria had a good of the hospital, Ibrahim environment and skilled Wada, confirmed this to personnel, and called for newsmen at the weekend. collaboration to make “I am here to confirm healthcare accessible to all a major medical feat. For citizens. the first time on the soil of Also speaking, one of Abuja, we brought together the doctors from the Diasa home and a Diaspora team pora team, Mary Brown, and achieved seamless kid- announced plans to colney transplantation. I can laborate with Nigerians on confirm that both the donor kidney transplantation, sayand the recipient are doing ing the collaboration would very well,” Wada said. focus on training, education Wada, while decrying and prevention. that kidney diseases are She said: “We want to on the rise in this coun- focus on education, pretry, called on the Federal vention and training. AlGovernment to create an though Nigerian doctors enabling environment for are equipped with educaforeign partnership and tion, we also want to bring collaboration, so that Ni- our education to them, to gerians would not have to achieve world-class kidney travel overseas for medical transplantation.” care.

The transplantation was He noted that partnering carried out by Ekwenna, a with other healthcare sec- transplant and urological tors overseas would reduce surgeon and a Nigerianthe cost of medicare for American, a Master Public Nigerians and also boost the Health Specialist and Regnation’s economy istered Nurse, Mary Brown, “There is a lot of diseases from the United States of springing up, and the end America, and Lemah Masolution for kidney diseases basu, urological surgeon is kidney transplantation. from NISA Hospital, Abuja.

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L-R: Frank Aul, immediate past president, Securities and Exchange Commission, Multi-Purpose Cooperative Society; Mary Uduk, acting, director-general, SEC, and Andy Morkah, chief executive officer, Property Vault Limited, during the grand breaking ceremony for SEC Court in Abuja, yesterday.

Pic by Tunde Adeniyi

Youth empowerment key to ending insecurity, underdevelopment - CAN Nathaniel Gbaoron, Jalingo

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he new chairman, Christian Association of Nigeria (CAN) Taraba State chapter, Magaji Jirapye, on Monday said youth empowerment was key to ending the high level of insecurity and under development in the country.

Jirapye, who disclosed this in an interview with newsmen in Jalingo, said women and youth empowerment was his priority.

The Christian community in Taraba elected the chairman on Saturday.

The chairman explained that if the youths in the society

were well empowered, thuggery, insurgency and other forms of social vices perpetrated by the youths would not be experienced.

He maintained that the issue of peace was non-negotiable, and urged both the Christians and Muslims to embrace one another to pave way for accelerated development.

He said he had already contacted the Benue State CAN chairman and that of the 19 Northern states for peace talks to end the crisis between the Jukuns and the Tivs for the benefit of all.

“I have collected the number of CAN chairman Benue

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state yesterday, in fact I spoke to the CAN chairman of the 19 Northern states. I also had a brief meeting with some Tiv brothers who came to congratulate me and we have already begun our arrangements how we will meet immediately for peace talk.

“I will target Women and Youth empowerment. Youths and women are the live wire of the society, and neglecting them means messing up the whole system.”

The conflict between the Tivs and Jukuns has claimed many lives since it began on April 1, 2019 in Kente village in Taraba.

Its latest casualty was the Federal University, Wukari, which was @Businessdayng

shut July 31 by the authorities and students ordered to vacate the campus. The closure followed separate protests by Tiv and Juken students, against alleged abduction and killing of some students and staff of the institution.

“This issue of peace is none negotiable, it is something that we must pursue and nobody can bend my mind about it,” Jirapye said.

“At this critical time Christians must embrace each other, most especially against violence. What is happening in southern Taraba is uncalled for. If the Jukuns and the Tivs finish killing each other everybody will be a looser,” he maintained.

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Tuesday 06 August 2019

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BUSINESS DAY

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World Business Newspaper SEBASTIAN PAYNE IN LONDON

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fter less than a month in office Boris Johnson’s nascent government is squaring up for a no-confidence vote, attempts to halt Brexit and possibly a general election. When parliament returns from its summer recess on September 3, pro-Remain MPs are all but certain to hold a no-confidence vote to try and bring down the government in an effort to stop the UK leaving the EU without a deal.

But the prime minister and his advisers — led by Dominic Cummings — believe that the threat to their Brexit plan is surmountable.

If the government falls, Mr Johnson intends to stand firm, hang on in office and delay an election until after October 31, when the UK will automatically leave the EU. Will their plan work?

Can the Johnson government survive a no-confidence vote?

It is uncertain. After losing the Brecon and Radnorshire by-election last week, the Conservative party has a working majority of just one. It may soon be reduced further: Phillip Lee, one of the few Tory MPs campaigning for a second referendum, is rumoured to be on the verge of defecting to the Liberal Democrats, which would leave the government without its majority.

There are also several pro-Remain Conservative MPs — led by former attorney-general Dominic Grieve — who have hinted they would abstain or vote against the government to halt a no-deal Brexit.

This may just be rhetoric — voting

Can a no-deal Brexit be prevented by the UK’s parliament?

Even if Boris Johnson loses a confidence vote he plans to delay an election until after EU departure

Boris Johnson’s adviser Dominic Cummings © FT Montage/AFP

against their own party and government is likely to lead to deselection and the end of their political careers.

But many see the threat posed by leaving without a deal as greater than fears over their own futures.

If the government fell, would Mr Johnson resign as PM? Under Britain’s informal constitution, losing a confidence vote means that the prime minister should resign. But this is only a

convention — and it appears to be one that Mr Johnson’s team is happy to ignore. Downing Street officials have said it is “laughable” to think that the prime minister would stand aside if MPs vote down the

government.

Catherine Haddon, a senior fellow at the institute for Government thinktank, says that “political pressure might be the only weapon” MPs have to immediately push out Mr Johnson.

“The wording of the current law does not automatically force a prime minister to resign in the aftermath of a no-confidence vote. It is possible for him to stay in post and choose the general election that follows.”

After losing the confidence of the Commons, a 14 day cooling off period follows in which an alternative government could emerge.

This is when Mr Grieve and his allies hope to form a “government of national unity”, comprising of MPs from multiple parties who want to avoid leaving the EU without a deal.

Who would decide the timing of a general election?

If an alternative government is not formed, Britain will head to the polls. An election would have to be called within 25 days after the expiry of the cooling off period. The exact date of the poll is chosen by the incumbent prime minister. The timing is formally decided by the Queen, but comes on the advice of her government.

