BusinessDay 07 Feb 2019

Jimi Agbaje, PDP governorship candidate in Lagos State, addressing CEOs at the monthly breakfast session of the Lagos Business School, yesterday.

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For 9mobile, pressure keeps mounting T I

NGUS JAN 29 2020 364.65

237,000 graduates in private-guard jobs buttress Nigeria’s precarious economy ... 2,004 are PGD, Masters Degree holders

JUMOKE AKIYODE-LAWANSON

t seems to be a neverending journey of turmoil for 9mobile, even after the telecommunications company has gone ahead to edge out Teleology Holdings Limited which may have prompted the company to sue the Nigerian business arm that has continued operations.

9mobile’s troubles began when it defaulted in the servicing of a syndicated loan of $1.2 billion owed a consortium of 13 Nigerian banks.

In the aftermath, its erstwhile technical partners, Etisalat, exited the business and requested that the use of the “Etisalat” brand name by the company be discontinued immediately.

Continues on page 38

Misses payments on $251m AfreximBank loan As Teleology Holdings seeks legal redress, IHS threatens disconnection for indebtedness L-R: Ibrahim Boubacar Keita, president, Republic of Mali; Tony O. Elumelu, chairman, United Bank for Africa (UBA) plc, and Soumeilou Boubeye Maiga, prime minister, Republic of Mali, at the official launch of UBA in Mali, making it the 20th subsidiary of the pan-African bank in Africa.

IHEANYI NWACHUKWU he precarious state of Nigeria’s economy has further been exposed by 237,000 graduate and postgraduate citizens who, in a bid to eke out a living, took jobs as private security personnel.

A private security officer is responsible for protecting their client from a variety of hazards (usually in the form of criminal acts). The security guards enforce company rules and can act to protect lives and property, and Continues on page 38

Inside Why US embassy drop box users now wait up to 30 days for visas P. 2

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Thursday 07 February 2019

‘Doomed’ newspapers get a tonic as New York Times subscriptions soar to 13-year high

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resident Donald Trump has repeatedly described the New York Times as “failing,” but its latest results tell a different story that should inspire newspapers that do the right thing amidst a storm shaking the foundation of the press globally.

Online subscriptions accelerated for a fourth quarter, prompting New York Times Co. to set an ambitious new goal: hitting 10 million subscriptions by 2025. That helped send the shares to a 13-year high on Wednesday and also offered more justification for its paid subscription model.

The company is now doing well enough that it plans to buy back its Manhattan office space for $250 million, ending a decade-old leaseback deal from when it was desperate to pay down debt. The Times also raised its dividend.

“A strong quarter capped a strong year,” Chief Executive Officer Mark Thompson said in a statement. “After just three years, we are already threequartersofthewaytoachievingourfiveyear goal of doubling digital revenue.”

While many newspapers have struggled to make up for print losses as readers move online, the Times has built a large digital subscription business. And Trump himself has had a hand in the success: Subscribers to the Times surged in the aftermath of his election.

The growth slowed in the first half of last year, but the gains have picked back up in recent quarters -- reflect-

ing the public’s demand for news and the paper’s marketing strategies.

Times shares rose as much as 12 percent to $30.07 on Wednesday, marking their biggest rally in a year.

The stock is now trading at its highest level since September 2005.

The publisher of the eponymous newspaper added 265,000 new digital subscriptions last quarter, the biggest increase since the months right after the 2016 election. The Times had 203,000 in the previous quarter and 109,000 in the quarter before that. The paper ended the year with 3.4 million digital subscriptions and 4.3 million total subscriptions.

On a conference call, Thompson said the recent gains weren’t just driven by interest in the recent U.S. midterm election. “Our present momentum is broad-based and far less reliant on the politics at the moment than the surge of two years ago,” he said.

Fourth-quarter revenue increased 10 percent when excluding the impact of an extra week in 2017, with subscription sales up 5 percent and advertising sales up 11 percent.

Digital advertising revenue was up 23 percent, while print advertising revenue decreased 10.2 percent. The Times has set a target of reaching $800 million in digital revenue by 2020.

The Times also is spending more to get those new subscribers. Marketing expenses increased to $48.6 million in the fourth quarter, up about 50 percent from a year ago.

Apapa: Why trailer park has not been put to use – FG ... opens Ijora Bridge to traffic

CHUKA UROKO

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he trailer park being constructed by the Federal Government opposite the Tin Can Island Second Gate along the Apapa-Oshodi Expressway is not yet open for use despite being substantially completed because of the need for security and efficiency of operation of the park, officials of the government have explained.

Funso Adebiyi, director of highways, South West Zone of the Federal Ministry of Power, Works and Housing, who gave this hint during a tour of the facility with journalists, also told the newsmen that the delay in the arrival of imported materials for the construction of a shoreline protection for the park was also delaying its opening.

The director was in Lagos for the commissioning of the ApapaIjora Bridge which, in the past eight months, had been closed to traffic, leading to diversion of traffic to narrow, rough and winding alternative routes that made commuting in and out of Apapa a terrible experience.

The bridge is now open to traffic and Adebiyi, who appealed to those who traded under the bridge to vacate the area before they were forced to do so by law-enforcement agents, hoped that its opening would significantly reduce the gridlock that has become the main feature of Apapa.

Travel time to Apapa has increased in the last two years by over 300 percent asittakestrucksaboutthreedaysnowto move from Apapa to Sagamu for a trip that would ordinarily have taken a few hours. In the same way, haulage cost has gone to the rooftops and transport

operatorsaremakingamince-meatofit.

The trailer park has facilities provided to aid its operation, including a building containing 24 toilet facilities, a police post, a restaurant, and floodlighting facilities. The director said that until there was police presence in the park and all the facilities were functional, the park would not be put to use.

Adebiyisaidthelong-term plan was to concession the park but in the meantimeitwouldbemanagedandoperated bytheNigeriaPortsAuthoritywhich,he said, would determine how much each trailermakinguseoftheparkwouldpay “because it can’t be for free”.

He assured that the imported facilities for the construction of the shoreline would arrive the park soonest as some of them would be brought into the country by air while the heavy materials would come by sea.

Gianfranco Albetazzi, general manager at Borini Prono, the Italian construction company handling the construction of the park, also assured that the park would be ready for use latest by the end of March this year. He assured further that while they waited for the materials to be imported, they would be busy with completing the fence separating the park from the expressway, fixing the lighting, putting finishing touches on the toilet facilities and the police post.

Contract for the construction of the trailer park was awarded in 2011 as part of the larger solution to the Apapa gridlock. It was conceived to take away about 300-400 trailers out of the expressway.

•Continues online at www.businessday.ng

L-R: Uche Secondus, PDP national chairman; Atiku Abubakar, PDP presidential candidate; Ibrahim Dankwambo, governor, Gombe State, and Bala Muhammed, PDP governorship candidate in Gombe, at the party’s presidential rally in Gombe. NAN

Consumer firms hit with inventory surge amid sales slump BALA AUGIE

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number of consumer goods firms are sitting on inventory stockpiles not seen since the last recession as they continue to grapple with a myriad of challenges undermining sales.

Stockpiles escalated rapidly over the past year as the 13 largest listed consumer firms saw inventory turnover ratio fall to 2.27 times or 161 days on average in Q3 2018, from 4.50 times or 81.11 days in the corresponding period of 2017.

The figure stood at 3.09 times or 118.11 days in 2016 when a precipitous drop in crude oil price stocked dollar scarcity that paralysed business and tipped the country into its first recession since 1999.

The ratio measures how many times a company sold its total average inventory naira amount in a particular period.

If larger amounts of inventory are purchased during the year, the company will have to sell greater amounts of inventory to improve its turnover.

MARKETS A low ratio is not good because it means it is taking a firm longer time to sell goods, which will result in lower turnover and hence hurt the bottom line.

The contraction in consumer spend is responsible for the lower inventory turnover because real income has reduced and purchasing power has been impacted, according to Ayodeji Ebo, managing director and CEO of Afrinvest Securities Limited.

“For instance, the demand for milk will only grow with the purchasing power of people,” said Ebo. Consumer goods firms are struggling to grow sales and bolster margins as Nigeria, with a population of 180 million people, has 87 million people – nearly half its population – in extreme poverty as high inflation environment continues to erode discretionary income.

Nigeria’s economy remains fragile as GDP grew by 1.80 percent in the third quarter of 2018, a downturn from 2.10 percent in the fourth quarter of 2017.

Inflation for the month of December stood at 11.44 percent, which is higher than the 11.28 percent figure for November 2017.

According to a latest report by the National Bureau of Statistics (NBS), production level, new orders, suppliers’ delivery time, employment level and inventories grew at a slower rate in January.

While the report stated that Purchasing Managers’ Index (PMI) in the month of January stood at 58.50 index point, the index, however, grew at slower rate compared to the previous month.

Christian Orajekwe, equity research analyst at Cordros Capital, said that Nigerians suffered significant erosion from naira devaluation and increase in price of fuel while wages are yet to be at par with inflationary consequences of those events.

“After the recession, a lot of middle-income class left the country in search of greener pastures, thus dampening sales volumes as patronage reduced,” said Orajekwe.

•Continues online at www.businessday.ng

Why US embassy drop box users now wait up to 30 days for visas OBINNA EMELIKE & TEMITAYO AYETOTO

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ntending Nigerian travellers to the United States of America who usually take advantage of the easy renewal option of dropbox for some classes of visas, may not have such luxury again.

The drop- box option which used to take an average of 4 days to complete and visas issued, now drags for as long as 30 days.

The drop-box service offers interview waiver at the US embassies across the country to applicants seeking visa reissuance under the B1/B2, F, M, L and H visa classes.

However, the service, which guarantees visa reissuance, now requires more than the dropping-off of passports at designated places and collecting them later with stamped visas.

Some applicants seeking reissuance of certain classes of visas may be subjected to interviews, provision of extra documents, some levels of verifications, among others.

This means the four-five days

EXPLAINER processing window may not suffice again. It could be delayed up to 30 days due to the extra requirements in some cases, especially time for the verification of the documents and claims of the applicants.

The double layer of checks is obvious going by the immigration challenges and security issues in the US. Already, some applicants seeking visa reissuance under the appropriate visa class with the drop-box service are feeling the heat. Some are asked to provide additional requirements, which include interview, presentation of voluminous documents, and phone interrogations which, according to them, were not needed for drop-off before now.

Mike Oniga, a frequent traveller who could not make his trip to New York last December due to delay in the issuance of his visa, said he went for the drop-box option but was called for interview afterwards.

“During the interview, I was asked several questions bordering on my company, my recent travel to Middle East, among others. I was agitated at some point because I have had several visa renewals and have visited the US several times,” Oniga said.

Another complainant who pleaded anonymity said he was surprised when his passport was not ready after the stipulated time, resulting in the rescheduling of his business appointment in Chicago.

“I was worried and while waiting to get an email or text message that it was ready for collection at the DHL office in Oshodi, my pickup centre, I was invited for an interview. I went for the interview and my passport was released 10 days after the dropbox submission,” he said.

A woman who identified herself simply as Mrs. Ibidapo said her visa was abruptly revoked by the United States Embassy in Lagos, for no reason, after she was invited to the embassy

Continues on page 38

Thursday 07 February 2019

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Lagos airport records 400% increase of drugs impounded by NDLEA in 2018 IFEOMA OKEKE

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L-R: Governor Simon Lalong of Plateau State; Governor Samuel Ortom of Benue State, and President Muhammadu Buhari, during the arrival of President Muhammadu Buhari for APC Presidential campaign in Markudi, yesterday. NAN

Nine days to election: Customs intercepts bales of police uniforms, tear gas AMAKA ANAGOR-EWUZIE

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ine days to the Presidential and National Assembly election in Nigeria, the Federal Operations Unit (FOU) Zone A of the Nigerian Customs Service (NCS) has intercepted bales of police uniforms and its paraphernalia, and tear gas canisters.

The uniforms, intercepted in Lagos, were concealed in a Toyota Sienna space bus heading out of Lagos. This has created fear of unknown security challenges that may jeopardise free, fair and credible elections in Nigeria

this year.

Speaking with newsmen in Lagos on Wednesday, Muhammed Aliyu, Customs Area Controller of the Unit, said a suspect was in the custody of the unit in connection with the seizure.

According to Aliyu, the uniforms were threat to national security as it was destined to get to the wrong hands, even as he listed items like ranks, belts, berets and police badges with identity cards as part of what were intercepted by the unit.

“The seizure is a threat to national security because the uniform can be used for kidnapping, Boko Haram or frustrate elections, but gen-

erally, it threatens national security,” he said.

Giving details on the paraphernalia of the police seized, he said, “We have the ranks of sergeants, inspector, the belt and the badges on the ranks. You can see that the identity cards have no name on them. They are only printed and later names of choice will be affixed on them.”

Aliyu, who assured that the service would ensure that offensive goods of such nature were not allowed into the country, said the quantity of the seizure and the havoc it could cause were the most concern.

“For instance, one bun-

As Buhari visits, LASG, FRSC bar trucks, shut traffic on 18 major roads JOSHUA BASSEY

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etroleum tankers, trailers and other articulated trucks are to be barred from accessing Lagos on Friday and Saturday as President Muhammadu Buhari, who doubles as candidate of the All Progressives Congress (APC) in the February 16 presidential election, visits Lagos State this weekend.

Vehicular movements would also be restricted from 18 major roads in Nigeria’s economic capital, especially within and around Surulere on Saturday, February 9. The roads include Funsho Williams Avenue, Lawanson/Itire Road/ Tejuosho Road, Apapa-Costain Road, Abebe Village/Eric Moore, Eko Bridge/Apongbon, Marina and Ikorodu Road, Others are Mobolaji Bank Anthony Way, Old Toll Gate/ Third Mainland Bridge/Obal-

ende, International Airport Road, Oshodi-Oworonshoki Expressway, Agege Motor Road, Jibowu, Yaba-Muritala Mohammed Way Iddo/ Otto, Herbert Macaulay WayAdekunle and Ijora Olopa/ Ijora. Buhari and members of his presidential campaign team are expected in Lagos this Saturday to solicit votes from the residents in the bid to secure a second term in office.

Demola Seriki, chairman, transportation sub-committee of the Buhari/Osinbajo Presidential Campaign visit to Lagos, who addressed the press on Wednesday, said the restriction order was to allow the president, his entourage and members of the ruling party unhindered movement via the affected routes to Teslim Balogun Stadium, venue of the presidential campaign rally.

According to Seriki, the

APC in Lagos is mobilising over 100,000 people to the rally to receive Buhari. He added that about 1,000 buses would be deployed to convey party members to the venue.

Seriki appealed to motorists and the general public to avoid Surulere, especially around the stadium, and seek alternative routes for the hours the movement restriction will last, while also regretting the temporary inconvenience the visit might create.

Speaking also, Hygenius Omeje, Lagos sector commander of the FRSC said advised truck drivers seeking to enter Lagos on Friday and Saturday to take advantage of available spaces at Ogere, Ogun State and on the Lagos-Ibadan Expressway and park their vehicles, as there would be strict enforcement of the movement restriction order.

dle of this uniform can accommodate about 10 persons and Nigerians will complain about atrocities of Police not knowing that of the so-called police are impostors,” he said.

“Not only that identity cards and ranks were intercepted, but we also intercepted cutlass. What will a police officer do with cutlass? Have you ever seen a genuine policeman with cutlass? These are part of the atrocities they will use the uniform to commit.”

He however warned those involved in the unwholesome practice to stop because the service will always be a step ahead of them.

he National Drug Law Enforcement Agency (NDLEA) has recorded a total of 5,377.125 kilograms of drugs impounded at the Murtala Muhammed International Airport (MMIA), Lagos, in 2018, representing over 400 percent increase.

It would be recalled that in 2017, the agency impounded drugs 1,266.400 kilograms of drugs; however, the number quadrupled in 2018 as a result of the significant increase in the number of tramadol seized at the Lagos airport.

Top destinations of drug couriers arrested include Nigeria, South Africa, Indonesia, DR Congo, India, Mozambique, Dubai, and Saudi Arabia, among others.

Ahmadu Garba, the MMIA commandant, told journalists

Wednesday at the airport that the agency was able to record such increase as a result of the trainings acquired by the officials of NDLEA to identify suspects, cooperation of airlines and significant increase in the number of tramadol seized at the airport “We were able to make this huge success in 2018 as a result of the cooperation by foreign airlines. Every year, we look at the airlines with the highest number of people that are arrested and liaise with them on how to address issue of drug trafficking.

“30.14 percent of the suspected drug couriers arrested during the year were coming into Nigeria and the remaining 69.89percent were destined to different countries of the world with 13.70percent of them going to South Africa, which has the highest numbers,” Garba said.

CBN warns public of fraudulent EDIs HOPE MOSES-ASHIKE

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he Central Bank of Nigeria (CBN) on Wednesday warned members of the public to beware of Entrepreneurship Development Institutions (EDIs), purporting to be the CBN accredited EDIs for the AgriBusiness Small and Medium Enterprises Investment Scheme (AGSMEIS).

In a statement signed

by Isaac Okorafor, director, corporate communications, these unaccredited bodies have continued to defraud and exploit members of the public by advertising for courses and charging training fees ranging on the pretext that the training is endorsed by the CBN and therefore will guarantee easy access to AGSMEIS loans.

According to the statement, the CBN has neither appointed nor accredited any organisation to conduct any training on its behalf for the purpose of applying for AGSMEIS loans.

“The Public is therefore advised to beware of the activities of these non-accredited private and public organisations, and report anyone or group that approaches them for these illegal and unauthorised trainings, to the law enforcement agencies,” the statement read.

Under the auspices of the Bankers’ Committee, the sum of over N60 billion has so far been set aside under the AGSMIES fund to fund Micro Small and Medium Enterprise businesses in the agriculture and manufacturing sectors of the economy.

Logos retools PPP as socio-economic development model … says model critical to development

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agos State Head of Service (HoS), Hakeem Muri Okunola, on Monday emphasised that the competing needs for government resources makes Public Private Partnership (PPP) model a critical component of socio-economic development of the state.

The HoS made this statement in Ikeja during the PPP Lagos Roundtable themed - Creating Sustainable Development though PPPs. Okunola commended the management team of the Lagos State PPP, and the director-general in particular for putting together the Roundtable initiative in such a timely manner, especially at the beginning of a new year when a brand new budget cycle was unfolding.

“Lagos is easily one of Africa’s most preferred investment destination. This should not be surprising given its strategic location, population and status as Nigeria’s commercial hub and the nation’s acclaimed ‘Centre of Excellence.’

“In recognition of the need to create an environment that is conducive to investment and living, succeeding administrations in Lagos had focused on the development and implementation of several policies and initiatives aimed at ensuring sustainable socioeconomic development of our dear state,” he said.

According to Okunola, these policies and initiatives include the establishment of Ministry of Wealth Creation, the Office of Transformation,

Creativity and Innovation, the Lagos State Office of City Resilience, Lagos State Neighbourhood Safety Agency, Light-Up Lagos Project, Lagos State Parks and Gardens Agency, One Lagos Fiesta, among others.

He also stated that the state government in partnership with the Federal Government had set machinery in motion in 2017 towards achieving a significant improvement in the World Bank’s ranking of Nigeria on the “Ease of Doing Business Index,” which involved the review and streamlining of the business processes of about 10 critical Lagos State Government Agencies that are relevant to investment promotion, leading to significant improvement in Nigeria’s ranking thereafter.

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Agbaje to spend 50% of Lagos annual budget on education

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overnorship candidate of the People’s Democratic Party (PDP) in Lagos State, Jimi Agbaje, says if elected governor in the forthcoming election, his first strategic action will be to jumpstart the economy of the state through certain decisive actions, including spending as much as 50 percent of the state’s annual budget on the education sector.

Agbaje, who stated this while delivering a paper entitled: “The Transformation of Lagos: Education as Anchor, The Big Idea,” at the Lagos Business School, Wednesday, said his vision for Lagos was anchored on an education driven economy.

He said: “I will as Governor of Lagos State, if necessary, be prepared to spend as much as 50 percent of our annual budget on education, education eco system and education value chain.

“I will bet the future of Lagos State on an elaborate education and skills development value proposition.

I will, create an education driven economy.”

According to Agbaje, he was prepared to commit (subject to the state’s absorptive capacity) up to N500 billion, “to establish and recalibrate our educational eco-system and its related value chain in our first year; and strive for a minimum of 45 percent of total annual budget thereafter.”

He also said he planned to devote 50 percent of the state’s annual budget to education by getting all the state’s MDAs to allocate substantial portions of their budgets towards the education eco system and value chain.

In addition, he plans to make the schools, other education institutions and skills development centres, the “heart of every community in the 20 local government areas,” he said.

Similarly, he said within the first six months of coming to power, his administration would rehabilitate all the 1,700 existing state schools, “through open tending process driven by a block chain procurement system to aid the selection of a myriad of vendors, which will include larger companies that must work with SMEs within the framework of a youth and women engagement programme.”

He emphasised that rehabilitation would include borehole facilities for water, power generators for electricity supply and internet access for digital connectivity in every school.

He said his government also planned to pay additional allowances and fresh privileges to teachers to encourage the right people into the teaching profession.

To him, his administration will locate as much as possible, primary health care centres near or within the premises of every pri-

mary school, which will be manned by qualified doctors and nurses, serving as neighbourhood clinics to deal with basic ailments.

The PDP governorship candidate said he believed that the pursuit of education and skills development, “can provide the anchor on which every other activity of government and the private sector can latch on to create what we describe as an education economy.”

He further disclosed that if elected, his administration will: “Invest massively in the eco system that surrounds education, its infrastructure and facilities requirements, including the value chain of activities of that deliver and facilitate it. This will include massive investment in engineering and information technology.”

As he put it: “We do not have a choice. Lagos State’s education focus will be significantly about technology.

We will partner with the best providers globally.”

L-R: Adekunle Ogunmola, INEC national commissioner; Mahmood Yakubu, INEC chairman; Rudolf Elbling, project coordinator, European Centre for Electoral Support (ECES), and Lecky Mustapher, national commissioner of INEC, during a dialogue between Nigeria Women National and INEC on 2019 general election organised by European Centre for Electoral Support (ECES) and INEC in Abuja on Wednesday. NAN

UN calls for more support to end female genital mutilation by 2030 ANTHONIA OBOKOH

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he United Nations has called for more support from member nations on need to eliminate female genital mutilation (FGM), saying unless action is accelerated now another 68 million girls would have been cut by 2030.

The agencies made the call on Wednesday in commemoration of the International Day of Zero Tolerance for FGM marked annually on February 6.

Female genital mutilation refers to all procedures involving partial or total removal of the external female genitalia or other injury to the female genital organs for non-medical reasons, and it is a deeply entrenched social

and cultural norm in many societies.

“Despite the decline, millions of girls and women are still faced with the scourge of genital mutilation every year in Nigeria. There is therefore, an urgent need for decision makers and political leaders to take concrete action towards ending the harmful practices of FGM in Nigeria,” Mohamed Fall, UNICEF country representative, said.

However, in a statement signed by the executive directors of UNFPA, Natalia Kanem, UNICEF, Henrietta Fore and UN Women, Phumzile Mlambo-Ngouka, the UN called on governments in countries where the practice was prevalent to develop national action plans to end it.

“On the International

Day of Zero Tolerance for Female Genital Mutilation, we reaffirm our commitment to end this violation of human rights so that tens of millions of girls who are still at risk of being mutilated by 2030 do not experience such suffering.

“At the national level, we need new policies and legislation protecting the rights of girls and women to live free from violence and discrimination. “Governments in countries where female genital mutilation is prevalent should also develop national action plans to end the practice.

“Governments in countries where female genital mutilation is prevalent should also develop national action plans to end the practice.

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Nigeria orders 12 military aircraft from Brazil’s Embraer IFEOMA OKEKE

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razil’s Embraer SA and partner firm Sierra Nevada Corp have received an order for 12 A-29 Super Tucano military aircraft from the Nigerian Air Force, a securities filing showed on Wednesday, as reported by Reuters.

The customer will use the airplanes in tactical operations, the filing said.

The planes will be manufactured by Embraer in Jacksonville, Florida, and customised by Sierra Nevada at its Centennial plant in Colorado.

Recalled that late last year, Sadique Abubakar, the Chief of Air Staff, said the Nigerian military was still expecting to take delivery of 18 fighter aircraft from the United States of America and Italy to boost the counter-insurgency operation in the North East and other operations across the country.

Abubakar said the 18 aircraft were the muchtalked about 12 A-29 Super Tucano aircraft from the US and then six Agusta 109 power helicopters from Italy.

The air chief said, “The desire to make the NAF the best in the sub-region necessitated new platforms, equipment and specialised training. Muhammadu Buhari, the Commander-inChief of the Armed Forces, has given us priority attention, which has resulted in the acquisition of 18 new aircraft in the last three years.

“We are also expecting another 12 A-29 Super Tucano aircraft and six Agusta 109 power helicopters from the United States and Italy, respectively.

Obaseki advocates zero tolerance, decisive action to end FGM

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do State governor, Godwin Obaseki, has called for zero tolerance and decisive action by stakeholders to reduce the practice of female genital mutilation (FGM) across the country, saying such violation of the girl child’s rights exposes her to health challenges.

The governor made the call on Wednesday in commemoration of the International Day of Zero Tolerance for Female Genital Mutilation marked every February 6, by the United Nations and its sister organs.

He noted that girls who undergo female genital mutilation were exposed to health challenges such as severe pain, shock, excessive bleeding that may lead to death, infections as well as other complications in adult life that might affect sexual and reproductive health.

He discouraged the practice, urging communities who still subject girls to such practice to desist from it as they risk maiming the girls or subjecting them to psychological stress later in life.

According to Obaseki, “As the world marks the International Day of Zero Tolerance for Female Genital Mutilation, I join in condemning this practice because of its inherent violation of the rights of the girl child. The practice exposes girls to difficulties either right after the practice or later in life when they may have complications with their sexual and reproductive health.”

He noted that the Edo State government kicks against the practice and urged relevant stakeholders to take decisive action to stamp it out from society.

Cross River presents N1.43trn 2019 budget to House MIKE ABANG, Calabar

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overnor Ben Ayade of Cross River State on Wednesday presented an appropriation bill of N1.43 trillion only to the Cross River State House of Assembly, for 2019 fiscal year.

Presenting the budget tagged, ‘Budget of Qabalistic densification,’ at the House of Assembly chambers, Calabar, the governor said 30 percent of the budget was for infrastructure.

“The budget for 2019 is put at the sum of one trillion, 43 billion, 967 million naira.

30 percent of it is dedicated to infrastructure, we have 18 local government areas and each of these local government areas needs a mini superhighway

connecting it through its commercial nerve into the superhighway, which serves as the main evacuation corridor,” Ayade explained.

The concept of the budget is to also provide an evacuation corridor across the 18 LGAs, while emptying it into the deep seaport, he said, adding, “Once we can achieve this accomplishment, the establishment of two other industrial parks at the central and northern senatorial districts will follow.”

The governor, who intimated that “all of these are contained in the details of the industrial budget in the Ministry of Trade and Industry accounting for 25 percent of the budget, which will adequately provide the needed energy, audacity and intellectual spiritism

that will enforce the realisation of massive industrialisation.”

On his budget style, Ayade said, “I am applying the 42 ways of doing business without money,” pointing out that, “at anytime, money becomes your problem, that means your brain is failing you. Cross River is such a rich state and an inherited one. I inherited a state with very great potential and it is part of my budget philosophy to focus on wealth instead of focusing on my woes.”

On the performance of 2018 budget, he said 74 percent of what was estimated had been achieved, out of the N1.3 trillion N644 billion was spent on Superhighway, N88 billion for the deep seaport in spite of the huge debt burden of the state amounting to NI.8 billion monthly.

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Lagos and the crusade against domestic and sexual violence

Tayo Ogunbiyi

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omestic violence, also known as domestic abuse, spousal abuse, battering, family violence, and intimate partner violence, is a pattern of abusive behaviors by one partner against another in an intimate relationship such as marriage, dating, family, or cohabitation. Domestic violence and abuse is not limited to obvious physical violence. It can also mean endangerment, criminal coercion, kidnapping, unlawful imprisonment, trespassing, harassment, and stalking to gain or maintain power and control over another intimate partner.

Domestic violence is a global phenomenon and not limited to Nigeria. It occurs across the world, in various cultures, and affects people irrespective of their economic status. According to a study, the percentages of women who have reported being physically abused by an intimate partner vary from 69% to 10% depending on the country. In Nigeria, spousal abuse has become a scourge and there is a report that 50% of our women have been battered by their husbands at one time or the other and unbelievably, more educated women (65%) are in this terrible situation as compared with their low income counterparts (55%).

The problem of domestic violence is rooted in the socio-cultural complexes of various societies of the world, for this reason, a legal-

istic approach is now being adopted by many nations in the fight against this plague. In Nigeria, there have been agitations on how to stop domestic violence against children and women. In 2007, the Lagos State House of Assembly made a bold move and passed into law, a bill “to provide protection against Domestic Violence and for Connected Purposes.”

Many victims of domestic violence usually lack the courage to seek legal redress on the violations of their rights due to lack of positive response from the society. Domestic violence is so entrenched in our society that even the victims condone such violations of their rights as some perceive it as sign of love and the socio-religious belief that a broken marriage or relationship is a mark of failure in life.

Due to poverty and economic dependence on men, many female victims may also choose to suffer in silence for fear of losing the economic support of the male perpetrator.

This trend is evident in several of the reported cases where victims prefer to withdraw their complaints where it becomes apparent that punitive measures will be meted out to the abusive spouse. Their usual objective is for the authorities to appease rather punish the abusive partner for fear of backlash.

Presently, in Lagos State, a Sexual Offences and Child Justice Unit had been created at the State’s Ministry of Justice to monitor the prosecution of Sexual Offences in the State.

The Unit was brought on board to ensure timely prosecution of sexual and gender-based violence cases at the newly designated Sexual Offences Court, High Court of Lagos State, Ikeja Judicial Division. Thus far, the Unit has been diligent in the prosecution of sexual offence cases and its first recorded judgment in the Sexual Offences Court is the case of The State of Lagos vs. Gabriel Obinna & 2 others, where one of the Defendants pleaded guilty to the charge of defilement upon arraignment and was sentenced to sixty (60) years imprisonment by Honourable Justice Nwaka.

In the same vein, the Lagos State Ministry of Justice, through the Domestic & Sexual Violence Response Team (DSVRT) has continued to improve strategic action against the increasingly rampant incidents of rape, defilement, domestic violence, child abuse, neglect and maltreatment in the State. DSVRT obtained judgments in Defilement matters, ranging 7years, 10 years and 15 years imprisonment, respectively.

In addition, Engagement and Sensitization campaigns for Army Personnel on Domestic Violence, Child Abuse and Rape were carried out. While National Union of Road Transport Workers (NURTW) Officials were conscripted as Ambassadors in the fight against Sexual and Gender based Violence. In the previous year, 920 cases bordering on Domestic Violence, Child Abuse and Sexual Violence were handled by DSVRT. The Team has also assisted 20 survivors of defilement with sponsorship for their education, provided professional Psycho Social Therapy for 20 Rape and 60 Domestic Violence Survivors respectively as well as 30 survivors of Intimate Partner Violence.

On a national scale, it may be necessary to create special complaints desk in all police stations where domestic issues including child abuse will be handled. Designated officers must be trained on the sensitive nature of handling domestic matters. Also, the authorities must organize continuous seminars and workshops for all those involved, judicial officials, law enforcement agents, legal practitioners and other social workers.

There must also be the creation of special family courts where domestic disputes can be resolved and criminality prosecuted in confidentiality. Law enforcement and court mechanisms also have to be made friendly and accessible to women.

Also, law enforcement and court mechanisms have to be made friendly and accessible to women. The police are often indifferent to matters concerning domestic violence believ-

ing it is a family affair. Also, many communities condone violence against women in a manner that tacitly suggest approval of the practice.

Neighbours and friends may hesitate to intervene in violent relationships because marital issues are often regarded as personal matters.

There is a need to ensure that all those who respond to violence against women irrespective of social status are sensitized and trained to provide a response that is compassionate and comprehensive.

A major challenge will be altering the societal outlook and traditions that accord inferior status to women. It is, therefore, essential for more women to know and appreciate their rights. It is also important that people really understand the need to protect women and what the society stands to gain when women are treated in dignifying manners. Equally, NGOs and women rights activists must coordinate efforts, share information and resources to expose men that engage in domestic violence against women.

At the community level, religious and local leaders must unite to ignoble treatment to women that involve violence against women.

Perhaps, more importantly, a new approach that connects between men and gender violence must be designed by stakeholders in order to bring men firmly into prevention equation. Hopefully, this will eventually put men at forefront of campaign against acts of violence that are targeted at women.

The subject of sexual aggression and violence against women has gotten to an alarming level that calls for tactical planning and resolution among all stakeholders. Every segment of the society must, therefore, support government’s efforts in tackling this menace to provide a common front needed to frontally tackle and dislodge this evil. The earlier we set out to do this, the better it would be for us all.

Ogunbiyi is of the Ministry of Information & Strategy, Alausa, Ikeja

Nigeria’s trying times

Chiedu Uche Okoye

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ederalism is suitable for Nigeria owing to her heterogeneity. But not a few federal nation-states in our modern times had disintegrated. Think about Yugoslavia, USSR, Czechoslovakia, and others. Nigeria’s survival as well as her continued existence as one country till now is nothing short of miracle. But is Nigeria not a cat with nine lives given the fact that she came out of a civil war, political conflicts, and sectarian violence not dismembered?

The 30-month Nigeria-Biafra gratuitous civil war, the annulled June 12, 1993 Presidential election, and the President Umaru Musa Yar’Adua’s health crisis failed to cause the disintegration of Nigeria. In fact, when Nigeria got to the precipice, and people thought that she would bowl over, only then would she be brought back from the brink, miraculously.

Thankfully, representative government birthed in Nigeria again in 1999 after the military had maintained suffocating stranglehold on her, intermittently. Now, we have enjoyed twenty years of unbroken democratic governance, out of which the PDP had ruled for sixteen years. Surprisingly, and against the expectations of the international community, one political party handed power over to another without Nigeria descending into a civil war. That should be considered a milestone in our political annals as ethnic rivalry and

religious intolerance underline and characterize interactions among the peoples of Nigeria.

And it should be noted that Dr Goodluck Jonathan entered the pantheon of the heroes of our democracy when he conceded defeat to Muhammadu Buhari in the 2015 Presidential election before all the results were announced. His statesmanlike selfless and patriotic action doused the political tension in Nigeria, then. If he had clung to power, Nigeria would have erupted into a huge political conflagration. But Dr Jonathan said that his political ambition is not worth the blood and lives of his compatriots.

His successor, Muhammadu Buhari, rode to the highest political position in Nigeria on the coat tails of his ascetic nature, perceived moral probity, patriotic fervor, and zealousness for political leadership. But, sadly, his occupation of the office of the President of Nigeria has led to his demystification. The Buhari’s mystique has been unmasked and unraveled.

A geriatric national leader, his stay in office, so far, has proved to us that he lacks the mental, intellectual, and moral power to transform Nigeria to a truly great country. Not surprisingly, he failed to reinvigorate and diversify our economy to create jobs for millions of unemployed Nigerians. As a consequence, an army of vulnerable impressionable and unemployed young people had been recruited into the deadly Boko Haram group.

Today, the northeast is convulsing with the Boko Haram insurgency, which has caused the loss of human lives and destruction of properties. It created humanitarian crisis of great proportion in the area as the locals were dislodged from their homes. Worst still, the escalation of the Boko Haram insurgency has the potential of sparking off war in Nigeria, which can lead to the demise of our dear country.

But has the Federal government led by Muhammadu Buhari shown the political will to curb the Boko Haram insurgency? The answer blows

in the air. But what is obvious to us is that he has appointed only northern Muslims into our top security apparatchik. And they have not been able to evolve strategic plans to check the Boko Haram insurgency and the Fulani herdsmen’s menace.

The Fulani herdsmen, who have run amok, killing farmers and destroying farmlands, have wound proprietary hands round the presidency, as one of their own is the president of Nigeria.

With AK-47 and other guns slung over their shoulders, they audaciously traverse the nook and cranny of Nigeria with their cattle. Yet, President Buhari has turned a blind eye to their dastard and sanguinary deeds.

President Buhari’s tendencies, despicable deeds, and clannish disposition to the act of political leadership have fuelled the speculation and theory that he is a sectional leader and inveterate ethnic chauvinist. And they’ve burst the bubble that he is imbued with nationalistic fervour and patriotic zeal.

If anything, his leadership of Nigeria has further deepened our ethnic and religious fissures.

Little wonder, in the recent past, the proscribed IPOB secessionist organization increased the tempo of their agitation for the creation of the sovereign state of Biafra. IPOB members are still mouthing the platitudinous messages about the marginalization of the Igbo people in Nigeria.

But has this current political administration not treated the people of the Southeast with condescension and disdain? Do we have federal presence in the area?

That’s why Ohaneze Ndigbo’s endorsement of Atiku/Obi’s political candidature is understandable. Buhari promised to effect changes in our body politic in diverse areas; however, the status quo ante has remained the same. Today, Nigeria is in dire straits with the economy in the doldrums. And the incubus of insecurity of life and property is threatening to tear Nigeria apart.

Today, the apocalyptic cloud of disintegration

hangs over Nigeria, ominously.

That’s why millions of Nigerians who are disillusioned and disenchanted with this political administration have thrown their weight behind Atiku/Obi’s political candidature. Mr. Peter Obi transformed Anambra when he was in the saddle as the Anambra state governor.

Atiku Abubakar and Peter Obi, who do not have their heads in the clouds, promised to pursue the agenda of restructuring Nigeria in order to unleash her potential if they win the Presidential contest. Their pragmatic approach to issues of leadership has found resonance among us.

Millions of Nigerians are tired of President Buhari’s lackluster performance in office.

Seeing that he is headed for an electoral disaster, President Buhari has gone for broke in his bid to win the 2019 Presidential election. His circumventing the constitution in his handling of the Justice Walter Onnoghen matter is a proof of his frustration and desperation to win the 2019 election at any cost. It is apparent to us that he is afraid that the Supreme Court headed by Justice Onnoghen will not give him favourable judgement, if the 2019 Presidential election becomes a subject of litigation. But he has made nonsense of the Badin and Montesquier’s theory of the separation of power in the process.

Didn’t he disobey court judgments in the Dasuki and El-Zakyzaky issues, too?

Nigeria under the leadership of President Buhari has morphed to a totalitarian state. This does not augur well for the political stability and development of Nigeria.

As it is now, Nigeria is regressing to the dark stage of the Sani Abacha’s era. Indeed, these are trying times for Nigeria and Nigerians. So, it behooves us to band together and chase this rascally reckless unaccountable APC -led government out of power.

Okoye, a poet, wrote from Uruowulu- Obosi, Anambra State

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The ‘parking-the-bus’ workplace Positive Growth with Babs

Babs OlugbemI

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y articles on resultoriented leadership and the use of the recent happenings in the Premier League has generated a lot of engagements with the readers than I ever envisaged.

A C-level officer who had read this column with keen interest is asking how strategy in the workplace fits into the leader’s desire to achieve results with and through his people.

Before I delve into strategy as the wheel for achieving institutional results, I will like to emphasise the effects of culture on the strategy as noted in my article titled culture eats strategy published on September 13, 2018. No matter how powerful a business strategy is, the culture of the organisation will eat the strategy for lunch or dinner if the strategy is not in alignment with the culture. For example, a good strategy to be the market leader with poor employee engagement and welfare will make a mess of the strategy since all the strategies for market leadership are dependent on people for implementation.

A recent social media outburst by Olivia (@oliviaabland) is a typical example of how diverse culture and strategy might be. Olivia had a job interview with a company where the CEO of the company at the interview shredded and named her an under-achiever. She was verbally abused and made uncom-

fortable at the interview. The next day, she received an offer for the job which she declined in writing outlining how the CEO’s behaviour at the interview showcased the culture of bullying and lack of respect for people within the organisation. No doubt the CEO could have seen something good in her but his desire to hire the best for the company conflicts with his attitude toward the staff including the potential new hire.

A strategy is a plan of action designed to achieve objectives, be it short- or long-term. It is an important element of a business process without which no company can survive in the market place. The incubation room for any strategy is the workplace. A strategy can be for the different segments of the company: the employee strategy, the production, customer service, market dominance, investors relations and social engagement strategies just to mention a few.

Back to my football analysis and on the manager, I respect so much, the strategy Jose Mourinho used to achieve his successes has been attacked by footballers he was meant to achieve the result through. I could recall Christiano Ronaldo did challenge his defensiveoriented strategy when he was the manager of the Real Madrid. Guillem Balague, one of the British Broadcasting Corporation sports writers queried the continued relevance and use of a coaching methodology called ‘tactical periodisation’ by Jose Mourinho. He further asked if Mourinho is an analogue manager in a digital world.

In its simplest term, tactical periodisation is a coaching style that centre the play from the defence. All the four aspects of the game- defensive organisation, offensive organisation, the transitions- defence to attack, and attack to defence are all anchored on the strength of the defence. Thus, Jose uses his defence as his team’s strongest link and the core strategy of his game

plans and expects all the players to have a defensive mindset irrespective of their role. In training, the use of this style exerts mental and physical strengths from the players and often drags the players’ emotions downward where the opposing team is more of an attacking side.

Mourinho has recorded success with tactical periodisation in the past with many trophies to show for it. His team was accused of not entertaining the audience but focus on winning at all cost. This has earned him the parkingthe-bus name and he talked a lot about it when he used this style effectively against Barcelona FC during one of the champion league games.