Strike brings Hong Kong to a standstill HSBC chief executive John Flint as political crisis deepens ousted after less than 18 months Transport network crippled and flights cancelled as police clash with protesters SUE-LIN WONG, HUDSON LOCKETT AND DANIEL SHANE IN HONG KONG

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olice in Hong Kong fired tear gas and rubber bullets at protesters on Monday as strikes crippled the city’s transport network and forced the cancellation of hundreds of flights amid a deepening political crisis.

Activists blocked arterial roads and halted traffic across the city in a show of fury as Hong Kong’s leader Carrie Lam warned that the Asian financial hub was on the “verge of a very dangerous situation”.

The industrial action is the latest tactic adopted by protesters after more than two months of demonstrations that started as opposition to an extradition bill that would allow criminal suspects to be tried in China.

The protesters’ demands have since escalated to include calls for a more democratic system of government in the territory.

Advertising and banking employees joined construction and retail workers to take part in Hong Kong’s first general strike in half a century, showing how antigovernment sentiment is now building among professionals.

“In the past, it was assumed Hong Kong people were economic animals but this proves people can choose to not go to work,” said Joshua Wong, a leading prodemocracy activist. “Hong Kong people aren’t economic animals any more. We are willing to pay the price, whatever it takes.”

Activists held rallies at seven points across Hong Kong on Monday, in spite of government pleas for calm and after dozens of arrests overnight targeting the protesters who called for the strike.

The authorities accused protesters of taking justice “into their own hands” and using sling shots and “petrol bombs” against police, in attacks which they said left 139 officers injured. www.businessday.ng

Board of one of the world’s biggest banks appoints Noel Quinn as interim CEO DAVID CROW IN LONDON, AND HENNY SENDER AND DON WEINLAND IN HONG KONG

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SBC chief executive John Flint has been ousted after less than 18 months in the job having lost the confidence of the bank’s board of directors in an abrupt move for a company famed for its conservatism.

The bank said Mr Flint had resigned “by mutual agreement with the board” and that it had appointed Noel Quinn, head of its commercial banking unit, as interim chief executive while it searches for a replacement.

The bank’s board of directors had become increasingly frustrated at the slow pace of change at HSBC since Mr Flint took the top job in February 2018, according to two people briefed on the circumstances surrounding his departure.

The board decided that Mr Flint had to be replaced some time ago but wanted to wait for an opportune moment, before deciding to make the announcement alongside HSBC’s relatively strong first-half re-

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sults on Monday, the people added.

Rumours that Mr Flint was unhappy in the job had swirled for months, with some senior HSBC executives recounting clashes with Mark Tucker, the bank’s chairman.

“They are both incredibly stubborn,” one executive told the Financial Times last month.

The departure of Mr Flint throws open one of the biggest jobs in global banking at a time when HSBC — which generates 80 per cent of its profits in Asia — must navigate escalating tensions between the US and China as well as protests in Hong Kong, its largest market. The bank also announced that it would be cutting thousands of jobs alongside the departure of its chief executive.

In an interview with the FT on Monday, Mr Tucker said: “This had nothing to do with personalities; this was a unanimous decision of the non-executive directors.”

Mr Tucker said the board would do a “proper search, internally and externally” to find a replacement for Mr Flint, but said that Mr Quinn had a “wonderful opportunity to show what he can do”.

He added: “Noel will be able @Businessdayng

to bring his experience and his perspective to think about growth, to move back again to the growth agenda.”

Ronit Ghose, bank analyst at Citigroup, said Mr Tucker and HSBC’s directors had “clearly lost confidence in [Mr Flint’s] ability to navigate the tougher outlook faced

by HSBC given the geopolitical and macro uncertainties, structural headwinds for global banks, and digital disruption challenges”.

“In addition, we believe there were likely differences in style between the outgoing CEO and the chairman,” Mr Ghose added.

In a statement Mr Flint said: “I have agreed with the board that today’s good interim results indicate that this is the right time for change, both for me and the bank.”

Mr Tucker, who spent decades as an insurance chief executive at Prudential and AIA, ruled himself out of the running for the top job at HSBC. Asked whether he would consider taking on the role, he replied: “Under no circumstances . . . I want to leave the executive role to those with significantly greater ability and youth on their side.”

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NATIONAL NEWS

India scraps Kashmir’s special status and imposes lockdown Plan for Muslim-majority state causes uproar and fuels tensions with Pakistan AMY KAZMIN IN NEW DELHI

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ew Delhi has abolished a constitutional provision that guaranteed special rights to Jammu and Kashmir, the country’s only Muslim-majority state, in a move that reopens historic wounds inflicted at the founding of the modern Indian state.

When home minister Amit Shah, one of Indian prime minister Narendra Modi’s most trusted political confidants, announced the decision in parliament on Monday morning, he triggered an uproar in the legislature. He added that President Ramnath Kovind had already signed the executive order, making the constitutional change a fait accompli.

India’s abolition of Article 370 of the constitution is a reflection of Mr Modi’s unabashed Hindu nationalist agenda, centred on a strong state that will brook no challenges to its authority. It risks fuelling already heightened tensions with neighbouring Pakistan, which also claims Kashmir as its own. The two nations have fought three wars — and come to the brink of a fourth — over the picturesque Himalayan region.

Mehbhooba Mufti, a former chief minister of Jammu and Kashmir, said on Monday that the government’s “intention is clear and sinister. They want to change the demography of the only Muslimmajority state in India, disempower Muslims to the extent where they become second-class citizens in their own state.” Later that day, Ms Mufti was taken to jail, along with Omar Abdullah, another former chief minister of the state.

Along with the constitutional change, Mr Shah announced the political reorganisation of Jammu and Kashmir, which will be downgraded from a fully-fledged state into a union territory.

That change will give New Delhi far more political control over the restive region and its governments, including direct control of the local police, who will answer to New Delhi rather than a locally elected state government. The government also plans to hive off the high-altitude Ladakh region to form another separate union territory.

In anticipation of the outrage caused by the decision, Kashmir residents were put on lockdown early on Monday morning, barred from leaving their homes, and with internet, telephone and cable television services cut off.

Tens of thousands of extra troops and paramilitary police have also been dispatched to maintain order in the region, already one of the most heavily militarised in the world. Additional forces were being airlifted in on Monday by the Indian air force.

More than 20,000 Indian and foreign tourists were also evacuated from the region over the weekend, while schools and colleges have been ordered to close indefinitely.

The move was “a total betrayal of the trust the people of Jammu and Kashmir had reposed in India when the state acceded to it in 1947,” Mr Abdullah said before being sent to jail.

He added: “The decision will have far-reaching and dangerous consequences.”

Even as Kashmiris were confined to their homes, Bharatiya Janata party supporters expressed jubilation at news of the removal of special protections for Kashmir, which the Hindu nationalist party had long considered an impediment to the region’s full integration with India.

“Separate status led to separatism. No dynamic nation can allow this situation to continue,” Arun Jaitley, the finance minister in Mr Modi’s previous administration, tweeted. “A historical wrong has been undone today.”

But the government’s move is likely to face legal challenges from critics, who argue that Kashmir’s special protections cannot be scrapped by a mere executive order. Mr Abdullah said his Kashmirbased National Conference party was already prepared to challenge the presidential order, which he called “unilateral, illegal and unconstitutional”.

The ending of Jammu and Kashmir’s special rights and protections reopens the wounds of one of Indian history’s most dramatic episodes: the accession of the former princely state, with its Muslim-majority population, into Hindu-majority India, rather than Muslim-majority Pakistan at the end of British colonial rule of the Indian subcontinent.

When it joined India in 1947, the state’s Hindu ruler agreed with Jawaharlal Nehru, then prime minister, that Kashmir would maintain special rights to protect the local population from a potential influx of outsiders.

These rights were then enshrined in Article 370 of the constitution, which allowed the state government to reserve special privileges — including the right to buy land, hold government jobs and receive state welfare benefits — to those that it defined as permanent residents of the state.

In practice, it prohibited any outsiders from buying property in the region, a ban that the BJP believes has held back the state’s economic development, by deterring industrial investments.

A Pakistan foreign ministry official condemned the decision.

“After what has happened in the Indian parliament, India has shut the door on peacefully resolving the Kashmir dispute.”

Kashmiris are also still deeply scarred from a decades-long separatist insurgency that was backed

by Pakistan, and claimed nearly 45,000 lives, mostly in the 1990s and early 2000s.

Additional reporting by Stephanie Findlay and Jyotsna Singh in New Delhi and Farhan Bokhari in Islamabad www.businessday.ng

People join hands for a prayer vigil on Sunday, a day after the mass shooting at a Walmart store in El Paso, Texas © AP

8chan cast out by Cloudflare after El Paso shooting Internet forum used by extremists predicts it will be back online shortly MARTIN COULTER IN LONDON

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he internet forum 8chan, which was used by the suspects of the El Paso and Christchurch mass shootings to announce their intentions, has been forced offline after its security provider withdrew services.

8chan, launched in the US in 2013, had become a destination for online nationalism and extremism and had been linked to a number of harmful internet subcultures.

Cloudflare, the San Francisco-based cyber security group, said on Sunday night it would withdraw services from 8chan.

In a statement, Matthew Prince, Cloudflare chief executive, announced the company would no longer work with 8chan, describing it as a “cesspool of hate”.

“We reluctantly tolerate con-

tent that we find reprehensible, but we draw the line at platforms that have demonstrated they directly inspire tragic events and are lawless by design,” he said.

“8chan has crossed that line.

It will therefore no longer be allowed to use our services.”

Without Cloudflare’s support, the site became vulnerable to distributed denial of service (DDoS) attacks, in which a website is overloaded with traffic to overwhelm its servers, leaving it inaccessible. Within minutes of Cloudflare’s announcement, 8chan went offline.

In an interview with the New York Times, 8chan founder Fredrick Brennan called for the site to be shut down. “It’s not doing the world any good. It’s a complete negative to everybody except the users that are there.

“And you know what? It’s a negative to them, too. They just don’t realise it.”

Mr Brennan cut ties with

the site in December, after the mosque shootings in Christchurch, New Zealand, which left 51 dead.

The alleged shooter, Brenton Tarrant, is said to have authored a 74-page manifesto, also shared on 8chan and Twitter.

Following the 2017 Charlottesville rally, in which civil rights activist Heather Heyer was killed, Cloudflare withdrew support for the neo-Nazi site The Daily Stormer.

Mr Prince said that Stormer had only suffered a “brief interruption” after Cloudflare cut off service before it switched to a rival. “They have bragged that they have more readers than ever. They are no longer Cloudflare’s problem but they remain the internet’s problem.”

He predicted that 8chan would also return to service shortly. “I have little doubt we’ll see the same happen with 8chan,” he said.

Trump calls to condemn ‘white supremacy’ after shootings President pledges to take steps to stop ‘evil contagion’ after weekend attacks DEMETRI SEVASTOPULO IN WASHINGTON AND PETER WELLS IN NEW YORK

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onald Trump has said the US must “condemn racism, bigotry and white supremacy” in the wake of two mass shootings over the weekend that claimed at least 29 lives.

“These sinister ideologies must be defeated,” Mr Trump said from the White House on Monday, speaking about the attacks in Texas and Ohio. “Hate has no place in America.

Hatred warps the mind, ravages the heart, and devours the soul.”

In the 20 years since the deadly school shooting in Columbine, Colorado, “our nation has watched with rising horror and dread as one mass

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shooting has followed another over and over again decade after decade,” Mr Trump said. “We can and will stop this evil contagion.”

While Mr Trump called for “bipartisan solutions”, he focused on factors that contribute to shootings — such as mental health issues and the “glorification of violence” from video games — rather than measures that would make it harder for people to obtain the kinds of weapons that were used to kill 20 in El Paso and nine in Dayton.

“We must reform our mental health laws to better identify mentally disturbed individuals who may commit acts of violence,” Mr Trump said. “Mental Illness and hatred pulls the trigger, not the gun.”

The Texas and Ohio attacks @Businessdayng

brought the number of mass shootings in the US this year to 255 while the number of people who have died from gun violence rose to 8,782, according to the Gun Violence Archive.

The deadly shootings came as the number of hate crimes in the US continues to rise — a trend that Democrats argue has been exacerbated by Mr Trump because of his incendiary and racist language.

In a manifesto written before his attack, the suspect in El Paso — a predominantly Hispanic city in Texas on the border with Mexico — wrote about an “Hispanic invasion”.His language echoed rhetoric that Mr Trump has repeatedly used both on Twitter and at political rallies since launching his presidential campaign in 2015.

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COMPANIES & MARKETS

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Global markets dip after renminbi hits weakest level in 11 years China’s central bank blames tariffs for move as Trump hits out at ‘major violation’

HUDSON LOCKETT IN HONG KONG

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he renminbi lingered at its weakest level since the 2008 global financial crisis on Monday, triggering an angry response from US president Donald Trump and causing a wave of jitters across global markets.

The renminbi is permitted to trade 2 per cent on either side of a daily midpoint set by the People’s Bank of China.