But things are changing, and the players of today are happier being in an attacking team. Rather than exerting all energies on defending why not be a result-oriented team with attacking flairs and let the other teams be at the receiving end. This was the argument of some of the players against Jose who never want to mind the emotions of the tools that are meant to achieve the result for him.

Just like in football, some workplace is no different from parking the bus in their strategy for employee engagement and market dominance. A manager who still uses the theory X by assuming their staff are lazy, unmotivated and will do anything to avoid work rather than creating a result-oriented and motivating workplace for them to strive is leading with the dead tactics. Leaders that use abusive words, label people with their mistakes and castrate their employees for no good reasons are like football coaches who use strategies relevant in the machine age in the age of emotions and social interaction. As leaders, we should know that people in the workplace especially the millennials (the generation Y) are not robots and would rather dump or endure inappropriate business and social

‘

Leaders that use abusive words, label people with their mistakes and castrate their employees for no good reasons are like football coaches who use strategies relevant in the machine age in the age of emotions and social interaction

engagement styles for a short period instead of being engaged employees to organisations.

Research on employee engagement and happiness index has shown employees working for companies that are market leaders with the flexibility to changes in the ways the stakeholders are treated are happier and more fulfilled than their counterparts in other companies. If your organisation does not operate with a specific identity and strategy to win in the market but will rather prefer to chase others, your employees will be footballers under the tactical periodisation methodology using their strengths with no optimised results but frustration. Leaders in this situation tend to ignore the fundamental problems and push their employees to produce magical results. The solution to the above scenario is to redefine the business identify, cave out specific objectives, align the tolerable business risks with the anticipated outcome, play in the relevant market and empower employees to function maximally.

Leaders who do not respond to the changes in the work relevant to their people, products, business environment and customers are the ‘Mourinho’ with huge capacity but losing the relevant contents for effective optimisation of resources in the current dispensation. The right word and mindset to overcome the parking the bus syndrome is changing in line with the trend. A change in the strategy relating to people, products, process, customers, market engagement and the execution of the strategy will improve all the performance variables as well as making the workplace the best place for the employees to work and thrive.

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

Tweaking tradermoni scheme for better outcomes

UCHE UWALEKE

T

he TraderMoni scheme is arguably one of the laudable Social Investment Programmes of the Buhari administration designed to promote financial inclusion and alleviate poverty in the country. The scheme, an integral part of the Government Enterprise and Empowerment Programme, is a collateralfree micro credit meant to assist petty traders and artisans across the country grow their businesses. Under the programme, administered by the Bank of Industry, traders who are expected to belong to a market union and posses valid means of identification, register for TraderMoni using their phones and following accreditation, become eligible for a collateral-free loan of N10,000. Beneficiaries stand to enjoy higher loan facilities ranging from N15,000 to N50,000 if they repay within the six-month loan period. Since the launch of the scheme, the federal government, through the Bank of Industry, is reported to have disbursed over N15 billion to petty traders across the 36 states of the federation and the Federal Capital Territory. By implication, it has recorded about 1.5 million new entrants into

the formal financial system as new operators of bank accounts or mobile wallets. Perhaps to underscore the importance of the scheme in the government’s social intervention programme, the Vice President, Professor Yemi Osinbajo, has been actively involved touring major markets across the country to flag off the scheme.

In view of the increased tempo it has witnessed in recent times, the TraderMoni scheme has been criticized, especially by the major opposition party against the backdrop of the fastapproaching general elections, as a vote-buying and campaign ploy by the federal government.

Also, just recently, a top official of Transparency International, Awwal Rafsanjani, was quoted to have said in a programme on Channels Television that the initiative was tantamount to an “official use of public funds to actually induce voters”. Aside the alleged political undertone involving the unapproved use of PVSs as a condition to access the loan, some of the agents of TraderMoni have been accused of insisting on kickbacks from petty traders before getting them accredited for the scheme.

Concerns have also been raised in some quarters regarding its sustainability given that the loans do not require any collateral security.

Granted that the strategy of making repayments a criterion for accessing higher amount of loan will result in a high uptake in repayment at the initial stages of implementation, default rates are likely to be higher much later the moment a beneficiary reaches the final level and collects the maximum sum beyond which no other incentive applies.

There is also the issue of low penetration as the focus of the scheme appears to be petty traders and artisans in major markets across the country.

Its presence has yet to be felt in rural communities

without access to mobile phones in view of the fact that applicants are expected to have a valid SIM/ phone number properly registered with any of the service providers. These criticisms notwithstanding, the TraderMoni initiative in a country with high rates of unemployment and poverty is quite commendable. In order to achieve higher success rates with respect to financial inclusion and poverty allevation, it is important to equally make rural communities feel the impact of the scheme and more importantly tweak its modus operandi to reflect ownership by community groups while the government is behind the scene providing support. In this regard, the Thailand model readily comes to mind.

By any account, the Thailand micro loan scheme, currently one of the largest microcredit programs in the world, is a success story and a shining example of how to channel micro credit for petty trades and business ventures. Since the launch of the Thailand ‘Village and Urban Revolving Fund’ a few years ago, designed to improve access to finance, raise incomes and reduce poverty in rural areas, financial access is said to be on the rise in recent years with 88 per cent of the Thai population having access to formal financial services. Under the Thailand microcredit program, every village is encouraged to set up a committee consisting of about ten persons that manages the fund and determines the lending criteria, including interest rates, maximum loan size and loan duration usually not more than one year. The committee opens an account at a branch of the intermediary bank in which the fund is lodged. Thereafter, it receives and evaluates loan applications from individuals who are required to provide a minimum of two guarantors before the loans are approved and

disbursed through the intermediary bank.

The key lesson from the Thailand experience is that the micro credit scheme is driven by the communities and not the government. Instead of making use of the Bank of Industry with limited reach, the TraderMoni scheme could be better implemented through Micro Finance Banks with significant presence throughout the country. Only recently, the Central Bank of Nigeria unveiled a revised National Financial Inclusion Strategy with the major goal of reducing the proportion of adult Nigerians that are financially excluded to 20 per cent in the year 2020 from its baseline figure of 46.3 per cent in 2010. Without doubt, the TraderMoni scheme promises to go a long way in bringing this about if well implemented. To this end, the government should concern itself more with the provision of an enabling framework for community-based financial institutions such as savings and credit cooperative organisations, farmer societies or non-bank microfinance institutions to play a more effective role in reaching the most unserved and underserved both by geography and demographic characteristics. In Thailand, 99 per cent of rural communities are said to have access to ‘Village Funds’ which have increased financial inclusion and boosted substantially the provision of rural credit. This points the way forward for Nigeria.

Therefore, for optimal results, it is important that the TraderMoni scheme is fine-tuned in such a way that the government’s hand is invisible so that beneficiaries feel obligated to repay the loans and not see it as a piece of the national cake.

Uche Uwaleke of Nasarawa State University Keffi is Nigeria’s first Professor of Capital Market and the President of the Association of Capital Market Academics of Nigeria

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Google CEO sets new benchmark for modern corporate communications: Lessons for African executives

Nkiru Balonwu

I

n December, Google CEO Sundar Pichai, appeared before the US House Judiciary Committee to answer questions surrounding data privacy, industry competition and interestingly, an alleged anti-Republican bias hidden within the Google algorithms. His measured and mature performance came as a welcome change of pace, at the end of a year when more bombastic business leaders like Elon Musk had struggled to come to terms with new found levels of regulatory spotlight.

“20 years ago, two students—one from Michigan and one from Maryland— came together at Stanford with a big idea: to provide users with access to the world’s information.” Sundar Pichai, Chief Executive Officer of Google LLC, had submitted his prepared remarks well in advance of his company’s congressional hearing in Washington in December 2018. Imbued with a patriotic tone and allusion to investment in industry and American jobs, these remarks served to ingratiate the tech CEO to an otherwise hostile audience before he had ever looked them in the eye.

When he got there, it was Democratic Representative Zoe Lofgren, who gave the business leader the opportunity to explain exactly how the Google algorithm works: “Right now,” said Lofgren, “if you Google the word ‘idiot’ under images, a picture of Donald Trump comes up. I just did that.” The Google CEO’s response was calm and communicative, outlining the mechanics behind the Google search engine in a way that could be comprehended by all, while ultimately delivering a level of transparency that

answered the question without room for rebuke. If only the afore-mentioned Tesla boss had conducted himself with such decorum, instead of dismissing ‘boring’ ‘bonehead’ questions, he may not have found himself in such hot water today.

At RDF Strategies, we recently wrote about the importance of the Earnings Call and how these events and other public appearances like them could provide CEOs and other C-suite executive with opportunities for growth, as opposed to reasons to be fearful. Google’s appearance at Congress demonstrated the power of communicating effectively with regulators and government bodies, and we’ve here highlighted three key components that contributed to the CEO’s success.

Prepared remarks The clue is there in the title. The prepared remarks submitted by the Google CEO laid the foundations for the real-world interactions that followed.

Not only was Pichai’s prologue delivered to Congress in a timely fashion, it also made its way across the global press, providing the platform upon which to create his own first impression before being backlit by the House for the world’s media. So effective was this distribution that it allowed RDF London Consultant, Jamie Gavin, who had been invited onto the BBC to offer analysis ahead of the hearing, the opportunity to research the CEO’s message and present a balanced view of the debate about to take place.

The remarks were also published in full on CNBC. Phrases like “the free flow of information”, “protecting the privacy and security of our users”, and “the important role of governments” highlight an awareness of the concerns that were to be talked about. Pichai’s balancing of his background “Growing up in India” with his responsibilities as the leader of “an American company” showed a strong understanding of the current nationalist backdrop and a ‘Make America Great Again!’ Republican Party against which the debate took place.

In short, the CEO did his homework, pre-empted the questions that would come his way, and set about laying the

foundations for a mature and transparent discussion around them with empathy and linguistic precision. Not a bad implementation of effective language skills, for a man present predominantly to talk about numeric algorithms!

Transparency A few months ago, Google hit the headlines following a mass Google+ data breach. When the story broke the UK Guardian reported that the company “didn’t disclose [the] leak for months to avoid a public relations headache and potential regulatory enforcement”. This is of course a bad look for a global company operating in an ‘always on’ digital media age, particularly for a brand that has famously traded on the motto ‘Don’t be evil’.

However, there appeared to be no such shroud of secrecy during Pichai’s December Congressional hearing, and perhaps what we saw were the results of a lesson learned: “Any time you type in a keyword, as Google we have gone out and crawled and stored copies of billions of [websites’] pages in our index. And we take the keyword and match it against their pages and rank them based on over 200 signals — things like relevance, freshness, popularity, how other people are using it. And based on that, at any given time, we try to rank and find the best search results for that query. And then we evaluate them with external raters, and they evaluate it to objective guidelines. And that’s how we make sure the process is working.”

The Google CEO showed up at Congress, available and open to questioning, and happy to offer a full insight into the way the company works. So, when he reiterated to the panel that Trump deserved his place at the top of the Google ‘idiot’ search by saying “This is working at scale, and we don’t manually intervene on any particular search result,” his words were allowed more oxygen. In an age of fake news, a healthy dose of facts and reality can go a long, long way.

Accepting the need for change It’s no secret that regulatory bodies are showing increased interest in tech platforms. We see that in the news every

‘

Communicating with regulators, just like communicating with customers and other stakeholders effectively, is now an essential part of the ongoing work of the CEO and other C-suite executives

day. While digital media has revolutionised the way we communicate with one another around the world, empowering businesses and consumers alike, there is also a growing realisation that malevolent forces have hijacked some of these platforms for their own ends, and that the tech companies themselves must shoulder some of the responsibility for preventing this from occurring again.

In July 2018, a new parliamentary report published by the Department for Digital, Culture, Media & Sport (DCMS) in the UK recommended that a new category be introduced to properly define and regulate social media companies that are currently viewed ‘neither platform nor publisher’. In the same month, the European Commission slapped Google parent company, Alphabet, with a historic €4.3bn fine regarding Android.

This increased level of regulatory scrutiny has not only become apparent in the US and EU but also in African business in recent years. The ongoing saga between MTN - Africa’s biggest telecoms company - and a number of Nigerian governmental and regulatory bodies highlights a growing friction between large multinational organisations and the governments of individual nation states.

For better or worse, we have seen increased correlation between government and business over the last few years, and large scale companies are finding themselves under greater regulatory scrutiny.

Communicating with regulators, just like communicating with customers and other stakeholders effectively, is now an essential part of the ongoing work of the CEO and other C-suite executives.

Google’s recent appearance at Congress demonstrated the power that an effective public communications plan can hold.

Developing these new leadership skills and strategies, across all sectors of business, is becoming increasingly important.

Dr Balonwu is Chair of African Women on Board (AWB) and Managing Partner at RDF, a Strategic Communication and Stakeholder Engagement firm that provides strategic counsel to Public and Private Sector Institutions and C-suite Executives

Why Nigeria needs higher taxes on tobacco products Adedeji Adeniran & Joseph Ishaku

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ising tobacco consumption in Nigeria is expected to increase fiscal and health burdens on the general public and government. A bold and innovative policy response is required and tobacco taxation has the potential to deliver in this regard.

Tobacco as an emerging epidemic According to data from the World Bank, the number of adults (ages 15+) that smoke increased by over 10.5% from 2000 to 2015. The effect of rising tobacco consumption on public health and expenditure is already hitting hard on the populace. In 2015, tobacco related diseases were responsible for about 16,000 deaths (about 246 men and 64 women per week) and about 250,000 cancer diagnoses in Nigeria. A study led by Goodchild in 2016 reported that economic losses to Nigeria in the form of medical treatments and loss of productivity from tobacco-related diseases are estimated at US$ 591 million as of year 2015, twice the amount spent on all malaria treatment interventions in the period. These costs are also borne by non-smokers that are exposed to second-hand smokes.

Need for sizeable tobacco taxation Reducing tobacco consumption can come

through a variety of policies such as a ban on advertisement of tobacco products, education, and providing remedies for cessations, among other measures. However, on the top of all this is the need for significant tobacco taxation, which has been hailed as the single most effective tobacco control measure. The consensus in empirical literature is quite overwhelming on this stand that tobacco taxation always reduce tobacco consumption. Let’s face it, cigarette is like every economic goods and obeys the basic laws of demand. Taxation at appropriate levels will increase cigarette prices and reduce intensity of consumption, especially by the poor who bear a disproportionate burden of tobacco costs. High cigarette prices also act as barriers for adolescents that are on the verge of taking to smoking. But there are three caveats that could limit effectiveness of taxation. First, huge price difference among cigarette brands can allow smokers substitute expensive brands for cheaper brands easily, effectively dampening the effect of tobacco taxation. Second, cigarette affordability – the proportion of smoker’s income spent on cigarette– is another concern.

If this is low, then the effect of taxation might be suboptimal. Third, tobacco taxation needs to be sizeable for it to have any desirable effect, giving the potential dampening effects of price variability and cigarette affordability. For this reason, the WHO recommends 75% tax on retail price of cigarettes under a specific excise tax system for the tobacco industry.

A recent research by the Centre for the Study

of Economies of Africa found price variation to be high, especially for popular tobacco cigarette brands. Similarly, cigarette affordability was estimated to be high. This means that the potential to considerably reduce tobacco consumption via substantial tobacco taxation is high.

However, it is on the third point that Nigeria is performing poorly. Particularly, before the June-2018 excise tax regime, the tax burden on the retail price of cigarette was only 12% charged mostly as ad-valorem duty, which is prone to tobacco industry tax manipulations.

On the recent tobacco taxation The government’s attempt at a tobacco tax reform, although inadequate, is a step in the right direction. In addition to the present 20 percent ad-valorem excise duty charged on locally produced goods, tobacco products now attract a specific duty of N20 per pack, which will rise to N40 and N58 in 2019 and 2020 respectively.

The same study by CSEA estimates that the new excise tax regime is expected to increase the tax burden by only 5 percentage points, to 17%. In addition, despite being a signatory to the WHO Framework Convention on Tobacco Control (FCTC), many of the elements of the treaty are still not operational. For example, tobacco industry maintains influence in decision-making by being involved in the process of policylegislation and regulation through the Manufacturers Association of Nigeria.

Way forward Nigeria is still far from meeting the WHO recommended level of tobacco taxation and

this should be the starting point in the conversation on tobacco control policy by government.

Countries like Senegal and Ghana are already the verge of reaching this benchmark in terms of tobacco taxation. However, tobacco taxation will be more effective when complemented with auxiliary tobacco control policies. Global experiences show that the greatest public health and revenue yields are gotten when the government pursues a set of complementary tobacco control measures, tagged MPOWER: - Monitor tobacco use and prevention policies - Protect people from tobacco smoke - Offer help to quit smoking - Warn against the dangers of smoking - Enforce bans on tobacco advertising, promotion and sponsorship - Raise taxes on tobacco A key challenge here is the huge cost of funding these various measures. Again, this is where the tobacco taxation represents a win-win measure. By a conservative estimate, government stands to raise about NGN67 billion through the modest tobacco tax implemented in 2018 and even much more with higher taxes.

This will in part constitute the funding for tobacco control measures, while other national priorities are also addressed.

Dr. Adeniran and Ishaku are Research Analysts at the Centre for the Study of the Economies of Africa, Abuja.

They can be reached at aadedeji@cseaafrica.org and jishaku@cseaafrica.org respectively.

12

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Centrality of FDI in economic development

T

here is now unanimity am ong economists that Foreign Direct Investment (FDI) is a key part of private sector investment which is needed to drive economic growth in developing countries.

FDI is particularly needed to complement the level of domestic investment, as well as “securing economic-wide efficiency gains through the transfer of appropriate technology, management knowledge, and business culture, access to foreign markets, increasing employment opportunities and improving living standards.”

What is more, studies have consistently shown a strong relationship between foreign investment and economic growth. Examples also abound. For instance, Singapore, a poor, inconsequential former British crown colony with a meagre population of 1.6 million in 1960 and with no natural resources, was able to transform itself to one of the richest countries in the world with the third highest GDP per capita partly through attracting foreign investment into the country. To put it simply, large inflows of FDIs are now a sine qua non for developing countries to achieve a sustainable high trajectory of economic growth. It therefore goes without saying that developing – and even devel-

oped – countries are always in competition to attract FDIs into their countries.

Central to a country’s ability to attract FDI is its ease of doing business. Besides the more technical requirements, which consist of infrastructure and access to raw materials, communication and transport links, and skills and wage costs of labour, there are much more central requirements of security, political predictability, social cohesion and upholding the rule of law, part of which must consist of a strong and independent judiciary that will adjudicate promptly and impartially on trade disputes.

Besides being prerequisites for attracting FDIs, these are actually preconditions for sustainable development in any society.

Sadly, Nigeria is doing badly all of these scores. Besides its macroeconomic instability, dilapidated or absent infrastructure and lack of social cohesion, it has a much more debilitating problem of insecurity, political unpredictability and a culture of trampling on the rule of law.

Of course, Nigeria naturally has the potentials to attract lots of FDIs because of its size, population, natural and human resources; and investors are willing to overlook its unstable macroeconomic environment, the underdeveloped infrastructure and social tension and still invest in the economy. Sadly however, what most investors are

unwilling to accept is political unpredictability and a culture of impunity. Sadly, it is these two instances that Nigeria is most notorious.

The history of FDIs in Nigeria is a history of government recklessness, unilateral and illegal termination of agreements, contracts and projects, often without any compensation. That has not ended even with the return to democratic governance and has continued to this day. Take for instance, the recent travails of successful foreign businesses in Nigeria like the South African telecommunications giant, MTN and pay TV firm, Multi Choice. Another shameful example was the attempt by the National Assembly, recently, to illegally, unilaterally and surreptitiously amend the Nigerian Liquefied Natural Gas (NLNG) Act to force the company to remit 3 percent of its annual budget as funding to the Niger Delta Development Commission (NDDC) against the contract willingly entered into by Nigeria and the other stakeholders of the NLNG covered by Bilateral Investment Treaties (“BITs”) with France, The Netherlands and the United Kingdom to retain agreed fiscal and security regimes of the investment and not to levy any tax inapplicable to companies nationwide.

Regrettably, it is always the case in Nigeria that once investors come in and their investments begin to flourish,

Nigerian regulatory agencies or even governments begin to heckle these businesses, resurrecting hitherto forgotten infractions, seeking to extort money or subject them to hitherto unknown, un-agreed, hurriedly enacted and ultimately unjust laws and regulations in the name of protecting national interests. This is giving us a bad name, making the country unpredictable and thus, unattractive for investments. Yet the song on the lips of every government – and they are known to travel to the ends of the earth soliciting for it – is that of seeking for foreign investments. This is not to talk about the government’s open disregard for the rule of law and attempt to destroy key institutions of state that should serve as safeguards against arbitrariness.

The most depressing part is now the attitude of Nigerian public officials, which suggests calling the bluff of foreign investors and telling them to keep their FDIs. Meanwhile, virtually every knowledgeable person in the country knows the country does not have the resources to provide the necessary infrastructure, amenities and jobs needed to revamp the economy and assure sustainable economic growth.

The government must begin to reset its priority and rein in its overzealous officials who appear to know nothing about the fundamentals of growing an economy.

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Why NSE slapped N429.5m on 38 companies

Pg. 15

C O M PA N Y N E W S A N A LY S I S A N D I N S I G H T

INSURANCE

NEDP acquires 14% stake in Consolidated Hallmark Insurance at 124% premium OLUWASEGUN OLAKOYENIKAN

N

iger Delta Exploration & Production Plc (NDEP), Nigeria’s first integrated oil and gas investment company, has acquired about 14 percent equity stake in Consolidated Hallmark Insurance at 124 percent premium on the insurer’s traded closing price of 29 kobo as at Friday, Feb. 1.

The acquisition by the indigenous oil company is seen to avert foreseen merger and acquisition in the insurance sector and cause a modification in the i n s u r a n c e c o m p a n y ’s Board which currently has Eddie Efekoha as its Chief Executive.

The consolidation was projected as the National Insurance Commission (NAICOM) raised insurance firms’ minimum capital base in the country from N5 billion to N15 billion in 2018 in a bid to categorise insurers into tiers as obtained in the banking sector.

The insurance comp a n y ’s r e s u l t s f o r t h e nine months to September 2018 show gross p re m i u m i n c o m e ro s e by 19.64 percent to N5.4 billion from N4.52 bil-

lion in the same period a year earlier.

U n d e r w r i t i n g p ro f i t grew 13.3 percent to N948.3 million from N836.00 million, while profit for the year also increased by 71.23 percent N355.92 million as against N207.86 million re corde d in the previous year.

Consolidated Hallmark was listed on the NSE almost eleven ye a r s ag o, i t o f f e r s a wide range of insurance products and ser vices.

N D E P, o n t h e o t h er hand, is publicly quoted company on the NA S D O TC S e c u r i t i e s Exchange with over 700 shareholders from ever y geo-political zone in the countr y.

The oil firm was inc o r p o r a t e d o n Ma r c h 25, 1992 as the Midas Drilling Fund, but it assumed its current name in November 1996 with a vision to create a vehicle that would afford ordinar y Nigerians the opportunity to partic-

ipate in and benefit from the countr y’s oil and gas industr y.

H o w e v e r, t h e c o m mission cancelled the tier based solvency capital recapitalisat i o n o f t h e u n d e r w r i ting sector late last y e a r.

The deal, which saw the oil firm buying 1.13 billion ordinar y shares of 50 kobo each of Consolidated Hallmark Insurance at 65 kobo per share throug h pr ivate p l a c e m e nt, wa s f i na l -

l y c o m p l e t e d Tu e s d a y a s t h e Ni g e r i a n S t o c k E xchang e (NSE) liste d the secondar y offering worth N734.5 million on its daily official list.

With this listing of the additional 1.13 billion ordinar y shares, the total issued and fully paid up shares of Consolidated Hallmark has now increased from 7 billion to 8.13 billion ordinar y shares of 50 kobo each, the NSE said in a notice to dealing members.

T w o y e a r s a g o, t h e insurance company offered 1 billion ordinar y shares of 50 kobo each at 50 kobo per share on the basis of one new ordinary share for every six ordinary shares of 50 kobo held as of August 28, 2017, in a rights issue.

Shares of Consolidated Hallmark gained 6.9 percent on the floor of the Nigerian Stock E xchange (NSE) to close at 31 kobo after the close of trade Tuesday.

Banking

Union Bank unveils TechVentures to bolster Tech-enabled Businesses ISRAEL ODUBOLA

U

nion Bank, one of Nigeria’s longstanding financial institutions, has introduced TechVentures, a unique banking proposition which provides tailored services to technology companies, with the overall aim of supporting tech-enabled busi-

nesses in Nigeria.

The solution was launched at TechPoint Build in Lagos, a notable technology conference for techprofessionals, investors, entrepreneurs, startups and owners of techdriven enterprises.

Giving his remarks, Kunle Sonola, Head of Commercial Banking, said that the Tier-2 lender is committed to develop

services that offer real-value adding solutions for emerging and ecosystems in Nigeria.

“We designed TechVentures in response to the emergence and accelerated growth we see in the tech-space “Our goal is to capture these businesses from start-up stage, when they are just nursing an

idea, and support them until they build unicorns because we believe that these businesses will drive a new economy in Nigeria”, Sonola said.

Two years ago, the bank organized an annual innovation challenge to encourage promising entrepreneurs who are working on innovative solution that could tackle social

and business challenges in Nigeria.

In a show of commitment to tech-development, the bank collaborated with Co-Creation Hub last year, to launch ‘Start up Connect’, its maiden business acceleration programme.

The programme served as an opportunity for Nigerian businesses creating technology-based

Edited by LOLADE AKINMURELE (loladeakinmurele@gmail.com) Graphics: CHINEDUM ONYEMA

solutions to partner with the bank and social innovation centre to stimulate growth.

Union Bank of Nigeria Plc was established in 1917, as a full-service commercial bank that caters to the retail and commercial needs of individuals, small and medium-sized businesses and major corporations.

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COMPANIES & MARKETS Consumer Goods

Bargain hunters drive Nigerian Breweries from 18-year low OLUFIKAYO OWOEYE

S

hares of Nigeria’s largest brewer, NB Plc, got a fleeting relief Tuesday after bargain hunters who saw value helped the stock recover from an 18-year low.

NB shares have underperformed the All Share Index this year and traded at N75.13 earlier this week, the lowest in 18 years.

This has made value investors to take position in anticipation of a rebound in share price, which gained 4 percent to close at N78, Tueday.

The board of Directors will hold its board meeting on February 13th and among the issues to be deliberated on is the consideration and approval of the Audited Financial statements of the company, as well as a proposal for the payment of dividend.

Interestingly, the fourth quarter which is the yuletide period provided a good opportunity for the company to make higher sales to reverse its fortunes. Perhaps the full year results so eagerly awaited by investors will put smiles on their faces once again.

Shareholders of the company are hopeful that the makers of Star and Heineken’s profit will be large enough to pay dividend, although the company’s third quarter period ending last September saw the company making profits, they were not as big as the corresponding period in 2017, thus, calling to question

the brewer’s ability to take on emerging ‘beer war’ coupled with the dwindling purchasing power of consumers.

The Nigerian brewery market has got increasingly interesting in recent times; particularly considering the intensifying competition in that space, occasioned by ABInBev’s integration of its Nigerian subsidiaries, capacity expansion and introduction of new products has further heightened competition in the brewery landscape through attractive price points.

In the second quarter 2018, NB adopted price increases on some of its products Star Radler, Life, Goldberg ahead of the new tax regime introduced by the Federal Government; however, this was later reversed towards the end of June, given that International Breweries, a major competitor left prices unchanged for its lager products Trophy and Hero.

Analyst say the increase in the prices of NB Plc’s major brands ignited a drift of taste by consumers given the fact that the economic downturn has eaten greatly into consumer’s purchasing power, thereby affecting their spending coupled with the high prevalence of cheap substitutes.

In the nine months ended September 2018, NB’s revenue fell 5.6 percent to N255 billion in September 2018 from N270.2 billion corresponding period in 2017. Although the company managed to have marginal control of Cost of Goods Sold, gross profit still

slipped by 11.4 percent to N94.72 billion from N106.86 billion, shrinking gross profit margin to 37.14 per cent from 40 per cent.

The company had a hard time trying to temper operating costs, which vaulted leading to lower operating results of N27.74 billion from N42.3 billion. The ultimate effect was a slice of operating margin to 11 per cent from 15.7 percent, indicating that the company is finding it difficult to rein in costs of production.

So, it is no surprise that pre-tax profits were down a whopping 34.7 per cent to N22.5 billion from N34.4 billion with resultant lower pretax profit margin of 8.8 per cent from 12.7 per cent. The company’s bottom line bled from the above by shrinking 38.4 per cent below the former performance to N14.8 billion from N24 billion.

To protect market share, Nigeria’s top brewers have embarked on creative advertising and promotional activities. In

sales and advertising Nigerian Breweries spent about N17.5 billion in the first 9 months of 2018 up from N16.3 billion reported a year earlier, the highest by any brewer in the country. Most Nigerian Brewers do not break down the advertising spend in their financial statement, so it is difficult to determine how much of their spending went to digital advertising, outdoor, print.

In a report bt Investment Firm, CardinalStone, NB will strive to retain its overall mar-

ket share by more aggressive marketing to enhance visibility of its products.

“We have adjusted our model for these changes and revised our target price downwards to N100.05, which represents an upside of 13.4% based on its last close price of N88.20.

Therefore, we recommend a HOLD. On a relative basis, Nigerian Breweries currently trades at a discount to peers; forward P/E of 20.53x vs. 22.12x for Bloomberg Middle East and Africa Peers” the report noted.

INDUSTRIAL GOODS

Greif laments difficult business environment amid NSE sanctions SEGUN ADAMS

G

reif, manufacturers of steel and plastic packaging products, bemoans the challenging business environment which has hampered its operations and affected its ability to comply with regulatory standards of the Nigerian Stock Exchange.

The Company made this disclosure on Monday, 4th of January, following the imposition of N429.5 million fines on 38 erring companies by the domestic bourse.

Specifically, the Lagos based company, in a notice filed on the exchange, explained that

the delay in filing of its 2018 audited financial statements by 29 January 2019- the due date, was on the back of an audit exercise necessary to determine the state of the business following the closure of two branches last year.

Citing that its External Auditors had to exercise due diligence on the Financial Statements during the audit exercise to ensure all tax-related issues were resolved, and make certain that the results reflect the actual position of business operations for the year, as well as conform with all relevant statutory requirements.

The company, how-

ever, expressed optimism that it would be able ‘’to file the audited financial statements on or before 15th February 2019.’’

Greif Nigeria Plc, a subsidiary of Greif International Holding B.V. offers product including steel and plastic containers for industrial and domestic use, with service offering in packaging and logistics and Land management.

Although incorporated as Van Leer Containers (Nigeria) Plc in 1940, the Manufacturing and Marketing of Metal Drums Containers was renamed Greif Nigeria Plc in May 2004.

According to Grief, ‘’The 2018 financial year was a

very challenging year’’ as the factories in Kaduna and Delta state were not yielding profitable returns, with Kaduna plant contributing just a tenth of its total revenue for Q1 2018 and the Delta plant virtually dormant.

The Board in May 2018, acceded to the ‘’closure of the factory branch network in both Koko, Delta State and Kaduna, Kaduna State and commencement of complete evacuation of all machines and equipment’’ during the accounting year in a move to consolidate its efforts on its Apapa plant, where the larger chunk of its earnings is derived.

Consequently, the company resolved to ‘’Embark on Apapa factory

site improvement, capital expenditure and overhaul to meet the minimum standard of GREIF operation worldwide in terms of safety and operational excellence’’ BussinessDay analysis of the company’s most recent financials for Q3 to 31st of July 2018 show a 31.5 percent decline in revenue to N405.5 million compared to N591.6 in the corresponding period of 2017.

Despite the cost of sales for the Industrial Goods Company easing by 27.4 percent, gross profit declined by 48 percent to N42.7 million in the review period of 2018.

Greif made a negative operating profit of N1.9 mil-

lion although, in the same period of 2017, operating profit was up to N54 million.

Profit before tax pared by an eye-watering 95 percent to N2.6 million from N55million in 2017, making little of the 549 percent gain or N4.5 million finance income for the nine months to July 2018.

Tax expense grew 157.4 percent as Greif recorded a loss after tax to the tune of N24.8 million even though it had posted a profit after tax of N44.4 million in the corresponding period of 2017.

Earnings per share, as a result, fell into the negative territory as shareholders lost N1.19 per share compared to N2.11 gained in 2017.

Thursday 07 February 2019

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Equities Market

Why NSE slapped N429.5m on 38 companies OLUIFIKAYO OWOEYE

T

he Nigerian Stock Exchange imposed a total of N429.5m in fines on companies that failed to file their financial statements as of and when due last year.

The latest data obtained from NSE’s X-Compliance Report showed that the fines were slammed on 38 companies for 52 offences at different times.

Top on the list of erring companies include Unity Bank Plc, FTN Cocoa Processors Plc, Academy Press Plc, Union Dicon Salt Plc, and Standard Alliance Insurance Plc. Unity Bank got the highest fine

of N79.7m, while FTN Cocoa Processors was slammed with a fine of N78.7m.

Unity Bank and FTN Cocoa Processors were penalised for failing to file their audited financial statements for 2017, the first quarter of 2018, half-year 2018 and the third quarter of 2018.

Academy Press was fined N35m

for failure to submit its audited 2017 financial statement at the due date.

Union Dicon got the fourth highest fine of N30.8m for late submission of its first quarter and half-year 2018 financial statements.

Standard Alliance was fined N28.7m for failure to file its audited financial reports for 2017 and the first quarter of 2018.

The NSE noted that the sanctions were applied in accordance with the rules for the filing of accounts and treatment of default filing, rulebook of the Exchange (Issuers’ rules).

It said listing on the Exchange would provide listed firms with a strongly regulated operating envi-

ronment, transparent transactions, competitive prices, access to a large pool of domestic and international investors, efficient and advanced trading platform and efficient investor protection regime.

The bourse added that postlisting on the Exchange required certain obligations to be met.

One of the obligations, accord-

ing to the NSE, is the filing of financial statements as of and when due.

The report also revealed that five firms were delisted from the Exchange in 2018.

Three of them, namely SevenUp Bottling Company Plc, Paints and Coatings Manufacturers Nigeria Plc and Great Nigeria Insurance Plc, left the Exchange voluntarily.

The other two firms, African Paints Nigeria Plc, and Afrik Pharmaceuticals Plc were delisted on regulatory grounds.

Great Nigeria Insurance said in December that its listing on the NSE brought no benefit to it or its shareholders.

In an explanatory note to shareholders on its voluntary delisting, the firm said over the last five years, there had been little or no trading activity on the shares held by the minority shareholders.

It said there had also been a considerable fall in trading volumes over the last 12 months with an average daily volume of circa 1,200 units during the period March 2017 to March 2018.

The note read in part, “Shareholders are not benefiting from the continued listing as they are not getting any exit opportunity and their investments have been locked up as they find it difficult to dispose of their shareholding.

“Neither has the company benefited from listing on the Exchange as the company’s shares continue to trade at a significant discount to the intrinsic value. Moreover, the company is bearing unnecessary cost in complying with its listing obligations.”

The firm said the voluntary delisting would enable its directors to exercise a regulatory provision that would shield it from any enforcement of action that the Exchange might effect, such as the outstanding free float deficiency.

The Chief Executive Officer, NSE, Mr. Oscar Onyema, said last month that the Exchange would reduce the compliance burden on listed firms.

Onyema said, “We are trying to make sure that we continue to give listed companies value. We recently sent letters to all chief executive officers of firms and encouraged them to engage with us.

“So, we cannot stop a company from leaving if they feel their listing on the Exchange is not in alignment with their business goals. However, we are mindful of the burden of compliance and we are trying to reduce it. We are not interested in issuing fines.”

INDUSTRIAL GOODS

Furniture maker gives 50% discount to beat competitors

L-R: Obi Asika, founder/chairman, Dragon Africa; Austine Abolusoro, group head, online banking, United Bank for Africa, (UBA Plc); Lola Obembe, head, of product marketing, UBA, and Onyebuchi Akosa, group chief information officer, UBA, at the 2019, edition of Social Media week held in Lagos.

L-R: Iyke Ejimofor, executive secretary, Nigeria-South Africa Chamber of Commerce; Sam Oniovosa, treasurer, Nigeria South Africa Chamber of Commerce; Bobby Moroe, acting high commissioner of South Africa to Nigeria; Kikelomo Longe, principal, Capital Alliance of Nigeria; Yewande Sadiku, executive secretary/ CEO, Nigerian Investment Promotion Commission; Foluso Phillips, chairman, Nigeria-South Africa Chamber of Commerce; Andre Okonta, head of operations, Protection Plus Services Ltd, and Ohis Ehimiaghe, director, Nigeria-South Africa Chamber of Commerce, at the January 2019 Breakfast Forum.

L-R: Ibrahim Mashi, project manager, The Bridge Peridot; Olayinka Braimoh, CEO, Hall 7 Real Estate; Timi Dakolo, Nigerian singer and song writer, and Ayo Makun, Nigerian actor, comedian, radio and TV presenter, during the commissioning of the Bridge apartments and town houses in Lagos

…celebrates customers on Chinese new year GBEMI FAMINU

T

op-notch furniture maker, Lifemate Nigeria, is giving 50 percent discount on all purchases as it seeks bigger share of the Nigerian market.

Onyia Clara, marketing manager for channels department, Lifemate Nigeria Dealers, said the firm was taking time to appreciate all customers for their patronage over the years. She said the furniture maker was engaging customers in an interactive session to understand them better.

She further stated that it was an opportunity to introduce and familiarise them with the Chinese culture.

“We have customers who have been dealing with us for

over eight years and we just have to appreciate them. At Lifemate we ensure that we give our customers value for their money which makes them come back for more,” she said, adding that the company had engaged a number of Nigerians as workers.

Orebayo Ejiemhen, public relations officer for Lifemate Nigeria, said Lifemate Nigeria was giving customers 50 percent discount on any of their purchases till the 9th of February to say thank you to them and in appreciation of their continued patronage over the years and to welcome new customers on board.

Tope Babade, who has been Lifemate Nigeria’s customer for five years, commended the furniture company for always

providing excellent services and giving customers value for their money. He appreciated the firm for exposure to the Chinese culture, which he said was beautiful.

Lucky, Lifemate Nigeria’s customer for eight years, commended the furniture company for its services over the years, which he said has been top notch. He further appreciated them for employing Nigerians, even in executive positions.

The firm, which is of Chinese origin, celebrated its new year over the weekend for customers.

Lifemate Furniture, which began its Nigerian operations in 2006, took time to celebrate its old and prospective customers.

MultiChoice Nigeria at the Social Media Week L-R: Soji Ogundoyin, co-founder, S&T Media; Ben Onwe, country head, digital strategy & sales, Ringier Africa Digital (RADP); David Adeleke, moderator; Ngozi Madueke-Dozie, Kwese iflix marketing manager-West Africa, and Martin Mabutho, chief customer officer, MultiChoice Nigeria, during a section on “The Business of New Media” at the Social Media Week 2019 in Lagos.

Pic by Pius Okeosisi

16

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In association with

Helping you to build wealth & make wise decisions NSE All Share Index

Market capitalisation

NSE Premium Index

The NSE-Main Board

NSE ASeM Index

2,165.23

399.27

793.81

Week open 25 – 01–19)

31,070.0 31,426.63

N11.721 trillion

N11.719 trillion

2,192.43

1,440.86

791.08

Week close (01 – 02–19)

30,636.36

N11.424 trillion

2,142.64

1,401.84

790.06

Year Open

Percentage change (WoW)

-2.51

Percentage change (YTD)

-2.53

-2.27 -2.39

NSE Lotus II

NSE Ind. Goods Index

NSE Pension Index

300.24

2,218.37

1,222.99

1,201.80

720.88

278.95

2,275.78

1,318.97

1,212.84

696.73

279.09

2,229.21

1,270.52

1,178.76

NSE Banking Index

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

1,399.64

399.27

124.82

1,402.97 1,366.69

406.64

124.75

396.59

121.98

NSE 30 Index

-2.71

-0.13

-2.59

-2.64

-0.47

-3.56

-2.47 -0.59

-2.22 -3.56

731.57

-3.35 6.96

0.05 -7.66

-2.05 -0.21

-3.67 2.64

-2.81 -2.38

Nervous investors are staying away from stocks …value counters see remarkable dip year-to-date HEANYI NWACHUKWU

M

any investors at the Lagos bourse are still afraid to buy more stocks as Nigeria’s mucky political climate continues to cause prices of many value stocks to downtrend.

Amid this scenario, smart investors are taking advantage of existing attractive entry prices in fundamentally sound stocks despite that most stocks in some analysts’ watch-list have fallen off price targets.

“Our outlook for equities in the short-to-medium term remains conservative, in the absence of a near term positive catalyst and amidst brewing political concerns”, according to Lagos-based research analysts at Cordros Capital in their February 4 note.

Price list of stocks as at Monday February 4 revealed those that have recorded low patronage on Custom Street with resultant impact on their prices this year.

They are Academy Press which has lost 18percent of its value this year, Access Bank (-8.8percent), Newrest ASL Nigeria (-18.4percent), Berger Paints (-18.6percent), Beta Glass (-12.2percent), BOC Gas (-10percent), Chemical and Allied Products (-8.9percent), C h a m p i o n B re w e r i e s P l c (-18.6percent), Dangote Flourmills Plc (-12.4percent), Dangote Sugar Refinery Plc

( - 8 . 5 p e rc e n t ) , Et e r n a P l c (-9.6percent), and FBN Holdings (-6.9percent).

In t h e t ra d i ng w e e k t o February 1, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) depreciated by 2.51percent to 30,636.36 points as against 31,426.63 points recorded in stock trading week ended January 25, 2019. Also, at N11.424trillion the market capitalisation stood lower compared to N11.719 trillion. It implies that stocks lost about N295billion last week.