The onshore exchange rate fell past Rmb7 per US dollar on Monday for the first time since May 2008, dropping more than 1.6 per cent by the end of European trading hours to trade at Rmb7.05 per dollar, as prospects of a trade deal between Beijing and Washington faded.

The midpoint set by the PBoC on Monday of Rmb6.9225 was the lowest since December, when trade tensions were last at fever pitch.

In response, Mr Trump accused China of manipulating its currency.

“China dropped the price of their currency to an almost a historic low,” he tweeted. “It’s called “currency manipulation.” Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!”

In a statement, the PBoC blamed trade protectionism and tariffs on Chinese goods for the currency’s weakening, without

specifically mentioning the US, but added that it “has the experience, confidence and capacity to keep the renminbi exchange rate fundamentally stable at a reasonable and balanced level”.

On Monday evening in Beijing Yi Gang, governor of the People’s Bank of China, said in a statement China would not to use the renminbi to cope with “external disturbances” such as trade tensions.

“China acts as a responsible major country, will abide by the spirit of the G20 leaders’ summit on exchange rate issues, adhere to a market-determined exchange rate system, will not engage in competitive devaluation and will not use the [renminbi] exchange rate for competitive purposes,” Mr Yi said.

Year to date, the onshore rate has weakened by 2.7 per cent against the dollar. The offshore renminbi, the version of the currency which international investors can access outside of China, has slumped some 1.7 per cent to its weakest ever rate since its inception in 2010, trading at Rmb7.0940 per dollar at the end of European market hours.

The renminbi’s decline ricocheted across global financial markets, sending stocks and emerging market currencies sinking and adding fuel to an intense rally in government bonds.

ICE expands data business by buying MOVE indices Purchase of volatility benchmarks allows exchange group to target growth of fixed income ETFs RICHARD HENDERSON IN NEW YORK

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ntercontinental Exchange will acquire Bank of America’s MOVE indices in the latest example of an exchange group expanding its data business after rival operator the London Stock Exchange Group agreed to purchase Refinitiv.

The MOVE benchmarks track volatility in the fixed income markets. The most popular, an index that tracks volatility in US government bonds, is the fixed income equivalent of the Vix benchmark that is commonly known as the stock market’s “fear gauge”. Terms of the deal, announced Monday, were not disclosed.

The flagship bond benchmark, also known as the Merrill Lynch Option Volatility Estimate, dates back 30 years and measures US interest rate volatility based on options pricing for government debt with maturities of two, five, 10 and 30 years.

The suite of indices also includes a benchmark that measures volatility in US interest rate swaps. The deal reunites the MOVE indices with the

broader suite of fixed income indices ICE acquired from Bank of America in 2017.

The deal is in part motivated by ICE’s desire to target the growth of fixed income exchange traded funds, which this year surpassed $1tn in assets, said Lynn Martin, president and chief operating office for ICE’s data services division.

“This acquisition really rounds out the offering that we have established around fixed income risk management,” Ms Martin said. “The MOVE index provides a unique way for firms to provide their views of monetary policy at a very interesting time in fixed income markets.”

The purchase comes as exchange operators compete to expand further into the business of selling data and analytics rather than matching buyers and sellers. Indexing in particular has boomed in recent years as investors have moved away from actively managed funds to passive portfolios that follow an index. This has swelled the indexing business to $3.5bn last year from $2bn in 2013, according to Burton-Taylor International Consulting. www.businessday.ng

US stocks extend sell-off amid mounting trade tensions S&P 500 drops more than 2% PETER WELLS IN NEW YORK, ADAM SAMSON IN LONDON AND DANIEL SHANE IN HONG KONG

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S equities were battered by another round of selling on Monday after China allowed its currency to weaken below a key threshold, in a marked escalation with Washington that triggered a sharp sell-off in global stocks and a rally in bonds.

The S&P 500 was down 2.2 per cent in mid-morning trade, putting the equities benchmark on track for its biggest one-day drop since May 13 and a sixth consecutive day of declines. It sets the index up for its longest losing streak in 10 months.

The Dow Jones Industrial Average dropped 2.1 per cent and the Nasdaq Composite fell 2.5 per cent. The Cboe’s Vix, a measure of volatility nicknamed Wall Street’s “fear gauge” jumped above 22 points for the first time since mid-May. Government bonds extended a recent rally amid swelling demand for perceived havens. US government debt climbed sharply

in price, leaving the 10-year Treasury yield down 8.7 basis points to 1.7684 per cent. It has fallen about 80 bps since the start of May as concerns over the trade debacle and signs of a slowdown in the global economy have built.

The moves in the bond market, with longer-term borrowing costs dropping even further below short-term ones, resulted in the difference between the yields on 3-month and 10-year Treasuries falling to its most negative since April 2007. The inversion of this so-called yield curve has preceded every US recession of the past 50 years.

The drop for stocks, which mirrored those across European and Asian stock bourses, came after last week’s 3.2 per cent fall in MSCI’s All-World stock index — the heaviest retreat since the market ructions of late 2018.

Britain’s FTSE 100 was down 2.8 per cent, France’s CAC 40 shed 2.2 per cent and Germany’s Dax declined 1.8 per cent. MSCI’s broad index of Asian stocks outside Japan fell 2.9 per cent, with Japan’s Topix sliding 1.8 per cent.

Traders priced in further stim-

ulus measures from the Federal Reserve, with futures trade suggesting the central bank’s main rate will be 1.14 per cent at the end of 2020, 10 bps lower than expected on Friday. That means market participants are now forecasting 100 bps of rate cuts by December next year, after the Fed last week cut rates by 25 bps in the first such reduction since the financial crisis.

Across the Atlantic, the yield on Britain’s benchmark 10-year government bond struck a historic low, breaching a trough it hit in the wake of the 2016 Brexit referendum. It was recently down 3.6bp at 0.514 per cent. In Germany, the 10-year Bund yield struck a new record low, falling as much as 4.7bp to minus 0.53 per cent.

The drop in China’s renminbi to under 7 per US dollar also cascaded into other major emerging market currencies, leaving MSCI’s EM FX index down as much as 0.9 per cent in its worst day in more than two years. South Korea’s won was among the worst hit, sliding 1.4 per cent against the US dollar, while other actively traded currencies like South Africa’s rand were also under pressure.

Canadian pension fund plans to set up a credit arm in India CPPIB to boost its emerging-market strategy by entering capital-starved sector BENJAMIN PARKIN IN MUMBAI

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he Canada Pension Plan Investment Board, one of the world’s largest retirement funds, plans to start a credit arm in India, seizing on a moment when the country’s troubled financial system is starved of capital.

CPPIB is putting together a credit strategy for India, international investment head Alain Carrier told the Financial Times, which could see the C$392bn ($297bn) fund build on its Indian real estate and infrastructure investments by partnering with non-bank providers to offer debt or enter the market directly.

“This is something we’ve had a very

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close look at,” Mr Carrier said. “There is a study of the market that has been under way, and we think there are a number of opportunities for us — there are a few areas that we can play.”

Analysts say India suffers from a chronic shortage of credit, with banks unwilling to provide funding for longterm projects such as infrastructure.

Amar Ambani, president of brokerage Yes Securities, said that is where a longterm minded investor could excel.

Vikram Gandhi of VSG Capital Advisors, an adviser to CPPIB in India, added: “There is massive growth that is required, it is a huge priority from a policy standpoint. Creating more jobs is a huge priority from a policy standpoint, but there is no @Businessdayng

investment happening.

“That is where we see [the opportunity] for funds like us and others with the ability to structure interesting transactions to provide credit.”

CPPIB has become an important foreign investor in India since opening a Mumbai office in 2015, part of a global strategy to focus on emerging markets where it hopes to enjoy higher rewards than its home base of North America.

The fund has invested almost C$9bn, roughly 2 per cent of its total assets, in India and intends to increase that share, Mr Carrier said. A net return of more than 13 per cent on its Indian investments in the year ended March beat its overall returns of 9 per cent.

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ANALYSIS

Can a genderless language change the way we think?

Turkish, with its gender neutral pronouns, encourages more inclusive thought LAURA PITEL

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here were many things I loved about The Idiot, a quirky novel by Elif Batuman about a Turkish-American girl navigating love and linguistics at Harvard in the mid-1990s. But one of my favourite aspects was its insightful observations on language.

Ms Batuman’s bilingual heroine, Selin, is fascinated by the relationship between language and thought.

She muses on the special Turkish suffix that is used to relate information acquired second-hand, and how it means always having to contemplate your “degree of subjectivity” in a way that doesn’t happen in English.

The book brought to mind another feature of Turkish: the absence of grammatical gender. Turkish has just one word — the simple “O” — to mean he, she or it. Verbs are not gendered. Nor are nouns such as “teacher” or “actor”. When someone talks about an unnamed friend, it is possible to listen to an extended discussion without knowing if they are female or male. I wondered what Turkish could teach longstanding efforts by feminists to remove inbuilt sexism from English and, more

recently, campaigns to promote gender neutral pronouns.

Turkey may at first seem to be no great endorsement of the benefits of erasing grammatical gender. On one hand, there are many prominent businesswomen and the proportion of female Stem (science, technology, engineering and maths) graduates is the second highest in Europe.

But Turkey has the lowest rate of female workforce participation in the OECD, and patriarchal structures run deep. Those who do eschew classic gender roles or heterosexual norms — including transgender people — face discrimination and sometimes violence. There seems little evidence to show that removing bias from language has a meaningful impact.

Research on Turkish by Friederike Braun, an expert on linguistic gender, seems to support this view.

She found that even when gender is not marked grammatically, certain terms still contain “covert gender”. In surveys, respondents assumed that “nursery school teacher” referred to a woman and “police officer” to a man. Even neutral terms such as “person” and “humankind” came with an inbuilt assumption of masculinity.

No one wins in the rabbit-hole world of negative interest rates Hiding money in vaults might not be the ultimate intention but it’s a cheaper option PATRICK JENKINS

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t emerged last week that UBS is planning to charge its wealth clients, those with more than SFr2m ($2m) of deposits with the Swiss bank, a negative interest rate. Credit Suisse is thinking of doing the same. Other private banks already do this.

With the European Central Bank expected to move its rates further into negative territory in the coming weeks, the phenomenon seems likely to spread.

In this Alice in Wonderland world, characterised by its vast post-crisis monetary policy experiment, we really have gone down the rabbit hole.

Negative rates are supposed to stimulate the economy, incentivising investment by making it less attractive to hold cash and spurring demand by making credit cheaper.

But evidence of the theory working in practice is far from conclusive.

Certainly Europe’s bankers are squealing, as they feel margins squeezed by low rates on lending and a reluctance to pass on negative rates to depositors.

Last week famously blunt ING boss Ralph Hamers excelled himself, all but calling the ECB idiotic for planning to shift rates further downwards. “The negative rate environment is making consumers so uncertain about their financial environment that they’re starting to save more rather than less,” he said.

Mr Hamers has a point. Rather than encouraging people to borrow and spend, the data suggests nervous eurozone consumers are hoarding. Eurostat reports the eurozone household savings ratio is at a five-year high of nearly 13 per cent.

A similar but more dramatic phenomenon seems to be in evidence among the big wealth managers.

One reason why UBS and CS are planning to pass on negative rates is that wealthy clients’ obsession with cash has become such a large problem for them. UBS reckons 26 per cent of its clients’ assets are held in cash. At CS, the proportion is 29 per cent.

This runs counter to the theory that investors right around the world are hungry for investment returns. Starved of decent yields on bonds, they have supposedly been drawn into riskier asset classes.

There is clear evidence of this happening among institutional investors. The flow of pension fund money into any asset that promises to beat zero-rate bonds has been so dramatic that equities, junk bonds, property, private equity and a host of other more abstruse areas of investment have spiralled in value — and to such an extent that they look highly vulnerable to any shock: US recession; no-deal Brexit; more extreme US-China trade tensions; an escalating stand-off between Iran and the west. www.businessday.ng

5G: how the airwaves became an ‘electromagnetic cash cow’ Do governments want the best 5G networks or to rake in billions from spectrum sales?

NIC FILDES IN LONDON

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ow do you put a price on a telecoms spectrum licence? Chinese op erators have picked them up for free — part of Beijing’s attempt to have a national rollout of 5G. Yet in parts of Europe recent auctions have been so expensive that at least one company has had to cut shareholder dividends. In the US — where President Donald Trump has declared that “the race to 5G is a race that America must win” — spectrum licences are being sold at historically low prices.

The answer to the question will determine not just the future of the technological resource — referred to as the “lifeblood of the mobile industry” — and the operators themselves, but will also have a major impact on the next stage in the development of the digital economy.

Carriers argue that 5G will offer a faster and more reliable service for everything from video streaming to advanced virtual reality experiences. Governments see the “race” to the new network technology as fundamental to ushering in a world of smart cities, autonomous cars and automated factories where faster, more responsive networks can handle huge amounts of data generated by new industries.

For the telecoms operators the licences are the “ticket to ride” — access to the infrastructure that will be critical to their future success, even existence.