“As we move into a new month, we maintain our bearish outlook on the market, although the earnings season could see market rally in the period”, said analysts at Afrinvest in their

February 4 note to investors.

“In line with trend in the past few weeks, we see the possibility of a recovery in the market this week driven by bargain hunters.

That said, though we expect cautious sentiment to remain prevalent ahead of the elections, we foresee select fund managers taking positions in beaten down stocks as the elections draw closer,” said Vetiva Research analysts in their February 4 ‘Breakfast Report’.

O t h e r s t o ck s t hat hav e underperformed this year are: Fidson (-5.1percent), First Aluminum (-11.1percent), Flourmills (-19.7percent), Forte Oil (-5.9percent), GlaxoSmithKline (-17.2percent),

GTBank (-1.7percent), Guinness (-9.7percent), Honeywell Flourmills (-3.9percent), International Breweries (-0.8percent), Jaiz Bank (-2percent), Japaul Oil ( - 4 . 8 p e rc e nt ) , L aw Un i o n (-15percent), and Meyer (-8.5percent).

Mobil Oil has lost 3p ercent of its pr ice this y e a r, M R S ( - 9 . 9 p e r c e n t ) , Nahco (-5.5percent), Nascon (-2.8percent), Nigerian Breweries (-8.9percent), Neimeth (-15.4percent), NEM Insurance (-9.3percent), Nestle (-4.4percent), Niger Insurance (-8.3percent), Northern Nigeria Flour Mills (-17.7percent), NPF Microfinance Bank

(-13.3percent), Oando (-3percent), Presco (-6.3percent), PZ Cussons (-6.6percent), Seplat (-17.2percent), Sovereign Trust Insurance (-4.76p ercent), Stanbic IBTC (-4.1percent), and Transcorp (-2.3percent).

UAC of Nigeria Plc has lost 7.7percent of its year-open share price, while UAC Property Development Company Plc has declined this year by 5.2percent.

Others underperformers are: UBA Plc (-6.5percent), Unilever (-0.3percent), Unity Bank (-23.4percent), University Press (-0.9percent), Veritas Kapital (-16percent), Lafarge Africa (-0.4percent), Wapic (-4.8percent) and Zenith Bank (-0.7percent).

18

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United Capital Investment Views

Investor’s Square

Bears rule the roost

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

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

E-mail: iheanyi.nwachukwu@businessdayonline.com

T

he domestic bourse pared gains recorded in previous weeks following the consistent downturn that clogged market performance through the trading sessions in the week save for the last trading day where the market closed marginally up. This predicated a -2.5percent decline in the NSEASI to close at 30636.4 points. Consequently, investors wealth shrank as market capitalization shed N294.7billion w/w to settle at N11.4trillion while YTD return worsened to -2.5percent.

Performance across sectors was generally bearish as four out of the six sectors under our watch closed in red territory. The Industrial Goods (-3.7percent) sector was the week’s biggest loser, dragged by selloff in DANGCEM (-2.1percent).

The Consumer goods (-3.4percent), Banking (-2.5percent) and Insurance (-2.2percent) sector indices also gave way to the bears battle following price depreciation in NESTLE (-2.1percent), GUARANTY (-2.3percent) and NIGERINS (-15.4percent). On the flip side, only the Oil and Gas sector (+0.1percent) recorded a green close, owing to price gains in TOTAL (+4.1percent).

Investors sentiment was underwhelming as market breadth close the week at 0.4x; 16 sectors advanced as against 41 that declined.

Looking ahead into the new week, we expect investors sentiment around events in the political space to continue to guide market performance as the general elections draw nearer.

Money Market: CBN sustains aggressive liquidity tightening stance The week to 1st February was flooded with liquidity as bond coupon payments (N49.6billion), FAAC credits (N312billion), T-bills maturity (N254.6billion) and OMO maturity (N192billion), cumulatively totaling c.

N808.3billion flowed into the system, prompting mop-up action by the CBN via OMO auctions (N585.3billion) on three of the week’s five trading days.

Overall system liquidity was further drained by the CBN’s weekly FX intervention, as well as its bond and T-bills auction. Accordingly, money market rates (OBB and overnight rates) lowered but remained in the doubledigit region, averaging 10.7percent (previously 17percent). On the side, stop rates at the primary OMO auction remained unchanged; 91-day: 11.9percent, 182-day: 13.5percent, and 364-day: 15percent.

The Apex Bank conducted its biweekly Nigerian Treasury Bill (NTB) auction, successfully rolling over N254.6bn at the following stop rates: 91-day (11percent versus 11percent at the last auction), 182-day: (13.5percent versus 13.1percent at the last auction), 364-day: (15percent versus 15percent at the last auction).

Demand was modest with an average bid-to-cover ratio of 1.2x and with the 182-day bill recording the softest demand (bid-to-cover ratio of 1.0x). In the secondary treasury bills market, sentiments were mixed with matching interests from both the bulls and the bears. Overall, average T-bills yield traded sideways to settle at 14.4percent, with most of the demand seen at the lower end of the yield curve. More specifically, the 91-day bill closed 88bps lower to end at 12percent, while the 182-day bill and 364-day bill closed 6bps and 29bps higher to finish at 14.3percent and 17.5percent respectively.

This week, we expect money market rates to continue to price in system liquidity dynamics and given the CBN’s aggressive stance on liquidity, we expect more OMO auctions and FX intervention funding

this week.

Bond Market: DMO allots only 78percent of offer amid rate cut In the bonds space, the Debt Management Office (DMO) conducted its first monthly primary market auction of FGN bonds for 2019. The DMO was initially looking to raise N150billion, which attracted a bid of N197billion but the fiscal authority ended up selling only N117billion (78percent of the amount it was looking to raise) – as the range of bids were beyond the DMO’s target for the auction.

Overall, the auction was carried out at the following stop rates: 5-year (15.20percent versus 15.25percent at the last auction), 7-year (15.25percent versus 15.50percent at the last auction) and 10-year (15.35percent versus 15.50percent at the last auction) In the secondary market, sentiment was largely bullish, following dovish signs from the US Fed, which gave the bulls some legs to run. Consequently, FGN bond yields traded lower on average to close at 14.9percent (prior week: 15.1percent).

Additionally, the average yield for FGN Eurobond declined from 7.3percent to 7.1percent while average yields in corporate Eurobonds stayed flat

Reserve policy meeting, Brexit, and US-China trade talks, which all converged to create a backdrop for trading sentiments.

Jan-19 ended with a “delight” as the Federal Open Market Committee (FOMC) kept rates steady at a range of 2.25percent - 2.50percent (as widely anticipated), signaling that it would be ‘patient’ over rate hikes, and that it would be more flexible in adjusting its balance sheet policy. This was perceived as a policy shift by investors, resulting in a U.S. dollar sell-off. This development also bolstered the rally that was activated by Jerome Powell’s promise of ‘patience’ on rate rises on the 4th of January.

Accordingly, the DJIA (+1.3percent), the S&P 500 index (+1.6percent) and the Nasdaq Composite Index (+1.4percent) all trended northwards. It is also worth pointing out that the S&P 500 index recorded its strongest January gain since 1987, catalyzed by the “double blessing” of stronger-than-expected earnings and the dovish stance from the Federal Reserve.

In other news, both the US and China are citing progress on trade talks in Washington, but there has been no word on a breakthrough that could

at 9.2percent. Making sense of the DMO’s stance at the auction – which gives some guidance on its position on local debt going forward - we expect to see some buy-side activity this week, especially on the 10-year paper which had the most unfilled auction subscription in light of the DMO’s cut off.

Foreign Exchange: FX rates appreciate at parallel market In the Foreign exchange market, the local currency strengthened against the dollar on 2 of the 3 segments we actively track. The naira appreciated against the greenback at the parallel and official segment by 83bps and 2bps w/w to settle at N359.5/$ and N306.8/$1 respectively.

However, the naira depreciated marginally by 7bps at the Investors and Exporters window to close at N362.7/$.

This was as the CBN continued to provide support for the local unit via its sustained weekly FX intervention in the wholesale and retail FX market.

Also, FX reserves accreted marginally by 14bps w/w to c. $43.2bn as at Thursday, maintaining its recent uptrend despite the Apex banks sustained intervention in the currency market.

Looking ahead, we expect the sustained weekly FX intervention by the CBN to continue to support the local unit at N360-N365/$1, at the I & E window. In the meantime, an above $60/b oil and the potential return of FPIs amid a now dovish US Fed, are all positive factors for reserves.

Global Market Review and Outlook Markets cheer Fed’s decision The week to the 1st of February 2019 was an action-packed week, characterized by the US Federal

potentially end the conflict. Hence, as we approach the end of the 90-day tariff ceasefire (1 March 2019) that U.S. President (Donald Trump) and Chinese President (Xi Jinping) agreed on, we expect this political overlay to remain a source of volatility in the global market.

European markets rallied – just as well as the rest of the world – predicated on positive microeconomic data, as well as “Fed-induced bulls”.

Overall, the Pan-European STOXX climbed +0.5percent as the UK’s FTSE rose +3.1percent, while France’s CAC advanced +1.1percent, though Germany’s DAX recorded a -0.9percent pullback on the backdrop of weaker manufacturing data.

Looking ahead, with the UK’s exit from Europe fast approaching (29 March 2019), and a compromise over Brexit conditions still up in the air, markets would have to navigate this political overlay, alongside other Eurozone weakness such as burgeoning Italian debt, worker unrest in France, amongst others.

Emerging markets also got a boost from the Fed’s new dovish tone. Only the South African JALSH (-0.2percent) index dipped w/w following Investor concerns about President Cyril Ramaphosa’s ability to implement much-needed reforms amid upcoming elections in May. However, Brazil’s IBOV (+0.2percent), Russia’s RTSI (+1.6percent), India’s SENSEX (+1.2percent) and China’s SCHOMP (+0.6percent) all advanced.

In the week ahead, interest rate decisions are due in the U.K., India, Mexico, Australia, Brazil and across eastern Europe. Additionally, this week should also feature economic reports that were delayed by the historical 35-day shutdown in the US.

FMDQ Learning

Introduction to Commercial Paper

T

he December 2018 edition of the FMDQ Spotlight provided an overview of Green Bond Financing as a subset o f Su st a i nab l e Fi na n c e, including the green bond principles, the uses of green bond proceeds and how these proceeds can be managed.

This month’s edition, however, will focuson one of FMDQ’s shortterm DCM products, Commercial Paper (CP).

What is Comm erc ial Paper A CP is a financial instrument (maximum 270 days tenor), consisting of unsecured and discounted promissory notes issued by institutions to meet shortterm debt obligations.

CPs are debt instruments in the money market and a source of financing for investment-grade issuers.

CPs are commonly issued by companies with high credit ratings and therefore fall within the low risk asset classes. Commercial papers are classified as unsecured debt because they are not usually backed by any form of collateral. As a result, only firms with high-quality debt ratings will easily find buyers without having to offer a substantial discount (higher cost) for the debt issue, or secure the paper with a guarantee from another company with high credit rating (Guaranteed CP).

Features of Commercial Paper CP is a short-term money market instrument with a fixed maturity dates CP is issued at a discount to face value basis, but it can also be issued in interest-bearing form At maturity, the CP issuer pays the amount due to the holder of the CP A financial institution (e.g. bank, discount house, investment bank) acts as agent for a CP issue, arranging and selling the paper to investors Companies that issue CPs usually have favourable credit rating Advantages of Commercial Paper CP offer higher yields than most other money market instrument CP is a liquid instrument with very strong secondary market trading possibilities It provides risk diversification for investors It provides an alternative for raising short-term capital for issuers Commercial Paper Market in Nigeria CPs were introduced in

Nigeria in 1962 to finance the export-marketing operations of the Northern Marketing Board. Under that arrangement, the Marketing Boards met their cash requirements by drawing ninety-day (90-day) bills of exchange on the Boards. The bills were then discounted with the commercial banks participating in the scheme.

The role of the CBN at the time, was to provide rediscounting facilities for the bills and in 1968, the CBN took over the responsibility from the Marketing Boards. The main participants in Nigeria’s CP market were the banks and discount houses. At its peak in 2011, the CP market was worth about N190.00 billion per month. However, the growth of the market was severely hampered by the flagrant abuse of the CPs by market participants. To curtail such activities, the CBN issued the” Guidelines on the Issuance and Treatment of Bankers’ Acceptances and Commercial Paper [2009]. The guidelines provided a more restrictive regulatory regime than had been obtainable before its implementation.

The resultant effect was a slowdown in market activity from when the guidelines

integrity and efficienc y, thereby regaining the lost interest and confidence in the Nigerian CP market, by adopting initiatives specifically targeted at achieving the objective to revive the market.

Transparency, price discovery, liquidity, rollover governance (i.e. matured CPs are approved for rollover only with the consent of investors), efficient quotation processes are some of the transformation elements now evident in the Nigerian CP market today. Issuers and investors alike, are now able to effectively and sustainably contribute to the development of the nation’s debt markets.

There now appears to be hope for businesses looking to tap the debt market for s h o r t- t e r m c a p i t a l a n d investors looking to diversify their portfolios, as the FMDQc ha m p i o n e d C P ma rk e t reform since 2014, which was predicated on the back of the CBN Guidelines, has contributed, in no small measure, to the revival of the activities in the CP market. It has provided issuers renewed opportunity to grow their businesses and meet shortterm funding obligations as

became effective. The market saw the sharp decline from trillions worth of CP transactions to zero le vels by 2013, an d t his was the status until 2014.

FMD Q, having made the decision to embark on key initiatives and strategies for the restoration of the Nigerian CP market back in 2014, released the FMDQ Commercial Paper Quotation Rules & Process in 2014, and focused efforts and the requisite resources to organise and resuscitate the undeniably extremely important market.

FMDQ took crucial steps towards promoting transparency, governance,

well as restoring the muchneeded confidence required by i nve st o r s t o a c t i ve l y participate in the market.

The CP market has crossed over N1trillion in value from it zero levels in 2013.

FMDQ has ably embraced the role of a change agent in the Nigerian financial market and it is expected that it will not rest on it oars but continue to deploy initiatives to improve the prosperity of all categories of capital raising, investing and trading stakeholders governments, businesses, and individuals – through its compelling activities and use of technology in promoting access to capital.

Thursday 07 February 2019

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19

Investor

Helping you to build wealth & make wise decisions

Market review:

Guinness: Expected pressure on revenue stains stock outlook

…United Capital says ‘Buy’ as FBNQuest sees ‘Underperform’ HEANYI NWACHUKWU

R

esearch analysts have unleashed var ied opinions relating to the future performance of the share price of Guinness Nigeria Plc. This follows the brewer’s recently released half year (H1) unaudited financial statements for the period ended December 31, 2018.

For the research analysts at United Capital Plc, Guinness Nigeria Plc is a stock to ‘buy’ despite acknowledging that the competition in the brewery space, coming largely from International Breweries Plc brands will intensify and continue to pressure Guinness’ top-line, especially in its beer category.

The analysts who reviewed their Target Price (TP) for Guinness Nigeria Plc stock to N74.7 expect to see the company’s operation stabilising by full year FY-2018/2019 “as the low debt burden, continues to impact positively on overall bottom-line position.” Their 12month target price downward to N74.7 per share translates to 14.9percent upside. “We place a BUY rating on the stock,” United Capital noted.

In their February 5 note to investors, FBNQuest Research said their new price target of N60.3 for Guinness Nigeria Plc shares is around 4percent higher “because we have rolled over our valuation to 2020E.” “From current levels, our new price target implies a potential downside of -7percent. Despite this modest downside, we retain

our Underperform rating, given a weak earnings outlook over the near-to-medium term”,FBNQuest said.

On January 30, Guinness Nigeria Plc released its half year (H1) unaudited financial statements which show the company closed the H1’18 period with revenue of N67.79billion, representing a decline of about 3.91percent when compared to N70.55billion in H1’2017. The brewer reported N2.57billion in profit after tax (PAT), representing an increase of about 20.65percent when compared to N2.13billion profit in same period of 2017.

Guinness Nigeria Plc profit before tax (PBT) of N3.79billion in H1’18 as against N3.54billion in H1’18 implies an increase of 7.06percent in the review period.

Its gross profit in the H1’18 period at N20.49percent against N23.99billion implies a decline of about 14.58percent. Operating profit of N4.63billion in H1’18 as against N6.64billion in H1’17 represents 30.27percent decline.

In the review month, its Basic Earnings Per Share (EPS) stood at 118kobo as against 141kobo in H1’17. As at Tuesday February 5, 2019 Guinness share price at N65 represents a decline of 9.7percent this year. The company’s share price had reached a 52-week high of N114 and a 52-week low of N63.

“The inability to passon the graduated excise duty to consumers amid sustained inflationary pressures and slowing economic growth is a major downside risk. However, a potential implementation of a N30,000 national minimum

wage is positive for discretionary consumption spending”, United Capital analysts added.

United Capital Research The decline in the topline numbers was linked to slow growth in its Lager and Ready-toDrink (RTD) category amid heated competition for market share within the sector. We update our estimates for the brewer based on the recently published numbers and review our expectations for H2-18/19 below.

Weaker Beer & RTDS volumes offset gains from Spirits and APNADs: Of the top 3 brewers in the country GUINNESS has the most diversified product portfolio and this has given it a soft landing to withstand growing competition from other sector participants and sluggish growth in the overall economy. Despite its diversified portfolio, the beer segment continues to contribute largely (c. 80percent) to topline while Spirit contribution, though growing, remains weak.

According to our discussion with management, GUINNESS recorded a mild decline in Revenue from Nigerian market, down 5.5percent year-on-year (y/y) to N63.4billion in H1-18/19 as weaker beer and RTDS volumes eroded gains from fast-growing Spirits and Adult Premium Nonalcoholic Drinks (APNADs).

Meanwhile, export Revenue grew sharply by 27.9percent y/y to N4.4billion, due to accessibility to better distribution channels and recent approval, granted to GUINNESS by its parent company, to brew International brands locally (such as Smirnoff,

Gordons, and McDowell, with more in the pipeline).

Gross profit fell 14.6percent as a result of a contraction in net sales as well as inflationary pressure on raw material costs

financial year.

A healthy Balance Sheet position: Following the conclusion of the Rights issue in 2018, which was used to delever the company balance sheet,

by mid-single digits. Other key segments delivered flattish-tomodest sales growth in naira terms, with the fastest growth coming from spirits. The other key positives from the Q2

and lower fixed cost absorption.

Consequently, operating Profit fell sharply, down 35.8percent y/y to N3billion despite improvement in OPEX. Initiatives around marketing spend, distribution expenses and administrative expenses mitigated some inflationary pressure on cost of sales. On the other hand, PBT and PAT improved to N3.8billion and N2.6billion respectively.

This was driven by lower finance charges, as a result of the 2017 Rights issue, which more than offset operating profit decline in a challenging operating environment. Additionally, Costto-Sales ratio rose to 69.8percent from 66percent in the prior period while the trailing 12-month Net margin and ROE remained weak at 5.1percent and 8.3percent compared to 5-year historical averages of 9.5percent and 10percent respectively.

Trailing 12-month Overall, EPS declined marginally from N1.41/share to N1.18/share due to the full dilution effect of the newly issued Rights which was concluded during the 2018

debt stock (short and long-term loans and borrowings) has since declined by 62.2percent from N34.4billion at the end of 2017 to N13billion as at H1-18/19.

Over the review period, GUINNESS’ Debt/Equity ratio improved to 15.1percent from 15.7percent in FY-17/18 while its Total Asset/Total Liabilities remains in a comfortable position of 47.5percent as Total Liabilities grew faster by 18.8percent.

FBNQuest Research G u i n n e s s N i g e r i a ’s (Guinness) Q2 2019 (endDec) earnings were behind our forecasts. Guinness’s performance in our view was reflective of inflationary cost pressures - that could not be passed on - and an unfavourable excise tax regime. The results also suggest that Guinness was hit hardest by competitive headwinds in the lager market (70percent of the beer market).

Ma n a g e m e n t c i t e d a -13percent y/y loss of volumes in H1 2019, driven by the lager segment. To provide some context, ex-lager, volumes grew

performance were opex and net interest expense declines of -11percent and -17percent y/y respectively.

T h e s e w e re h o w e v e r not strong enough to drive earnings growth. Beyond H1, we see Guinness pushing ahead with moves aimed at solidifying its position in the spirits market. We also expect brands such as Dubic malt (priced competitively) and Orijin Zero (on the back of a rising trend of “healthification”) to drive volumes in the non-alcoholic business. That said, trading conditions are likely to remain tough in the beer category (c.40percent of total sales) in the face of cut-throat competition.

We therefore expect gross margins to be subdued. On top of these challenges, another round of excise tax increase this year will keep the pressure on topline growth. Consequently, we have cut our EPS forecasts by around -11percent on average over the 2019-21E period.

Stock investors still made money in January HEANYI NWACHUKWU

I

n the absence of a nearterm positive catalyst amidst brewing political concerns, most analysts have chosen to remain conservative in their outlook for equities in the short-to-medium term. Despite this, many informed investors still made cool money from the equity market last month as others chose to be cautious.

The election activities that dominate this first quarter (Q1) of of 2019 may have deterred investors throughout the first

month in this first-quarter, but smart buying is still an important feature of successful stock investors.

While the performance gauge of Nigerian stock market showed a decline of about 2.78percent in January 2019, many stocks still outperformed the NSE All Share Index (ASI).

The stock market opened this year with record value of N11.721 trillion, but as at Friday February 1, 2019 the value of listed stocks stood at N11.424trillion, representing a decline of about N297billion.

Investors made money from stocks like C&I Leasing

Plc which gained 407.87percent in January. Also in the review month that just ended, Cement Company of Northern Nigeria Plc was up by 23.71percent; Julius Berger Nigeria Plc (+29.35percent) and Sterling Bank Plc (+25.79percent).

Others stocks which investors who never sold till January 31 made money from are: ABC Transport Plc (+17.24percent); Africa Prudential Plc (+6.98percent); AGLeventis Plc (+7.41percent); AIICO Insurance Plc (+1.59percent); and Carverton Plc (+14.58percent).

Cornerstone Insurance Plc advanced by 10 percent,

Custodian & Allied Plc (+9.73percent); Cutix Plc (+9.76percent); Dangote Cement Plc (+0.16percent); Diamond Bank Plc (+3.21percent); and FCMB Group Plc (+4.23percent).

Ahead of the expected recovering in second-half (H2) of 2019, many smart investors are strategically buying value stocks following the bear reign in the market which pushed many equities to new lows.

These investors positive outlook for the stock market in H2 comes on the heels of many analysts reiterating their bearish outlook for this H1 amid political uncertainties which

cloud investors’ sentiment as the election draws nearer.

As value-investing strategy remains the key to approaching on Custom Street in 2019, investors are seen selecting companies that are in good business with sound fundamentals, whose share prices are trading below their fair values. Also considered are in the investors’ stock picks are equities with history of dividend payment.

Fidelity Bank Plc gained 8.37percent last month; Forte Oil Plc (+2.79percent); John Holt Plc (9.09percent); Learn Africa Plc (+0.74percent); Livestock

Feeds Plc (+8.16percent); AXA Mansard Plc (+3.83percent); Mutual Benefit Plc (+4.76percent); Okomu Oil Palm Plc (+7.61percent); Prestige Assurance Plc (+4percent); RedStar Express Plc (+19.05percent); and Regency Alliance Plc (4.76percent); and Royal Exchange Plc (+31.82percent).

Sunu Assurance Plc stock price advanced last month by 10 percent; Total Nigeria Plc (+10percent); Transnational Express Plc (+6.15percent); Union Bank of Nigeria Plc (+11.61percent); United Capital Plc (+12.41percent); Union

20

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CEO INTERVIEW

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BUSINESS DAY

21

FEMI AKINTUNDE Group Managing Director/CEO, Alpha Mead Group

Interview with Private Sector Leaders

‘Oil price and Naira value are key real estate business fundamentals to watch in 2019’

Projections in terms of outlook for the real estate sector in 2019 are neither bright nor promising and this is due to a combination of factors that will have a pulling-down effect on the struggling sector. FEMI AKINTUNDE, Group Managing Director/CEO, Alpha Mead Group, in this interview with CHUKA UROKO, Property Editor, highlights some key fundamentals, including oil price, the upcoming general elections results, and Nigeria’s tottering macro-economy, that will impact on the sector in 2019. He also speaks on other salient issues, including Alpha Mead in a challenging business environment. Excerpts

L

ast year, there were incremental improvements in the real estate sector, but it still remained in the negative territory in terms of growth. Why is this so and what are we to expect in 2019?

The real estate sector is a laggard in the economic structure for several reasons, particularly in its position in the priority of people. That is what people take as something that impacts their lives. In the hierarchy of man’s needs, food comes first, shelter follows and then housing.

Another reason is the nature of the capital required for investment in real estate. Generally, real estate investment is not the kind of thing you do on short-term basis. You have to plan for it.

Generally, 2018 followed the same trajectory as the two previous years. From 2015, it has been a battle in the economy. The year 2017 was particularly difficult because that was the year we entered recession. We expected performance in 2018 to be far better than what we saw eventually. It was not as exciting as we expected especially as it ended the year with just 1.8 percent contribution to GDP. Real estate still remains in the negative and when you project this into 2019, you will be looking at certain key fundamentals that will determine the direction of the sector.

What are these key fundamentals and how are they going to impact on the sector this year?

The first is the oil price. About 80 percent of Nigeria’s foreign earning still comes from oil despite all the efforts of the federal government towards diversification. We cannot deny the efforts being made but when you look at the size of the economy or the problem you are dealing with, you will see that we need something more dramatic and faster than what we are seeing.

The direction is good, looking at agriculture and solid minerals.

Yet we need to be more strategic and dramatic. The reform has to be faster and the impact deeper. We see that efforts are being made but they need to be accelerated.

Thinking of any sector that is going to impact the economy greatly, it is oil and gas which is an international commodity. The trade tension between America and China which are global giants is critical because, if that continues, it is going to affect oil demand.

China is going to be making great strides in the area of developing alternative energy. If what we are seeing is not well addressed, trade among nations will be affected and

when this happens, it will dampen demand to some extent.

The oil revenue is going to be very critical to what is going to happen to Nigeria in 2019. The impact of oil revenue is going to come from two sides—production and pricing.

Globally, we see the price of oil hovering between $65—$70 per barrel. What that means is that the $60 per barrel projected in the 2019 budget is over-estimated. What is normally done for budgeting purposes is to have $10 reduction from the prevailing crude oil price. So, to be on the safe side, the projection should have been $55 per barrel.

We expect that there will be a cut in both production level and production quota from OPEC. General elections in Nigeria are just a few days away from today. There is apprehension everywhere. To what extent is this impacting or going to impact on the real estate sector?

Election is also a key fundamental that will impact the real estate sector this year. The country will be going for a general election in few days and this is going to affect the real estate sector significantly.

The election will introduce a lot of uncertainties in the economy because, especially if it goes the way people are expecting. Right now, the feeling is that the decision will swing between two parties.

Nobody knows yet what is exactly going to happen. Anything could happen in the last minute. So, we should leave that part of the election hanging.

If the sitting government comes back, that will have its pros and cons. But the concern here is for the election to go free, fair and peaceful. If we are able to achieve this, whoever comes to power, we have to live in peace. What this

uncertainty has done is that there has been a flow of funds in the economy and it is going to affect the real estate sector until sometimes around the end of the second quarter of this year.

Capital, it is said, goes where it is welcome and stays where it is well treated. What, in your view, is going to be the impact of political stability and transition on real estate investment?

Between now and election day, the fear is whether election goes well or not. People are mindful of policy inconsistency or reversals.

After election, the next problem is about settling down by whichever party that comes in. Our last experience was not good at all. It took the government up to six months before it could form the cabinet. The business community is worried about this such that if a new government comes in today and is not ready with its economic blueprint, structure and strategy; if it takes a long time before government gets running, it will be another major issue for businesses and that will ultimately impact on the real estate sector.

Another issue is the impact of the financial sector. A lot of what drives real estate has to do with finance. So, whenever we are talking like this and we are looking at the economic part of it, it is because we recognise how significant it can be. This sector is capital-intensive and so, economy and politics play significant roles in what becomes of the sector.

Looking at the present macro-economic environment in Nigeria and what is expected to happen after elections, what are your fears, if any?

Real estate sector is still in recession. Inflation rate, currently, is

nies are going to survive under this uncertain and challenging period.

Government has to help on how to get development capital. The real estate industry needs more patient capital. The capital that is available is too little; it is short term and very expensive. We cannot use fund that is short term to drive a long-term investment strategy.

Real estate is not short term. So, when you are talking of a debt that is one year or two years, you cannot be relating it to a development that lasts cycles and each cycle lasts for 24-36 months.

Before you finish building, you will be at a point where you will start paying back the loan you have taken. Don’t forget that property sales also have its own cycles and it is extremely difficult under the present economic condition. We find ourselves in very difficult situation and that is why companies that will survive this year are those that are resilient. Companies need strategies that are apt and dynamic.

This is because a strategy formulated today may not work next month because something can just happen in the environment that can turn that strategy upside down.

about 11.44 percent. It is projected that it is going to be about 13 percent next year. What this means is that the real value of everybody’s investment is going to be discounted against that figure. So, looking at our N8.8 trillion 2019 budget, it has to be discounted by 13 percent in terms of the real value of the naira.

That will further depress revenue and take the country further into deficit budget.

How government will manage that and be able to contain inflation and key events that are going to happen this year remains a matter of conjecture. We know that election has to do with spending, meaning that there will be a of lot money out there in the system.

Another critical factor to be mindful of is the on-going negotiation on minimum wage. Depending on which direction that goes, it is going to increase inflation. If inflation goes up, the price of everything will go up, including material inputs for real estate. So, while we are talking about affordable housing, we are also talking about facilities management, including ability to pay rent, service charge, etc. Inflation will put pressure on the purchasing power of consumers and all these are going to affect

real estate.

Infrastructure is very critical for the economic development of any nation. Nigeria’s infrastructure stock is low and new ones are not being built. Where does this leave us as a country?

The current infrastructure stock in Nigeria is far below what is expected or required. We started seeing significant improvement in power to the extent that it went up to 7,000 Mega Watts.

But it has dropped now to as low as 5,000 Mega Watts. We cannot afford to go back to where we are coming from.

So, government needs to pay more attention to power. I don’t think the model where all generation is centred around the national grid transmission is sustainable. We must be thinking of captive power management system where communities should be allowed to generate what they need. A particular community could be concessioned to a power generating company and the distribution agreement has to be between the community and the firm which has to generate off-grid. This will not only decentralise power generation and distribution, but also reduce the pressure on the existing inadequate transmission and distribution facilities and solve the current problem in the power sector.

Road infrastructure is another ma-

jor issue that impacts on real estate in Nigeria. We do not have sufficient road infrastructure in this country and that is affecting interconnectivity of cities.

This is responsible for the high level of rural-urban migration in the country.

The more that is happening, the more you have a high concentration of people in a very small area. We are all talking about housing deficit whereas there are so many empty houses in the village.

This is because those who own those houses and should occupy them have migrated to the cities.

Government may not have all the money to build new roads, but the existing ones should be maintained in order to give motorists good travel experience and also increase their lifespan. Government cannot do everything because of limited resources. The way to reduce the pressure on the roads is to look for alternative transportation mode. The way to go is mass transit and railway is key here.

This can help to distribute traffic off the road and when this is done, the impact on real estate will be significant.

In the face of all the scenarios you have highlighted, what are the chances of survival for real estate companies like yours without government intervention?

It is very difficult to know how compa-

How is Alpha Mead positioning itself in order to weather all these business storms to remain in business and be profitable in 2019?

We are already evolving strategies that are taking a long term view of the economy. Our strategies are generally of long-term view of the

We will continue to harp on technology which will be of key competitive advantage for our industry; we will continue to provide leadership because, if Alpha Mead does not do that, I am not sure any other company in the industry will be able to invest in technology up to where we are today

economy. We also recognise the short-term impact of our strategies.

We will continue to be very analytical and open to the business environment in Nigeria to be able to position ourselves strategically to take advantage of the opportunities in this space and to mitigate the negative impact of whatever risks that may be crystalising.

Political leaders are always political leaders. We don’t have control over how they behave and how they do what they do. What I have control over is my business and we are here for real. We will keep scanning the environment.

We will keep oiling our risk management framework to enable us sustain the business. We may not be what we should be or can be but the long-time survival of our business is rest-assured. The environment right now is constrained but we should always strive to succeed.

We believe that recognising the constraint is the beginning of finding the solution to the bottleneck in the environment. We have identified that funding is a critical issue and we are working on it. The market is going to be a bit tighter due to shrinking liquidity or low appetite of banks to lend and the immaturity of the mortgage banks for now. We are also going to focuse on aggressive marketing to ensure off-take of our projects.

Alpha Mead now has presence in some African countries. What has been your experience and plan to further expand your frontiers on the continent?

In terms of expansion, we are increasing and consolidating our pan-African presence in the expansion of our business. Between December and now, we have established presence in 10 African countries. We are going to grow those 10 more. We are going to deepen them and, except new opportunities come up in those countries, we would like to make those ones grow. So, there will be a lot of business development focused on those areas.

We will continue to strengthen our strategies. What we see in the environment is that, because of all these negative developments in the economy, many companies, facilities management companies within our space, have been incapacitated and dropped out. Some are still in business but are living on past glory.

All of us cannot vacate the market and that is why we will continue to harp on technology which will be of key competitive advantage for our industry and we will continue to provide leadership because, if Alpha Mead does not do that, I

am not sure any other company in the industry will be able to invest in technology up to where we are today.

One of the major challenges most companies face in Nigeria is getting the right people to do their job. How have you been coping with this challenge as a professional firm?

The people strategy is still very strong in our industry and we will continue to source for and recruit more competent hands into our company and also invest in their training and development. This is because in a market where there is inadequate number of professionals who are ready for employment, the quality of people that work for you determines the quality of service you render to the customers.

We devote time for on-the-job training for our people. We encourage self-development and for those

of them that would like to take certificate courses in facilities management, we sponsor their training by taking up 50 percent of the cost of their training in foreign currency for international certification. We believe that it is only a competent workforce that can withstand the pressure of the current economic hardship.

Innovative products are another area we are strategising on. We are looking for areas we can increase our product offering in the market in different ways. This is because if you don’t diversify your revenue base, if anything happens in your area, you will be thrown out of position. For every new idea that comes, we think through and rationalise it before we launch. We hope to launch two new products between now and April this year.

We are now planning to take facilities management to retail level that, we hope, will be affordable to everybody.

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Onuwa Lucky Joseph (08023314782) Editor.

Asisat Osoala: giving wings to budding Falconets Onuwa Lucky Joseph

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sisat Osoala is an excellent footballer, with skills and speed to match. And despite a couple of years in the limelight she still has the demeanour and manners of the girl next door. Not for her the “forming” as we say in these parts, that off putting attitude that signals to others that this fellow has moved up the social ladder.

She still is herself, happy, smiling, full of life and still grateful to chase the ball round the pitch.

And another thing; she hasn’t forgotten, again, as we say in these parts, where she’s coming from. She remembers like it was yesterday when she spent four years as a spindly teenager playing for FC Robo. Those years though were not in vain because Rivers FC saw in her a good prospect and signed her on; an opportunity she took the with both feet, so to speak, dazzling one and all, in the event, getting called to the U-20 Nigerian female national team, the Falconets.

It was at the Under 20 level in 2014 that she burst into our collective consciousness. The sinewy speedster also had a habit of scoring at will. She won the Golden Boot for highest scorer and the Golden Ball for Tournament MVP. By 2015, she had moved to Liverpool FC Women where she made a strong enough impression to merit another move, this time to Arsenal Women. By 2017, the highly mobile goal poacher had found her way to China (for the big bucks, some would say). But right now, she’s a Barcelona player, though on loan, until the end of the season.

She has been CAF Women’s Footballer of the Year thrice, in 2014, 2016 and 2017 closing in on the 4 time haul by her illustrious compatriot, Perpetua

Nkwocha.

By all accounts, Asisat is proving her mettle on the pitch. But she’s also proving it outside the pitch. While yet discussing the loan deal with Barcelona, even before it was consummated, her eponymous foundation, the Asisat Osoala Foundation had arranged and signed an MOU with the Catalan team to help facilitate the 2018 edition of the Foundation’s

Why Whirlpool Corporation consistently makes Fortune Magazine’s most admired companies list

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hirlpool makes a difference via its products, and by its actions: Total employee and retiree giving with Whirlpool Foundation totaled nearly $5million More than 100,000 families were impacted worldwide as a result of Whirlpool staff volunteering with Habitat for Humanity The Whirlpool Maytag brand has donated more than $7millon to date to the Boys and Girls Club of America to help young people in need Has raised more than $10.7million over the past 15 years for the fight against breast cancer 500 Europe, Middle East and Asia employees and 29 Non –Governmental Agencies in 10 countries volunteered for 4,000 hours Empowered and improved the lives of more than 32,000 low income women in Brazil

Football Clinic for Girls. Aside providing kits and coaching, the club also signed on to award scholarships to the FCB Academy for three of the most outstanding players from the Clinic.

The three ladies who ended up tops were: Mistura Yusuf, MVP; Fatimat Uloko, 2nd; and Esther Ndubuisi, 3rd. The Clinic is Asisat’s way of acknowledging her many younger Nigerian sisters who

easier to attract sponsorship and patronage (Emzor and the Lagos State government were big supporters) as well as the goodwill of her colleagues and elders in the game who would prefer dealing with a body corporate as against an individual.

We commend and recommend this model to other would be impact making sportsmen and women. And Nigeria does need a lot more of them.

The centrality of diversity as a corporate and civic responsibiity (1) Onuwa Lucky Joseph

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The Whirlpool Foundation has awarded more than $200million in grants since its founding More than 100 Whirlpool Foundation Sons & Daughters Scholarship & Award recipients are currently attending college For Kitchen Aid Day of Caring, Hundreds of Whirlpool Corporation Volunteers around the world helped out at multiple non-profits for a day.

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

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

want to be like Asisat, either as footballers or achievers in other areas. The Clinic and scholarship represent a fast track to that dream. And she’s working it like a real pro.

It is heartwarming to see that she has quickly grasped the need for being systematic and structured in her effort to help give others a better life. The Asisat Osoala Foundation platform makes it

igeria is multi ethnic, multi religious, multi-dimensional, multi many things anyone can think about. Even our opinion of Nigeria is multi.

Some talk in terms of nations and nationalities within the Nigerian state while others think of Nigeria as one indissoluble nation whose ethnic units cannot be regarded as nations. There are others also who believe everything is negotiable, including our nationhood and in fact sovereignty.

It is difficult to have such a country buzzing with inherent diversity and then thinking that business or governance can be achieved without reflecting the many colours that make of ours such a beautiful tapestry.

Whenever one group takes the decision to monopolize what ought to be the commonwealth, resentment is the response from the other groups locked out. And while some may decide to negotiate, it’s very

easy for the not so patient to ditch negotiation that’s going nowhere for a jagged approach inimical to everyone’s good.

Big corporates especially should stop whining about how Nigeria is not practicing true federalism when they themselves do not emblematize true federalism in their employments, board composition, staff promotion, business spread, etc.

Every big corporate ought to be a mini Nigeria, and not in a lopsided way where all the big boys and girls are from one part of the country while the hewers of wood and drawers of water come from the other not so favoured part, depending on the ownership.

Here’s how I mean: You go to a business whose founder is Yoruba.

Most of the operatives are Yoruba.

An Ibo man’s business, ditto. A Hausa man’s business, ditto. And on and on. The same is the case even in our houses of worship. Such a crying shame!

I’ve spoken with CEOs who put this down to ‘ease of doing business’, so to speak. The boss

doesn’t want to spend too much energy communicating only for his communication to get lost in translation. You know, how everything can be interpreted through cultural prisms. But is that good enough excuse? What happened to corporate culture? Or must that be ethnic based?

Having grown up in the Army Barracks in different parts of Nigeria, I know firsthand what role proper integration plays in ensuring that the sum of the parts end up making a wholesome whole. Best friends hardly ever came from the same part of the country or even the same religion. Bonding was about chemistry and two or more people pursuing the same goal, maybe just from different angles. But the endpoint is never in dispute.

Whatever anyone might say of Gen Yakubu Gowon, he was clearly desirous of building a Nigeria whose growth was not hampered by the barrier of ethnicity. The Civil war that threatened to tear the country apart taught him that lesson.

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Corporate Social Impact

Anthony Ajero launches Volunteers For Life (Vfl) Onuwa Lucky Joseph

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he things that drive a man or woman are rarely obvious. For the most part, they are layered underneath the exterior, gnawing without ceasing, at the individual’s core, setting him/her afire.

Unfortunately, many go through life never getting lit. They are uncomfortable with their lack of movement in the direction of their passion. Whether seemingly successful or not, they know they have not arrived whatever may be the popular verdict on their efforts.

That kind of life is what the Rev Canon Anthony Ajero is trying to dissuade humanity from leaving. A life without purpose, drifting like flotsam and jetsam, wandering with the waves wherever they go, and with nary a sense of direction.

Canon Ajero took time out to expatiate on this at the dual launch on December 8, 2018 at the Nigeria Institute of International Affairs, Victoria Island, Lagos, of his book “Who be Thou?” which basically is a treatise on listening to your inner voice and doing the things you know you were always meant to do. Using himself as an example, he relived how at 51 he realized he had to stop procrastinating and to get on with an assignment he always knew he had been divinely assigned but which for all kinds of reasons he had been deferring. Did this mean no opposition? Of course, no. But there is a sense of accomplishment that comes with moving like a battering ram; swinging and swinging and never stopping hitting until the walls come down.

What was even more interesting to us at Corporate Social Impact is that it was also the launch for Volunteer for Life Support Foundation (VFL), a mechanism designed for getting young people involved with something bigger than themselves. There are two critical appeals that the Foundation is spearheading: one, that we all endeavour to

L-R: Abimbola Uzomah, lecturer, Federal University of Technology, Owerri; most Revd (rtd) Adebayo Akinde, chairman of occasion; Rev. Canon Tony Ajero, author of the book, ‘Who Be Thou’ and his wife, Dr. Joy, during the public presentation of the Volunteers For Life initiative for Youths and the book, in Lagos on Friday, December 7, 2018

be of service to humanity, and two, that young people not be left to themselves but that they be guided by forerunners as they navigate life’s often treacherous terrains.

The case study was made of a certain Mrs. Egbe who at 74 had retired to her village and trying to live out her days in the company of her husband who used to be a produce buyer. What she quickly observed was that the village women, predominantly cassava farmers, were being cheated by buyers who employed underhand tactics including collective bargaining to rip the women off while they made thrice the profit whenever they resold in the state capital.

Mrs. Egbe had either of two options: get involved in the fight, by enlisting the expertise and experience of her husband, or just enjoy her retirement while regularly bemoaning the ‘wickedness of buyers with no conscience’. If you

were Mrs Egbe, what would you do?

In answering the question, Tony believes the answer would depend on the moral fibre of the individual posed with this situation. And life has such situations aplenty. We are always at those junctions where going right or going left is all up to us. But the decision we reach comes from well before that time. If we were always told to stand up for right, most probable we would do right. If we were told that everyone should bear their own burdens, we would ‘waka pass’, so to speak, and this with hardly a twinge of conscience.

Canon Tony’s thesis is quite clear.

People should be there for one another.

Feel your neighbour’s pain, wear his shoes, bear her burden.

Quoting from the Collins Dictionary of English, that defines Volunteerism as ‘the principle of donating time and energy for the benefit of other people in the community as a

social responsibility rather than for any financial reward’, Canon Ajero is of the opinion that if we must forge ahead as a nation, ‘we need to build positive narratives amongst our youth and rebuild our communal spirit and sense of selfless service’.

REWARDS OF VOLUNTEERISM However, selfless is not always selfless, at least as far as rewards for volunteerism are concerned. He goes on to list the benefits of volunteerism as: Acquisition of first-hand life skills Growth in spirit, mind and body Deep sense of self confidence and fulfillment Preference among peers at job recruitment and career development Preparation for higher leadership Divine and societal approval It’s in view of all of these benefits that VFL is determined to make volunteers for life of Nigerian youths. In a well laid out and properly sequenced

strategy, the team plans to build a corps of volunteers in their undergraduate years who would go on to be the backbone for a Nigeria where young people think more about how they can contribute and less about how Nigeria is not treating them right.

We believe that’s a good idea even though we insist that Nigeria must treat its young people right in order to get the best results from them. The idea that young Nigerians must leave with privations all their lives just means that a lot more of them will vote with their feet and leave our shores for those places where they believe they can live better.

No one reaps from where they do not sow. Nigeria cannot get the best from its young people unless it deliberately invests in them.

Initiatives like VFL are important because older Nigerians have an opportunity to be the Nigeria that young Nigerians do not always encounter.

And with that encounter will come a life of selfless contribution that enriches humanity and especially for our country, one that cements the bonds that politicians have been having a field day tearing apart.

The author is eminently qualified to write on the matter having been involved with the Boys Brigade for most of his life. He grew through the ranks till he became the Captain of the Brigade in his local church. And he’s gone at it with the kind of infectious enthusiasm that makes kids want to be like him. Today, he is a non- stipendiary priest of the Anglican Communion. That basically means he is a pastor who does not collect salary. Not something many would want to countenance especially in these tough times. But we reckon that having done it in church, he now wants to do it outside the four walls of a church setting.

The hope is that VFL will be able to get the kind of support it requires from corporate organisations that buy into its vision.

(Enquiries to csrmomentum@ gmail.com /08023314782)

Corporate Interventions on World Cancer Day (Feb 4)

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ebruary 4 was in 1993 designated World Cancer Day by the Union for International Cancer Control (UICC). It’s a day dedicated to raising awareness about cancer control, and informing on the options for those already stricken by the disease.

The corporate sector all over the world plays a major role in seeing to it that information about the disease is disseminated to the wider public.

As Nigeria joined the rest of the world to mark the day, statements of support emanated from some players in the Nigerian corporate sector.

Owen Omogiafo, MD/CEO Transcorp Hotel Abuja – Early detection is the best way to detect cancer. “I, standing here, at the age of 29 was able to avoid full-blown

Owen Omogiafo

cervical cancer because I went for my pap smear when it was discovered that I was a stage away from full-blown cancer. But today after going through a series of treatment I am free.”

Tokunbo Abiru, MD/CEO Polaris Bank - “The fight against cancer and breast cancer is one that

we will continue to support. We have a record of positive intervention in this, and I assure you that we won’t relent in ensuring that there’s a significant reduction in illness and death caused by cancer.

Osayi Alile, CEO ACT Foundation – “Through raising the public knowledge and understanding

Osayi Alile

around cancer, we reduce the fear of the disease, increase understanding, dispel myths and misconceptions, and change behaviours and attitudes towards it”.

Tokunbo Abiru

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SPECIALREPORT (1) Bpe: the journey so far A walk down memory lane: The

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he advent of Nigeria’s privatisation programme was formally heralded with the Privatisation and Commercialisation Decree of 1988, which set up the Technical Committee on Privatisation and Commercialisation (TCPC). The mandate of the Committee was to privatise 111 public enterprises and commercialise 34 others. The TCPC privatised 89 out of the 111 enterprises slated for full or partial privatisation and offered some 1,486,722,063 shares to Nigerians.

The TCPC concluded its assignment in 1993 and, based on the recommendations of its final report, the Federal Military Government promulgated the Bureau of Public Enterprises Act of 1993. This repealed the 1988 Act and set up the Bureau of Public Enterprises (BPE) to implement the privatisation programme in Nigeria. In 1999, the Federal Government of Nigeria (FGN) enacted the Public Enterprises (Privatisation and Commercialisation) Act, which created the National Council on Privatisation (NCP).

The NCP is the apex body charged with the overall responsibility of formulating and approving policies on enterprise reform, privatisation and commercialisation. Its functions include the determination of the political, economic and social objectives of privatisation and commercialisation of public enterprises. The NCP provides the overall strategic direction for the BPE in the execution of its mandate. The 1999 Act also established the Bureau as the Secretariat of the NCP. A Shorter Walk Down Memory Lane: The NCP Programme (1999 to Date) The first phase of the programme under the NCP consisted of the privatisation of banks and oil marketing and cement companies. This phase was executed through a combination of initial public offers and/or core investors’ sale strategies to give a larger chunk of the Nigerian investing public the opportunity to own shares in the enterprises.

The second phase consisted of hotels, vehicle assembly plants, fertiliser, sugar, paper, steel, media, sea ports, and insurance companies. This phase was executed through various strategies: core investor sale, assets sale, guided liquidation, concessions, etc, depending on the peculiarity of each enterprise. From 2000 to date, the NCP through its secretariat, the BPE, has successfully completed over 142 transactions.

The Bureau has also initiated and executed far-reaching reforms in telecommunications, pensions, seaports, debt management, solid minerals, and most recently, the power sector reform that led to the successful unbundling and privatisation of the successor companies created out of the Power Holding Company of Nigeria (PHCN).

Some of these reforms led to the establishment of both regulatory and other agencies such as the Nigerian Pension Commission (PenCom), the Nigerian Electricity Regulatory Commission (NERC), the Debt Management

VP/Chairman NCP, Professor Yemi Osinbajo

Office (DMO), the Nigeria Electricity Liability Management Company (NELMCO) and the Nigeria Electricity Bulk Trader (NBET).

Reform and Privatisation under the Buhari Administration: A Tale of Change and Consolidation At the onset of the President Muhammadu Buhari administration, Mr. President made it clear that reform and privatisation under his watch would be given the necessary impetus and even expanded to cover other sectors of the economy.

Speaking at a business forum organised by the United States Chamber of Commerce and the Corporate Council on Africa in the USA during a visit after his inauguration, President Buhari said “It is my intention to create the necessary environment for future investment in Nigeria. We are the most populous nation and largest market in Africa with vast human and natural resources. We are continuing a major privatisation programme with sectors ranging from telecommunications, energy, gas, solid minerals, aviation, health and infrastructural development, but with improved moral architecture”.

Thus, on Thursday, April 13, 2017, the present Director General of the Bureau of the Public Enterprises (BPE), Mr. Alex A. Okoh was

appointed to drive the reform and privatisation agenda of the FGN. Similarly, the FGN on Thursday, June 22, 2017, formally reconstituted the NCP under the chairmanship of His Excellency the Vice President, Professor Yemi Osinbajo.

As the Secretariat of the NCP, the Bureau’s functions under the Act establishing it include the implementation of the Nigerian policy on privatisation and commercialisation and preparing public enterprises approved for the programme. The Bureau is also charged with ensuring the overall success of the programme through effective post transactional performance monitoring and evaluation.

Three years into the present administration, the BPE, under the guidance of the NCP chaired by the Vice President, has embarked on the following sectoral initiatives: 1. Energy The process of privatising the Afam Power Plc, Yola Electricity Distribution Company Plc and some power plants built under the National Integrated Power Project (NIPP) has commenced. The Bureau has also commenced the process of the sale of non-operational power plants (Ijora, Oji River and Calabar) and the resolution of residual labour issues related to ex-PHCN employees and next-of-kin.

2. Information & Communication The Bureau, in collaboration with the Ministry of Communication Technology, has commenced the reform and modernisation of the Nigerian Postal Service (NIPOST) with the constitution of the Steering Committee (SC) and Project Delivery Team (PDT), as well as the selection of transaction advisers to help drive the process.

Similarly, it has initiated the process of engaging advisers for the diagnostic review of Nigerian Communication Satellite Limited (NIGCOMSAT) and the resolution of residual issues in the liquidation of Nigerian Telecommunications Limited (NITEL) and Mobile-Telecommunications (Mtel).

The Bureau has also started the process of reviewing the policy and legal/regulatory framework for the commercialisation of the following media enterprises: Nigerian Television Authority (NTA), Federal Radio Corporation of Nigeria (FRCN), National Film Corporation (NFC) and News Agency of Nigeria (NAN).

3. Industries & Services The concession contract for the Lagos International Trade Fair Complex (LITFC) between the FGN and the Concessionaire (Aulic Nig Ltd) was revoked and an Interim Management Committee was constituted to manage the complex. The process to re-concession LITFC is ongoing.

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SPECIALREPORT TCPC Era (1988-1993) The Bureau has also been engaging with the Ondo State Government regarding the FGN’s 30.10% equity holding in Nigeria Romanian Wood Industries Limited (NIROWI) and appointed a Liquidator to conclude the stalled liquidation process of the Nigerian Hotels Limited (NHL).

The Bureau also recently concluded a transaction for the negotiated sale of the Nigerian Security Printing and Minting (NSPM) Plc to the Central Bank of Nigeria (CBN) on a ‘Willing Seller Willing Buyer’ basis.

tive impact: i. Twenty Pension Fund Administrators (PFAs), seven Closed Pension Fund Administrators (CPFAs) and four Pension Fund Custodians (PFCs) have so far been licensed during the eight year period as at 2012. ii. The total value of pension industry assets under the Contributory Pension Scheme is currently over N8.14 trillion. iii. Investment of long term assets in economic development, helping in increasing domestic savings and investments, while also helping in the development of the Capital Market by contributing to increase in the volume of intermediated funds, increase in level of trading, modernisation and deepening of the capital market. iv. Pension funds act as intermediaries to a lot of financial assets, including corporate equities and government bonds, while also providing long term financial intermediation to the real sector through corporate debt instruments and investment funds. v. Pension funds serve as long term project finance for potential investors as the banking sector is yet to effectively and efficiently finance the real sector of the economy, bridge the infrastructural gap and provide affordable housing in Africa, due to the short term nature of its deposit liabilities and cost of funds.

4. Transport The Bureau has commenced the concession process for the Terminal ‘B’ Warri Old Port. It is also in the process of reviewing some of the ports concession agreements signed with terminal operators in 2006 in collaboration with the Nigerian Ports Authority (NPA) and the World Bank among other stakeholders. It has also developed a concession framework for some selected Airports after conducting due diligence.

5. Mines & Steel Development The Bureau recently carried out the core investor sale of subsidiaries of the Nigerian Mining Corporation (NMC) - Naraguta & Maiduguri Bricks - and the sale of NMC non-core assets (Makeri & Mineral Houses, residential houses/vacant lands).

It is also in the process to commence the sale of the Nigerian Coal Corporation (NCC) residential Houses/lands and the sale of coal blocks at Inyi, Amansiodo, Okpara and Onyeama all in Enugu State and Ogwashi Azagba in Delta State.

6. Other Initiatives Other initiatives embarked upon by the Bureau include the commercialisation of the River Basin Development Authorities (RBDAs), National Parks and the Bank of Agriculture (BOA), a diagnostic study of the downstream oil sector in Nigeria, as well as the review of non-performing privatised enterprises with a view to making appropriate recommendations to the FGN. 7. Reform Bills The Bureau has drafted eight (8) reform bills which have been approved by the NCP and the Federal Executive Council (FEC) and have been transmitted to the National Assembly for consideration. These are: • Competition and Consumer Protection Bill (also known as the Anti-Trust Bill) • Postal Reform Bill • National Transport Commission Bill • Ports and Harbour Bill • National Inland Waterways Bill • Roads Sector Bill • National Roads Fund Bill; and • Railway Bill These bills when passed, shall liberalise the relevant sectors and lead to the setting up of appropriate regulatory agencies to create the much needed conducive and enabling environment for private sector investments. With the volatility of crude oil prices and funding challenges, it is imperative to create an enabling environment for the private sector to relieve government from making investments in

Alex Okoh, DG.

infrastructure areas like roads, railways, inland waterways as well as airports.

An expeditious passage of the reform bills and establishment of the regulatory agencies and institutions created by the bills will greatly enhance the inflow of investment into the sectors. The Bureau is working with all relevant stakeholders to ensure the passage of the 8 reform bills that are before the National Assembly.

The Impact of Reform and Privatisation: Two Short Case Studies 1. Telecoms Prior to the liberalisation of the telecoms sector, NITEL was the only major player in the sector. It acted both as a service provider and regulator. In 1999, the number of subscribers was only 450,000 fixed line and analogue mobile lines. With the emergence of private operators and other telecommunications service providers, Nigeria has achieved over 162 million active lines as at October 2018.

The process of reform has led to licensing of over 40 telecoms operators in the country.

Similarly, it is estimated that over a million direct and indirect jobs have been added to the economy. The ICT sub-sector has also witnessed phenomenal growth as consequence of the reform driven by the Bureau. From a sole national carrier, there is now in existence two national carriers, nine unified licenses and several 3G licenses have recently been issued.

2. Public Pensions The Pension reforms carried out by the Bureau have engendered the following posi-

MR ALEX OKOH’S PROFILE Mr. Alexander Ayoola Okoh was appointed the Director General of the Bureau of Public Enterprises (BPE) on Thursday, April 13, 2017. Prior to his appointment, Okoh was the Managing Partner of Ashford & McGuire Consulting Ltd, a leading, wholly indigenous management consulting firm.

The DG, who is currently a member of the Presidential Economic Advisory Council, has 32 years experience, 22 of which were in banking where his responsibilities involved general management, leadership and organisational development.

He was the Managing Director/CEO of NNB International Bank Plc from 2001 to 2006, where his visionary leadership took the bank from a comatose state to a position of enhanced value for stakeholders. During his career in the banking sector, he served in a variety of leadership roles, including corporate banking, operations, treasury, as well as initiating and designing transformative projects and processes.

His banking career saw him working for Nigeria International Bank Limited (Citibank) and United Bank for Africa Plc, while his international experience included stints with Citibank New York, Fidelity Bank London, Swiss Banking Corporation, Zurich and Grindlays Bank, Zimbabwe.

As BPE helmsman, he has embarked on a comprehensive change programme of rediscovery and repositioning that has put the Bureau on a path of disciplined and responsible reform and privatisation, as well as an effective post-privatisation management regime. This programme will ensure that the reform objectives of the FGN are pursued with transparency, integrity and confidence and that the government and people of Nigeria become the ultimate beneficiaries.

Okoh studied Sociology at the University of Benin and holds a Master’s degree in Banking & Finance from the University of Ibadan. He is also an alumnus of the Harvard Business School’s Advanced Management Programme.

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Rising population seen to spur milk consumption as hunt for nutrition grows Stories BUNMI BAILEY

N

igeria’s dairy consumption is expected to grow drastically owing to its large younger population who are craving for more nutritious food products.

Euromonitor International, an independent global

market research company that provides strategy research services for the consumer markets has predicted Nigeria’s demand for dairy products to rise in its latest outlook for the country dairy industry.

“With strong population growth, particularly among children and young people, drinking milk products in Nigeria is expected to grow well over the forecast period,”

the report said.

“A growing population is increasingly demanding greater nutrition through milk and powder milk offers convenience as well as affordability,” the report states.

Nigerians are increasingly aware of the health benefits of consuming milk products which account for essential micro nutrients needed for child development.

According to the report, milk products still sees low capita sales in Nigeria but despite this, there is still a strong scope for growth particularly with manufacturers stressing the need to prevent nutrient deficiencies such as calcium and other essential micro nutrients.

The report also added that powder milk which dominates drinking milk products

is expected to continue to drive sales, recording the fastest growth despite being more mature than other categories.

Currently, Nigeria dairy industry is mainly dominated by imported milk with local manufacturers accounting for about 10 percent.

Nigeria imports over 95 percent of finished and raw milk. The country spends an average of $481 million

(N173bn) on milk importation yearly, accounting for six percent of total food import in 2016, according to the country’s livestock policy document.

Nigeria’s national dairy output per annum is 700, 000 metric tons while the national demand is put at 1.3 million metric ton annually, leaving a gap of 600,000MT, according to the Federal Ministry of Agriculture.

Ocean Basket introduces new Sushi menu, opens store at Ikeja

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n a bid to give customers more value for money and satisfy wide array of needs, Ocean Basket, a global seafood restaurant, has introduced a new Sushi menu in Nigeria.

This is also as the brand opened a new store in Ikeja, GRA, Lagos last week.

Speaking during the launch of the new store in Lagos, Kayode Olumartins, executive chairman, Ocean Basket, Nigeria said the branch is launching its Sushi menu to the Nigerian public.

“Ocean Basket has been known for its value for money. We make sure that anyone that walks into any of our restaurants not only in Nigeria but anywhere in the world will get value for their money. We are not in business to make money overnight but to make sure we can provide affordable and good quality sea food for everybody and it’s within their budget,” Olumartins said.

He disclosed that patronage has been fantastic since

the brand started; adding that Nigerians have responded well to Ocean basket brand and the brand is looking forward to them receiving Sushi.

According to him, the initial stores of Ocean Basket opened as Mediterranean seafood restaurant but over the years, they have put in a little bit of flavour into the menu and now have menu items that are not traditionally European or Western as people might think.

“In Nigeria, we are allowed to sell local sea food dishes and we have been doing this since 2014. So, we have fish pepper soup, seafood pepper soup and spicy seafood pasta that are basically specials within the Nigerian market. You won’t go to any of the stores anywhere in the world and find those menu items but you will find them in Nigeria.

“Ocean basket allows you to take in the local flavour into your restaurants so that local people will appreciate Ocean Basket’s diverse menu.

The reception of the Mediterranean brand and the Ocean Basket traditional brand has been great in Nigeria. People are happy about the menu items,” he explained.

On its plans to open more stores across the country, Olumartins explained that they have a roll-out plan of about 10 stores nationally and they actually have to do a lot of research into where the stores are going to be placed.

“We had our first store in Victoria Island. We decided to come to the Mainland. We are at Ikeja City Mall. We kept getting inquiries from people on when we are going to open somewhere outside the mall in a main land. So, we decided to open here at Ikeja GRA because a lot of people have been clamouring for us to open in the main land.”

Speaking on how Ocean Basket sources its food items, he explained that globally, Ocean basket food menu items come in the same. “In any of the over 200 stores that you go to, you will see

L- R: Anthony Taiye Fadairo, very reverend, of St. Agnes Catholic Church, Maryland; Bimbola Olumartins, chief operating officer, Ocean Basket Nigeria, and Kayode Olumartins, executive chairman, Ocean Basket Nigeria, at the official launch of Ocean Basket branch in Ikeja.

the same menu items in every store. So that basically means that we have to source a lot of our products outside of the country.

“We bring in some of our

fish, calamari, and mussels from outside the country.

We have the global distribution warehouses in Cape Town and Johannesburg and they source products from

Vietnam, China, Southern America and some other places and we bring those items in fresh. Every meal we serve in Ocean basket is fresh.”

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Nigerian manufacturer responds to food and beverage market share David Ibemere

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nce viewed as an opportunity for refreshment and indulgence, the food and beverage has undergone a significant transformation with a growing focus on nutrition and high quality.

This shift in consumer demand, indeed, is showing no sign of slowing down, putting more pressure on manufacturers to come out with products that not only help solve their cravings but also of high quality.

These demands are even more resonating for indigenous manufacturers in Nigeria, who are also faced with winning consumers’ trust, in a market that is saturated by international brands.

In 2015, consumers in Africa spent an estimated $1.4 trillion, according to research firm McKinsey, and by 2025, consumer spending is expected to top $2trillion.

Last year, Godwin Emefile Central Bank of Nigeria (CBN) Governor also noted that Nigeria spends an aver-

age of 73 percent of their income on food and beverages products, however given the choice, vast majority of Nigerian consumers will opt for food and beverages products made outside of the country a preference in last few years that is wearing away fast.

In fact, consumers’ lack of confidence in locally produced items was captured in a data from research firm Euromonitor in 2013 which showed that more foreign brands holds greater appeal in Nigeria.

Nevertheless in the last 28 months, Nigerian based Beverage Company, Rite Foods makers of bigi drinks, rite, Bigi Sausages and Fearless Energy drinks seem to have overcome the odds.

From producing a traditional beef sausage rolls to vari-

ety of beverages that rivals international standards, the brand has expanded to become a household product.

The company has a factory located three hours outside Lagos, where it makes a range of soft drinks, water and snacks like sausage rolls.

According to Seleem Adegunwa, MD, Rite foods who spoke at the company’s factory in Ososa, Ogun state during a tour by a correspondent of Broadcasting Service, BBC, it was emotional at the beginning, trying to convince the market that Nigerians can manufacture products that are 100 percent proudly Nigeria, and of high international standard.

“If anything, being a Nigerian-owned brand initially would almost become

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Apple Might Debut 3 New iPhones in 2019

a negative, because people think that what is produced locally just can’t be as good, but what we’ve been able to do in the last 28 months is to show that no, actually you can be a proud Nigerian brand,” Rite Foods’ managing director, Seleem Adegunwa told the BBC. “Building a brand that meets international standard, to satisfy a very cautions Nigerian consumer market, was a journey that starts from building a factory on a 23.8 hectares of land area (58.8 acres) comprising three main buildings: the Bakery Factory, Beverage Factory and the Warehouse, including other buildings such as Security/ Fire Station, Staff Welfare, Service Bakery and Gate House currently generate its power.”

“From the inception all we wanted was to build a beverage company that will meet Nigerian consumer’s taste, from ingredients sourced locally.”

“In terms of hygiene and quality it can never be better because we use the best machinery, best practices and zero human interference” he noted.

D

e s p i t e re p o r t s that there’s some trouble in Apple’s iPhone division, the tech giant is planning three new handsets this year, according to a new report.

Apple will unveil direct successors to last year’s iPhone XS, iPhone XS Max, and iPhone XR, The Wall Street Journal is reporting, citing people who claim to have knowledge of its plans.

The iPhone XR, which is believed to have been the least popular of the three, will be updated with a model that comes with the same LCD display and similar design, according to the report.

Apple (AAPL, -1.05 percent) is also considering adding a triple-lens camera system to one of the 2019 models in a bid to compete with Samsung and others that are readying similar camera systems, the Journal‘s sources said.

The iPhone XS is a direct successor to the iPhone X from 2017 and comes with an OLED screen and slimmeddown bezels around its display. The iPhone XS Max is the largest handset Apple has ever launched with a 6.5inch screen. The iPhone XR is Apple’s budget model and comes with an LCD screen and thicker bezels around its screen.

Debate rages over their

popularity. Industry watchers have said that their higher price tag—the iPhone XS starts at $999 and the iPhone XS Max starts at $1,099— hobbled sales and forced Apple to revise its production downward to address lowerthan-expected demand. And after Apple announced last week that it was forced to revise its guidance downward for the first fiscal quarter due to lower-than-expected iPhone sales in China, many sounded the alarms.

Offering what sound like iterative updates in 2019 could prove to be a controversial decision on Apple’s part. According to the Journal‘s sources, planning has progressed to a point where Apple could still make changes to the handsets, but not so easily. Instead, Apple might plan bigger updates for 2020.

Next year, according to the report, Apple could nix the LCD iPhone model entirely and switch all three phones to its OLED screen technology, which offers better and brighter colours.

Living under poverty line How Nigerians are struggling to survive

If you want to contact the writer of this story call: +234(0) 8030814083

Bailey.oluwabunmi@businessdayonline.com

Woman 35, in dire need of funds for dialysis, surgery Name: Mrs Ugbede Kehinde Oluwatoyin State of Origin: Ogun Age: 35 Dependents: Mother and three siblings Occupation: Trader I deal in eggs and foodstuffs at App market, Abuja. Before I ventured into this business, I worked in the bank having graduated from University of Abuja where I studied Economics.

In 2008, I was employed at Oceanic Bank (now Ecobank) where I worked as a teller before I was moved to the customer service desk. I served in different branches of the bank before I was relieved my job.

From App market, I moved to Kubuwa where I was trading until I was diagnosed of kidney failure in 2018.

How did it start?

It started in August, 2017

but like malaria and typhoid. I had the same experience every two weeks.

By November, 2017, we were treating ulcer but unknown to us, what I had was bigger than ulcer. I was short of blood and was given two pints of blood.

Before I got married in December, 2017, I was referred to Maitama Hospital for endoscopic but my fiancé did not allow me to go because of the cost. Two months after the wedding, my condition deteriorated and that was why I was diagnosed of kidney failure.

The situation got worse in January, 2018 when I started bleeding through the nose and vomiting two or thrice a week.

Second week in January, I was at Kubwa General Hospital. I asked the doctor the result of the general tests carried out

on me and she said they were all good. But, I wasn’t getting any better. The bleeding and vomiting still persist. I also lost appetite, had sleepless nights and coughed profusely. I was given antibiotic, malaria drugs and cough syrup. With the

medication, it even got worse.

On February 23, 2018, I was diagnosed of Chronic Kidney Disease (CKD) at Kubwa General Hospital. I was referred to Gwagwalada Teaching Hospital for further treatment and dialysis.

Analyst: Bunmi Bailey Graphics: Fifen Eyemisanre Famous

I spent six weeks at the hospital before I moved to Zenith Medical and kidney centre in Abuja, where I have been receiving treatment till date.

What is the cost implication?

I was told the best treatment option for my condition is kidney transplantation and it would cost about N13.3m.

This sickness is really capital intensive. My husband and I cannot bear the cost. I do dialysis twice a week and the treatment drugs cost N110,000 per week. On every dialysis, I take injection for blood because I’m anaemic and infusion because I lack vitamins and glucose.

How have you coped so far?

We get assistance from family, friends and good spirited individuals. This sickness is really capital intensive.

A plea for help My husband work is a mathematics teacher at ElisAngel model school. From the time I was diagnosed of this sickness till now, it has not been easy for him.

My husband’s salar y couldn’t take care of the sessions of dialysis in a week.

Since I was diagnosed of this disease, I couldn’t do any work to support my husband and the family.

On monthly basis, I spend N1m dialysis, drugs and admission. The doctor said the lasting solution is the kidney transplant.

N10m is required for the transplant but I sincerely do not know where or how to get that kind of money.

I am calling on Nigerians to come to my aid and help me raise the funds for my kidney transplant.

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Unlocking SMEs Potentials with Better Funding BALA AUGIE

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apital is crucial in driving sustainable Small and Medium Enterprises’ (SMEs’) growth but access to it remains a daunting task for many operators. Managing Director/CEO, Still Earth Capital Finance Limited (SEL Capital) , Segun Opaleye speaks on the company’s research report detailing the state of the SMEs sector and what should be done to bridge funding gaps and other challenges facing it. The report highlights different funding options for SMEs and what operators, banks and government should do to unlock potentials in the sector.

The economies of great nations thrive on the strength and capabilities of their Small and Medium Enterprises (SMEs). For Nigeria, the Central Bank defines SMEs as enterprises with asset base (excluding land) of between N5 million and N500 million and labour force of 11 to 300 people. They are also seen as the engine block of the economy supporting job and wealth creation for the citizenry.

But for SMEs to achieve these goals of creating jobs; stimulating growth growth and industrialisation of the economy, operators’ easy access to credit must be promoted and guaranteed.

In Asia, Europe and North America, SMEs play significant roles in their emergence as global economic powers.

The same cannot be said of Nigeria as SMEs have performed below expectation because of lack of access to finance as it is hard to raise external finance and they have few shareholders to raise internal finance, difficultly in conducting business, poor infrastructure, access to markets, and inconsistency of government policies and mismatch of assets and liabilities as it is hard for them to obtain medium term loans.

To reverse this trend and put Nigeria’s SMEs on sound footing, Still Earth Capital Finance Limited (SEL Capital) released its research report titled: Stimulating SMEs for Growth.

SEL Capital is a multi-faceted financial services company offering tailored financial services and solutions to individuals, companies and the public sector. It provides a diversified range of financial services including corporate finance, advisory and project finance, Consumer/SME/commercial finance, wealth management and agency services.

The Managing Director, SEL Capital, Segun Opaleye, said the report was the company’s way of helping SMEs overcome the challenges facing their operations. He said the report was also meant to guide operators and direct government and regulatory agencies on their roles in making SMEs the bedrock of the economy.

Opaleye said SMEs vary from country to country, they are defined by the role they play in the economy as well as policies and programmes designed by agencies or institutions to guide their operations. Though, there

are characteristics peculiar to them; SMEs are mostly unquoted, their ownership are restricted to few individuals and they are not micro-businesses that exist to employ just owner.

The SEL Capital boss said that to fund their operations, SMEs initially turn to internal and external sources of finance. Internal sources include personal savings, borrowings from family and friends and credit from local cooperative societies but as business expands, they require greater pool of funds than is made available by these sources to meet business financing needs.

The external sources of finance provide wider access to large pools of funds which are required for SMEs to exploit growth and investment opportunities.

He said SMEs can expand operations by identifying and utilising business opportunities with better access to finance structured specifically to cater to identified needs.

Such funding, he added, will come from financial institutions such as finance companies, commercial banks, development finance institutions, government grants and funds and venture capital funds.

According to the SEL Capital report, a large percentage of SMEs in high income countries operate in the formal sector and contribute over 50 per cent to Gross Domestic Product (GDP). They also account for more than 90 per cent of all firms outside the white-collar jobs sector thereby constituting a major source of employment.

Overview of the SME Sector in Nigeria The report explained that most recent Micro Small and Medium (MSMEs) survey conducted by the Small and Medium Enterprises Development Agency (SMEDAN), showed that the number of SMEs increased by over 100 per cent between 2010 and 2013 from 17.2 million in 2010 to 37 million and contributed about 48.5 per cent to GDP in 2013.

The MSMEs’ contribution to exportation also accounted for 7.27 per cent of total exports. The SMEs also account for the employment of about 60 million people and have become the most important vehicle of employment generation, entrepreneurial training and development in the country but they face daunting challenges.

Hurdles before SMEs The report said about 80 per cent of SMEs are stifled because of poor financing. It said the problem of financing SMEs is not so much the sources of funds but its accessibility.

“Stringent conditions set by financial institutions, lack of adequate collateral and credit information and cost of accessing funds which stems from the uneconomic deployment of available resources are to blame,” it said.

Operators, it said, also have difficulty in registering companies even as constricted regulatory framework creates a hostile environment to successfully conduct business activities in the country. “Issues around corruption, bureaucratic bottlenecks and high

The SMEs account for employment of about 60 million people in Nigeria, about 84 per cent of the total work force but have remained largely informal without legal and financial protection.

Survey carried out by SMEDAN in 2013 indicated that about 96 per cent of SMEs are not officially registered and 70 per cent do not have viable business plans while 65.2 per cent of SMEs do not have insurance cover.

Way forward for SMEs The SEL Capital report said that although, Nigeria is currently one of the best improvers on the Doing Business Index, more reforms are needed to improve the rating and create a more enabling environment for the growth and development of SMEs. It said the improvements in the macroeconomic indicators – GDP, inflation and exchange rates – and stability of macroeconomic and regulatory Segun Opaleye, managing director/CEO, Still Earth Capital Finance Limited policies will also significantly address some of the challenges facing SMEs. Opaleye insists that deliberate incharges/tariffs are some of the factors ic Co-operation and Development contributing to the difficulty of con- (OECD) region (United States of Amer- tervention by government is required ducting business for SMEs in Nigeria,” ica, United Kingdom, Japan, Germany, to improve economy perception at the the report said.

France among others), SMEs account global view and unlock the potentials It added that poor record keeping, for 99 per cent of all firms; 70 per cent in the SME sector.

On poor access to finance, he extechnical problems/competence and of jobs and generate between 50 to 60 plained that to support the growth of lack of essential and required expertise per cent value added on average. in production, procurement, mainteIt said that the OECD countries use SMEs, government and financial instinance, marketing and finances have special policies to spur SME growth tutions needed to create measures supalways led to funds misapplication, and innovation by providing business porting sales, cash flows and working wrong and costly decision making for environments conducive to growth, capital as well as measures enhancing SME business owners. adopting policies which encourage SMEs’ access to bank lending.

On innovation, Opaleye said the The report said that SMEs are innovation and technology transfer, SME sector requires effective innovaburdened with enormous multiple improving access to finance and taxes and tax related issues which affect supporting development of strategic tive schemes that can bring together small enterprises in various industries profitability. “SMEs are also taxed with resources particularly technology. multiple levies from various governFor instance, the United Kingdom to exploit the immense national busiment agencies and parastatals which set up the British Business Bank (BBB) ness opportunities.

“The government is also expected affect business activities negatively,” in 2014 to improve access to finance for it said. smaller UK businesses. The BBB works to actively encourage investments in The SMEs also face inadequate with partner companies including the SME sector and growth of new infrastructure which ranges from banks, leasing companies, and ven- business to generate employment shortage of water supply, inadequate ture capital funds to lend and invest and alleviate poverty. The sufficient transport systems and poor electric- indirectly in SMEs. It has supported information on new technology and ity supply to improper solid waste over 48,000 SMEs in the UK with about innovations will ensure global competitiveness in terms of product quality management. “This infrastructure £3.1 billion. inadequacies lead to high operating In the BRICS comprising of Brazil, and pricing and improve export earncosts for SMEs which often contend Russia, India, China and South Africa, ings from SMEs,” he said.

On infrastructure development, with high costs of imported materials SMEs represent about 90 per cent of he said: “It is important to create an and poor access to raw materials in total firms in the economies and create local markets,” it added. a buffer for high unemployment rates enabling business environment where Also, policies directed towards particularly in China and India where businesses cannot operate without limitations imposed by stifling condiSMEs are often un-comprehensive and population is high. lack coordination/linkages with other The report said early policy mak- tions. Investment in the development established programmes and policies. ing in BRICS economies has notably of infrastructure, particularly impleAs a result, these programmes/policies improved the performance of SMEs mentation of the power reform policies do not have the desired effect on SMEs. over the years particularly with estab- electricity is also critical in improving Lack of adequate data on SMEs also lishment of specialized institutions like the ease of doing business and improvmakes planning difficult and impedes SEBRAE (Brazilian Micro and Small ing productivity of SMEs”.

Opaleye urged government to confidence in the sector.

Business Support service). SMEs in carry out institutional reforms by “Besides, volatility in the exchange India are estimated to be about 42.5 rate, output and inflation often impact million employing about 109 million championing the creation of support negatively on the business activities people, an estimated 40 per cent of systems targeted directly to offer support to SMEs. For him, existing instituand operating capacities of SMEs. the workforce.

SMEs dependent on importation of raw The report showed that in transi- tions should be realigned to effectively materials often struggle with exchange tion economies, like the MINT econo- utilize their service offerings to SMEs. On capacity development, he said rate fluctuations and inflation. Also, mies (Mexico, Indonesia, Nigeria, and SMEs require capacity building in lack of access to modern technology Turkey) SMEs have been recognised and infrastructure to support this tech- as playing a vital role in employment areas of technical and management nology hinders the growth of SMEs in creation and poverty alleviation. SME skill development to effectively run sectors which require technology to businesses are the major source of in- the businesses. Opaleye believes that enhance productivity,” the report said. come to low income households. They initiatives to deepen entrepreneurship Global trends Vs Nigeria SMEs account for about 85 to 90 per cent of capabilities amongst business owners The SEL Capital report explained employment and contribute about 50 will improve the lifespan of the average Nigerian SME. that in the Organisation for Econom- per cent to GDP.

BD MARKETS + FINANCE Analysts: BALA AUGIE

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There’s too much incompetence in Nigeria’s justice sector – Olasupo Shasore, SAN

EXCERPTS…

W

ould you say that the justice sector reforms, which took place, while you were chairman of the Lagos State Law Reform Commission have been impactful to the state? If so, what were some of these reforms?

Yes, I believe so. I will however add that reform is a dynamic and ongoing process. There are no expiration dates for reforms. It should be seen as a continuum. So to say that there has been impact, is to say that the reforms we made to the rules, such as reforming institutions and reforming the way systems are operated, have indeed brought some measure of efficiency to the system.

By and large, I believe that our

Is there a significant difference between the judgments in that era and those of these times?

Sad to say but there’s a huge difference and some of it has been man-made by a lack of capacity. Now you would find an ill thought-out judgment, which scarcely deals with the real issues because of the lack of capacity, while some of the issues may either be constitution-driven or as a result of the rules in question.

Let’s take the issue of ‘jurisdiction’ for instance. You hear the constant argument in court, which states “My Lord this court lacks jurisdiction,” and the judges latches on to it and that’s it.

The case makes no headway for the next 25 years just because of ‘jurisdiction’. This is rules-driven. Why do we have so many subject-matter courts?

I have never supported the exclusivity of jurisdictions in courts, because it’s an invitation to avoid the merits of a dispute. In fact, it/s an easy invitation for a dispute before the dispute.

Olasupo Shasore, SAN

reforms were successful in the area of legislation and the administration of criminal justice, so much so that it is being replicated in several states of the nation.

“We changed the Criminal code, as it applies in Lagos State. It was the first wholesome alteration of the Criminal Code since 1917. It was apparent to us that a hundred year old statute, could no longer serve the purpose for which it was enacted an we had to do something about that. Other reforms involved, plea-bargaining, compounding offenses and restorative justice, which is a modern day development in the criminal justice system.

Speaking of restorative justice, for us, the fact that you can never put a legal seal to the fate of a victim outside the remedies that the state can seek, has become a growing trend. If you visit the Ministry of justice today, the desire to discuss and settle the effect of the crime on a victim is one of the subjects that is being put in place.

The Administration of justice and the justice sector reforms are recurring subject matters at most legal seminars, conferences, symposia and fora. What is the most daunting task/challenge we have with administering justice in Nigeria?

Nigeria has some of the best statutes in the world, some of the most deeply researched and thought-out rules, and like you said, papers are delivered frequently on the subject. So while some of these may require slight reforms to suit present day realities, I do not think that the real problem

is with our rules, because we do not lack legislation.

What we lack is competence, capacity and character in the operators of the rules and the justice sector.

A critical look at vital segments of the sector will reveal these lapses.

“What is the Character and competence of the police? What is the Competence, character and capacity of the judges appointed? What is the competence, character and capacity of the prosecutors? And what is the value system they are driving towards?

These are the operators of the justice sector that I speak of.

At this point, what we need is a new compass that would give us a directional change; driving policies in the justice sector today. In the 80s’ Nigeria had a selection of the best legal minds at the Supreme Court. In was in that era that the tone was set for ‘substantive justice’ as opposed to ‘technical justice’. That for me was a policy statement coming from the bench stating that the court was no longer interested in technical justice.

What this meant was that there was no technicality that could stop them from serving justice.

This was a directional change. It is from such directional changes that judgments can then take their leads.

And you can apply these directional changes to an array of disputes. Then you would have judges who would be ready to push ‘technicalities’ aside and focus on the substance of the cases before the. This is the kind of value system we need to bring back by realigning our compass. Let us ask ourselves sincerely “What is the direction of the bench (judiciary) today?

Do you think the use of technology has brought any significance to the process of administering justice in Nigeria?

The resistance the judicial system has had towards the use of technology is ‘control’. Automating systems is an act of transparency. When you automate systems, you remove the human element from the justice sector. It lets in a breath of fresh air and takes away the opportunity for corruption. That’s why during our time, we introduced verbatim reporting in our courts.

How has this technology been utilized and how has it impacted the administration of justice in Lagos State?

Most of it is still being used in our courts, at least the courts I have been appearing in but you still find it being resisted by the human elements in the system. If the production of a certified true copy of a court proceeding, which is a piece of paper is produced by the press of a button, it takes away the opportunity for a clerk to hold you to ransom. However, the reality is, having to chase a clerk or registrar almost a week to get this copy. This is the human element and the proper use of technology will take away the opacity of the system.

Tell us about the book and the objective behind it.