For governments they are no less important yet some cashstrapped administrations have been sending out mixed signals over how to strike a balance between raising billions from a sector already straining to reduce costs while stimulating investment in the rapid deployment of 5G services.

It means that two decades af-

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ter the 3G spectrum sales made headlines by racking up record sums — and almost bankrupting some players — a new spectrum price bonanza is evolving.

Airwaves previously used for everything from academic satellites and analogue television broadcasts to wireless microphones used in theatres are being cleared and sold off to the telecoms industry for commercial use to meet the insatiable consumer demand for data.

Yet, says Jay Goldberg, a consultant with D2D Advisory, for all the hype operators are struggling to say whether they will make any profit from the new wireless technology. Much depends on the release of spectrum to deliver on the promise of 5G without bankrupting operators, as almost happened with 3G. “The risk is that 5G requires big spectrum purchases which only start to be profitable in 10 years,” he says.

The race between nations — including China, South Korea, the US and UK — to be the first to launch 5G has given rise to a different debate over who will dominate the next generation of wireless telephony and reap the most economic benefit. The trade war between the US and China has lfeatured a battle over 5G and the role Chinese network equipment supplier Huawei plays in the global industry.

China granted its spectrum licences to the country’s telecoms networks in June rather than selling them off. The US then unveiled its biggest ever sale of spectrum in July boasting of a plan to auction off, by the end of the year, more airwaves than the country’s combined mobile industry currently employs. It has set the bidding for some of the very high frequency bandwidth at a value of one 10th of a cent per megahertz per capita making those airwaves some of the cheapest ever sold.

Other governments see spectrum — the airwaves used to @Businessdayng

carry mobile phone and other electromagnetic signals — as a cash cow. India’s telecoms regulator has just proposed selling blocks of spectrum for 5G at a price that is 40 per cent above what was charged in other Asian markets.

Auctions in Italy and Germany have raised huge sums.

Vodafone was forced to cut its dividend for the first time in its history following the German sale, amid industry warnings that the more they spend on spectrum, the less they have to spend on building the network via new masts, servers and base stations.

It appeared to be a thinly veiled threat to European politicians, who want a rapid deployment of 5G but seem reluctant to cap spectrum prices. According to MTN Consulting, spectrum prices accounted for an average 11.4 per cent of the industry’s capital expenditure between 2011 and 2018.

This debate is occurring as a fresh round of auctions is set to take place, stretching from the UK to India, the US and France in coming months. They will act as a further guide to government priorities when it comes to 5G plans.

“Some countries see this as a way of taxing our industry instead of helping new technologies,” says Enrique Lloves, head of strategy for Telefónica, the Spanish telecoms group. “This money is not coming back to the industry and that is a concern for us, for the consumers and the economy.”

Others dispute that high spectrum costs have a knock-on effect for consumer prices.

“There is no evidence that higher spectrum costs have led to higher prices [for consumers],” says Paul Klemperer, the principal architect of Britain’s 3G sale in 2000. “If I inherit a house for free it does not mean that as a landlord I wouldn’t charge any rent.”

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Tuesday 06 August 2019

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Live @ The STOCK Exchanges Prices for Securities Traded as of Monday 05 August 2019

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 216,825.88 6.10 -1.61 150 1,932,223 UNITED BANK FOR AFRICA PLC 205,196.53 6.00 1.69 141 3,691,209 ZENITH BANK PLC 572,986.01 18.25 -0.27 375 19,414,060 666 25,037,492 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 193,834.58 5.40 -3.57 194 6,003,284 194 6,003,284 860 31,040,776 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,610,466.30 128.25 0.98 80 410,598 80 410,598 80 410,598 BUILDING MATERIALS DANGOTE CEMENT PLC 2,896,886.26 170.00 - 52 223,646 LAFARGE AFRICA PLC. 230,341.48 14.30 -0.69 55 3,414,615 107 3,638,261 107 3,638,261

EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 288,337.83 490.00 - 8 98 8 98 8 98 1,055 35,089,733 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,710.00 85.50 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,175.81 40.70 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 14,408.66 5.40 - 0 0 0 0 0 0 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 0 0 0 0 0 0 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 OKOMU OIL PALM PLC. 49,603.32 52.00 - 15 1,610 PRESCO PLC 44,800.00 44.80 - 8 7,656 23 9,266 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 8,520.00 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,350.00 0.45 - 1 7,500 1 7,500 24 16,766 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 767.71 0.29 - 4 24,587 JOHN HOLT PLC. 179.01 0.46 - 1 249 S C O A NIG. PLC. 1,903.99 2.93 - 1 237 TRANSNATIONAL CORPORATION OF NIGERIA PLC 37,802.63 0.93 -1.06 90 4,348,734 U A C N PLC. 16,567.46 5.75 - 64 466,259 160 4,840,066 160 4,840,066 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 27,192.00 20.60 - 25 168,899 ROADS NIG PLC. 165.00 6.60 - 0 0 25 168,899 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 3,222.01 1.24 9.73 10 1,045,927 10 1,045,927 35 1,214,826 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 13,231.85 1.69 - 1 100 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 100,757.61 46.00 - 17 76,620 INTERNATIONAL BREWERIES PLC. 103,150.34 12.00 - 12 520,480 NIGERIAN BREW. PLC. 399,845.10 50.00 - 67 501,809 97 1,099,009 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 101,750.00 20.35 10.00 413 7,511,040 DANGOTE SUGAR REFINERY PLC 117,600.00 9.80 -2.00 92 1,352,284 FLOUR MILLS NIG. PLC. 63,965.92 15.60 2.30 93 466,412 HONEYWELL FLOUR MILL PLC 7,930.20 1.00 - 18 157,079 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 0 0 NASCON ALLIED INDUSTRIES PLC 37,092.14 14.00 - 17 91,201 UNION DICON SALT PLC. 3,321.07 12.15 - 0 0 633 9,578,016 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 21,411.50 11.40 - 6 3,364 NESTLE NIGERIA PLC. 1,006,673.44 1,270.00 - 82 27,927 88 31,291 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 5,366.12 4.29 - 10 58,180 10 58,180 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 23,822.86 6.00 - 15 25,645 UNILEVER NIGERIA PLC. 183,840.17 32.00 - 28 233,942 43 259,587 871 11,026,083 BANKING ECOBANK TRANSNATIONAL INCORPORATED 132,116.77 7.20 -10.00 150 7,160,295 FIDELITY BANK PLC 46,359.68 1.60 4.58 68 3,480,230 GUARANTY TRUST BANK PLC. 824,073.02 28.00 -0.18 164 1,340,202 JAIZ BANK PLC 12,374.98 0.42 2.44 9 644,282 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 66,217.96 2.30 2.22 51 198,678,672 UNION BANK NIG.PLC. 200,933.19 6.90 - 21 93,772 UNITY BANK PLC 8,650.11 0.74 - 7 64,478 WEMA BANK PLC. 23,144.68 0.60 - 27 685,177 497 212,147,108 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 4,435.33 0.64 - 1 100 AXAMANSARD INSURANCE PLC 17,325.00 1.65 - 7 5,646 CONSOLIDATED HALLMARK INSURANCE PLC 2,682.90 0.33 - 2 10,834 CONTINENTAL REINSURANCE PLC 17,841.12 1.72 - 12 446,432 CORNERSTONE INSURANCE PLC 3,240.49 0.22 10.00 3 470,903 GOLDLINK INSURANCE PLC 909.99 0.20 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,636.44 0.36 5.88 10 449,857 LAW UNION AND ROCK INS. PLC. 2,019.28 0.47 - 2 394 LINKAGE ASSURANCE PLC 4,160.00 0.52 - 2 10,800 MUTUAL BENEFITS ASSURANCE PLC. 2,681.46 0.24 9.09 4 198,995 NEM INSURANCE PLC 10,825.03 2.05 -4.65 16 431,927 NIGER INSURANCE PLC 1,547.90 0.20 - 0 0 PRESTIGE ASSURANCE PLC 2,583.62 0.48 - 1 3,000 REGENCY ASSURANCE PLC 1,333.75 0.20 - 0 0 SOVEREIGN TRUST INSURANCE PLC 1,668.16 0.20 - 11 431,054 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 0 0 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 2,773.33 0.20 - 0 0 WAPIC INSURANCE PLC 5,353.10 0.40 2.56 18 3,016,209 89 5,476,151