Public service is a calling. In ensuring that you discharge this calling properly, you must record it and in recording it, you must make it accessible to the people. This is one of the reasons behind this book.

The other reason was to be able to make a case for directional changes in the justice sector. Part of it, is devoted to given some sort of roadmap to the future.

About the Co-Author, Dr Akeem Olajide Bello Dr Bello and I have been collabora-

tors for quite some time. We worked together at the Lagos State Ministry of Justice. So modest effort reflects some of the reforms we led as a team over a period of four to eight years.

Moving from reforms in Lagos to the bigger picture, Nigeria, what insight have you brought to bear in this book? Is it insight from tested reforms in Lagos or a more global perspective?

Essentially, many of the reforms have been tested in Lagos but applicable across the country. Some of these, as a national agenda and others as a state agenda for different states. So, we couldn’t speak about Lagos in isolation as far as the justice sector was concerned.

I refer to the operators of the justice sector as “Children of different mothers,” because in Nigeria, by the sheer dysfunction of our constitutional arrangement, you see that the four (4) lead actors in the justice sector – the Police, the prosecution, the courts and the prisons are controlled differently.

Two of these are federally controlled, while the other two are controlled by the state. This causes the dysfunction and the clash in authority and it’s a shame that we haven’t been able to disaggregate this control and conflict between the four actors.

There’s no reason why all four actors cannot be employed by the same executive. Why are there no state prisons? Why is there no state police?

So they can be fed by state courts and prosecuted by state prosecutors.

When a policy planner begins to plan for the justice sector, whether at the state or federal level, you are caught with this dichotomy all the

Continues on page 31

“

The inevitable result for the loss of full confidence in the justice sector is a recipe for anarchy

“

In this edition, BusinessDay Law Editor, THEODORA KIO-LAWSON, speaks with co-author of the new book, ‘Ministering Justice, Administration of the Justice Sector in Nigeria’, Olasupo Shasore, SAN. Shasore, who is a leading lawyer and partner in the law firm, ALP (Africa Law Practice), is recognised internationally for his proficiency in dispute resolution, particularly, Litigation, Arbitration and ADR. He is also experienced in the administration of justice, having served in various capacities including as Attorney General & Commissioner for Justice, Lagos State (2007-2011); former Chairman, Lagos State Law Reform Commission; past president, Lagos Court of Arbitration; chairman, National Arbitration and Dispute Resolution Reform Committee; and former Chairman, Arbitration and ADR Committee of the Nigerian Bar Association Section on Business Law (NBASBL).

During his time as Attorney General, Shasore chaired the Mortgage and Property Law Reform Committee, which produced and recommended the Mortgage & Property Law (2009). He also authored the Home Ownership and Mortgage Policy (2011) His other works include, Jurisdiction & Sovereign Immunity in Nigerian Commercial Law (Practice and text book – 2007); and Commercial Arbitration & International Practice in Nigeria, Co-authored with Adeyemi Candide-Johnson, SAN (2011).

Ahead of the presentation of this latest book, written alongside Akeem Olajide Bello, PhD, Shasore shares his views on the current state of the justice sector, administering justice and other critical issues plaguing the legal profession in Nigeria.

OLASUPO SHASORE

Mails to the Law Editor: theodora@businessdayonline.com

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DISPUTERESOLUTION

Power of the federal in-land revenue service to impose turnover assessment on value of company property MOFE TAYO OYETIBO

T

he Federal Inland Revenue Service (FIRS) is the agency of the Federal Government of Nigeria that is responsible for the collection of Companies Income Tax (CIT) from companies in Nigeria, pursuant to the Companies Income Tax Act (CITA). In the recent case of THEODAK NIGERIA LIMITED V FEDERAL INLAND REVENUE SERVICE BOARD1, the Abuja division of the Federal High Court had to consider whether the FIRS has any power under the CITA to assess CIT on the basis of the value of the property of a company that is in default of payment of CIT. In this case, sometime in November 2016 the FIRS issued a notice, pursuant to section 30(1)(a) of the CITA, to Theodak Nigeria Limited (Theodak) demanding over N94 Million as CIT for the year 2015.

As Theodak had not filed any tax returns for the year under review, the FIRS made its assessment by subjecting 20% (Twenty Percent) of the value of a building owned by Theodak to CIT. Theodak refused to comply with the notice and approached the Federal High Court for, inter alia, the determination of the issue of whether the FIRS had the power to assess Theodak to deemed income tax based on the value of its property.

Theodak’s Submission In arguing that the FIRS had no such power, Theodak contended that under section 9 of the CITA, the value of property occupied or used by a company is not con-

sidered as income chargeable to a company as tax. It was also contended that the FIRS failed to comply with the provisions of section 30(1) of the CITA, which provides that assessment of tax should be a fair and reasonable percentage of the turnover of the trade of business of the company.

FIRS Submissions In response, the FIRS argued that, under section 30 of the CITA, it had a wide range of powers to assess defaulting taxpayers, including a the power to make a ‘best of judgment’ assessment under Section 65 of the CITA. The FIRS also contended that, having regard to sections 69 and 76 of CITA,

Theodak’s action was incompetent because Theodak failed to object to the assessment within 30 days, by reason of which the assessment had become final and conclusive.

Court’s decision In its final judgment in favour of Theodak, the court held that the provisions of the CITA are very clear on how the FIRS is to assess and charge CIT. It was decided that the FIRS can assess and charge any company in Nigeria on such fair and reasonable percentage of the turnover of the trade or business of the company, where the company has failed to make its own assessment or the company’s assessable profit is unascertain-

able. According to the court, the value of Theodak’s property could not be deemed to be its turnover for the year under review because the turnover of the company has to be tied to the company’s trade or business. In this regard, the Court stated that the imposition of turnover assessment on the value of a company’s disposed properties would be permissible where the company’s business involves selling of properties and such company has failed to file its annual tax returns.

On the question of whether the assessment contained in the notice by the FIRS had become final and conclusive because Theodak did not object to it within thirty days, the court held that Theodak was not under any obligation to file any objection with the FIRS before it could approach the court. This is because Theodak has a constitutional right of access to court and section 69(1) of the CITA provides that if a company disputes an assessment, it “may” apply to the Board of the FIRS for a review and revision of the assessment.

According to the court, section 69(1) of the CITA is not a mandatory provision, having regard to the use of the word “may” in the section. As a result, a company is entitled to exercise its discretion as to whether or not to apply to the Board of the FIRS for review and is not bound to do so. Finally on this point, the court held that, in any event, Theodak did not approach the court for the purpose of challenging the amount stated in the notice by the FIRS but to challenge the FIRS’ noncompliance with the CITA in

arriving at the assessment.

Significance of this decision This decision is important, due to the fact that it has answered the critical question of whether the FIRS has any power to assess CIT on the basis of the value of the property of a company that is in default of payment of CIT and consequently clarified what is generally a burning issue. Now, unless a company is in the business of selling properties, the FIRS is not entitled to use the value of the company’s property as the basis for assessing CIT, as the valuation of the property is not the same thing as the turnover of the company.

On the question of whether a company is bound to object to an assessment within thirty days, this decision provides authority for the proposition that the failure of a company to raise such an objection will not preclude the company from exercising its right of access to court.

However, it must be noted that this decision did not decide that an assessment not objected to within thirty days of service of the notice is not final and conclusive under section 76 of the CITA. Consequently, where a company disputes a notice of assessment issued by the FIRS, it would be prudent for such a company to advisedly take steps to apply to the Board of the FIRS within the time stipulated by law.

MOFESOMO TAYO-OYETIBO, ACIArb

3PL vendor battles Jumia over alleged breach of contract …Petitions Assistant Inspector General of Police

J

umia Foods is facing allegations of fraud, bothering on false presence, fraudulent conversion and diversion of the sum of two hundred and fourteen million, six hundred and ninetyfive thousand, four hundred and forty-five naira, forty-nine kobo, following a petition to the Assistant Inspector-General of Police, of Zone 2, Onikan, Lagos by Castle Logistics.

In a petition dated the 24th day of December, 2018, signed by Catherine Azubuike, and made available to BusinessDay, the petitioner alleged that the company entered into a Service Level Agreement, to provide personnel services and equipment to Jumia food for delivery of food supply requests made online by its customers, adding that it also involves the collection of monies and consequent remittance of same to Jumia.

It was alleged that in May 2018, the contract became determined

by Castle for gross failure to adhere to the terms by Jumia. Jumia was

said to have been able to pay for only August, 2016 to March, 2018, and fell short of the payment of N214, 695,445.49, and upon a thorough investigation into the payment collection system, they found out that Jumia without

Castle’s consent and permission gave to some of the Riders, Jumia food’s personal POS for collection of payments from customers, and effectively those payments were rendered directly into Jumia food designated accounts., adding that

Jumia stole and converted the said sum for own use.

According to the petition, Castle demanded Jumia food to provide it with complete bank reports of the transactions on those POS machines, but Jumia refused.

“Jumia food refused but rather chose to randomly estimate a percentage of the total funds received from those POS machines as funds related to orders handled by castle. This resulted in huge monthly shortfalls on orders handled by Castle and Jumia Food kept demanding Castle to remit funds for those shortfalls without providing the POS reports.

Castle also alleged that further findings later showed diversion of fund, and that Jumia deceived them into remitting funds to its Zenith bank account with clear intention to permanently deprive them of its use. The petitioner stressed that the riders acted on the behest of the Managing Director of Jumia food, Guy Futi. The petition also included the issue of

non-remittance of VAT and WHT

by Jumia to the Tax authorities.

The petitioner is therefore calling on the Assistant InspectorGeneral of Police to investigate the issue and see to it that justice is served.

On Thursday, January 31, 2019, men of the Nigerian Police, Zone II, Onikan, Lagos picked up Guy Futi of Jade Internet E-Services Nigeria Limited (Jumia Food) over these allegations.

Although Jumia representatives have denied this arrest, a member of the anti-fraud unit, Adewumi Adegoke confirmed it.

He said, “I can confirm that the Managing Director of Jumia Food was arrested today and is in our custody. Investigations are ongoing on the allegations leveled against him and the company and I can assure you that they will be charged to Court accordingly upon conclusion.”

It was also learnt by our correspondent that the company is being accused of evading tax payable to the authorities.

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LegalBusiness

ManU, Jose Mourinho and Ole Gunnar Solskjaer: leadership lessons for Nigerian Electricity Supply Industry

T Proem

he writer is a diehard fan of one of the World’s best football clubs, Manchester United and what he seeks to do in this paper is to assess the leadership of the electric power sector in Nigeria. This paper also seeks to highlight lessons to be learnt from the change of coaches from Jose Mourinho, who is a World-renowned coach, to a much less successful coach, Ole Gunnar Solskjaer who, however, appears to have made a much better impression on the minds of players, fans and owners of Manchester United.

Whilst Jose Mourinho struggled, a much less successful Ole Gunnar Solskjaer appears to be getting things done and nearly excellently. In fact, as at the time of writing this piece, the team is yet to lose any of the nine (9) matches played since he became the coach.

In this paper, the writer shall do a comparison of the leadership styles of Jose Mourinho and Ole Gunnar Solskjaer, highlighting the differences in leadership styles of both coaches. The writer shall also highlight the leadership in the Nigerian Electricity Supply Industry and end with lessons that can be transplanted in the leadership of electric power sector in Nigeria.

Ole Gunnar Solskjaer Versus Mourinho- A Lesson in Knowing the Limits of Technical Skills Alone In every football club or indeed any endeavor, leadership is so fundamental to achieving the goals of the club or endeavor. Where there is bad leadership a team or group suffers and is unable to achieve the desired goals as the aim of leadership is to achieve group or

what is referred to as corporate goals. For a group of footballers, their primary goal as a team is to win matches.

Thus, for a team like Manchester United (aka Man Utd), it cannot be different. In Manchester United’s case, winning was germane as that affected the value of its shares especially because winning determines a part of its revenue as it was far less lucrative to fall outside the top 4 spots since the team will not play in the next year’s Champions’ League.

Being listed on the New York Stock Exchange, Man Utd, had its share price peak at US$27.20 (GB£21.47) per share on August 27, 2018 – valuing the club at US$3.1billion and falling 22 percent to 21.12 (GB£16.67) by October 1, 2018 after the worst start to a Premiership season in the recent history of the club. By the time Mourinho was getting sacked, the share price had declined to a low

of US$17.25 (GB£13.64).

Research has shown that as things stand and for the foreseeable future, technical skills, alone, as a leader can only take one, so far. If one, as a leader, cannot inspire, encourage and motivate followers to achieve success then corporate success will be limited.

To achieve more success as a team than each individual can achieve requires humble, empathetic and inspirational leadership. It is, in fact, suggested that a great leader’s most pertinent features are the abilities to inspire, motivate and influence the people he or she leads to achieve desired goals. When a team’s failures are entirely blamed on team members with the leader or leadership exculpating itself and successes completely attributed to the leader or leadership, team members are likely to very quickly lose confidence in that leadership.

Pride, lack of genuine care, failure

to share successes with team members or to genuinely praise such team members for their role in any successful mission all form the recipe for the failure of any leader. Team leaders, simply lose respect for such leaders and are no longer motivated by same.

They may leave, sulk or take any such other steps they believe suits them and those who are stuck or cannot leave, perform far below their capability. Conflicts become a constant feature of such teams.

The foregoing, which were features of Mourinho’s reign, clearly show why Mourinho, despite his renowned excellent technical skills, failed and lesser recognized Gunnar Solskjaer is succeeding at Manchester United. Thus, whilst Mourinho was only result oriented without showing empathy, encouraging cordiality and exercising sufficient emotional intelligence, the baby-faced assassin, as Ole Gunnar Solskjaer is called, has turned things around by doing the exact opposite of the things Mourinho did.

An Assessment of the Leadership of the Electric Power Sector in Nigeria The leadership of the Nigerian electric power sector consists of the Ministry of Power, Works and Housing (the “Ministry”), headed by the Minister of Power. The Ministry drives power policy and generally determines the policy thrust of the Nigerian Electricity Supply Industry (the “NESI”). It is the policy decisions and thrust that guide the deputy leader, the Nigerian Electricity Regulatory Commission (“NERC”) in its issuance of regulations. The Minister of Power is thus, the primary leader of the NESI. It will indeed not be fair and

this paper will not be a balanced piece, if one does not state that the Minister of Power has, indeed, taken a number of laudable steps in the sector including the energizing economies initiative, being implemented by the Rural Electrification Agencies (REA), one of the parastatals under the Ministry.

There is a lot of encouragement for mini-grids and solar homes systems to support smaller businesses and homes and take them off the national grid. A number of markets and smaller commercial consumers of power now seem better off in terms of power supply although, at a much higher price than grid supply.

There has also been an improvement in the capacity of the national grid compared to what it was several months ago. There have been several projects completed to improve the capacity of the national grid, such that, from around 4,000mw several months ago, to around 7,000mw at the moment. There is clearly some improvement in the indices. Whether that has translated substantially to the average person having more electricity is a different conversation, nonetheless. There have also been a number of policies such as the eligible consumer regulations, to the Meter Asset Providers and a number of other very interesting policies and rules.

Ayodele Oni, (ayodele.oni@ bloomfield-law.com), a commercial lawyer, specializes in international energy investment law & policy and is currently advising on a number of electric power and gas projects.

To be continued next week

There’s too much incompetence in Nigeria’s justice sector...

Continued from page 29 time and it makes the process of administering just such a herculean task.

And this is where the conflict exists.

The book is big on history. Are you hopeful that the historical perspective the book brings would help drive these conversations?

We believe so. The case that we make is that the book would help policy planners would take an elevated look at the system, and to see the issues a lot clearer. That it is one value chain. From the point of investigation to incarceration and thus should be dealt with in one continuum. Breaking it up into various operating systems and operators who are controlled by people who do not speak to themselves, is not a productive way for any system to work.

In this regard, what are best practices globally?

In the state of New York, all these actors are under the control of one set of policy planners. The entire value chain is open to one group to plan for – from the state police to the state penitentiary.

Earlier, you did talk about the character and capacity of policy planners and operators of the justice sector as an essential part of justice reform, how would you describe those we have in there today?

There’s too much incompetence in the system. Corruption is a big deal but incompetence is the bigger enemy of the progress of a workable system.

Incompetence if tackled will take care of the issue of corruption. It’s an incompetent police force that ensures corruption festers.

What are some of the proposed reforms in this book?

We must pay more attention to how we fill our human capacity in the justice sector. There is clearly something wrong with a judicial appointing system that is designed to ensure that Chief Registrar is automatically appointed a judge, irrespective of his character and competence. There is something wrong with a system that is seniority-driven instead of capacitydriven.

An appointment system that is based on mere seniority cannot be efficient. Notable is the fact that we were not always like this. We have

had judges who were appointed to the Supreme Court without being judges before. Justice Elias wasn’t a judge before his appointment. Augustine Nnamani also wasn’t a judge before his appointment to the Supreme Court and those were some of our brightest legal minds of all times. So this ‘lock-step’ seniority appointing system has not brought out the best in us.

In this book, we make a case for looking at judicial appointments as a critical part to ensuring character, competence and capacity in the justice sector. We propose the same for the prosecution system and the police.

Sharing his views about current developments in the justice sector and reform initiatives, Shasore spoke briefly speak about the objectives of a group which he is a part of, known as the Justice Reform Project (JRP), He said, Given the necessity of the situation, the objective amongst other things is to reset the value system the justice sector; to salvage the respect for the Rule of Law; and to salvage the public perception of the justice sector.

The inevitable result for the loss of full confidence in the justice sector is a recipe for anarchy. Presently, we

are not so far from it and unless some sort of directional change is brought about immediately, we would head for the worst. This directional change is our mission.

As Nigerians and vital stakeholders in the justice sector, we must begin to realign our compass. We need justice sector operators who are able to align the system in the direction of progress, transparency and integrity. We have had incompetency in the justice system for far too long.

The reason a group of us have come together is to ensure that this project is not just another opportunity to speak against the shortcomings of the system. While I am not at liberty to formally speak for the group, there is understanding that as members our obligations and commitment to the project are geared towards ensuring that stakeholders are moved in a way to bring directional changes in the sector.

Are you concerned about colleagues who do not share your views and approach to reform?

“We couldn’t care less, because something had to be done. There’s rot even within our cadre and the public deserves to know that there’s one last

The book, Ministering Justice: Administration of the justice sector in Nigeria, covers amongst other things, a treatise on the evolution of the Office of the Attorney General (AG), the constitutional and ministerial duties of the AG in general and in Nigeria and Lagos State in particular.

It also covers recommended justice sector reforms, legal and other initiatives and other interventions of the authors in relation to legislative review and law reform during their time on the board of the Lagos State Law reform Commission.

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Justice reform project unveiled by prominent senior advocates THEODORA KIO-LAWSON

I

n a bold move towards justice reform in Nigeria, a group of Senior Advocates of Nigeria are making remarkable efforts to collaborate with stakeholders in a bid to implement a process that would lead to the reform of critical aspects of Nigeria’s justice delivery system.

Unveiling this initiative known as the Justice Reform Project (JRP) to the public, the group in an official statement signed by no less than 20 senior advocates, expressed deep concerns for the recent events surrounding the suspension of Honourable Justice W. S. N. Onnoghen as the Chief Justice of Nigeria.

“We feel obliged to make this intervention for two primary reasons: (i) a recognition that the events which have resulted in this debacle is in fact a manifestation of and response to a deeper malaise in the administration of justice and justice delivery in Nigeria; and (ii) a concern that the crisis of confidence that is currently shaking the judiciary and the legal profession in Nigeria is unprecedented,” the statement read.

It explained that this intervention, was not aimed at delving into the merits or demerits of the respective positions that have been taken by the different actors regarding the suspension of Justice

Onnoghen, but to rather examine the underlying factors that have engendered or perpetuated the undoubted loss of confidence in the judiciary and the legal profession and to proffer suggestions for a much needed reform.

It read, “Certain facts are hardly contestable. There is a widespread perception that there is corruption in the judiciary and this perception is supported by anecdotal evidence. Unscrupulous litigants and some complicit lawyers, including some Senior Advocates, procure judgments and orders by corrupt means.”

According to the justice reform group, it is also beyond dispute that the system for self-regulation in the judiciary and the legal pro-

fession has failed. They note that lack of transparency and deep appreciation of the basic ethos of governance in the processes and procedures of the relevant institutions lies at the very heart of the challenges the Bench and the Bar are currently facing.

“There is a perception that the National Judicial Council (NJC) has been ineffective in exercising discipline where high-ranking judicial officers are involved and that its proceedings and internal processes are unduly opaque. Similarly, the Nigerian Bar Association is notorious for its inefficacy in respect of disciplinary issues. Petitions filed by litigants and members of the public linger for years on end without resolution,” the group further stated.

Recalling what it described as the golden era of the judiciary, members of the Justice Reform Project (JRP) disclosed that the Nigerian legal profession and justice system have known better days.

“We recall the golden era of our judiciary, when judgments of Nigerian courts were cited with approval in foreign courts. Sadly, this is no longer the case. In our view, the incessant examples of contradictory decisions that have afflicted Nigerian jurisprudence in all facets of law further fuel the perception of incompetence and corruption by the Nigerian judiciary and the legal profession,” it said.

They are also of the view that, the time has come for an urgent self- introspection and evaluation with the ultimate aim of a robust systemic reform of the Nigerian judiciary and the legal profession.

Therefore, in an effort to achieve a broad consensus on, and implement a process for the reform of the sector, the Reform Project highlights some critical aspects of Nigeria’s justice delivery system for review and reform.

These include, the composition, constitution, functions and internal controls of the National Judicial Council; the process for the appointment, continuing education and promotion of judicial officers; the process for the discipline and regulation of judicial officers; terms and conditions of service of judicial officers; Judicial ethics, values and

the relationship of the Bench with the Bar; as well as the process for the appointment of lawyers to the Body of Benchers.

Other critical issues are, the composition, constitution and internal controls of the Legal Practitioners Privileges Committee; the process and criteria for the conferment of the rank of Senior Advocate of Nigeria; the roles and responsibilities of Senior Advocates of Nigeria as leaders of the Bar; the regulation and discipline of Legal Practitioners; ethics, values and standards of legal practice and the composition, constitution and internal controls of the National Executive Committee of the Nigerian Bar Association.

“The need for action is urgent.

We will commence our work immediately, and we will operate on the basis of transparency, objectivity and inclusiveness. We will soon publish details of how we propose to engage and collaborate with all stakeholders, especially the Nigerian Bar Association,” the group re-emphasized.

In closing, they called on other members of the profession to act now to save the profession and the nation.

Though the Justice Reform Project (JRP) currently has 20 members on board. There are indications that this number will increase with time, as many other senior advocates are seemingly eager to join this train and have expressed solidarity with the group.

OAL names new managing partner, admits 3 substantive partners O T V W lisa Agbakoba Legal (OAL) has announced the appointment of Bisi Akodu as Managing Partner. Bisi succeeds Priscilla Ogwemoh, who stepped down as Managing Partner

ith over 40 years’ experience inCorporate Commercial practice, Bisiis well versed in mergers and acquisitions, share and asset sales, leveraged buyouts, joint ventures and private equity transactions. She serves as a Member of Financial System Strategy Vision 20-20, a Central Bank of Nigeria initiative to establish an International Financial Centre in Nigeria, a Fellow andCouncil member of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN).

Bisi has acted as legal counsel for numerous companies and corporations, including Westinghouse Corp., Philip Morris Nigeria Limited, Cadbury Nigeria Limited, Dornier GmbH, Thomas Wyatt Limited. She did extensive transactional work for various banks during the Nigerian Banking consolidations of 2005 and has worked on collateral risk assessment audits for Nigerian banks.

As an advocate of change, she has written on new financing models and is currently engaging the Securities and Exchange

Bisi Akodu Managing Partner

Commission (SEC) on establishing a crowdfunding framework in Nigeria. She provides commercial and solution-oriented advice to a wide range of banking clients on innovative solutions to their insolvency and bankruptcy concerns.

D

ebola is hardworking, a team player and is noted for prompt delivery and solutions to knotty legal issues. He has displayed exceptional leadership skills, founded on his integrity, impeccable communication and negotiation skills.

Debola has a strong analytical mind and has brought his experience to bear in the Firm’s litigation, debt

after serving with distinction in that capacity for over 20 years.

The Firm also elevated Associate Partners, Babatunde Ogungbamila, Victor Akazue Nwakasi and Adebola Sobowale

as Substantive Partners with effect from February 1, 2019. They joined the firm in 2013, 2005 and 2008 respectively, and have been instrumental to the Firm’s success over the years.

unde has over 18 years post call experience in dispute resolution. His passion for legal practice is evident in his meticulous handling ofcases and complex legal issues and he often enjoins others to imbibe a methodical approach towards proffering solutions for complex issues.

Tunde’s ultimate drive is the enrichment of his knowledge, and he has published several papers in international journals including the Oil, Gas and Energy Law Journal (OGEL) that published his master’s thesis which focused on options in increasing the bankability of project financing transit pipelines in the face of the risk of obsolescing bargain. Tunde is registered with the Securities and Exchange Commission as a capital market consultant. He

ictor is well versed in Corporate and Commercial law advisory, Administrative law, Alternative Dispute Resolution (ADR), and Regulatory Reforms. An extensively trained Arbitrator, Victor has contributed to the development of ADR and its practice in Nigeria and Africa.

Victor combines unique skills from his experience as a Commercial litigator, Trainer, Mediator and Negotiator in handling complex legal issues and is a Euromoney trained professional on the subject of Troubled Assets Resolution and Recovery handling Receiverships on diverse Assets for financial servic-

recovery and insolvency practice.

He is an experienced and astute Litigator and has appeared in all superior courts of record in Nigeria.

He has successfully acted as Counsel to the firm’s Clients in several major Commercial Litigation disputes.

He also renders advisory services to financial institutions and Government Agencies in resolving Non-

Babatunde Ogungbamila Partner/head, dispute resolution

is a member of the Nigerian Bar Association, NBA Section on Business Law, Business Recovery and Insolvency Practitioners Association of Nigeria and Insolvency International.

Adebola Sobowale

Partner; head, Debt Recovery & Insolvency

Performing Loans (NPLs).

Debola is also a member of the firm’s Alternative Dispute Resolution Group and has acted as Counsel to both local and transnational parties in Arbitral disputes.

He is a member of the Nigerian Bar Association, NBA Section on Business Law, Business Recovery and Insolvency Practitioners Association of Nigeria and Insolvency International.

Victor Akazue Parnter, Head, Corporate Commercial

es sector clients. An avid scholar and law reformist, Victor advises private and public sector clients both locally and internationally in relation to regulatory and compliance issues on Nigerian Business environment and has worked on complex assignments and trainings for multinationals and the Nigerian Federal Judiciary.

He has special interest in Law and Development, Regulatory Impact Advisory and has published several articles and books on the subject. He has initiated, led and coordinated development law assignments for diverse clients and target groups. He is the author of Administrative Legislation: Rule-Making in a Developing Economy, Troubled Assets Resolution.

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GARDEN CITY BUSINESS DIGEST Press must arise and save Nigeria’s democracy – Human Rights IGNATIUS CHUKWU

T

he press has the sacred d u t y t o b a rk a l w ay s against infringements that impinge on human rights or threaten Nigeria’s democracy as a matter of responsibility.

On their own, the military must provide the backbone of protection and defence against internal and external aggression to provide the environment for democracy to thrive. But, a situation where the two above mentioned institutions begin to clash in their lines of duty as if any of them is no longer directing its energies to same goal of protecting the citizen, then something is wrong.

This is the postulation of the Human Rights Writers Association of Nigeria led by Emmanuel Onwubiko, one-time editorial staff with the Guardian, who held a one day interactive session in Port Harcourt at Chanhassen Lodge, No. 77 Rumuagholu Road, near Rumuokoro, to examine the ‘Urgency of Now’. This is for responsible security reporting by the Nigerian media.

Onwubiko and his group showed much enthusiasm in getting the media to appreciate the efforts made by the military to open up on information, especially the recent compliance by the Chief of Army Staff in responding to a freedom of Information Act (FOA)-backed request by some civil society organization demanding details of military allocations. The media must also exploit the FOA to demand for accountability especially from state governments and many agencies of

...Media/military clashes, raiding of media houses, must stop

L-R: Army PRO, Aminu Ilyasu; Gabriel Okon (Professor of Masscomm in RSU); Queeneth Kelsey (lawyer), and Emmanuel Onwubiko (HURIWA)

government that apparently behave like fiefs. He however insisted that clashes between the press and the military should ebb while raiding of media houses just to pick up an erring reporter must be a thing of the past because Nigeria was no Afghanistan.

Onwubiko insisted on responsible media practice saying; “Do not bring down the roof just to sell papers because if Nigeria collapsed, no journalist would be glad to lose his beautiful children and wife to go as refugee in neighbouring countries.

He made it clear that journalists in the most advanced countries of the world we seem to emulate do not compromise national interest and security.

He called on the union of journalists to rise up and earn the check off dues they collect by defending sanctioning employers that do not pay and also defend journalists in danger.

He also drew the attention of the Cyber Crime Act of 2015 and urged the Nigeria Union of Journalists (NUJ) to go after it because, according to him, it is a sinister law for the fact that if an online report embarrassed a public officer, the blogger or writer would be treated with harshness even when it is true. Like Decree 4 of 1984, truth or fact may not save a writer.

Okon the professor to the rescue: Helping the journalists to appreciate their roles and understand the academic principles of old, Gabriel

Okon, a mass media professor in the Rivers State University (RSU, formerly University of Science and Technology, UST), traced the evolution of the press from the authoritarian era when kings and nobles felt they alone held the right and privilege; to own media houses and impart knowledge through the libertarian era when it was agreed that commoners could equally rise in equal status; to the social responsibility theory of press, a moderation of the excessive freedom that seem to also corrupt as much as absolute freedom.

He harped on surveillance duty as a function of the media, adopting knowledge to the environment, saying all shades of opinion must be present. Insisting on the press remaining a watch dog that raises alarm when something goes wrong instead of pet dog that would not even bark, Okon, stated that the press had a sacred duty assigned to it in Section 22 of the 1999 constitution to hold government accountable, saying no other profession was given such nobility or responsibility, a task he said is most onerous.

In executing such a role, he said ethics must be held high in the media ro earn social conscience, warning that uncontrolled pen could be worse than uncontrolled sword. He frowned at self-censorship and clannish journalism exemplified in the case when the Lagos/Ibadan press routed out one time speaker of the House of Representatives on Toronto University certificates while at the same playing down on a Lagos gov-

ernor that had same certificate issue.

The former speaker had to resign and go into political oblivion whereas the Lagos governor grew into a political colossus and a Jagaban. He called it the conspiracy of silence and called for a strong press council to sanction erring journalists.

On coverage of elections, the professor urged the media to ask for the ‘how; instead of the ‘what’ that contestants are pouring everywhere.

“The voice of the rich is everywhere.

Journalists must give voice to the poor”.

The Queeneth of Law In her presentation, a female lawyer, Queeneth Kelsey, ran through the provisions of the law that could affect the practice of journalism and reminded the media that laws are nothing without the punishments imbedded in them to correct the society, describing law as a body of rules to guide human conduct.

She observed that national security was important and should be assisted by the media. She defined it as the security of a nation-state seen as the duty of a government; security that focuses on threat to the existence or smooth functioning of a nation from internal and external sources.

She however said the media is to communicate, inform and carry out surveillance. The media must contribute to national security, fight to uphold the rule of law, and play the gatekeeper’s role as well as protect human rights, remove and aim to inform better by being accurate and enlightened.

Abe’s hints: Is Amaechi’s APC still in the woods despite appeal court order?

PORT HARCOURT

BY BOAT

IGNATIUS CHUKWU

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here is jubilation all over Rivers State after the Federal Court of Appeal in Port Harcourt awarded a ‘stay’.

This is the robe that the Rivers APC (Amaechi faction) needed desperately to hang on till the Supreme Court would speak. All other courts had ruled against the party to the extent that all their candidates were WAFfed.

Just as the jubilation was going on, a statement emanated from Mangus Abe, the senator that may not be senator anymore from February 16, except something goes right.

He wanted to contest for governor but ran into a hitch because he led his own faction, conducted his own primaries and his name has not got anywhere near the gate of INEC, let alone the ballot papers. It is not clear if Abe is a senator, a governorship candidate or a Wike ally for 2023.

One of these will materialize as time goes on.

Abe, presently representing Riv-

ers South-East Senatorial District in the National Assembly, said in a statement signed by his media team that the ruling of the Court of Appeal granting stay of execution to enable the All Progressives Congress (APC) appear on the ballot box in Rivers State was noted and welcomed as the court did not restore the name of anyone but merely gave a stay to enable the party prepare for the forthcoming general elections.

Abe, according to Parry Saroh Benson, said the Court of Appeal did not order the Independent National Electoral Commission (INEC) to restore names of candidates for the 2019 Governorship, State House of Assembly and National Assembly elections. He said that it had always been of his view that what was required in APC Rivers is a dispassionate review of the issues in contention so that a clear and definite decision could be made on those to fly the flag of the party in the forthcoming elections.

Many understood this to be a call for dialogue in the APC and harmonizing the factions and choosing the candidates to be submitted to INEC. He does not seem to agree with the Amaechi camp that the ruling implied that the status quo in INEC ballot be maintained, which would mean, all names go back to the ballot.

He said; “The facts are simple and sacred. A faction of the party led by the Minister of Transportation and the DG of the Presidential Campaign conducted congresses and indirect primaries in clear and open violation

of the orders of a court of competent jurisdiction. This was done in the full glare of the entire country”.

According to Abe, the issue was taken up to the Supreme Court, and the court in its wisdom held that having disobeyed the court so openly they were not entitled to any relief from the courts. “This position was clearly set out in Ibrahim Umar & Ors Vs. APC as reported in Part 1650, 18.

Nigerian weekly law reports at page 139”, he maintained.

He went further to say that all the actions based on that illegality were voided and remained void. “The judgment that is now being stayed was based in part on that position of the Supreme Court”. However, he stated, “What Nigerians are witnessing now is a desperate attempt to reverse the law to get the President to raise the hand of candidates that the law has said does not exist. The President’s decision to abide strictly to the correct legal position is the reason for the current pressure on the Judiciary”.

Senator Abe who is the Chairman, Senate Committee on FERMA congratulated their Lordships for the decision which according to him, is in line with the position of all Nigerians that APC must be on the ballot in Rivers State. He further stated that the application to declare any faction as the authentic candidates of the party was specifically rejected. “That issue is the subject of series of pending litigations before Supreme Court and the Court of Appeal”, Abe added “The main issue that must now agitate the minds of Nigerians is the

‘

The judgment that is now being stayed was based in part on that position of the Supreme Court

position of the Supreme Court on the matter moving forward. Will the Supreme Court turn around to tell Nigerians that its former position on the consequences of disobedience to the orders of the courts no longer holds? Or can the court of appeal now overturn an existing judgment of the Supreme Court? “The indirect primaries did not hold by law, but the APC conducted a valid, and lawful direct primaries that clearly puts the APC on the ballot without legal entanglements.

“Let me assure all lovers of justice that a change of the judges does not automatically translate into a change of the law. Therefore, we should all remain calm. The struggle for justice in the party will continue until victory is achieved”, he stated.

His mention of the ‘change of judges’ was understood by many as the issues around the Chief Justice of Nigeria 9CJN). If it is so, it is instructive. The other remark is that the president has decided that only the correct legal interpretation is what he will support. This confirms rumours that Buhari does not want to get involved in the Amaechi/ Abe imbroglio, meaning that whoever wins in court will be allowed to march forward. This could explain why both parties are acting their fiercest without fear of it being dubbed anti-party. So, whatever you can do within the courts to win, you go ahead and show the result to the president? This must be Treasure Hunt.

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Investing in Rivers State The thrills and frills of the BBC Rivers Debate

Monorail, soot, jobs, security, new city, agric, dominate • Shows where masses yearn for action • Debate without heavyweights as Wike, Cole, Dumo absent Ignatius Chukwu

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n January 30, 2019, a Thursday, at ‘The Hub’ events centre on Peter Odili Road, near Trans-Amadi, in Pot Harcourt, the British Broadcasting Corporation (BBC) held the Rivers wing of its ongoing governorship debate series by the Pidgin department headed by Adejuwon Soyinka.

Absence of heavyweights For now, for the governorship elections, those regarded as heavyweights are Gov Nyesom Wike (PDP), Tone Cole (APC) and Dumo Lulu-Briggs (Accord Party). Dumo will be a force the moment Cole is knocked out. On the day of the debate, none was on stage. The BBC said Wike did not respond to any of the letters. Dumo came and left like Atiku did. Cole is not on the ballot and so could not come. This seemed to deflate the debate.

At the end, those who lined up were; Labour Party (LP): Isaac Wonwu; African Democratic Congress (ADC), Eniye Braide; Action Democratic Party (ADP), Victor Fingesi; and Social Democratic Party (SDP), Precious Elekima.

Elekima pushes in Precious Elekima of the Social Democratic Party (SDP) did not get the public opinion votes the BBC released to show those to come for debate, but he arrived with the youths who actually acted in violent manners. Many of them pointed violently at this writer and insisted no body will go in. To avert trouble, the BBC officials allowed him in, after more bouts of trouble, got him onto the podium with an emergency stand. He had his day. The BBC officials had told Elekima he would not climb unto the stage because he was not listed, that he was allowed into the hall just to give peace a chance.

The candidate flared up and made more troubles. He accused the BBC of being bribed and that the process was fraudulent. He said he had evidence of bribery against the organizers to stop him from speaking out. He said he must debate so long as it was called governorship debate, they should give it another name.

Responding, the Soyinka (BBC Editor, Pidgin) denied any iota of

bribery, saying the accuser should go ahead and produce the evidence, if he had any. When journalists doubled back to Elekima after the debates to produce evidence, he said the evidence was ‘clear’ by the behaviours of the BBC. The evidence, by his insinuation, was his being excluded in the debate. The press sauntered away.

The debate: Anchor: Nduka Orinmuo said Accord Party man came and left, but that Gov Wike did not even respond to any of the letters. It was important for the PH people to defend their age-old reputation of peace and fun. Modalities were read out and the debate proper started.

Monorail resurfaces The N150Bn Rivers monorail project reared its head at the debate.

It was clear that the debators were divided over whether to reintroduce it or not, just as the society is divided, too. However, majority said they would either restart it or study it first.

One person said he won’t look at it.

Even Wike once told BusinessDay he could look at it if the masses demanded for it. It is however getting clearer that as time goes on, the masses would condemn anyone who allowed that huge facility to waste. Public opinion can shift, sources said. Elekima (SDP): We will take the monorail to Ogbakiri and up to Isaka (Okrika), Iwofe, etc.

Fingesi (ADP): I will leave it alone Braide: (ADC): We will study

it and take a decision best for the people Wonwu (LP): Monorail is our money, we will complete it.

Why do you want to be governor?

Elekima (SDP): I am in the race to deliver freedom, prosperity, peace, and to stop people from having to beg; to say, no more dashing of rice.

I will pursue industrialization in order to create jobs. I will build 92 industries in four years. I want to share the wealth of the state round.

Fingesi (ADP): Rivers is tired of poverty. Paying of school fees is a problem to parents. Since 1999, it has been promise and fail. It is time to change.

Braide (ADC): It has been grammar without food on the table for citizens. Such grammar is nonsense to the people. Building good roods without building a strong economy is nonsense. The masses fail to think right, and know what is right.

Wonwu (LP): Past governors tried their best but I am here to do more. I will empower women because whatever they get goes to all.

I will give scholarships, food, (Agric) massively; mechanized agric revolution. We will create jobs.

What have you done or achieved before?

Wonwu (LP): I am an industrialist (established a company called Cascades Limited) Braide (ADC): I am an architect, a real projects man. Peace is key and that is where I have played critical roles. I am in touch with all militants.

I and Asari Dokubo met with President Obasanjo then and I prepared the paper that formed that meeting.

Fingesi (ADP): I am a guru in security. I will reach all militants and this will bring peace, which will bring investments. Education is key, and I am the president of many youth organizations.

Elekima (SDP): I am a trader, etc, now politician. I have studied governments, seen the troubles ahead.

Job creation Fingesi (ADP): We are created

OGRI; Oil and Gas Resource Industries. We will do modular refineries, mechanized agric, etc and we will deploy the money they are using to buy jeeps to set up machines for small industries.

Wonwu: (LP): I will set up micro industries; technological training centre will be set up. We will establish industries and agric businesses.

On how to get the funds, I will set up micro finance banks to spread funding for MSMEs. Braide (ADC); We have done our plans; we will attack the lands. How to source funds? We will approach various donors that abound. We will also adopt PPP to get things done in the agric sector.

Elekima (SDP): Mine is going to be community government system.

There are raw materials in in each LGA to help us set up the 92 industries. There would be no amnesty payouts.

Traffic situation in port harcourt Fingesi (ADP): We will adopt the mass bus system like Lagos did Wonwu (LP): Roads will be expanded, create more urban areas outside Port Harcourt, create urban transport system. Port Harcourt is not wel planned.

Braide (ADC): We will carry out decentralization system and build flyovers everywhere Elekima (SDP): We will set up train system from the city centre to Oyigbo and build flying bridge to Ogbakiri through southern Port Harcourt across the waters.

Soot Braide (ADC): It is caused by nothing but ‘Kpo-Fire’ (illegal refining) business that causes. Do not mind those who say it is caused by tyres burnt at Isaac Boro park. Soot is a very worrisome matter and it has led to many people leaving Port Harcourt. My government will control it and allow modular refineries.

The problem is that the business is lucrative. The boys contribute up to N50m per day and give to somebody as settlement. So, we will create

alternative business for the youths to leave Kpo-fire business.