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MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 2,698.23 1.18 -8.53 7 229,650 7 229,650 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,158.00 0.99 - 1 50,000 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 INFINITY TRUST MORTGAGE BANK PLC 5,796.93 1.39 - 0 0 RESORT SAVINGS & LOANS PLC 2,265.95 0.20 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 1 50,000 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 7,600.00 3.80 -1.81 47 754,691 CUSTODIAN INVESTMENT PLC 32,350.25 5.50 - 10 90,760 DEAP CAPITAL MANAGEMENT & TRUST PLC 660.00 0.44 - 0 0 FCMB GROUP PLC. 31,882.36 1.61 -3.59 28 2,377,240 ROYAL EXCHANGE PLC. 1,131.98 0.22 - 0 0 STANBIC IBTC HOLDINGS PLC 390,165.07 38.10 - 18 36,646 UNITED CAPITAL PLC 12,360.00 2.06 0.49 55 1,038,994 158 4,298,331 752 222,201,240 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 817.22 0.23 -4.17 4 720,000 4 720,000 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 494.58 0.50 - 1 23 1 23 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 9,388.62 4.50 - 0 0 GLAXO SMITHKLINE CONSUMER NIG. PLC. 9,925.77 8.30 -9.64 23 712,144 3,968.04 2.30 - 5 9,249 MAY & BAKER NIGERIA PLC. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1,044.54 0.55 - 7 111,465 NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 PHARMA-DEKO PLC. 325.23 1.50 - 0 0 35 832,858 40 1,552,881 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 745.92 0.21 - 0 0 0 0 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 1 100 NCR (NIGERIA) PLC. 626.40 5.80 9.43 14 318,308 TRIPPLE GEE AND COMPANY PLC. 346.47 0.70 - 5 3,861 20 322,269 PROCESSING SYSTEMS CHAMS PLC 1,361.86 0.29 3.57 7 500,000 E-TRANZACT INTERNATIONAL PLC 9,996.00 2.38 - 1 350 8 500,350 TELECOMMUNICATIONS SERVICES AIRTEL AFRICA PLC 1,215,762.01 323.50 - 1 1 1 1 29 822,620 BUILDING MATERIALS BERGER PAINTS PLC 1,985.29 6.85 - 5 13,819 CAP PLC 17,325.00 24.75 - 12 16,570 CEMENT CO. OF NORTH.NIG. PLC 170,865.51 13.00 5.26 32 903,505 MEYER PLC. 313.43 0.59 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,959.74 2.47 - 1 15,000 PREMIER PAINTS PLC. 1,156.20 9.40 - 0 0 50 948,894 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 2,747.66 1.56 - 11 297,097 11 297,097 PACKAGING/CONTAINERS BETA GLASS PLC. 33,173.14 66.35 - 21 116,531 GREIF NIGERIA PLC 388.02 9.10 - 0 0 21 116,531 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 82 1,362,522 CHEMICALS B.O.C. GASES PLC. 2,318.48 5.57 9.86 1 118,711 1 118,711 METALS ALUMINIUM EXTRUSION IND. PLC. 1,781.64 8.10 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 92.40 0.42 - 2 27,000 2 27,000 3 145,711

ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,377.79 0.22 - 11 448,837 11 448,837 INTEGRATED OIL AND GAS SERVICES OANDO PLC 49,104.08 3.95 1.28 51 623,369 51 623,369 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 56,974.05 158.00 - 4 1,374 CONOIL PLC 11,519.61 16.60 - 34 68,159 ETERNA PLC. 3,521.19 2.70 - 22 185,288 FORTE OIL PLC. 25,333.26 19.45 - 37 309,204 MRS OIL NIGERIA PLC. 6,354.80 20.85 - 2 192 TOTAL NIGERIA PLC. 38,977.11 114.80 - 17 8,311 116 572,528 178 1,644,734

ADVERTISING AFROMEDIA PLC 1,820.01 0.41 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 17,551.17 1.80 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 341.14 0.29 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 3,112.54 5.28 - 8 15,450 TRANS-NATIONWIDE EXPRESS PLC. 361.01 0.77 - 0 0 8 15,450 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,723.78 3.05 - 0 0 IKEJA HOTEL PLC 3,035.04 1.46 - 1 10 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 41,042.18 5.40 - 2 10,010 3 10,020 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 211.68 0.35 - 3 14,750 LEARN AFRICA PLC 1,080.03 1.40 - 26 200,743 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 1 500 UNIVERSITY PRESS PLC. 690.26 1.60 - 2 21,778

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BUSINESS DAY Tuesday 06 August 2019 www.businessday.ng

CEO in focus

Owen Omogiafo: The wonder woman in Nigeria’s hospitality industry Endurance Okafor

I

t does not take a rocket scientist to figure out that the hotel and hospitality business is a tough one, especially for a woman growing a career in the traditionally male-dominated industry.