Elekima (SDP): We will help the youths with funds to set up modular refineries Wonwu (LP): Soot is simply dangerous. Say no to black soot.

Modular refineries will have to come to the rescue. The Ministry of Environment and Ministry of Special Duties will have to wake up and deal with the situation.

Power supply Elekima (SDP): We will bring turbines on trucks to station in areas without supply especially the rural areas.

Fingesi (ADP): Power supply is a federal matter but we will call on the Discos to know how to help out.

Then the rural areas can be supported with turbines.

Braide (ADC): We will first tackle the constitutional huddles. We will do the Lagos example.

Wonwu (LP): The Rivers State Government has shares in PHED that distributes power in Port Harcourt so we will help in metering and other ways to boost power supply.

Youth matters Fingesi (ADP): Youths are our priority. Education is the best module on this.

Elekima (SDP): Free education up to the university. We will set up boards to manage the schools Wonwu (LP): We will send youths to training centres, do massive job creation, etc Braide (ADC) We would explore partnerships for training programmes. Do agro and marine for youths, and encourage youths into politic so they take their destinies in their hands. I will encourage them to vote for themselves, instead of voting for others all the time.

Security Elekima (SDP): We have no problem in security except the drama they are staging for our attention.

Solution is, let bad acts be punished, straight. We will stop those who lobby for release of criminals. We will give jobs the youth. Defence is important. Criminals work according to body language of those in authority.

Fingesi (ADP): The people we call our boys are hoodlums, simple.

The people know who is who. We will convene a meeting. Dialogue is the way to go. On how to deal with security agencies, It is a FG matter but there is clash of interest which lead to posting people to where there is money to be made. This is why you see JTF in the waters instead of Navy.

Wonwu (LP): We would train the youths on ethical orientation. On what to do with security agencies, Government must show example Braide (ADC): Security agencies are in tussles Member of the public to Isaac Wonwu: Is it good for Ikwerre to continue, after 12 years? Answer: Its not where you come from but what you can offer.

Thursday 07 February 2019

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Live @ The Exchanges Greif Nigeria posts full year loss of N245m …Shareholders fund depletes by 73% …Board orders immediate halt of operations as market conditions worsen Stories by Iheanyi Nwachukwu

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reif Nigeria Plc, an NSE-listed company has reported a loss before tax (LBT) of N245.2million in the financial year ended October 31, 2018. This represents a decline of 210percent when compared to profit before tax (PBT) of N77.554million which the company recorded same period in 2017.

The company has released its annual report and audited financial statements and supplementary financial information for the year ended October 31, 2018.

The company’s revenue declined in the review period by 62percent to N534.61million from N1.405billion in the preceding full year period of 2017. The company’s loss for the year stood at N262.58million against profit of N49.42million in the preceding full year period of 2017.

Shareholders’ funds at N98.83million represents 73percent de-

cline when compared to N361.424million in 2017. Its loss per share at 616kobo represents 620percent decline when compared to earnings per share or 116 kobo in full year 2017.

Located in Apapa, Lagos State, Greif Nigeria Plc manufactures and markets steel drums in Nigeria. The company which was formerly known as Van Leer Containers (Nigeria) Plc changed its name to Greif Nigeria Plc in May 2004. Greif International Holding B.V The Netherlands owns 51percent stake in Greif Nigeria Plc, The Van Leer Nigerian Education Trust owns 23percent stake, while other Nigerian Citizens and Associations own 26percent stake in Greif Nigeria Plc. “We have tried to navigate this difficult business terrain by recovering our costs through multiple price increases to our customers, cost reduction initiatives and improved efficiencies. However, we have not succeeded in that. We have lost our most important customer, halfway through the year and had to reduce prices to retain volumes, not fully recovering

costs”, said Adedayo Olowoniyi, Chairman, Greif Nigeria Plc. He said, “The trends that have started mid 2018 still continued in the first (fiscal) quarter of 2019. As a result of increased competition and a stagnant market for steel drums, we do not see an improvement happening in the near future.

“Greif Nigeria has been operating well below operating costs, even below direct material costs, and sees no signs of improved market conditions. Therefore, we have decided to stop operations with immediate effect.

The coming months we will investigate on if and/or how we can continue with Greif Nigeria,” Olowoniyi noted in the report released to the investing public at the Nigerian Stock Exchange on February 6, 2019.

The Company’s significant overseas suppliers are ArcelorMittal International, Greif Shanghai, China, Wuxi Jiushun Steel, China and Proseal India. It has no distributors. All products are sold and delivered by the Company directly to the consumers.

SEC shuts down Dantata Success and Profitable Company over Ponzi activities

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he Securities and Exchange Commission (SEC) has sealed off the premises of Dantata Success and Profitable Company, Kano for engaging in illegal capital market activities.

According to a statement from the Commission, the company was shut down for carrying out investment operations that falls within fund management without registration with the apex regulator.

According to SEC, “They do not have registration with the SEC and the Commission has powers according to Section 13 of ISA 2007, to shut down any company carrying out capital market activities without due registration. Nigerian laws pro-

vide that business activities in the country have to be regulated, in this case SEC is supposed to regulate them”.

The strategy of the company is to solicit for funds from unsuspecting members of the public by enticing them with returns of monthly interest on investment of between 25 percent and 50 percent depending on the nature and investment type.

They also indicated a registration period of 5th February to 15th February in one of their numerous notices directing all prospective customers to make deposits into their bank accounts.

The company sells its forms to prospective investors according to their investment plans ranging from N1,000 to N3,000. The mini-

SEC Officials shutting down Dantata Success and Profitable Company, Kano

mum amount investable is N50,000 while the maximum is N5,000,000 The investment period of the scheme is pegged at a minimum of 30 working days to a maximum period of 12 months with offer of interest rates on short and medium term basis.

It claims to be involved in trading, general merchandise supply, oil and gas, transportation, import, export and general contract.

The commission had established that the company’s activities also constituted an infraction of the Investments and Securities Act (ISA), 2007.

The SEC Management said the closure was to end unlawful activities of the company against unsuspecting investors and therefore urged investors to ensure they only deal with fund managers that are registered with the Commission.

“The account of the company have been frozen, the promoters have been arrested by the Nigeria Police Force and are undergoing interrogation.

The Commission wishes to notify the investing public that the company is not licensed to carry out investments business of any type and as such its operations are illegal.

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Thursday 07 February 2019

‘In politics, loyalty gives you opportunity but not define what you do in office’ KUNLE AKINLADE is a gubernatorial candidate in Ogun State whose emergence under the ruling All Progressives Congress (APC) sparked controversy, leading to his defection to a new political party, the APM, where he hopes to realise his ambition to be the next governor of the state. In this interview with select journalists in Abeokuta, the state capital, he explains the circumstances that led to his emergence and his vision/strategies for growing Ogun economy. He also speaks on APC as a party, godfatherism and mentorship in Ogun, and party loyalty among others, CHUKA UROKO was there. Excerpts You contested the primaries of the APC and later went to your new party, APM under controversial circumstances; what really were the undercurrents that led to your decision? ost people in politics must have seen what the challenges were prior to my leaving the APC. Where I come from in Ogun, we had about 10 of us who the party decided, about three years ago, that because of the way Ogun is structured that Ogun Central and Ogun East have produced the governors of this state and that it would be fair for someone from Ogun West to be given the opportunity.

Twenty-five elders came together to work on that so that the zone would put one foot forward rather than allow the whole 10 of us to go into the primaries in APC. It was only one person from Ogun East, Gbenga Ashiru, who was then aspiring to be in the race. The Dapo Abiodun story had not even come to the picture. At that time, the Ogun leaders then sat down and it was within that period of six or seven months that I emerged as the consensus candidate of Ogun West.

Prior to that time, I met the National chairman of the APC, Adams Oshiomhole in his private residence in Abuja. My colleague took me to him and having succeeded in a smooth transition in Edo State, I felt he was in a better position to speak to my boss, Governor Ibikunle Amosun.

Felix Shuaibu, who is the current deputy governor of Edo State, was actually my colleague. That is just a background to show you that I did not just wake up one morning and was imposed on the people. It was a process.

So, I eventually emerged and was presented to the party, APC. At that point, Oshiomhole started asking, this boy, are they sure he can win and Amosun told him that if you want a yes person, do not choose Akinlade, but if you want somebody that has the capacity to do the job, this guy is the person. He told him that I

more sense to me to grab any opportunity to make more people come and work in Ogun State than in Lagos. A man who is doing that, I should be able to say thank you to him. That is what I went to Mr. President to do.

M

Kunle Akinlade

had what it takes to do it. I think that is why he started considering me. Oshiomhole came out openly and announced to the party that I was the one and that the Ogun West people had picked me and I was to run.

The Remo people kicked against it and said they would not agree on consensus candidate and that they wanted direct primaries. Then we went out for the primaries and worked. Remember that I was Amosun’s Senior Special Assistant on Tax and Revenue between 2011 and 2015; I was in the House of Representatives too. I served in (Ogun Revenue Service (OGRS) and was familiar with various unions and organisations in the state –artisans and everybody.

This reflected in the votes which I won on October 2. A day after that, they said it was the state executive that announced my victory and that they were not going to accept it. The issues started and for two months, we thought it was a joke and we went to the president and everywhere. At a point in time, we realised that they were not going to shift their position and we decided to come back to our people.

How do you feel that two candidates, even though of different parties from the same state, you and Dapo Abiodun were presented to President Buhari. Again,

don’t you think that there may be a bandwagon effect in favour of the APC in the event of Buhari winning the election?

There would not be any confusion with regards to the election. I don’t have any problem with Dapo Abiodun going to see Mr. President with Segun Osoba because he is a member of their party. For me, I do not recognise Abiodun as the APC candidate in Ogun State considering the way he emerged.

The confusion should be with them and not with us.

As a party, we adopted Mr. President, his policies and programmes and we have absolute confidence in him as a leader.

What I want to do is to wish him a happy New Year and we assure Mr. President that he does not need the APC candidate to win his presidential election in Ogun State. We will deliver Ogun State to Mr. President. We need to reassure him and there is no ambiguity in the readiness of our party, APM to deliver Ogun State.

Buhari is the president of the country and our party has adopted him and I think I reserve the right to meet him and reassure him that we believe in him and what he is doing. I must thank him for the railways that have come to Ogun State and in terms of industry and young people that it would attract to Ogun State to work. It makes

Do you have any plan to go back to the APC if you win this governorship election?

Let me tell you, I never knew prior to this challenge how important the people are in politics. You see these people follow us to run around and shout. I used to think that once you are able to mobilise people, they come and you are okay. It was after my mandate was stolen and I saw how people stood by us, took a position including market women, that I knew the importance of people in politics; many were using their money to do aprons, T-shirts and all that in solidarity.

You said that the mandate was stolen, but that mandate was recognised by the APC National Working Committee. Is that not enough for you, as a matter of principle, to decide to distance yourself from the party?

There is nothing wrong with APC as a party. I believe in the party. It is the leadership of the party that I have issues with. If it were something that happened in Ogun State alone, then I would have been concerned. I am a member of the House of Representatives. More than 80 of my colleagues went through the same experience. That means there is something wrong with the leadership of that party.

APC has wonderful policies and I have no problem with the party.

You have a large following from the youth in this state. When you become governor, how are you going to service this IOU? Secondly, your endorsement by the sitting governor comes with some challenges because he has some internal battles to fight.

How are you going to manage all these?

You see, in one of the IOUs, you cannot owe somebody who is giving you something. If what happened did not happen, I would

have owed so much because it would require enormous resources to sell me to the people.

I came into government in 2011 and joined politics in 2014- attending politics meetings and all that. Now, everybody knows me all over the state. People are now taking positions by themselves. I want to say that the crisis we went through has save me a lot of what would have translated to IOUs. Talking about my boss and mentor, the sitting governor, I want to say that in life, everybody fights his own battles. In politics, it is all about loyalty. When you are loyal, you can get anything and go anywhere, regardless of who your father is or where you come from. That is what I am enjoying from Amosu. So, I don’t think I will inherit my principal’s issues, if there is any.

You have just talked about loyalty and, most times, loyalty conflicts with public interest.

How are you going to balance that because the godfather has his interest different from public interest?

Let me put it this way. Loyalty should be defined appropriately.

In Ogun State, we do not have godfatherism. What we have here is mentorship. Godfatherism plays out when you go to the motor park and pick someone who lacks competence and capacity and put him in leadership. You have to feed him with ideas because he cannot do it on his own. But when it is mentorship, it is a different ballgame. I did not meet Amosu until when I was 41 years old and that was 2011.

At that time, I had gone to school and married and so I had a clear idea of what I was going to do with my life. So, in politics, loyalty is different. In Ogun, we are too intelligent, enlightened and knowledgeable for what happens in other states to happen here. So for me, I don’t see the possibility of confusing godfatherism with mentorship or my loyalty to Amosu turning into being a stooge. I want to say it again that in politics, loyalty is very vital. It gives you opportunity but does not define what you are going to do.

Thursday 07 February 2019

NATIONAL DISCOURSE

TELIAT SULE

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here is no doubt that political gladiators and party officials are busy strategising on how to win the next general elections, as visible in their campaigns, promotional posters, jingles, flyers, as well as the traditional and electronic billboards, all of which lend credence to this.

The posters don’t say much about the candidates, as the

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What kind of experience does electorate have after your political rallies? things we see in those posters are the names, political parties, the office the candidates are vying for, and then the associates or supporters that sponsored the posters.

Some posters are so empty with no value addition to the candidates to the point that one would have wished such items were not made in the first place.

For those that have manifestoes, of course, the political rallies would have been a very good avenue to know how the candidates will implement their plans.

For instance, how much funding will be required for each of the candidates’ new programs?

What alternative projects will be traded off to execute the new ones being proposed? What approaches did some of these candidates employ to arrive at the new projects and how are they sure they are the best for their

states, regions or constituencies?

What’s more, for those seeking re-election, how much of what they promised in their first tenure are accomplished and what prevented them from fulfilling their past promises?

Rather than do this, all the political parties are interested in is the number of people that attend their rallies. To them, this is the most important thing in a rally. This is really disturbing, after almost 20 years in the new political dispensation, and on a number of occasions, it has been established that tumultuous crowds at a rally do not translate to votes. First, apart from few party officials, no one can say for sure that everyone at the rally has a PVC. Second, there is no guaranty that all the people at a rally belong to the same political party. For these reasons, it will be difficult to have a positive

correlation between the crowd at a rally and the eventual votes political parties will have during the election.

Another intriguing dimension is the collapse of podiums.

Since the ban on political campaigns was lifted, a number of podiums had collapse leading to untimely deaths of party faithful.

In Kebbi, Ekiti, and other states, party faithful who thronged out to cheer their candidates to victory came back home injured, as a result of the lackadaisical attitudes of the party committee in charge of the campaign rallies. If a party could not protect its members at a gathering of about 300,000 Nigerians, does that party have the competence to protect 180 million Nigerians?

Another issue that leaves party supporters with a bitter experience is the control

of traffic before, during and immediately after campaigns.

For state capitals that are not as densely populated as Kano City, Kaduna, Lagos, Ibadan, etc, this issue may not be much of a concern. But that is not the case in other states. After the campaign, the adjoining streets to the campaign venue become no man’s land. Disorderliness rules the day.

As the APC presidential candidate visits the nation’s commercial capital, Lagosians cannot afford to go through the harrowing experience that comes with uncontrolled traffic and crowd. As the fifth biggest economy in Africa, traffic jam in Lagos for a day costs Lagosians billions of naira in revenue. Lagosians will not listen to excuses if orderliness is not implemented around the campaign venue come this Saturday.

Sanwo-Olu outlines 5 strategies to drive development in Lagos MICHEAL ANI

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abajide Sanwo-Olu, the ruling All Progressives Congress (APC) gubernatorial candidate in Lagos State, has outlined five developmental strategies that, if elected on March 2, his administration would deploy to take Nigeria’s commercial hub to the ‘next level’.

In a policy document seen

by BusinessDay, the 53-year-old APC candidate presented the five strategies couched under the acronym “T.H.E.M.E.” – traffic management and transportation; health and environment; education and technology; making Lagos a 21st-century economy; and entertainment and tourism. in the area of transportation, Sanwo-Olu said his administration will focus on prioritising the attainment of a reliable multimodal transportation system by reducing travel-related stress, improving journey time reliability, particularly for business travel and the movement of goods, and improving access to and within activity centres.

Lagos, Nigeria’s centre of excellence and commercial

hub, claims the number one spot when it comes to business location in Nigeria as the country boasted about $137 billion in Gross Domestic Product in 2017, almost three times the $47 billion that Nigeria’s West Africa neighbour, Ghana, recorded as its total market value for 2017.

The state has consistently raked in the highest amount in terms of states’ Internally Generated Revenue (IGR), turning in N283 billion in revenue as at the third quarter of 2018.

With a population of over 21 million residents, the state still battles with an inadequate transport system that could ease free movement of goods and services.

In spite of the issue of poor road network, trucks have taken over every sphere of the roads with many of the drivers turning the roads into a place of abode and bathroom, even littering the environment with faeces.

“To address this, my administration will improve safety whilst enabling all sectors of the society to travel to the destinations they need to reach and give priority to those means of travel that are less damaging to our natural and built environment,” Sanwo-Olu said.

On health and environment,

LAGOS DEVELOPMENT he said his focus will cover around expanding the Lagos health insurance scheme with a target of 500,000 households (2.5 million enrolments) by Q4 2019 and increase health spending from 8.86 percent to 15 percent of the budget in line with the Abuja Declaration.

Furthermore, Sanwo-Olu said he will create a database to capture the health needs of Lagosians by deploying a Healthcare Management System across healthcare centres; access additional funding for primary healthcare facilities through the National Basic Health Care Provision Fund (BHCPF); expand Lagos State Ambulance and Emergency Service coverage by increasing the number of ambulance points by 50 percent (from 15 to 23), and ensure minimum of three doctors, three nurses and five community health workers in all 345 Primary Health Centres (PHCs) by 2021.

Lagos State is home to some 673 junior and senior secondary schools and 1,017 primary schools, catering to more than one million students and almost 30,000 teachers.

According to Sanwo-Olu, the state’s educational system is functioning sub-optimally even though the state was ranked 6th nationally in the 2018 WAEC exams.

“We believe that Lagos State schools should be number one nationally and that our public schools must compete favourably with private schools,” Sanwo-Olu said.

“To address this, we will Increase budgetary allocation for education from 12.07 percent to 18 percent during the tenure of the administration; collaborate with industry, Federal Government and academia to update the education curriculum to reflect current and future industry needs and expand the SupportOur-School Programme in partnership with the private sector by targeting 100 schools across all 57 LCDAs,” he said.

Lagos has a rich history of economic growth and transformation and it continues to remain the commercial and financial nerve-centre of the nation. With over 60 percent of industrial and commercial activities of the nation being accounted for in Lagos alone, it, therefore, becomes imperative that Lagos continues to be posi-

tioned for sustained economic development.

The competitiveness of Lagos State as an investment destination depends on a vibrant workforce, attractive business opportunities and a regulatory environment conducive for commerce and industries to thrive.

“Our administration will focus on driving key initiatives for an inclusive policy for sustainable economic development,” Sanwo-Olu said.

These initiatives, he said, include creating a business environment conducive to attracting investments and industries, encouraging citizen participation and inclusion in governance, and empowering the workforce and local talent to drive job and wealth creation, especially opportunities for the youth.

On entertainment and tourism, Sanwo-Olu explained that his administration would seek to make Lagos the foremost entertainment and tourism destination in Africa by restoring all historic sites in Lagos at the rate of 20 cultural sites per annum. He noted also that he would rebrand to international standards and actively promote cultural events like Fanti Carnival, Eyo Festival, Boat Regatta, among others.

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For 9mobile, pressure keeps...

Continued from page 1 In order to save the company

from a foreclosure together with its implications on job loss and possibly the stability of the larger telecoms industry, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) intervened to safeguard shareholders, staff and subscribers of the network.

Initially, 16 firms showed interests in acquiring 9mobile, but after a long, arduous process, Teleology emerged as the preferred bidder for its technical and financial capacity to transform 9mobile.

During the acquisition process, Teleology Holdings, through its Nigerian subsidiary, Teleology Nigeria Limited, was able to secure a short-term loan of $251 million from Afreximbank, with an understanding that it would raise the money through shareholders and long-term lenders, which will be paid back in full by January of this year.

Unfortunately, the chapter that followed was an anti-climax, with Teleology Holding’s announcement of its intent to withdraw from further participation in the 9mobile project in early January 2019, due to what it called “increasing discomfort with

actions taken outside the agreed business plan since the November 12, 2018 formal takeover of 9mobile”.

Teleology Holdings Ltd also sought to exit its shareholding in the local joint venture Teleology Nigeria Limited, which will be required to change its name.

After Teleology Holdings pulled out of the 9mobile deal, Teleology Nigeria Limited renegotiated the loan repayment and got a reprieve that allowed it to pay $50 million by January.

However, BusinessDay finds that the renegotiated terms have not been met.

Sources close to Afreximbank have hinted that the bank will embark on an aggressive loan recovery drive in the coming weeks, despite the fact that 9mobile officials have given assurances that the firm may get a lifeline soon.

BusinessDay sources familiar with the dealings have revealed that Teleology Holdings Limited may in the coming weeks institute a civil action against 9mobile.

“Teleology is reportedly aggrieved over the shoddy manner its planned acquisition of 9mobile was handled following reports of document falsification and forgery by its Nigerian partners during the process leading to the acquisition,” a source said.

“It is true that Teleology Holdings Limited is thinking of going to court and they have every right to do so, but 9mobile is also looking to reach amicable ends with Adrian Wood, who is the founder of the company. It is in the interest of the industry that they look at all possible options to try and settle amicably out of court,” Olusola Teniola, president, Association of Telecommunications Companies of Nigeria (ATCON), told BusinessDay. Recall that the NCC in December 2018 gave disconnection approval to mobile network operators (MNOs) to disconnect their debtors over continued rise in interconnect debt and failure of the affected operators to pay the huge interconnection fees owed.

A 21-day window was given by the NCC to the companies to make amends or risk disconnections and IHS is up in arms, seeking ways to compel the telco to pay monies owed it.

Meanwhile, the effects of these troubles are beginning to come to light as employees of 9mobile have gone into panic mode and are leaving the company in droves, particularly the management staff, as there seem to be no quick resolutions to the company’s many problems.

Already, five managers and one director for regional sales, Victor Nwokobia, are said to have abruptly resigned last week.

While speaking on the approval

L-R: Mohammed Iyamu, vice president, trading, Cars45; Jide Adamolekun, chief financial officer, Cars45; Adeola Ajewole, GM, advert, BusinessDay Media; Etop Ikpe, CEO/co-founder, Cars45; Patrick Atuanya, editor, BusinessDay Media; Linda Ochugbua, digital sales manager, BusinessDay Media, and Bemigho Awala, public relation/brand lead, Cars45, during Cars45’s courtesy visit to BusinessDay Media Office in Lagos, yesterday. Pic by David Apara

237,000 graduates in private-guard jobs...

Continued from page 1

they often have a contractual obligation to provide these actions.

Latest information from the National Bureau of Statistics (NBS) on 1,110 companies in the private guards/security industry revealed that this industry provided jobs for 828,502 Nigerians as at 2018, out of which 616,000 (74 percent) are males and 212,502 (26 percent) are females.

Out of the alarming 828,502 jobs which the private guards/security industry provided for Nigerians, those with post graduates degrees (PGD, Masters) are 2,004, while 234,996 are graduates with BSc, BA, and HND honours. The remaining 591,451 hold other certificates, such as ND, SSCE and others.

From a low of 578,056 in 2013, there were 601,528 citizens that took the private security jobs in Nigeria as at 2014; it later rose to 722,401 in 2015, advanced to 771,478 in 2016, and in 2017 there were 791,210 of them.

These post graduates in the private guards/security industry earn N65,000 per month; the graduates earn N55,000, while others (ND, SSCE and other related certificates) earn N25,000.

Nigeria’s unemployment rate increased from 18.8 percent in the third quarter (Q3) of 2017 to 23.1 percent in the third quarter (Q3) of 2018. The National Bureau of Statistics (NBS) said the economically active or working age population (15-64 years of age) increased from 111.1 million in Q3 2017 to 115.5 million in Q3 2018.

The number of persons in the labour force (that is, people who are able and willing to work) increased from 75.94 million in Q3 2015 to 80.66 million in Q3 2016. The number further increased to 85.1 million in Q3 2017 and 90.5 million in Q3 2018.

“Government does not have the capacity and resources needed to create the kinds of jobs needed to absorb the current 20.9 million unemployed Nigerian youths. Strong collaboration with the private sector and massive private sector investment will facilitate job creation for the teeming youths and provide opportunities for government to generate income,” NECA had said in its January 29 note to members.

Timothy Olawale, director-general, Nigeria Employers’ Consultative Association (NECA), said on February 4 the late passing of the budget also

frustrates employment generation.

“For some years now, the process leading to the approval and passing of budget in Nigeria has always been a victim of the proverbial fighting of two elephants. A critical component of the budget such as capital expenditure, which to a large extent plays a major role in economic development, suffers,” Olawale said.

“Infrastructural reforms, which are meant to attract investments and improve the lives of the populace, are put on hold and business decisions, which could translate to expansion and employment generation, frustrated,” he added.

His views come barely nine days to the 2019 presidential election when Nigeria’s incumbent President Muhammadu Buhari and candidate of the ruling All Progressives Congress (APC) will be seeking re-election for another term of four years in the presidential elections slated for February 16. His main challenger is the opposition candidate, Atiku Abubakar, of the People’s Democratic Party.

Atiku, a former vice president, said Nigeria needs a pro-business and private sector-driven leadership to create jobs for its 21 million unemployed youths, adding that he will create 3 million jobs every year if he is elected as president this month.

given by NCC to MNOs to disconnect debtors, an official of the Association of Licensed Telecommunications Company (ALTON) said the matter of interconnect indebtedness amongst Nigeria’s telecoms operators was a complex one and that it would be difficult for any service provider to disconnect indebted companies. In the first place, the aggrieved parties who are making claims and counterclaims on the level of indebtedness are unwilling to come forward for the resolution of interconnect disputes among them. It was gathered that a recent meeting called by the NCC to discuss the matter was rebuffed by all parties involved.

“These are certainly not good times for 9mobile as their troubles are mounting on all angles. There are so many questions that need to be answered. 9mobile stakeholders and subscribers need to know what is happening with their network,” Hannah Odusanmi, a telecoms industry

Thursday 07 February 2019

analyst, said.

The question industry watchers are asking now is when 9mobile will get the expected lifeline in order to escape its current quagmire. Will there ever be respite for 9mobile so that it does not collapse under so much pressure?

Sadly, if it does, the implications on the industry will be huge. For one, will other telecoms networks have the capacity to absorb the 15 million 9mobile subscribers who will suddenly find themselves without a network provider or is there a small window still open for renegotiation with Teleology Holdings? Only time will tell.

BusinessDay reached out to Oluseyi Osunsedo, director, regulatory and corporate affairs, 9mobile, through a phone call and email, to find out negotiation terms between 9mobile and Teleology Holdings Limited. At the time of filing this report, however, there was no response from the company’s spokesperson.

Why US embassy drop box users now...

Continued from page 2

and told to come with her valid US visa.

“I have been crying every day with no one ready to tell me why my visa was revoked. I have never overstayed in the US and was there last year, without any incident,” she said.

She is not alone. The number of Nigerians having such visas revoked by the US Embassy in Nigeria has risen sharply in the past months. Dozens of Nigerians with valid visas trying to obtain a new visa for a spouse, parents or a family member said the visa applications were denied, and their own visas revoked for no reason.

Reacting to the development, a US State Department Official in Washington said, “The U.S. Mission to Nigeria has not cancelled the interview waiver process or drop-box”.

“When we receive derogatory information that indicates potential visa ineligibility, we take immediate actions such as entering the information in U.S. government databases and revoking visas if appropriate.”

With regard to revocations, the official from the Bureau of Consular Affairs told BusnessDay that Section 222(f) of the Immigration and Nationality Act (INA) prohibits the United States from discussing individual visa cases.

“The Department has broad au-

thority, under Section 221(i) of the Immigration and Nationality Act, to revoke visas based on information that comes to light at any time indicating that a visa holder may be inadmissible to the United States or otherwise ineligible for a visa,” the official said.

However, some immigration lawyers and security experts think the development is geared towards ensuring extra scrutiny for Nigerians considering the fact that there are cases of terrorism in the country, which the Nigerian government has not addressed.

“With all the terror acts and threats, you don’t expect the US to open its doors to anybody. They are making sure visitors are not security threats to American citizens and the country at large when they visit,” said Ikile Adams, a lawyer and immigration expert.

In a recent video released by Per Second News, Canadian Immigration officials said a large number of Nigerians who enter the US on tourism visas end up applying for asylum in Canada through its land border with the US. So, the double check, according to the lawyer, is in the right direction as countries have the right to decide who comes in and how to secure their territories.

“We reiterate the need to prioritise job creation beyond aggregate GDP growth as a measure of economic welfare and overall improvement in the economy. In terms of outlook, we believe a potential implementation of the N30,000 national minimum wage poses further risk to job growth in Nigeria, especially if structural issues are left unfixed,” analysts at Lagos-based United Capital Plc said in their December 20 note.

NBSsaidthetotalnumberofpeople in employment (that is with jobs) increased from 68.4 million in Q3 2015 to 68.72 million in Q3 2016, to 69.09 million in Q3 2017, and 69.54 million in Q3 2018. The total number of people in full-timeemployment(atleast40hours a week) increased from 51.1 million in Q3 2017 to 51.3 million in Q3 2018.

The total number of people in part-time employment (or underemployment) decreased from 13.20 million in Q3 2015 to 11.19 million in Q3 2016, but increased to 18.02 million in Q3 2017 and to 18.21 million in Q3 2018.

The NBS report said the total number of people classified as unemployed, which means they did nothing at all or worked too few hours (under 20 hours a week) to be classified as employed, increased from 17.6 million in Q4 2017 to 20.9

million in Q3 2018.

Of the 20.9 million persons classified as unemployed as at Q3 2018, 11.1 million did some form of work but for too few hours a week (under 20 hours) to be officially classified as employed, while 9.7 million did absolutely nothing, the NBS noted.

Of the 9.7 million unemployed that did absolutely nothing as at Q3 2018, 90.1 percent of them or 8.77 million were reported to be unemployed and doing nothing because they were first-time job seekers and have never worked before.

On the other hand, 9.9 million or 0.9 percent of the 9.7 million that were unemployed and doing nothing at all reported they were unemployed and did nothing at all because they were previously employed but lost their jobs at some point in the past, which is why they were unemployed.

Of the 9.7 million that were unemployed and did nothing at all, 35 percent or 3.4 million have been unemployed and did nothing at all for less than a year, 17.2 percent or 1.6 million for a year, 15.7 percent or 1.5 million had been unemployed and did nothing for two years, and the remaining 32.1 percent or 3.1 million unemployed persons had been unemployed doing nothing for three years and above.

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CBN pledges support to revolutionise tomatoes production HOPE MOSES-ASHIKE

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L-R: Benoit Claveranne, chief executive officer, AXA International and New Markets; Ngozi Ola-Israel, chief financial officer, AXA Mansard Insurance plc; Hassan El Shabrawishi, group chief innovative officer, AXA SA, and Kunle Ahmed, chief executive officer, AXA Mansard Insurance plc, during Benoit first visit to Nigeria, at the company’s head office in Lagos, yesterday

IGP orders posting, deployment of officers as Lagos, Oyo, Kwara, Anambra get new commissioners INNOCENT ODOH, Abuja

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ollowing the decoration of newly promoted Assistant Inspectors General of Police and Commissioners of Police at the Force headquarters, Wednesday, the Inspector General of Police, IGP Mohammed Adamu, has ordered the posting and redeployment of the following senior police officers to zones, formations and command A statement issued on Wednesday by the Force Public Relations Officer, Frank Mba, said the officers include: AIG Wilson A. Inalegwu – AIG Zone 9, Umuahia; AIG Abdul Dahiru Danwawo - AIG Maritime; AIG Adeyemi O. Ogunjemilus – Directing Staff NIPPS, and AIG Maurice A. Yusuf – AIG Research and Planning.

Others are; AIG Ibrahim Lamorde – AIG Force Intelligence Bureau; AIG Mur-

tala Mani– AIG Force CID; AIG Tijani Baba – AIG Zone 7, Abuja; AIG Dibal Yakadi– AIG Zone 5, Benin, and AIG Haruna Huzi Mshelia– AIG Zone 3, Yola.

The police also deployed AIG Mohammed Mustapha – AIG Zone 10, Sokoto; AIG Musa A. Kimo - AIG Zone 6, Calabar; AIG Adeleye Olusola Oyebade - AIG Zone 11, Osogbo; AIG Basen Dapiya Gwana - AIG Zone 12, Bauchi and AIG Karma Hosea Hassan – AIG Staff College, Jos. Others include; AIG Folawiyo David, – AIG Training & Development; AIG Zana Ibrahim – Commandant POLAC, Kano; AIG Chris Ezike – AIG Zone 4, Makurdi; AIG Moses A. Jitiboh– AIG Investment, FHQ; CP Mu’azu Zubairu – CP Lagos State Command, and CP Ahmed Iliyasu – CP Ogun State Command.

The police also deployed CP Mohammed Wakili – CP

Kano State Command; CP Austin Iwero Agbonlahor – CP Cross River Command; CP Damian Chukwu – CP Borno Command;CP Sumonu Abdulmalik – CP Yobe Command; CP Asuquo Amba – CP Ekiti Command ;CP Abiodun Ige – CP Osun Command; CP Ibrahim Sabo – CP Niger Command and CP Alkasim Sanusi – CP Taraba State.

Others are: CP Garba M. Mukaddas – CP Adamawa Command;CP Omololu Bishi – CP Benue Command; CP Bola Longe – CP Nasarawa Command; CP Isaac Akinmoyede – CP Plateau Command; CP Aminu I. Saleh – CP Bayelsa Command; CP Adeleke Yinka – CP Delta Command and CP Bashir Makama – CP AkwaIbom Command.

The Police also deployed CP Awosola Awotunde – CP Ebonyi Command; CP Belel Usman – CP Rivers Command; CP Bello Makwashi

– CP Gombe Command; CP Abdulrahman Ahmed – CP Kaduna Command; CP Bala Ciroma – CP FCT Command; CP Akeem Busari – CP Kogi Command; CP Galadinchi Dasuki – CP Imo Command; CP Suleiman Balarabe – CP Enugu Command; CP Dandaura Mustafa – CP Anambra Command and CP Etim Ene Okon – CP Abia Command.

The list also include; CP Ibrahim Kaoje – CP Sokoto Command; CP Celestine Okoye – CP Zamfara Command; CP Garba Danjuma – CP Kebbi Command; CP Undie Andie – CP Ondo Command; CP Olukolu Sina – CP Oyo Command; CP Ali Janga – CP Bauchi Command; CP Rabiu Ladodo – CP Jigawa Command; CP Buba Sanusi – CP Katsina Command; Ag. CP Egbetokun Kayode – CP Kwara Command and Ag. CP Odumosu Akeem – CP Edo Command.

overnor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has assured farmers in the country of the regulator’s support that will revolutionise the tomatoes production through the Anchor Borrowers Programme (ABP).

Impressed by the potentials for the production of fresh tomatoes and allied products and the commitment of the stakeholders in the value chain in Kano State alone, Emefiele expressed optimism that another revolution, similar to what was recorded in the production of rice, was about to occur in that produce.

In its last meeting on November 21, 2018, the Monetary Policy Committee (MPC) recommended that the ABP be applied to other areas such as palm oil, tomatoes and fisheries, among others.

The CBN governor, while speaking at a facility tour of Dangote Tomato Processing Factory and farms in Kadawa, Garun Malam Local Government Area of Kano State, noted that from what had seen in Kadawa, he could rightly state that Dangote Tomato Plant was the only real processing plant in Nigeria for now, unlike others that were merely importing tomato puree and concentrates and packaging same.

He said the initial challenges encountered by the project had been overcome with the acquisition of the greenhouses for the production of high yield seedlings with the collaboration of the CBN. Emefiele therefore expressed delight that “with the initial daily production of a million tomato nurseries alone, more people would be encouraged to embrace farming thereby creating jobs for our people along the entire value chain

and reverse the exportation of jobs.”

He also said that going by the brief he got from chairman of Dangote Farms, Sani Dangote, “when the factory become fully operational, the country would not only be self-sufficient in tomato production in the next one year but will also be able to export to other African countries in the next three years.”

While assuring tomato farmers of all the necessary support with the formal take off Anchor Borrowers Programme for tomato production as a result of the off-taker arrangement with Dangote Factory, he used the opportunity to call on well-meaning individual to come out and support the efforts of the Bank to create jobs in Nigeria.

On his part, minister of agriculture, Audu Ogbe, assured the farmers that with the firm commitment by CBN, he could only assure the farmers that “better days are here,” assuring the farmers of protective policies that might include inclusion of tomato in the import prohibition list.

Nasir Yusuf Gauna, deputy governor of Kano State, in his remark at the facility tour, said the state had really keyed into large-scale agricultural production by partnering Dangote Farms by way of rendering all necessary assistance for the takeoff of the project.

According to the deputy governor, the state government has also been subsidising farming activities in several ways.

UBA extends Africa footprint, commences full operations in Mali 2019 elections tremendous opportunity for Nigeria he pan-African fi- dent, referring to UBA Group’s UBA’s sustainability princinancial institution, chairman, Tony Elumelu, ples and philosophy. “UBA is to strengthen leadership in Africa - Sirleaf

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United Bank for Africa (UBA) plc on Monday, commenced full banking operations in Mali, extending its footprint and fulfilling the aspiration of deepening banking penetration in Africa.

The launch of UBA Mali brings to 20 the number of African countries, where the Group currently operates, with global operations in the US, UK and France.

The launch of the bank’s latest addition in Mali was occasioned by his Excellency, the President of the Republic of Mali, Ibrahim Aboubacar Keita, who gave an unprecedented speech at the opening ceremony. ‘Tony promised it and he did it,’ said the Presi-

on his promise made several years ago to bring UBA to Mali.

The Malian president praised UBA Group for the vision to expand the bank’s footprint to Mali. He commended the tenacity and commitment of UBA and its Group Chairman to the development of the continent, calling African financial institutions to follow the developmental philosophy of the bank and its chairman in growing infrastructure, deepening financial inclusion and being catalysts for eradicating poverty in Africa.

In his response as he welcomed the dignitaries and all stakeholders present at the launch, Elumelu, asserted

Africa’s global bank, a leading pan-African brand, committed to democratising banking on the continent. We are progressive partners for African corporates, institutions and governments whilst also helping to fulfil the financial aspirations of individual customers. Our train has finally arrived in Mali. We are here for mutual progress; we are here for shared prosperity,” Elumelu noted.

UBA group managing director, Kennedy Uzoka, expressed his enthusiasm on the Group’s operation in Mali, saying, “We are in Mali to offer world class financial services that will surpass the expectations of our customers.”

INNOCENT ODOH & JAMES KWEN

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ead of the Economic Community of West African States (ECOWAS) Elections Observation team, for Nigeria’s 2019 general elections, Ellen Johnson Sirleaf, says the 2019 general election is a tremendous opportunity for Nigeria to continue to play pivotal leadership role in the democratic process in West Africa and the African continent in general.

The former President of Liberia said this when she led the ECOWAS Election Observer team to the headquarters of the Independent

National Electoral Commission (INEC) on Wednesday in Abuja, even as she recounted the contributions of Nigeria to the restoration of peace and democratic governance to her country after years of conflicts.

“Nigeria is very important to Liberia. Today, Liberia enjoys 15 consecutive years of peace to which Nigeria contributed an enormous amount of human and financial resources. That is why it is great pleasure for me to be part of this process, having gone through a political transition myself.

“Having gone through these processes after years of destruction I am very

pleased that I will be a part of what we know will be a process of election that ensures that Nigeria continues to play the pivotal role of leadership in the continent,” she said.

She said the purpose of her visit was to meet with the authorities, to meet with the chairman, police and other relevant institutions, party leaders as well as the ECOWAS initial observation mission team that has already done the initial assessment to ascertain the level of preparedness before she will come back with the full team next for the elections proper.

Welcoming the delegation, the INEC chairman,

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Fake News: How technology can fight its own invention FRANK ELEANYA

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or many reasons – most of which are for self – man has spurn tales that appeared to be true but was all fabrications. To be sure, fake news may outdate technology but it owes it ubiquity.

Before the advent of modern technology, spread of fake news depended on one person passing it on to another by word of mouth so its impact was limited, albeit with devastating consequences to the unfortunate few.

Today’s technology has made fake news very popular and borderless. And as it gets sophisticated, even the lines between reality and fake seem to blur. In the US election, an article based on flawed argument claimed that Donald Trump won the popular vote when in reality his opponent Hillary Clinton got about 2.9 million more votes. But the fake information went on a blitz on social media, gaining 4 million

shares and engagements to earn world’s biggest fake news title.

“Fake news is gossip on steroids,” says Amaechi Okobi, head of Strategic Brand Management at Access Bank, during a panel session at the ongoing Social Media Week 2019. “It usually it’s malicious in its intent and people take it real because of the credibility of

the person pushing it.”

A research from MIT Research unit found that false stories posted on Twitter have 70 per cent more chances of being retweeted than verified news. Similarly, authentic information reaches 1,500 people six times slower than fake news. The information noted that oftentimes people help to spread misleading information even if

Africa’s smartphone market gets new competition as Xiaomi opens office in March FRANK ELEANYA

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he smar tphone market in Africa is about to get more exciting for customers with reports that Xiaomi, China’s smartphone manufacturer, plans to set up office in Africa, a bid to sustain growth beyond its home country and continent and mitigate against growing distrust in western markets.