It is therefore interesting to know that Owen Omogiafo, has grown progressively in her career, breaking every barrier to become the current Chief Executive Officer (CEO) and Managing Director (MD) of Transcorp Hotels Plc., one of Africa’s award-winning hospitality brands.

Until January 2019, Omogiafo was the Executive Director, Corporate Services at Transnational Corporation of Nigeria Plc. (Transcorp). Transcorp is a conglomerate with interests in the power, hospitality and oil & gas sectors, headquartered in Lagos.

Transcorp Hotels Plc, the hospitality subsidiary of Trancorp, is best known for its award-winning Transcorp Hilton Abuja and the iconic Transcorp Hotels Calabar.

Omogiafo has over 18 years’ corporate experience in organisational development strategy, human capital management, banking, and business management.

Her work experience includes; the former Chief Operating Officer of the Tony Elumelu Foundation, Director of Human Resources at Heirs Holdings, Chief of Staff and HR Advisor to the GMD/CEO at United Bank for Africa (UBA) and was an Organisation and Human Performance Consultant at Accenture.

Growing up as the only female child of her parents, Omogiafo grew up in a maledominated household, an experience that reinforced her belief that no gender is disadvantaged.

She obtained a degree in Sociology & Anthropology from the University of Benin and a Master’s degree in Human Resource Management from the London School of Economics and Political Science. She is a certified Change Manager and a member of the Chartered Institute of Personnel and Development, UK. Omogiafo also trained at the Harvard Business School (HBX), possessing a Certificate in Disruptive Strategy with Clayton Christensen.

Omogiafo believes that ‘nothing comes easy’, a belief she is passing on to other women that with strong conviction and determination, everything is achievable.

A review of the company’s financials revealed that it had a Compound Annual Growth Rate (CAGR) of 5 per cent for the last 4 years. Building on the foundation laid by her predecessor, Valentine Ozigbo (now President/CEO, Transcorp) the Omogiafo-led Transcorp Hotels at the end of the first half of 2019, reported revenue growth of 16.5 per cent from N8 billion in 2018 to N9.3 billion.

Its operating profit was up by 47 per cent from N1.9 billion in H1 2018 to N2.8 billion in H1 2019. This was driven by improvement in its occupancy especially on weekends amongst other growth strategies targeted at creating value for all its clients.

Transcorp Hotels Plc has been an important member of the conglomerate, Transcorp, considering its contribution to the group’s performance.

Transcorp as a group continues to deepen its play in existing markets and also expand into new areas. Apart from

Owen Omogiafo

being one of the leading power generating companies in Nigeria through its Transcorp Power business, Transcorp Consortium recently emerged the preferred bidder for Afam Power Plc and Afam Three Fast Power Limited with a combined installed capacity of 966MW. Both entities were recently put up for full privatization by the Federal Government of Nigeria, who currently owns them 100 percent. Once the acquisition

by Transcorp Consortium is completed, the combined installed capacity of power plants of Transcorp Group would be 1,935MW. This will take Transcorp closer to its strategic goal of contributing at least 25

percemt of power generation in Nigeria.

In addition to Power, Transcorp has a strong foot in the energy section through its oil prospecting licence. The group is poised to develop this asset in the first quarter of 2020. The long term goal is to provide gas to its power plant in Ughelli.

Transcorp Hotels Plc carried out a $100m full-scale upgrade of its flagship property, Transcorp Hilton Abuja, extending the hotels lifespan and making it at par with similar properties worldwide. The company has continued to put innovation at the forefront of its strategies by evolving with ever-increasing consumer needs.

It recently launched its ICE intelity app at Transcorp Hilton Abuja to allow guests

customize their stay even before getting to the hotel, the launch of Transcorp Rewards, the first loyalty scheme in the Cross-River State for its property Transcorp Hotels Calabar which rewards guests for their stay.

In addition to driving innovation through technology; Transcorp Hilton Abuja launched the first Afro sushi bar at its in-house Oriental Restaurant. Afro sushi offers fine, quality, affordable sushi rolls with an African twist. This means that the sushi is cooked with Nigerian ingredients while retaining the discipline of Japanese cuisine.

Transcorp Hotels Plc. has created a niche for itself as one of the most respected names in the hospitality industry in Africa, little wonder that its property, Transcorp Hilton Abuja for the fourth consecutive year, emerged the winner of the World Travel Awards 2019 for being; Nigeria’s Leading MICE Hotel, Nigeria’s Leading Hotel Suite, Nigeria’s Leading Hotel, Nigeria’s Leading Business Hotel and Africa’s Leading Business Hotel. Similarly, the Hotel received Trip Advisor’s Traveller’s Choice award 2019, the highest honour from Trip advisor in honour of truly exceptional businesses, in addition to the 2019 Trip Advisor Certificate of Excellence award.

Since its opening in 1987, Transcorp Hilton Abuja has over the years been the preferred destination for hosting landmark events. From hosting the Inaugural ECOWAS Summit, it went on to host fiftyfour heads of states and delegates in 2004 during the first Commonwealth Heads of Government Meeting hosted by the Federal Government of Nigeria, successfully hosted world leaders and captains of industry at the World Economic Forum on Africa in 2014 and just recently hosted the largest gathering of African entrepreneurs during the annual Tony Elumelu Foundation Entrepreneurship Forum. At the same time, the hotel also hosted the UBA Marketplace, a platform created by UBA for vendors to showcase and sell their goods and services to thousands of Africans.

It was excitements all the way as participants at the Forum and the Marketplace experienced the hotel’s world-class facilities and hospitality.

The company plans to expand its footprints beyond Abuja and Calabar with the proposed Hilton branded hotels in Lagos and Port Harcourt.

Passionate about contributing to its operating environment, the company has contributed to job creation in Nigeria, one which will see an increase with its planned properties and through other initiatives such as its Business Empowerment program for women which trains women with sewing skills and basic entrepreneurial skills.

Omogiafo’s brilliance has earned her several academic recognitions and awards. She is a Certified Change Manager with the Prosci Institute, USA. She was in 2019 recognised by Leading Ladies Africa as one of the Leading Ladies in Corporate Nigeria, by The Guardian as one of Nigeria’s 100 most inspirational women and has also been named in the YNaija! Power List for Corporate Nigeria.

Omogiafo is evidence that hard work and consistency pay regardless of gender, background or religion.

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Advert Hotline: 08034743892. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Patrick Atuanya. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.