With the news, Transsion, the parent company of big African brands like Tecno, Infinix and iTel, is mostly likely see its 35.4 per cent smartphone market share in Africa put to severe test.

Jun Lei, chief executive officer of Xiaomi is said to have made the disclosure in a memo sent to staff. The company hopes to open its office in Nairobi, Kenya, in March before expanding to other parts of Africa. The Kenya office will be headed

by Xiaomi’s former vice president, Wang Lingming

and will be reporting to the senior vice president and global business head, Wang Xiang.

Ch i na’s s ma r t p h o n e market is contracting even as domestic competitions like Huawei and Apple continue to pile more pressure.

A report by market research firm Counterpoint Research showed that the smartphone market went down 13 per cent year-on-year amid its fourth consecutive quarter of year on year declines. Nevertheless, Chinese manufacturers filled the ranks of the top five brands.

Although Xiaomi still makes the top five brands, it has yielded some share to Vivo which is the most popular controlling 20 per cent of the market in the third quarter, followed by OPPO, Honor, and Huawei. Collectively, five of the brands make up 78 per cent of the market. Xiaomi accounts for only 12 per cent of that total. Its sales rose by a paltry 1 per cent year on year.

Expansion is becoming increasingly limited as demand contracts in the Chinese market prompting rivals like OPPO and Huawei to turn to the African continent.

OPPO announced early January that it is heading to Africa as well and will be setting up shop in Nigeria, Africa’s largest phone market.

However, Xiaomi may have an advantage having been a brand patronised by people in Africa since 2015.

The company’s first coming to Africa was through customers in Nigeria, South Africa and Kenya.

Xiaomi is not a new comer in competing in the international market space.

It generated more than 40 per cent of its revenue in the third quarter of 2018 from success in overseas market.

On the back of its affordable pricing, it has expanded in countries like India even going on to replace Samsung in the second half of 2018 as the top player in the industry.

they realize it is false.

In Nigeria, fake news post and videos on WhatsApp and Facebook have been used by bad actors to encourage ethnic cleansing narratives and stereotypes.

In one of the instances, after news of the gruesome murder of over 86 people in 11 communities in Barkin Ladi, Riyom and Jos South local government areas of

Plateau State on June, 2018 broke, another report falsely alleged that Miyetti Allah has claimed responsibility, calling it a retaliatory attack.

“Fake news is beyond misrepresentation. It sometimes is deliberate deception that has a lot of consequences,” says Kolawole Osinowo, senior business manager, HMD Global who also sat on the panel organized by communications consultancy firm, Quadrant MSL on Monday.

For companies and even individuals, fake news can lead to financial loss or reputational cost. In 2018, for instance, the leader of the Indigenous People of Biafra (IPOB), Nnamdi Kanu referred to President Buhari as Jubril from Sudan and went further to say that the Nigerian leader was a clone. That had very damaging effect on the reputation of the President who is currently seeking reelection. Similarly, Kanu recently also alleged that PDP presidential candidate was not a Nigerian but a Cameroonian.

Tolulope Adeleru-Ba-

logun, a radio host and TV presenter said there are four ways to identify fake news; consider the source, look for alternative and corroborating sources, Google sources and check individual biases.

“We intend to stay within a group of people who reflect what we believe in,” she says. “We bear a responsibility to be circumspect with what we share. We need to think about where we go to source news. Blogs are not news platforms.”

Laila Ijeoma, a blogger said online users must become anti-fake news ambassadors for the fight to be effective. Users can also use mobile applications that have capabilities to identify fake photos, videos and news. In 2018, Google, Facebook and Twitter signed a code of conduct on how they are going to counteract spreading of false stories.

Their goal is to overcome fake accounts and bots, simplify access to authoritative content. How far that code goes depends on the buy-in of the individuals that use the platforms.

Google, PPDC, NERDC mull online safety curriculum in schools, announce safety initiatives CALEB OJEWALE

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he Safer Internet Day was marked in Abuja this week with two major announcements on online safety initiatives by Google, the Public and Private Development Centre (PPDC) and the Nigerian Educational Research & Development Council (NERDC). The initiatives are aimed at amplifying the importance of online safety for all individuals who use the internet, and particularly for younger Nigerians.

The first initiative will see Google, the PPDC and the NERDC partner to hold simultaneous online safety workshops in 32 Nigerian states. The partners aim to educate over 100,000 secondary school students on how to stay safe and protected when using the internet through these workshops, which form part of Google’s Web Rangers programme. This is the first time such an event is being held on such scale in Nigeria.

The partners in a statement after the event held in Abuja also said, a Google-developed online safety curriculum is being integrated into Nigeria’s national curriculum

over the course of the year.

“As the internet grows, so does the need for safety, privacy, and security online,” said Seember Nyager, Google Nigeria policy manager. According to him, Google is, and always has been committed to helping “make the internet safer and more useful for everyone.” Nyager further explained that through initiatives like the Web Rangers programme, Google educates young Nigerians in secondary schools to explore the internet and use Google products safely. With Family Link, Google empowers parents to set digital ground rules by managing their Google Accounts, device, and app usage.

“Family-friendly products, like YouTube Kids, provide a safer online experience for discovery,” he said. Beyond Google’s products, the company also wants to help kids learn how to be safer, more confident explorers of the online world with programs like the one announced with the PPDC and the NERDC, which will see a Google-designed online safety curriculum integrated into the junior secondary school curriculum across Nigeria, said Nyager.

Nkemdilim Ilo, CEO,

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

PDDC described the Safer Internet Day as an opportunity to show the role different stakeholders can play in helping to make the internet a safer, more positive place.

This, according to her, is why for the past four years, the organisation has Google, government and the rest of the world to celebrate internet safety and to help keep children safe online.

“We are pleased to be collaborating with Google and PPDC to ensure that Nigerian students are safe as they explore the online world and maximise all the benefits the internet offers,” remarked Ismail Junaidu, executive secretary, NERDC. “That is why we have embraced the initiative to infuse online safety courses into the national curriculum for Nigerian schools.”

Junaidu explained that the Safer Internet Day 2019 highlights the evolving challenges and opportunities that are presented to young people online, by calling attention to how the industry, government and the public can help to provide the critical thinking, knowledge, resilience, and support children need to be safe online.

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TechTalk

How Nigerian researcher creates African artworks using AI Stories by FRANK ELEANYA

O

ne of the major highlights in the world of Artificial Intelligence (AI) in 2018 was when it was used to generate realistic fake video footage by making the subject of one video mirror the motions and expressions of someone else in a different clip.

That piece of discovery raised a lot of eyebrows, proving the notion to some extent, that in the wrong hands, AI could be a powerful tool for spreading misinformation.

That theme also resonated at the recent UNESCO Forum on AI in Morocco where African countries gathered to chart a direction for the technology on the continent.

But, for Nigerian-born Victor Dibia, a human-computer interaction researcher and Carnegie Mellon graduate, the benefits for Africa outweighs the bad.

“I think of AI (broadly defined as the science of imbuing machines with human-like capabilities) in ways similar to any effective tool or technology,” says Dibia in an interview with BusinessDay, “Like many influential technologies in recent times – telephony, mobile telephony, the internet, etc., the degree of their impact is determined by the degree to which they are effectively deployed.”

His latest work on creating African artworks using AI provides the basis for his confidence.

With the help of Google’s TensorFlow machine learning framework, Dibia trained a generative adversarial network (GAN) to generate images based on custom dataset - the African masks dataset. GAN is a two-part neural network (a computer system modeled on the human brain and nervous system) consisting of generators that produce samples and discriminators that attempt to distinguish between the generated samples and real-world samples. GANs have incredible potential, because they can learn to create worlds spookily similar to the real one in any domain including images, music or speech.

Data scientists at Alphabet recently tasked a GAN with generat-

ing convincing photos of burgers, dogs and butterflies.

“In August 2010, I had the opportunity to attend the 2018 Deep Learning Indaba where Google generously provided access to TPUs (v2) to all participants,” he wrote in a post.

His current work (Generating African Masks using AI Masks) explores the intersection of African art and AI. It addresses the basic question of how can machines learn aspects of human creativity and become tools that support creative endeavours. The work also doubles as an approach to draw attention to the rather underrepresented but deeply rich area of Africa art.

“Early results suggest that an AI model is able to learn concepts around the design space for African masks (textures, geometry) and can generate new interpretations of what these artistic pieces could be. It contributes to the emerging area of computation art, or generative art by providing a computational lens to evaluate the styles of these art forms and enable conversations around them. In recent times, we have witnessed legitimate commercial interest in this area, with an AI – generated art piece sold at a reputable auction house such as Christie’s. It will be quite refreshing to see this level of engagement with African art.”

In October, 2018, a portrait produced by artificial intelligence “Edmond de Belamy, from La Famille de Belamy” sold for $432,500 including fees, over 40 times Christie’s initial estimate of $7,000-$10,000. The New York Times reports that the bidding lasted just under seven minutes, during which the buyer competed against an online bidder in France, two other phone bidders and one person in the room in New York.

When the hammer came down, the bids had reached $350,000, the fine price before fees.

GANs have been used in art since 2015 by artists such as Mario Klingemann, Anna Ridler, and Robbie Barrat.

Dibia says his work ensures that African art finds a voice in the growing research area of generative art and ensures it benefits from new conversations.

“The most impactful and popular form of artificial intelligence today follows a paradigm known as “supervised learning” where a machine is able to independently learn without any explicit programming, simply by looking through massive amounts of labeled data. For example, a machine is able to identify objects in an image (e.g. tables, chairs, cars etc) simply by looking through a dataset of images that have been labeled as containing each of these items. This process is known as training a model,” He says.

He acknowledges that the fear of job loss as a result of AI and automation is real. Africa has a high risk exposure with up to 85 per cent job loss predicted in parts of the continent. But with the right strategies and programs, Dibia says Africa which has one of the youngest populations in the world can weather the storm ahead.

However, government and private sector will need to collaborate to yield the most compelling results.

“Such a partnership will allow each entity leverage their respective strengths and achieve results that neither individually can,” says Dibia, “The private sector, unencumbered by bureaucracies, can provide leadership in research, innovation, and rapid execution of ideas. The government can provide long term policies, infrastructure and governance that support AI research. Some examples of these programs include work being done by Co-Creation Hub in Nigeria where they have partnered with government institutions on multiple health care and social good projects.”

It is important to note that opportunities also exist for AI to enable aspects of healthcare – examples include low cost disease diagnostics, reducing infant mortality, applications in telemedicine – agriculture (crop yield predictions, crop disease predictions), personalised education, citizen participation and transparent governance.

Digital transformation in AI, cloud to take centre stage at Nerds Unite 2019

O

ver 20 speakers with expertise in the global technology industry are expected to provide insight and knowledge at the 2019 edition of Nerds Unite.

The event is expected to foster dialogue on technological breakthroughs in the areas of artificial intelligence (AI), cloud and cybersecurity and technology start-ups

as it relates to the development of the African continent.

In a statement sent to BusinessDay, MainOne the organisers of the event said over 500 of Africa’s most innovative technology minds from 200 companies and 10 countries are expected to attend the Nerds Unite on February 8, in Lagos.

“We expect senior representa-

tives from our global partners, infrastructure providers, enterprises and start-ups who will share insights into the disruptive technologies happening in Africa and the need to upskill quickly to meet the demand of digital transformation within the continent,” says Tayo Ashiru, Head of Marketing at MainOne. Under the theme ‘Accelerating

Digital Transformation’, the Nerds Unite 2019 will feature interactive sessions with global players discussing tools, infrastructure and partnerships required to benefit from a connected Africa.

With more than 3000 participants since inception, Nerds Unite provides a platform for major players in the international and local IT industry, key

stakeholders in Africa’s technology ecosystem, and IT professionals to network and brainstorm disruptive technologies.

The event creates an avenue for deal making, impactful knowledge sharing, and progressive collaboration between local industry experts and thought leaders from global technology companies.

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Declining usage of cheques Isaac Esowe

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obsolescence, as evidenced in the decline in the value and volume of cheque transactions for the past three years. Users however are adapting to the changing times and embracing more convenient ways of carrying out financial transactions. It is important to state that the cheque, as a financial instrument, has been in use for hundreds of years as gathered from different sources and the Nigeria Inter-bank Settlement System’s (NIBSS) official web platform. And it is obvious that its usage is gradually deteriorating with each passing day.

Available data shows that

the decline in cheque usage in Nigeria is occasioned by the changes in digital technology and consumer trends which are rapidly transforming the way and manner people make payments. Secondly, an average Nigeria especially the ones playing in the informal sectors do not really understand what cheque is, hence these variably contribute to the declining usage of cheque in recent times.

Furthermore, this decline possibly will be attributed to be driven by the market forces in the course of growing accessibility of card and electronic payments and consumers’ pref-

erence for faster payments.

What does January to December 2018 data show?

Based on the Nigeria Inter-Bank Settlement System’s data on nationwide cheque truncation service, the total number of cheques processed were 9 million while the value of processed cheques amounted to N5 trillion. The average daily cheques volume amounted to 24,710 while the mean value per cheque value was at N558,286.

The total volume of corporate cheques processed was 5.4 million worth N3.3 trillion.

The total volume of individual cheques processed translated to

remains a government backed phenomenon as it contributed a whopping 73.5 percent of global cheque volume. In Nigeria, cheque transactions have continued on a downward spiral from its peak volume of 15.3 million in 2014 to 9 million in 2018. This is a -10 percent CAGR over the five year period; with a growth rate of -17 percent when compared to 2017.

Although, the volume of cheque transaction is decreasing, it is fair to say that its use is still relevant, especially amongst larger value transactions, bill payments, and payroll transactions.

Technology is great, except

its intrinsic worth of availability, instant delivery and irrevocability while the older generation are resisting a complete shift to an electronic option by remaining enthusiastic about the cheque book.

for all the security risks involved in its usage. Companies must keep pace with technology to grow their businesses, but they also face greater threats associated with increased use of these technologies. Organizations’ reputations can be dented faster than ever thanks to the viral nature of social media. There is a huge rise in across the counter fraud and internet banking fraud as the nation grows in use of mobile banking, ATMs, e-Commerce, POS, cloud computing and social media.

The number of fraud cases increased by 28.0 per cent to 25,000 in December 2017 while attempted fraud increased by 8 per cent to 4.03 million in 2017 and 122 million in 2018. Actual loss value decreased by 35 per cent to 1.6 million in 2017 and further decreased to 40 million in 2018

Global View Globally, as the market share of cheques decline in the wake of increased adoption of contactless and real-time payments, a duopoly may likely develop in the non-cash market; with cards and credit transfer (instant payments) dominating across most geographies. For instance, in the Asian-Pacific (APAC), China, South Korea and Australia recorded a 20 percent drop in cheque usage although India recorded a 10.1 percent increase in usage due majorly to her government’s demonetization policy.

In the US, cheque usage

12734BDN

he Nigeria payment landscape has gained momentum in recent times as seen in the shifting away from its traditional methods of transactions, which include the use of cheque booklet, cash and cards. This changing landscape that characterized the channel of payment in Nigeria can be attributed to the advancement in technology, which has entirely changed the way and manner financial transactions are being done.

In the past few years, the electronic payment systems have shown a positive outlook leaving other payment systems appearing outdated.

Surprisingly, the prospect of using a cheque as a payment method is continuing to decline with higher transaction volume which explains why it fell by 13 percent in December 2018 when compared with the preceding year. Furthermore, the value of cheque transactions also declined by 2 per cent in 2017 to N418.9 billion.

According to the Central Bank of Nigeria’s (CBN) report on payment system vision 2020, the publication shows that cheque processing has been streamlined by integrating the 37 clearing centres into a national automated clearing centre with the aim of providing competence in that space, also the introduction of cheque truncation is to shorten the original paper instrument into a more secure electronic form.

These reforms and innovations introduced by the CBN have facilitated the way and manner or better still harmonised the cheque processing cycles into a standard process in respective of the branch location, and the cycle reduced from a 3-5 day cycle to a 2-day cycle.

However, in spite of these reforms, cheques as a medium of payment is heading into

2.1 million while the transaction was valued at N0.8 trillion.

The graph above shows a review of cheque behaviour in Nigeria and the generational repositioning towards the use of electronic payment. The volume of cheque gained its maximum usage in 2014 as it accounted for 8 per cent increase from 14.2 million when compared with the preceding year. Also in 2018, the volume of cheque recorded its lowest volume since its inception when usage amounted to 9 million. Consequently, this decline is expected to drop further. In Nigeria the tech-savvy generation Y2 have embraced instant payments on

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Disaggregating fiscal profiles of states in Nigeria in Q3 2018: the takeaways

T

he activities of state governments especially as they relate to their revenues and debt profiles have become a subject of intense debate among policy makers and analysts who have increasingly questioned the viability of these states in terms of meeting up with their contractual and constitutional responsibilities of paying workers’ salaries as at when due, delivering on infrastructural development, growing the local economy, amongst others.

In its recent publication, the National Bureau of Statistics (NBS) explicitly detailed state governments’ fiscal positions in the first, second and third quarters of 2018.

The report presented state governments’ total revenues which it arrived at by the summation of revenues derivable from diverse sources notably internally generated revenue (IGR) and the monthly allocations from the federation account. It equally showed the debt profile, both foreign and domestic, of each of the states.

In this article, attempts will be made to show these trends and reveal the states that have generated the most from IGR sources like Pay-As-YouEarn (PAYE) and Ministries, Departments and Agencies (MDAs).

IGR of Nigerian states The internally generated revenue of states, excluding the FCT, stood atN820.7 billion in 2016. It rose by 14 per cent to N936.5 billion in 2017 bolstered by a 12 per cent increase in total tax revenue from N547.1 billion in 2016 to N611.8 billion in 2017. This performance of tax revenue components of the states’ revenue sources underlined by a boost in PAYE, direct assessment, road taxes and other taxes, obliterated an abysmal performance of revenues accruable from MDAs which sank by 11 per cent to N160.4 billion in 2017 from its previous value of N180.1 billion in the previous year.

States IGR hit N845.1 billion when totalled across the first, second and third quarters of 2018, surpassing the entire 2016 record with possibility of equating or surpassing the 2017 record.

The FCT and 16 other states of Abia, Bayelsa, Benue, Delta, Ebonyi, Edo, E kiti, Enugu, Kaduna,

States debts: are they within reasonable

debt-to-gross state product (GSP) ratio. The national average of the debt-to-GSP ratio was 4.2 per cent with only 10 (plus the FCT) of the 36 states sitting below that. These 10 states plus the FCT are Anambra, 3.9 per cent; Benue, 3 per cent; Zamfara, 2.9 per cent; Kano, 2.7per cent; Lagos, 2.6per cent; Rivers, 2.1 per cent; Jigawa, 1.9per cent; Niger, 1.7 per cent; Katsina, 1.6per cent ; Sokoto, 1.2 per cent and the FCT, 1.1 per cent.

Conversely, 26 states ranked above the national debt-to-GSP average. Osun State ranked the highest with a ratio of 24.9 per cent while Ekiti State had

thresholds?

NBS report puts the total external debt of states as at end of first half 2018 (H1’18) at $4.22bn (about N1.29trn using exchange rate of N306/$). Similarly, the total domestic debt figure as at the same period was put at N3.38trn. Consequently, the total debt size of all states in Nigeria stood at N4.68trn as at H1’18.

Using the various size of the economy of each state, we computed the state governments’ potential in repaying these large debt sizes using the

23.4 per cent. Others on the top ten lists are Cross River, 20.8 per cent; Plateau, 18.6 per cent; Kogi, 16.3 per cent; Taraba, 16 per cent; Bauchi, 15.3per cent; Edo, 15.2per cent; Imo, 11.9per cent and Adamawa, 11.6 per cent.

We foresee a situation where some states revenue are strained given the bogus size of these debt figures exacerbated by expanding personnel expenses that will come with the proposed new minimum wage from N18,000 to N30,000 as demanded by organized labour movement.

with an amount in excess of N39.5bn, generated the most revenue within the period under review.

Ogun, N20.9bn and Kaduna, N10.2bn followed suit in that order. Others in the top ten categories of highest MDA revenues included Kwara, N9.5bn; Ka n o, N 9 . 2 b n ; E nu g u , N6.5bn; Edo, N5.7bn; Delta, N5.7bn; Ondo, N5.4bn and Rivers, N4.7bn.

The combined MDA revenue of these top ten states is N117.24bn which is about 75 per cent of the entire states MDAs’ revenue for the period.

KELVIN UMWENI

Kano, Katsina, Lagos, Nasarawa, Niger, Ogun and Rivers state had negative average growth rate of their IGR between Q1 2018 and Q3 2018.

Sokoto state and 19 other states sustained a positive internal revenue average growth. Sokoto state had an average growth rate of IGR of 91 per cent between Q1 2018 and Q3 2018. Others are Yobe ,28 per cent; Ondo, 24 per cent; Zamfara, 18 per cent; Osun, 14 per cent; Taraba, 13 per cent, amongst others.

PAYE: as usual, Lagos leads Aggregately, PAYE of states including the FCT as at the end of Q3 2018 hit N163.1 billion. Between January and September 2018, the total PAYE amount collected by all states in the

country stood at a whooping N515.6 billion, surpassing the total amount of N407.5bn and N448.2bn in 2016 and 2017 respectively.

Using the total PAYE collected between January and September, Lagos state, the commercial nerve centre of Nigeria, came top of the chart. The state’s total PAYE size within the period under review was N176.9 billion, about 34 per cent of the entire PAYE amount by all states including the FCT. In fact, the state’s PAYE amount surpassed the amount of PAYE accruable to the bottom 32 states.

Rivers state came closer, pocketing N63.9 billion in PAYE amount between Ja n u a r y a n d S e p t e m ber. Other included FCT, N46.2bn; Delta, N31.6bn; O g u n , N 3 0 . 1 b n ; A kw a Ib o m, N 1 4 . 5 b n ; Ka n o,

N10.5bn; Kaduna, N9.7bn; Edo, N8.9bn and Bayelsa, N8.7bn.

To g e t h e r, t h e s e t e n states account for more than two-thirds (77.8%) of the total PAYE of states in January to September 2018.

State MDAs: How effective have they been?

In 2016 and 2017, total revenues from states’ MDAs were N180.06bn and N160.59bn respectively.

Across the various states’ MDAs in the countr y, over N155bn revenue was derived between January and September of 2018 with 68 per cent of that figure generated in the first half of the year while 32 per cent (N50.41bn) was generated in the third quarter of the reference year.

Lagos State’s MDAs,

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Energy Report Oil & Gas

Power

Renewables

Environment

Nigeria, others to grow global deepwater oil production by 700,000b/d 2019 Olusola Bello

G

lobal deepwater oil production was expected to grow 700,000 b/d this year to hit a record high of more than 10 million b/d, according to estimates

by Norwegian research group, Rystad.

Nigeria, Angola and Norway, Brazil and the US Gulf of Mexico will continue to be the largest deepwater producers , the research group said.

With a number of large fields starting up in Brazil and US Gulf of Mexico, deepwater liquid production will reach 10.3 million b/d in 2019.

Deepwater projects have attracted nearly half of global exploration investment over the past decade and have delivered a similar share of new production

L-R: Peter Costello, vice president, Shell Nigeria and Gabon; Maikanti Baru, group managing director, Nigerian National Petroleum Corporation; and Ibe Kachikwu, minister of state for Petroleum Resources, during an inspection of the Shell Nigeria exhibition booth at the 2nd edition of the Nigeria International Petroleum Summit in Abuja recently.

volumes.

As global oil production from maturing shallow water areas such as the North Sea declines, new offshore volumes were expected to become increasingly reliant

on flows from deepwater fields.

The International Energy Agency has estimated that the share of deepwater in total offshore production will rise to 30% in 2040, from

23% currently.

For instance, in Nigeria, there are still projects like the $13.5 billion Zabazaba deep water oilfield, with proven reserve of 560 million barrels of oil in Oil Pros-

pecting Lease (OPL) 245, yet to be finalised. There is also the Bonga South west project being handled by Shell.

The field is located in the Gulf of Guinea. Shell had described the project as needing tendering cycle, resolution of non-technical risks, quality and timeliness of Front-End Engineering and Design (FEED) delivery, and Nigerian content requirements.

Other deep water projects that are on the line are: Aparo, to be developed

by Chevron in tandem with Bonga Southwest, Nsiko Chevron Acquisition of seismic data planned for 2018 and Owowo West, Exxon Mobil Listed in Exxon’s 2017 Financial & Operating Review among projects to start after 2018 and there is the Bosi field.

Niger ia is cur rently pumping1.6 million barrels of oil a day but it has capacity to produce more

than this.

Brazil will be by far the largest source of future deepwater growth, the IEA estimated, by nearly doubling its current output by 2040.

Last month, UK energy consultancy, Wood Mackenzie predicted that total annual deepwater capital expenditure would rise to nearly $60 billion by 2022 from around $50 billion currently.

Most of the new deepwater spending will be directed at major projects in Brazil, Guyana and Mozambique, Wood Mac said.

It said, however, that the expected rising spend on deepwater projects could accelerate a return to cyclical cost inflation in the offshore sector.

Rig day rates, for example, could double by the early 2020s, according to Wood Mac, as deepwater rig capacity was expected to fall.

How West Africa sub region continues to boost hydrocarbon production

W

est Africa continues to boost potential opportunities in oil and gas with lots of discoveries in several places, thereby completely changing the oil and gas map.

The region is attracting investor interest because oil price is recovering. Africa’s proven reserves account for 7.5% of global reserves. The industry activity is improving along with stabilising energy prices, producers are still cautious.

According to statistics, West Africa’s demand for refined products is 39 billion liters annually but it is still importing over 90% of the refined products volume.

Okorafor Bank -Anthony , President Petroleum Technology Association of Nigeria (PETAN) while commenting recently on this situation, said the region needs to improve on it refining capacity.

As for the upstream of the petroleum industry, he said local content has recorded a lot of improvements from less than 5% to above 28% in Nigeria. Just as flared gas has been reduced considerably, while the new initiative for commercialisation of flared gas will definitely bring the issue of flared gas to closure.

Gas flaring reduced by 65% in Nigeria which has progressed from second to the seventh highest gas flaring nation in the world from 2 bcc/d to 700 mcd/d.

Major deep offshore projects, especially in a place like Nigeria, are however still not moving as expected. But other countries like Angola, Ghana and Senegal have been proactive about developing their own deepwater projects.

“However creating effective policies to attract visible investments to the West Africa sub region hydrocarbon industry requires relevant data gathering and thorough analysis of the data. The outcome should then be subjected to benchmarking giving that the petroleum sector is globalised today”.

Bank- Anthony said.

For the effort to be meaningful and to have impact, Bank – Anthony said there is need for collaboration of all stakeholders, especially the operators, to ensure that practical realities are considered.

He said investment focused policy would meet the following criteria: Policy predictability and certainty – changes need to measured and be within expectation.

Incorporation of room for

dialogue and private sector contribution.

Respect for obligations and rights in existing policies, in view of the petroleum sector’s unique challenges including: Huge capital investments and long payback periods; Uncertainties and significant technical risks; Cycles of upswings and downturns in prices and costs, dictated mostly by global energy demand and supply.

Effective dispute resolution mechanism.

Fairness in terms of impact on investors and stakeholders.

There is also the need for a Policy that will remove bottlenecks to investment: protects investors from multiple taxation from different institutions that lead to significant erosion of value from FIDs that have been made, incentivise collaborations that lead to lower life-cycle cost, making Nigeria and Africa more competitive and resulting to more FDI’s.

Other steps needed to attract investment into the region are: Rewards for regional growth in execution capacity and capacity utilisation and speedy decisions on investment and avoid delays due to poor collaboration

Olusola Bello, Team lead, Analysts: Isaac Anyaogu, Stephen Onyekwelu, Graphics: Joel Samson.

amongst the different institutions.

As regards gas developments, stakeholders say the region needs to have key enablers like the ones listed below to have a seamless gas value chain: Such as setting up globally competitive fiscals for gas exploration and development, incentives for public-private partnerships for investment in backbone gas and power infrastructure, power tariff that provides commercial returns.

Sustainable financials & Policies; Legacy gas and power debts settlement to build investor confidence, adequate funding mechanisms for joint ventures and projects, Naira stability and forex exposure managed

by CBN. Conducive business environment; security of people and assets, contract sanctity , promote stability in laws and policies, consolidate and streamline institutions, focus govt agencies on effective regulation and remove regulators from the supply chain Enabling commercial framework; Willing buyer/ willing seller contracts. Gas price regulation and aggregation no longer necessary in current relatively developed gas contracting market.

Russia’s ROSATOM to train Nigerians on nuclear energy

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nspired by the need to nurture the next generation of nuclear technology experts, ROSATOM - Russia’s state-run nuclear energy corporation, has said applications are now open for scholarships in nuclear studies for Nigerian and African students at large.

The Federal Government, recently signed an agreement with Russia for the construction of nuclear power plants and a nuclear research center in Nigeria.

Underscoring the rationale for the scholarship scheme, Dmitry Shornikov, CEO, ROSATOM Central and Southern Africa, said: “The goal of the scholarship is to support interest in nuclear research and capabilities among young African sci-

entists and engineers, and contribute to solving some of the world’s most critical issues in the nearest future, allowing for the continent to be self-sufficient.”

The scholarship package includes tuition fees and free preparatory courses of Russian language (depends on university program). Students would also have access to subsidized accommodation, library funds and practical experience at Russian nuclear enterprises.

Shornikov, further noted the scheme is a great opportunity for scientists and engineers based specifically in Sub-Saharan Africa as well as for recent matriculants in the region who made progress in mathematics and the sciences and want to apply for nuclear specialties.

Email: energyreport@businessdayonline.com, Tel: +234-8023020011; +234-7037817378

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Energy Report

Ageing power assets responsible for high safety risk in power sector Stories by Olusola Bello

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geing assets in the power sector are said to be presenting heightened safety risks as many power systems are being operated both beyond their original design life and scope, thereby increasing the risk of a process equipment safety accident.

Chiedu Ugbo, Managing Director/CEO of Niger Delta Power Holding Company, said this at a recent Safety Summit organised for operators in the power sector. He opined that the huge level of investment in the power business can only warrant that a well-articulated loss prevention programme is put in place to assure maximum benefits for investors and Nigerians in general.

“Safety and loss prevention in power plants is a critical chain in the value systems of the assets for sustained operations and security of investments”, he said.

He said there should be regular and mandatory system checks put in place,

adding that passage of time without a failure event does not mean that all is well.

“This scenario could portend low frequency but high consequence events with catastrophic outcomes.”

The NDPHC boss urged operators to design for multiple layer of protection so that in an event of failure the redundant protection will be activated.

“Failure mode protection should be an interlocked system: a failure on one lev-

el and not detected on that level should be detected by the next level” He stated that a documented loss prevention programme is a key requirement to enhance safe thinking and practice at his company NDPHC. Some of the key ingredients include: well-articulated safety statement and objective, work rules and standard operating & maintenance procedures (SOP&M), and clearly en-

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GPPSL received the award on behalf of the company at a dinner at Transcorp Hilton Hotel Abuja, and witnessed

by Minister of State for Petroleum Resources, Ibe Kachikwu, energy ministers from other African countries and many other dignitaries, including representatives of the Nigerian National Petroleum Corporation (NNPC), Nigerian Content Development and Monitoring Board (NCDMB), otherindustry regulators, and other industry players.

Speaking at the award/ dinner night, Kachikwu said

Michael Dragoyevich, chief executive officer of Foreign Investment Network (FIN) presenting Pipeline Service Company of the year award to Obi Uzu, CEO, Global Process and Pipeline Services Limited (GPPSL) during the recent Nigerian International Petroleum Summit (NIPS) held in Abuja recently.

Code in place, it is expected that the industry operators will step-up the health and safety activities in their respective companies otherwise they will be faced with stringent penalties.”

Some of these Codes which are presently in force are: Nig e r i a n E l e c t r i c i t y Health and Safety Code • Grid Code • Health and Safety Manuel Code • Amongst a host of other Nig e r i a n E l e c t r i c i t y Health and Safety Code • Grid Code• Health and Safety Manuel Code, amongst a host of others.

The purpose of this code she said is for the practical safeguarding of persons during the installation, operation or maintenance of electricity supply and associated equipment. “The code has sets of rules that contain the basic provisions that are considered necessary for the safety of employees and the public under the specified conditions. This Code is not intended as a design specification or as an instruction manual,” she said.

Stakeholders re-emphasis need for downstream sector libralisation to curb distortions

GPPSL bags FIN Pipeline Service Company of the year he Global Process and Pipeline Services Limited (GPPSL) bagged the Foreign Investment Network (FIN) Pipeline Service Company of the year at the 2019 Nigeria International Petroleum Summit (NIPS) which held recently in Abuja.

The award is an acknowledgement of GPPSL’s significant contribution to oil and gas development through its excellence track record in process and pipeline services in Nigeria’s oil and gas sector.

Obi Uzu, chief executive,

forceable procedure with corrective & disciplinary actions for defaults.

Others include: A well designed and frequently executed employee training programme, frequent work site safety reviews and inspections and clear accidentreporting process, investigations and documentation.

In his contribution, Peter O. Ewesor, managing director/CEO, NEMSA & Chief Electrical Inspector of the Federation, stated

that revamping/calibrating their protection schemes and equipment; ensuring stricter adherence to safety procedures/processes; use of safety equipment and appropriate tools and property, plant and equipment, are all required to have a safe operating environment in the power sector.

He urged the operators not to fail to disconnect buildings/structures/premises under or within rightof-way of power lines from public power supply and also to rectify defective networks to prevent electrical accidents and reduce technical losses Joy Ogaji executive secretary Association of Power Generation Companies (APGC) who spoke on HSE in Local content stated that in the light of increasing high rate of electrocutions and other related accidents in the Nigeria Electricity Supply Industry, the Nigerian Electricity Regulatory commission has put in place some codes as legal frameworks to monitor Safety and Health practices in the Power Sector.

“With the Health Safety

that the event was aimed at rewarding institutions, organisations and personalities who have contributed significantly to the growth and development of the hydrocarbon industry and the entire economy of the nation.

Speaking with journalists on the sidelines of the award night, Obi Uzu thanked the organisers of the awards’ for recognizing GPPSL and for taking note of the company’s unique focus on process and pipeline services in Nigeria’s oil sector.

Uzu assured all stakeholders that GPPSL will not relent in offering excellent services in the industry, while maintaining global best practices at all times.

The GPPSL chief executive dedicated the award to all the company’s employees whose hard work and diligence has helped to put the company on the continent’s map as the process and pipeline services company of repute.

“The GPPSL award by FIN as the Pipeline Service Company of the year is a great honour and recognition for our modest efforts being a reference point for indigenous capacity for process and pipeline services in the country”, said Uzu.

A

s the general election draws near stakeholders in the oil and gas industry have continued to emphasise that until the downstream sector of the oil sector is fully liberalised, the spectra subsidy on imported refined products will continue to be a recurring factor in Nigeria’s energy mix.

Various stakeholders have continually harp on the need for government to have a re-think on the measure to deregulation and liberalisation of the downstream of the petroleum industry to pave way for huge more attractive investments in the sector.

As private marketers continue to stay on the sidelines in terms of petroleum products importation, they reiterated the need for the Federal Government to fully deregulate the fuel market.

Oil Marketers, under the aegis of Major Oil Marketers Association of Nigeria, MOMAN, Independent Petroleum Marketers Association of Nigeria, IPMAN, and Depot and Petroleum Products Marketers Association, DAPPMA, have called on the Federal Government to urgently deregulate and liberalise the country’s downstream petroleum sector for unfettered private sector participation and investment, which is course subject to an

appropriate regulatory framework.

Clement Isong, executive secretary, MOMAN, said the downstream petroleum industry regulations should be in line with international best practice.

He said the implementation and compliance with these regulations, the concept of cost recovery and competitive investment returns will ensure the sustainability of the downstream petroleum industry.

According to him: “As the market players grow their business, they will increasingly become exposed to risk management challenges and will move their capital to areas where return matches the risks. We recommend that government should deregulate pump prices and focus on enforcing compliance with adequate regulations on health, safety, environment and quality.”

Isong said only total deregulation would save the situation.

Contending that doing so will help attract more investments to the oil sector, he said only deregulation would encourage the establishment of private refineries and other related infrastructure in the country.

The deregulation of the sector will impact on other aspects of the nation’s economy, he said, “It will also enable the Nigeria Railway Corporation to lift more products from the South

to other parts of the country to reduce transportation.”

Olufemi Adewole, executive secretary, Depot and Petroleum Products Marketers Association of Nigeria, (DAPPMAN), said that rise in the landing cost of petroleum products has renewed the calls for the full deregulation of the downstream subsector of the nation’s oil and gas industry.

He said that the Nigerian National Petroleum Corporation has been the sole importer of petrol into the country for more than a year as private oil marketers stopped importation due to shortage of foreign exchange and increase in crude oil prices, which made the landing cost of the product higher than the official pump price of N145 per litre.

Federal Government had resorted to subsidy regime following an increase in the landing cost of petrol. The NNPC has the responsibility for about 90 per cent of the importation of the product, and also bear the latest subsidy cost on behalf of the government.

Maikanti Baru` group managing director, NNPC, said that the Federal Government had been resisting intense pressure to increase the pump price of petrol, noting that the landing cost of the commodity was N171.4 per litre, when oil price was around $64 per barrel.

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47

Energy Report

Nigeria – Morocco gas pipeline will serve as economic booster Olusola Bello

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he proposed Nigeria-Morocco Gas Pipeline has demonstrated how African countries can synergise and boost their economic activities through collaboration.

It is a typical example of the infrastructure plan needed to uplift their economies and save costs among the participating countries rather than individual countries engaging in their own project which might be more expensive and time consuming also.

According to Maikanti Baru, Group managing director of Nigerian National Petroleum Corporation( NNPC) the huge opportunities in the African oil and gas industry would not be fully tapped if African countries fail to address critical issues of lack of infrastructure, legal and regulatory impediments, and transparency issues The project would traverse at least fifteen (15) West-African countries with

intake and offtake points in the various countries before it links with the existing Maghreb-Europe Gas Pipeline in northern Morocco.

The feasibility study has been concluded and the

pre-FEED (Front End Engineering Design) optimisation study is currently ongoing. While this pipeline will help in electrification and industrialisation of these countries, it will also meet

the needs of European consumers for heating.

He said cross-nation collaboration among oil producing countries in Africa was essential to convert the challenges in the oil and gas

sectors of individual countries to opportunities for the economic growth.

The NNPC boss who spoke at the Nigerian International Petroleum Summit (NIPS) in Abuja described

the Summit as a veritable platform to help galvanize Africa’s response to global oil and gas challenges, stressing that it is the melting pot to meet, discuss and share ideas on how to move, not just the Nigerian oil and gas industry, but also the economies of the various countries in the continent forward.

He said NNPC shares in his vision for NIPS to be the premier African Petroleum Technology and Business Conference and the largest gathering of oil and gas professionals in the continent.

On his part, Ibe Kachikwu, the Minister of State for Petroleum, who also represented President Muhammadu Buhari, said the time has come for players in the oil and gas industry to “think Africa, think collaboration and think the future”.

Other areas of possible collaboration include legal and regulatory framework, as synergy in these areas could enhance the abundant opportunities inherent in the new oil and gas discoveries across many countries in Africa.

Libya to invest $50bn to galvanise crude production as Nigeria dither over reforms

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s Nigeria is yet to decide whether to sign into law the Petroleum Industry Bill (PIB)which is meant to galvanise growth and investment in the oil and gas industry, Libya another major producer oil and gas in Africa and member of Organisation of Petroleum Exporting Countries (OPEC) is budgeting $50 billion to boost its beleaguered oil sector.

L ibya’s state-ow ne d National Oil Corporation has set aside a budget of around $50 billion for 2019 to develop its oil and gas sector, as it strives to reach a pre-2011 output level of around 1.6 million b/d by the end of this year.

According to S&P Global Platts: “Fifty billion dollars is the budget for this year to improve oil and gas production and to improve downstream operations but most of this is for crude oil,” Unlike Nigeria where investors have shunned investment in the oil and gas industry, the bulk of the investments that is going to Libya oil and gas industry would be private sector driven.

The Nigerian National Petroleum Corporation (NNPC) which is equiva-

lent of the Libya National Oil Corporation says it requires huge investments from anywhere and therefore needs to make the investment atmosphere very convenient for the would be investors.

The non passage of the petroleum industry Bill has scared investors away from Nigeria The Federal Government has projected 2.3 million barrels per production for the year 2019 even as OPEC has pegged her production level to 1.6 million

barrels and a b benchmark of $60 per barrel.

Analysts have said these assumptions by the government are not realistic.

Bello Rabiu, chief operating officer, Upstream in NNPC said the corporation is doing everything possible to make sure it encourages foreign and local investors to come and invest in Nigeria.

The Petroleum Industry Governance Bill (PIGB) which would have unbundle the NNPC and made it more efficient was and

which the national assembly worked on and sent it to the president for assent was turned down.

The inability of the country to pass into law the PIB has caused the industry to lose over $200 billion in terms of investments.

Of the amount, the country lost $15 billion yearly in investments withheld or diverted by investors to other countries because of uncertainty as investors do not know which rules guide their investments.

It als o lost anoth e r

$100billion potential earnings in five years, from 2010-2015 for inability to pass the PIB into law in 2009.

Hyginus Chika Onuegbu, chairman, National PIB Committee of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Nigeria Union of Petroleum and Natural Gas Workers (NUPENG),had lamented that while the country continues to dither over reforms in its critical oil and gas sector, Ghana, which just joined the Petroleum Club recently, passed its Petroleum (Exploration and Production) Bill, 2016 into law.

Onuegbu said Ghana made the law in a bid to attract investments. “It is instructive to note that Ghana started and completed its own PIB in less than two years,” he said.

He lamented that since the introduction of the first PIB in 2007, politics, intrigues, controversies and other dynamics have made it impossible for the bill to be passed into law even after public hearings.

For the country to realise this dream, it was envisaged that the major source of revenue to the Federation Account, the

oil & gas sector, must be repositioned for greater efficiency, openness, and competition built on corporate governance as obtained in other resourcerich nations.

Sadly, the PIB, which is the vehicle to achieving these goals, is yet to be passed into law, with Onuegbu expressing worries that the industry and the economy will continue to lose with its nonpassage.

“We expect the PIB to drive sustained growth in the development of our local refining capacity, end the regime of importation of refined petroleum products and ultimately usher in Nigeria as an exporter of refined petroleum products,” he said.

Onuegbu said the fact remains that there are great opportunities that will arise if the PIB is properly articulated and crafted in the best interest of the country.

“I expect that the passage of the PIB will unlock new investments in the petroleum industry as investors will be willing to invest in the Nigerian oil and gas sector since they will then know the terms and conditions for such investments,” he added.

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World Business Newspaper

Trump uses State of the Union to reveal Kim summit President also orders 3,750 troops to Mexican border to stop migrant ‘onslaught’ Demetri Sevastopulo and Courtney Weaver Key points in Trump 2019 State of the Union address • President Trump and Kim Jong Un to meet in Vietnam at end of February • Orders another 3,750 troops to USMexico border • Aims fire at probe into possible collusion between Trump campaign and Russia • Pledges legislation to bar the “lateterm abortion of children” • Confirms American officials holding talks with Afghan groups

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onald Trump said he would meet North Korean dictator Kim Jong Un this month, as the US president delivered a State of the Union that mixed calls for national unity with a declaration that he was sending US troops to the Mexican border to stop migrant caravans.

In revealing that he would hold the second meeting with Mr Kim in Vietnam on February 27-28, following their historic summit last year, Mr Trump proclaimed that his election had prevented war with North Korea.

“If I had not been elected president of the US, we would right now . . . be in a major war with North Korea with potentially millions of people killed,” he said. “Much work remains to be done, but my relationship with Kim Jong Un is a good one.”

Mr Trump’s second State of the Union was his first to a divided Congress and came only days after the end of a five-week government shutdown triggered by his demand for funding of a wall along the US border with Mexico. With a stopgap funding bill set to expire on February 15, Mr

Trump called on Congress to agree on a “common sense” plan for border security that included a “new physical barrier, or wall”.

In the meantime, Mr Trump said he was sending another 3,750 US troops to the border “to prepare for the tremendous onslaught” of “large, organised caravans” of migrants heading to the US. His warning triggered groans in the House chamber.

Trump’s State of the Union address 2019: transcript annotated Mr Trump also took aim at the investigation into possible collusion between his 2016 presidential campaign and Russia, warning that it jeopardised US prosperity.

“An economic miracle is taking place in the United States and the only thing that can stop it are foolish wars, politics, or ridiculous partisan investigations,” he declared. “If there is going to be peace and legislation, there cannot be war and investigation.

It just doesn’t work that way!”

The State of the Union had been delayed a week because of a stand-off between Mr Trump and Nancy Pelosi, the Democratic House speaker, over his demand for wall funding. He invoked “a moral duty” to create a better immigration system.

Throughout the speech, Mr Trump wove references to the need for the two political parties to come together to work on behalf of the American people. “Victory is not winning for our party, victory is winning for our country,” he said.

At the same time, he criticised the Democrats for pursuing what he described as a strategy of “resistance” — a call that has taken more resonance since the Democrats retook the House in the November midterm elections, almost guaranteeing that no key legislation gets passed this year.

Pay jump for contract staff signals shake-up in Japan’s job market

Nippon Express’s offer suggests Abe labour reforms are feeding through

Robin Harding

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ne of Japan’s biggest employers is set to offer big pay rises to its contract staff in an early sign that labour reforms will cause a drastic shake-up in the country’s system of lifetime employment.

Logistics group Nippon Express plans to increase pay for thousands of irregular staff by more than 10 per cent to put them on a par with its regular, lifetime employees.

The move suggests that Prime Minister Shinzo Abe’s labour market reform, passed last year, will have a more dramatic effect than previously expected as it forces companies to break down the divide in Japan’s two-tier jobs market.

“It’s a huge change,” said Susumu Akita, the director in charge of labour relations at Nippon Express, in an interview with the Financial Times. “The biggest reason for this is the law on equal pay for equal work that passed last year.”

Japanese companies pay more to

so-called regular staff, hired straight from university and given jobs for life, than to irregular, contract workers who are easily dismissed when times are tough. Irregular contracts became more common during Japan’s lost decades of deflation, leaving many workers in insecure, low-paid jobs.

Mr Abe’s law requires companies to pay workers the same when they are doing the same work. The law does not take effect until April 2020, but Nippon Express has chosen to implement it a year early, setting an important precedent for the rest of corporate Japan.

While giving contract staff the same pay seems straightforward, in reality it involves a corporate upheaval because it upsets the basis for the annual pay rise enjoyed by regular staff. Lifetime workers generally start on low wages and their pay goes up steadily until it peaks when the employee is in their fifties. But that is not compatible with giving the same pay to irregular workers based on their role.

Donald Trump, US president, delivers the State of the Union address at the US Capitol in Washington. Mr Trump began his address by calling on the two political parties to come together to work on behalf of the American people © AFP

Mr Trump held out the prospect of working with Democrats to lower drug prices, and pointed to infrastructure as a possible area of bipartisan cooperation. However, many political experts believe the chances for an infrastructure deal are slim.

Mr Trump touted the strength of the economy, which has kept growing in the decade since the financial crisis. Ignoring the fact that the US was on a growth path when Barack Obama left the White House, he said that during his first two years in office, he had “launched an unprecedented economic boom, a boom that has rarely been seen before”.

His speech was a far cry from last year when Republicans controlled both houses of the legislature and were basking in their successful effort to cut taxes. Seven Democrats have launched presidential campaigns

and more are considering entering the race. Beto O’Rourke, the former Democratic congressman, hinted to Oprah Winfrey on Tuesday that he might run for the White House.

One group stood out among the hundreds of lawmakers inside the House chamber. Along with Mrs Pelosi, female lawmakers wore white to commemorate the women who propelled the suffragette movement more than a century ago. The act of symbolism follows the election of a record number of women in the midterms.

Mr Trump elicited his loudest applause when he said women had benefited most from the strong economy and congratulated the newest female members of Congress — the majority of whom are Democrats.

“All Americans can be proud that we have more women in the work-

force than ever before — and exactly one century after the Congress passed the constitutional amendment giving women the right to vote, we also have more women serving in the Congress than ever before.”

In comments that were broadly welcomed, Mr Trump said he would include money in his next budget request to fund paid family leave. But he also said he would ask Congress to pass legislation to bar the “late-term abortion of children who can feel pain in the mother’s womb”, resurrecting one of the most divisive issues in US politics.

In an attack that appeared aimed at some of the new Democrats in Congress, including Alexandria OcasioCortez, and progressive candidates running for president, Mr Trump said he was “alarmed” about the calls by some for socialism.

The speech of a president whose power is draining

Trump has backed himself into a corner on the wall from which there is no escape Edward Luce

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nce a year, Donald Trump gives an uncharacteristically bipartisan speech to Congress. It is customarily sandwiched — often within hours — by venomous expressions of partisanship. Mr Trump’s 2019 State of the Union was no exception.

Earlier in the day, the president described Chuck Schumer, the Senate Democratic leader, as a “nasty son of a bitch”, and Joe Biden, the former vice-president, as “dumb”. A few hours later he called on Americans to “rekindle the bonds of love and loyalty and memory that link us together”.

The puzzle is why he bothers to go through the motions. Perhaps even Mr Trump — the noisiest iconoclast ever to occupy the White House — feels bound by the weight of tradition.

The difference is that his third attempt at conjuring national unity deceived no one. His first address to Congress, which took place shortly after his infamous “American carnage” inaugural address in 2017, won rapturous reviews. Otherwise

implacable critics said he had finally taken on a presidential mantle. Such praise was quick to curdle. Two years later, no one believes Mr Trump is about to pivot to the political centre.

In spite of obligatory references to American greatness, moon landings, Normandy beach invasions, and Cold War valour, Mr Trump’s only real goal was the highly divisive — and familiar — one of building a wall with Mexico. He offered no plan on how to do it.

It was the speech of a president whose power is rapidly draining. It came barely a week after Mr Trump caved into Democratic pressure to reopen the US government following a record 35-day shutdown without having secured a dime of funding for the wall. It came just eight days before the US government is set to close again unless Mr Trump agrees to whatever budget deal a bipartisan committee sends to his desk. It will not include any funding for the wall. At which point, Mr Trump will sign because he cannot afford to be blamed for another shutdown. He is then likely to declare a national emergency — one that his most loyal

enforcers, most importantly Mitch McConnell, the Senate majority leader, have declared in advance to be constitutionally unwise. In spite of this, Mr Trump insisted on Tuesday night that “I’ll get it [the wall] built”. He has backed himself into a corner from which there is no escape. Without a wall, Mr Trump’s base will drift away.

Yet he can only fund one by manufacturing a crisis he would be almost certain to lose.

The other significant message in Mr Trump’s speech was an attack on socialism. Cold War presidents would routinely warn against the Soviet version. It is hard to recollect a US president worrying about socialism at home. Yet Mr Trump’s bromide was borne of a shrewd political calculus.

Many of the unapplauding Democrats in front of him today happily flaunt a word that was until recently taboo in US politics. The brewing Democratic presidential primaries are turning into a social democratic beauty contest. Mr Trump knows he could profit from that. “Today we renew our resolve that America will never be a socialist country,” he said to thunderous applause from half the chamber.

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NATIONAL NEWS

FT Cyril Ramaphosa pledges to save South Africa’s ailing power utility

US should follow Mike Milken’s formula on Africa policy

President says electricity monopoly Eskom is ‘too big to fail’ and vows to boost finances

Human and social capital and real assets should be focus of Prosper Africa

Joseph Cotterill

Aubrey Hruby

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yril Ramaphosa has insisted that South Africa’s teetering state electricity monopoly would not be allowed to fail, promising he would take measures within days to stabilise its debt-laden finances.

The president told Cape Town’s Mining Indaba, or conference, on Tuesday that Eskom was “too big and too important to fail”, amid speculation that he was about to order its break-up.

Eskom supplies nearly all the power for Africa’s most industrialised economy, but years of mismanagement and corruption have left the utility with debts of more than $30bn and ageing, blackoutprone coal-fired plants.

The return of recurrent outages last year throttled industry and heightened the crisis at the utility, which is trapped in a cycle of borrowing to repay its debts. It faces losses of R20bn ($1.5bn) this financial year.

“Eskom’s contribution to the health of our economy is too great for it to be allowed to fail . . . Restoring energy security for the country is an absolute imperative,” Mr Ramaphosa said.

The government would soon unveil a “package of measures to stabilise and improve Eskom’s financial, operational and structural position”, he added. Mr Ramaphosa is expected to announce the turnround plan in the annual state of the nation address on Thursday.

Analysts said the measures could include breaking Eskom up into separate power-generation, transmission and distribution units to make it more manageable.

An advisory panel recently called for the utility’s separation.

Phakamani Hadebe, the monopoly’s chief executive, confirmed this week that Eskom had been in discussions with the government over an unbundling. But analysts warned that a break-up would do little to resolve the utility’s immediate cash crisis.

Eskom’s executives have also floated a government cash injection or takeover of part of the utility’s debt by the state. But South Africa’s public finances are badly stretched by a stagnant economy and the legacy of institutional decay under Jacob Zuma, Mr Ramaphosa’s predecessor.

As they are mostly state-guaranteed, Eskom’s debts threaten South Africa’s last remaining investment-grade credit rating, bestowed by Moody’s.

South Africa’s Treasury has previously turned down a proposal by Eskom to transfer R100bn ($7.5bn) of its debt to the government’s balance sheet.

Industrial buyers of Eskom’s electricity are also resisting its demand to increase tariffs by 15 per cent a year over the next three years to finance a turnround.

“If the proposals are accepted, it will destroy not only the mining industry but large parts of the manufacturing business . . . it is completely unacceptable,” Neal Froneman, chief executive of Sibanye-Stillwater, the country’s largest gold producer, said.

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Bob Diamond. © Bloomberg

Bob Diamond steps down as chair of African banking group Atlas Investment vehicle founded by former Barclays chief undertakes strategic review Joseph Cotterill and Naomi Rovnick

F

ormer Barclays chief executive Bob Diamond stepped down as chairman of Atlas Mara as the pan-African banking group he founded said that it was reviewing the future of its operations.

Atlas Mara said on Wednesday that Mr Diamond will remain a non-executive director at the group, which he floated in 2013 with ambitious plans to create an African banking giant. The Dubai-based investment vehicle has since suffered an 85 per cent share price collapse.

“My belief in our ambition — to create a premier sub-Saharan African financial institution to better serve continental and global customers — remains as strong as the day we founded the company,” said Mr Diamond.

But on Wednesday Atlas Mara signalled a retreat from some markets as it announced it had retained Citi to review its operations.

The owner of banking concerns

from Botswana to Nigeria added that it had received “indications of interest for certain banking assets” and that it will sell off businesses that do not show signs of becoming leaders in their markets.

As well as stakes in lenders based in Botswana and Rwanda, the group owns 49 per cent of Nigeria’s Union Bank.

Nigeria’s banking sector has been a torrid investment for foreign buyers since the oil price collapse of 2014. Last year Carlyle, the US private equity group, put its stake in the country’s Diamond Bank up for sale after the after the lender’s shares fell more than 90 per cent following its 2014 purchase.

“Nigeria remains a flagship market for Atlas Mara and is central to the company’s overall strategy,” Atlas Mara said on Wednesday.

The group also said it would buy a 35 per cent stake in South Africa’s GroCapital from its key shareholder, Fairfax Africa, in order to access banking services in the continent’s

most financially sophisticated market.

Mr Diamond will be replaced as chairman by Michael Wilkerson, chief executive of Fairfax Africa, which is Atlas Mara’s largest shareholder.

The former Barclays boss had only assumed the chair of Atlas Mara’s board on an “interim basis”, Atlas Mara said on Wednesday. Mr Diamond became interim chairman in October 2016.

The shake-up at comes after the group took a year to find a chief executive. South African banker John Staley took that role last April, filling a gap that had been left empty since John Vitalo quit in February 2017 amid growing investor concerns over faltering performance and share price weakness. The group was also forced to cut costs and jobs following currency shocks in Africa in 2015.

Shares in Atlas Mara rose 4 per cent in early London trading to $1.72.

EU prepares for looming no-deal Brexit — and ensuing Brussels seeks to appear accommodating while stepping up preparations for UK crashing out Alex Barker

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iplomats in Brussels say there is one telling measure of the low reached in the Brexit saga: the political blame game has started over responsibility for a chaotic no-deal exit.

From the moment Britain triggered the two-year Article 50 clock on its departure in March 2017, the “cliff-edge” threat has been used by Brussels negotiators, both to exert pressure and kick-start national planning for the worst.

But this scenario, once dismissed as a theoretical doomsday outcome, has taken on new urgency since Westminster overwhelmingly rejected Theresa May’s draft deal, prompting her to seek a renegotiation just weeks before Britain’s March 29 departure date.

“My analysis is that we are really heading for the abyss,” said one senior EU figure handling Brexit. “We may extend to June. But it is coming.

The risk of no-deal is huge.”

The drumbeat of planning helps those, like German chancellor Angela Merkel, who see the Brexit brinkmanship as potentially helping shift support in favour of a deal in Westminster.

But the EU is also adjusting its

thinking and energy, with an emphasis on three priorities: making sure voters do not find their leaders at fault for the costs of a hard Brexit; mitigating the worst effects of such a crash-out, even if it temporarily bends some EU principles; and, finally, working out how to pick up the pieces afterwards.

“A three months extension is likely,” said Rem Korteweg, a research fellow at Clingendael, the Netherlands Institute of International Relations. “But it is not to give the UK a shot at another agreement. It is to give the EU more time to prepare itself for no-deal. They will not say this out loud, but this is the calculus.”

GETTING AHEAD OF THE POLITICAL BLAME GAME Brussels has long written off the possibility of convincing the British public. The focus of the EU27 is instead on winning the battle at home. The first challenge is ensuring Mrs May takes “ownership” of a deal, and that the public see it as being crafted around her red lines. For Brussels, with ownership also comes the responsibility for setting it right and securing ratification.

A senior EU diplomat said the “gruelling” call last week between

Mrs May and Donald Tusk, the European Council president, hit a particular low when the prime minister suggested the EU come forward with new ideas to salvage the Brexit deal. Mr Tusk made clear it was time for Britain to step up with written solutions, backed by a sustainable House of Commons majority.

FLEXIBLE ON TIMING, INFLEXIBLE ON SUBSTANCE Ms Merkel is concerned about being blamed for Brexit going wrong in the run-up to May’s European Parliament elections, which coincides with a clutch of German regional polls.

Other European capitals expect the chancellor to appear as accommodating as possible, without changing the withdrawal agreement save for a few cosmetic frills. “She wants to be seen doing everything she can to avoid it,” said one senior EU diplomat. “If it then happens, then that is fine.”

Her willingness to help may be most evident over a possible extension request. Ms Merkel and German ministers have urged Britain to take its time. “If on substance there is no flexibility, then you have to be flexible on process,” the diplomat added.

n December, John Bolton, US National Security Advisor, announced the Trump administration’s new Africa strategy, firmly rooting it in US-China global economic rivalry. The policy included a new programme called Prosper Africa to support US investment and commercial engagement in Africa.

Yet, the month-long government shutdown stalled plans on detailing the new programme, and today little has been shared publicly.

Given China’s outsized infrastructure financing efforts in African markets and its deepening engagement in new sectors like media and telecommunications, it is essential that US policymakers anchor Prosper Africa in areas of US competitiveness.

Mike Milken, the pioneering American investor, developed a formula rooted in American free market values in the 1960s to describe national prosperity that can help shape the pillars of Prosper Africa.

He observed that “prosperity in any society depends on the leveraging effect of financial technology on the sum of human capital, social capital and real assets.”

The Trump Administration should embrace this insight and build Prosper Africa around encouraging US investment and partnerships around the foundational blocks of Mr Milken’s formula — human capital, social capital, and real assets. The following three areas are ones in which US investment can meet major economic development needs in African markets.

1) Focus on education and edtech investments to develop human capital Mr Milken identifies human capital as the most important ingredient of prosperity, yet Africa’s youth is not receiving the vital education it needs for creating the jobs of both the 20th and 21st centuries. Africa needs to create 18m new jobs each year to accommodate its massive youth population growth, but with less than 25 per cent of African students earning STEM degrees, many are not prepared for market needs.

Public education in African countries, even where good, is accompanied by associated fees, and private education has increasingly emerged as an important element to bridge the education gap in emerging markets.

It is estimated that one out of four, or 66m, African students will be enrolled in private schools by 2021. Private equity firms are actively investing in educational opportunities that take advantage of emerging technologies and internet-based learning to reach a broader audience.

Innovative start-ups like Kenya’s African Management Initiative and Nigeria’s PrepClass are leveraging mobile technology to supplement traditional “bricks and mortar” schooling and increase access to training.

Beyond foundational skills, investors are also looking to higher education. The African Leadership University, a Mauritius-based institution, recently raised $30m in a Series B round to open learning centres across the continent to train college graduates on needed technical and leadership skills.

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BUSINESS DAY

51

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Friedland says Congo copper mine will be world’s second-largest Billionaire insists project could restore DRC as a major copper producer Henry Sanderson

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illionaire mining executive Robert Friedland has said his Chinese-backed copper project in the Democratic Republic of Congo could become the world’s second-largest copper mine once developed.

Mr Friedland’s Ivanhoe Mines said it is in discussions with China-based financial institutions to raise over $1.1bn needed for the Kamoa-Kakula project, which is “on track to become one of the absolute greatest copper mining complexes in the world.”

The veteran promoter and movie producer, who first made his fortune from the Voisey’s Bay nickel project in Canada in the 1990s, has been working on the copper deposit in the DRC for ten years. The project is backed by two large Chinese companies, Zijin Mining and state-owned Citic Metal.

Citic Metal, Ivanhoe’s largest shareholder, is assisting with discussions to raise money, Ivanhoe said.

“This mine is getting built,” Mr Friedland said. “And, most importantly, it is being built to international best practices that will be a showcase for responsible mine development.”

Copper prices have fallen by 10 per cent over the past year to trade at $6,235 a tonne. But analysts are positive about the metal’s use in electric cars as well as clean energy technologies. Citic Metal has said it expects a shortage in the copper market around 2024.

Mr Friedland said the mining complex in the DRC’s copper belt in the south-east of

the country could restore the country to its historical position as one of the world’s largest copper producers. The Congo is one of the poorest countries in the world.

If fully developed the complex could produce 382,000 tonnes of copper a year during the first 10 years, rising to 700,000 tonnes of copper after 12 years of operations, Mr Friedland said.

The DRC deposit contains potentially three mines, with additional copper deposits also identified in the area that could be developed to maintain a 37year mine life, Mr Friedland said.

The Kakula mine, which is likely to be built first, is projected to have an average grade of 6.8 per cent copper over the initial five years, and 6.4 per cent over the first 10 years, according to the study. It will cost an estimated $1.1bn to build.

That’s higher than copper grades of around 0.5 per cent to 0.6 per cent at Anglo American’s new Quellaveco project in Peru or Teck Resources’ QB2 project in Chile, according to Paul Gait, an analyst at Bernstein.

“The broader Kamoa-Kakula region is by far the most important and exciting mining project in the world today,” Mr Gait said.

The Kamoa-Kakula complex contains copper in “thick, shallow and flat-lying orebodies,” allowing for large-scale mechanised underground mining, Mr Friedland said.

Shares in Ivanhoe Mines have rallied by 22 per cent year-todate to trade at C$2.90 on the Toronto Stock Exchange, valuing the company at $2.2bn.

Robert Friedland, pictured here in 2015, said the Kamoa-Kakula project was ‘on track to become one of the absolute greatest copper mining complexes in the world’ © Getty

Australia’s dollar sinks after central bank eyes rate cuts RBA cites rising global economic risks as it opens door to reducing rates Alice Woodhouse and Emma Dunkley

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ustralia’s central bank has become the latest to open the door to cutting interest rates, sending the country’s currency to its steepest one-day drop since August and underlining how rapidly expectations for global monetary policy are being upended.

Philip Lowe, the governor of the Reserve Bank of Australia, on Wednesday held out the prospect that the next move in its key interest rate could be lower as risks from the global economy increased and the domestic housing market slowed. The RBA has held its cash rate steady at 1.5 per cent since August 2016.

In a speech in Sydney, Mr Lowe said: “There are now scenarios where the next move in the cash rate is up and other scenarios where it is down” adding that now “the probabilities appear to be more evenly balanced”.

Last week the US Federal Reserve made one of its sharpest pivots in recent memory, distancing itself from December’s projection

of another two interest-rate rises this year, as chairman Jay Powell blamed “cross-currents” from China and Europe, trade tensions and the risks of a hard Brexit. Investors are also expecting the European Central Bank to push back its timing of any interest rate increases as the eurozone economy loses momentum.

“Clearly, there was a general desire by central banks last year to join the Fed to try and normalise monetary policy,” said Philip Saunders, co-head of multi-asset at investment firm Investec. However, “you’ve definitely seen a shift in growth expectations, inflation has been more benign than anticipated and people have a better appreciation of the extent to which global demand has depended on China”.

While Mr Lowe said he did not see a “strong case” for a “near-term change” in interest rates, merely putting a cut in borrowing costs on the horizon was enough to send the Australian dollar down 1.4 per cent to 71.34 US cents. The yield on the 10-year Australian government bond dropped 6 basis points to 2.18 per cent, outperforming every other major sovereign debt

market.

Paul Brennan, an economist with Citi, said Mr Lowe had called time on the RBA’s bias towards lifting rates with a shift to a neutral bias, but said the central bank was in “no hurry to make judgments about how the economic outlook will unfold this year”. Key to this will be if house prices continue to fall, how that affects the domestic economy and the state of the broader global economy.

The central bank revised down its forecasts for Australian economic growth for 2019 and 2020 by a quarter of a percentage point.

Australian house prices fell at their sharpest rate in 35 years in December, bringing the annual decline to 6.1 per cent in December.

Craig James, chief economist at CommSec, said the significance of the speech was that RBA “now acknowledges that there are risks, that if manifest, could lead to the Reserve Bank cutting rates”. Beyond domestic risks, the health of the Chinese economy was an important factor for Australia, he added. China was a big trading partner for Australia but the US-China trade war had piled on pressure on the Chinese economy.

Eli Lilly cuts 2019 outlook after trial failure and Loxo deal Walmsley’s GSK strategy revamp helps lift earnings approved in 2016 to treat a type Pan Kwan Yuk

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li Lilly cut its sales and profits forecasts for 2019 on Wednesday, blaming costs related to its acquisition of Loxo Oncology and a hit from the recent trial failure for one of its cancer therapy treatments.

Shares in the $127bn drugmaker dropped nearly 3 per cent in pre-market trading.

Eli agreed to splash out $8bn to buy rival Loxo Oncology last month as part of its plans to expand in the lucrative cancer treatment market.

But as a result of the fees related to the pending acquisition — as well as costs stemming from the setback for its cancer treatment Lartruvo last month — it now expects 2019 adjusted earnings to come in at between $5.55 and $5.65 per share, compared with its prior forecast of $5.90 to $6.00.

Lartruvo was conditionally

of rare soft tissue cancer. The trial failure means the drug will no longer be prescribed. This in turn will weigh on full-year sales, with Eli predicting revenue to be between $25.1bn and $25.6bn for 2019, down from the $25.3bn to $25.8bn range it had previously given.

The guidance cut took the shine off what was otherwise a solid set of fourth-quarter results from Eli. For the three months to the end of December, sales rose 5 per cent to $6.4bn on the back of strong demand for new drugs such as diabetes treatment Trulicity.

The company also swung into a profit of $1.1bn for the quarter, compared to a loss of $1.6bn in the year ago period. Stripping out one-off gains, adjusted earnings was $1.33 per share.

Analysts had expected adjusted earnings of $1.34 per share on sales of $6.2bn.

Drugmaker warns 2019 earnings likely to be hit by generic rival to Advair Sarah Provan

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laxoSmithKline reported a better than expected 14 per cent increase in earnings for the final quarter of 2018, but said competition to its blockbuster Advair asthma drug meant earnings would fall this year.

The UK pharmaceuticals group last year launched a new research and development strategy, focused on immunology, genetics and technology, as chief executive Emma Walmsley seeks to rebuild its drug pipeline.

Ms Walmsley also unveiled plans in 2018 to break the group into two, creating a £9.8bn consumer health business through a joint venture with US rival Pfizer.

The UK pharmaceuticals group reported adjusted fourth-quarter earnings per share at 31.2p a share, up 14 per cent, on a 7 per cent increase in quarterly sales of £8.2bn.

Analysts had expected fourth-quarter revenue of £7.96bn, with earn-

ings at 27p per share.

But the group said it expected 2019 adjusted earnings per share to decline between 5 and 9 per cent, a reflection of the recent approval of a generic competitor to Advair in the US. Shares rebounded after the report, erasing earlier losses in London trading. They recently traded about 0.9 per cent higher.

After her first full year at the helm of the group, Ms Walmsley said GSK had made “good progress for 2018” and that this year would be an “important year of execution for the group”.

“We are making good progress against our priority to rebuild our pharmaceuticals pipeline, particularly in oncology,” she said.

GSK’s earnings report comes a day after it announced a deal with Merck, the German drug and chemicals group, whereby the UK group will pay up to €3.7bn for the rights to a new type of immunotherapy for difficult-to-treat cancers. GSK will pay Merck a fee up

front of €300m to begin testing the treatment, which is in clinical trials.

Philip Hampton last month said he would step down as company chair. His decision to leave the job after less than four years followed pressure from investors concerned the company’s share price has underperformed the global pharma and biotech sector.

Ms Walmsley said on the conference call after the group reported earnings that GSK had “obviously been preparing for all [Brexit] outcomes, and that does include a nodeal”, though some elements were outside of the company’s control.

For the full year the pharmaceuticals group posted adjusted earnings per share at 119.4p, up 7 per cent from a year earlier.

Group sales for the year came in at £30.8bn, with pharmaceuticals sales at £17.3bn, and vaccine sales at £5.9bn.

Analysts at Jefferies said the outlook is “better than feared” and they believe that the 2019 EPS target will be “well received”.

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Thursday 07 February 2019

ANALYSIS

Blackstone goes to war with Italian media tycoon

Move by New York private equity group sends tremors through Milan’s finance industry Rachel Sanderson

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Big data: legal firms play ‘Moneyball’

Is the hunt for data-driven justice a gimmick or a powerful tool to give lawyers an advantage and predict court outcomes?

Barney Thompson

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or the lawyers who ply their trade in the US District Court for the Northern District of California, the ability to read the mind of Judge Richard Seeborg would be extremely useful.

Until a few years ago, trying to predict how he or any other judge might rule depended on encountering them enough times in court, or exchanging tips with colleagues on which arguments the judge had recently found persuasive.

These days, however, Judge Seeborg and his colleagues produce a rich seam of data that is being mined by a group of companies threatening to upturn the way the legal profession operates. Just like a professional baseball or tennis player, Judge Seeborg, who hears a full range of criminal and civil cases, has his personal statistics that are now being rigorously collected and scrutinised.

Anyone hoping to bring a classaction lawsuit should know, for instance, that he has been presented with such cases on 37 occasions, allowing 51 per cent of them to proceed in full. By comparing him to the 670 other US district judges, lawyers can see where he ranks on granting such cases, how long they take to complete, how likely he is to make a summary judgment before trial or whether lawyers should expect to be forced to plead the case to a jury.

Under the common law system in the US, Britain and several other countries, the validity of legal arguments depends heavily on precedent.

So a Californian lawyer might like to know, for instance, that Judge Seeborg’s favourite US Supreme Court decision is Ashcroft v Iqbal (a 2009 case concerning the responsibility of a senior official for the actions of a subordinate), which he has cited on 423 occasions. He also likes Balistreri v Pacifica Police Dept, a 1990 appeals court decision stemming from a domestic violence case, which he has mentioned 312 times.

In Philip K Dick’s short story The Minority Report, a trio of “precogs” plugged into a machine are used to foretell all crimes so potential felons could be arrested before they were able to strike. In real life, a growing number of legal experts and computer scientists are developing tools they believe will give lawyers an edge in lawsuits and trials.

Having made an impact in patent cases these legal analytics companies are now expanding into a broad range of areas of commercial law.

“This is not about replacing judges,” says Daniel Lewis, co-founder of Ravel Law, a San Francisco lawtech company that built the database of judicial behaviour. “It is about show-

ing how they make decisions, what they find persuasive and the patterns of how they rule.”

Judge Seeborg is aware he is being monitored by Ravel but declined to comment for this article.

Mr Lewis says the capabilities of legal analytics are rapidly evolving.

“A lot of lawyers think of their case as a special snowflake — that the facts are unique, that nothing like it has ever happened before. And it’s just not true.”

The tech revolution has not only seen an explosion in innovation, it has also prompted a surge in legal disputes over intellectual property.

Some of these lawsuits were the result of competing claims among companies over who invented what first, but by the mid-2000s a new breed of third-party entities had arrived — buying up patents and using the threat of litigation to extract a quick payment from their targets.

To some, they are “patent trolls”, the shakedown artists of IP; to others, they hold businesses to account for plagiarising the work of genuine innovators. Either way, the amount of IP litigation ballooned and there are now thousands of patent litigation cases in the US each year.

Until recently, a large portion of these cases were heard in the eastern district of Texas, which became the number one venue for patent litigation thanks to its speed in processing claims, the probability a case would proceed to trial, and the friendliness of its juries to patent holders suing for infringement — which in turn meant bigger payouts.

According to PwC figures, between 2013 and 2017 median damages in US patent claims were $1.9m when judges made awards but $10.2m when a jury did. Since claimants were able to “venue shop” for the most favourable court, they queued up to sue in Texas.

However, in May 2017 the Supreme Court in effect ended venue shopping for patent cases; instead, litigation would have to take place in the state where the defending business was based. Suddenly it was vital to know the records of judges, lawyers and courts in jurisdictions such as Delaware, California — Judge Seeborg’s domain — or New Jersey.

In an office above a nail bar in the Silicon Valley town of Menlo Park, the legal data business Lex Machina amasses as many rulings from US courts as it can get its hands on. Josh Becker, chairman, claims that threequarters of the top 100 US law firms are Lex Machina clients.

“These days everyone has analytics in baseball,” he says, a reference to Moneyball, the book by Michael Lewis that sparked the sporting mania for using often obscure performance stats. “Soon it will be the same

with the law. And once everybody is doing that, it will be about how well you are using that data.”

The idea behind Lex Machina — which, like Ravel, is now owned by the data company LexisNexis — was to enable companies and their lawyers to assess their chances of winning a case as soon as the notice to sue arrives. The sort of information that might be analysed includes how many times the opposing lawyer has filed certain types of lawsuit, in which court, with what success rate, who they have represented, and which attorneys they have faced. Once a judge has been assigned to the case, legal research companies can provide statistics on his or her record as well.

IP litigation was the spark for Lex Machina, which emerged as a Stanford Law School start-up, but once it had access to LexisNexis’s broader database, it expanded into several other “high-volume” areas of the law, from employment and tax to product liability, medical negligence, insurance and bankruptcy. Other legal analytics companies followed a similar path.

To get ahead of the competition, US commercial lawyers set up alerts on Pacer, the electronic court records system, for when a new case has been filed against a company in their field.

Once an alert pops up, says Christian Mammen, a San Francisco partner at law firm Hogan Lovells, the in-house legal team of the affected business will start getting calls within minutes from lawyers offering to come to the company’s defence.

“Three hours later they’ll be getting full pitches,” says Mr Mammen, who has been litigating IP and tech cases since the dotcom boom in the late 1990s. That means offering advice on venue, strategy and personnel, backed up by the data. “You have to be ready with a compelling argument as to why you can handle their case best.”

As the potential use of these analytical tools spreads, more companies have emerged to meet demand.

Among them is Premonition, based in New York, which shows the litigation history of judges, lawyers and law firms, including win/loss rates for trials that are benchmarked to competitors, the success rates of different types of motion in individual courts, and a database of who sues and gets sued most often.

Bloomberg Law’s Litigation Analytics and Los Angeles-based Gavelytics have similar functions, while Casetext and Judicata both offer deep-dive analysis of the legal documents most relevant to the case a lawyer is fighting, such as similar briefs filed by other firms, relevant case history and judges’ citations, often down to the most cited paragraph.

illionaire Stephen Schwarzman, chairman and chief executive of the world’s largest private equity firm Blackstone, may have met his match.

In a move that has sent tremors through Italy’s finance and investment industry, Mr Schwarzman has found himself in a battle with Urbano Cairo, one of the country’s most colourful media tycoons and protégé of former prime minister Silvio Berlusconi.

The confrontation involves a lawsuit between Blackstone and Mr Cairo’s RCS MediaGroup over the ownership of the Italian company’s headquarters in Milan.

The suit, the first ever filed by Blackstone in relation to one of its European investments, reveals a five-year-old controversy and has sparked concerns among foreign investors about the Italian legal system

increasingly active role in Italy.

In its suit before a New York State judge in November, Blackstone accused Mr Cairo of falsely claiming his company still owns the building that Blackstone acquired from the previous owners of Corriere’s holding company RCS MediaGroup in 2013.

Declaring Mr Cairo’s claim to be “spurious, malicious and extortionate”, New York-listed Blackstone is suing on the grounds of tortious interference and is seeking a declaration from the court that the Milan property belongs to it, plus compensatory and punitive damages.

Mr Cairo has filed an unprecedented arbitration case in a Milan court seeking to nullify the €120m sale under Italy’s tough usury laws.

That claim argues that Blackstone, despite gaining approval for the sale from a board representing the Italian business and financial establishment, took advantage of

The confrontation between Urbano Cairo (left) and Stephen Schwarzman has captured the attention of the media and investors, and divided opinion in Italy’s financial capital © FT montage / EPA / Bloomberg

and criticism in domestic quarters about the influence of overseas private equity groups.

Based in the centre of Milan on Via Solferino, the building in dispute was the headquarters for 109 years of Italy’s leading national newspaper Corriere della Sera, which is owned

by RCS Media, and the home of top Italian journalists and writers including Oriana Fallaci, Italo Calvino, Enzo Biagi and Beppe Severgnini.

The lawsuit, filed by Blackstone in November last year in a New York state court, accuses the RCS chairman and chief executive of trying to extort money from Blackstone by falsely claiming his company still owns the building.

Meanwhile, in Milan Mr Cairo has filed an arbitration case against Blackstone.

The confrontation has captured the attention of the media and investors and divided opinion in Italy’s financial capital. The stakes are high for both sides.

A loss for Mr Cairo, who started his career as personal assistant to Mr Berlusconi and now owns RCS, television channel La7 and football club Torino FC, could cost him a fine of up to $100m, according to people familiar with the dispute. In Italy, the hold-up has already cost Blackstone because it has stalled an agreed sale of the building to German insurer Allianz, reportedly for €250m.

But bankers and investors say it has also raised wider questions about the ease of doing business and making investments in Italy and the fairness of the judicial process, an issue that tops investor concerns about the eurozone’s third-largest economy.

Questions are also being asked about the implications of the influence of global private equity and its

a period of financial distress when RCS was close to bankruptcy and failed to pay the market price.

Carlo Alberto Carnevale Maffè, a professor of business at Milan’s Bocconi University, sums up the conflicting views.

On one side, Mr Cairo’s attempt to have the sale nullified, which was approved by a seller’s board, raises the question of whether Italian law is “reliable”, he said.

Still, he also argued the headquarters of Corriere della Sera is akin to a priceless cultural institution for which “homogeneous” Anglo Saxon market rules do not apply.

“It is like buying the Colosseum.

If you are naive enough to buy the Colosseum, you cannot complain if you are sent to arbitration,” he said.

Central to the dispute is the figure of Mr Cairo, a self-made media entrepreneur who stunned Italy’s establishment by seizing control of Corriere’s owner RCS in a bid battle in 2016.

Mr Cairo considers that victory — “against five members of the elite to win Corriere” — a tougher fight than the one against the New York group. “Blackstone is an easier fight to win”, said a person informed of his thinking.

The basis of the legal dispute is the price paid by Blackstone for the site as RCS flirted with bankruptcy, compared with the rent it subsequently received as owner of the building.

The parties agreed to the €120m sale price and annual rent of about €10.3m, according to a 2013 press release, equating to a gross rental yield of about 8.6 per cent.

A source informed of Blackstone’s view says that the five-year average net yield was much lower at about 4.1 per cent. Blackstone also extensively refurbished the building.

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BUSINESSTRAVEL Nigeria’s economic revival in 2018 impacted air passenger traffic - Colleau Michel Colleau is the general manager, AirFrance KLM Nigeria and Ghana. In this interview with Ifeoma Okeke, during the airline’s customer appreciation night, Colleau speaks on the company’s performance in Nigeria in year 2018 and its projections for year 2019.

What was your performance is 2018 in terms of customer traffic and cargo in Nigeria? he performance in 2018 was very good, mostly good for cargo but also for passengers. The economic situation of Nigeria was much better in 2018, which was stable, so our company was able to carry much more passenger out of Nigeria in 2018 because it was a period of revival for the economy in Nigeria and everyone benefitted from it in terms of passenger number.

What number of passenger did the airline carry between Nigeria and other destinations?

In terms of passenger digits and numbers, the growth is a double digit growth. It was a very competitive year, the market price was probably lower than the year before but in terms of passengers, many more passengers travelled out of Nigeria in 2018 on AirFrance and KLM. How do you intend to consolidate on your performance in 2019?

We are working on two aspects in terms of the product. For KLM, we have completely refurbished the

T

Michel Colleau

Airbus fleet, we have now the new business class product everyday on KLM flying to Amsterdam. On AirFrance, we are introducing a completely refurbished Airbus 330, with complete new business class, new economy class and new harmony.

Also, what is important is that we will

operate a new refurbished aircraft fully connected for our customers after April and more specifically after June because it will be daily. This is how we will consolidate our strength in this regard. Secondly, the flying blue which is our loyalty programme because we completely revamped it

Dana Air reaffirms commitment to capacity building …receives winner of cabin crew contest

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ana Air has pledged to continue supporting capacity building initiatives and professionalism in Nigeria’s aviation industry.

The airline made this known when the winner and organisers of the first ever cabin crew contest paid a courtesy visit to its MMA2 office in Lagos recently.

Obi Mbanuzuo, Dana Air’s chief operating officer and accountable manager, while speaking at the event said, “Dana Air is resolute in its support for initiatives like the

Cabin crew contest and any concept that encourages professionalism and standards in the aviation sector and we see these as part of ways to further imbue and entrench it in our industry.

“We are glad to have received the winner and we believe she has gone through the rudiments. It is now time for her to undergo our training which is also strictly based on standard operating procedures and customer service.’’

Also speaking at the brief ceremony, Katheryn Lademo, the CEO

of Crew Training Institute, said, “We are grateful to Dana Air for the wonderful reception today. We are indeed proud to have you as the official sponsor for the Cabin Crew Contest.”

Out of about 200 contestants who participated in season one, Toluwani Abayomi who hails from Ondo State emerged winner and is now a proud staff of Dana Air. Season 2 which will hold in 2019 is planned to be even bigger and better especially with our new media partners. Unlike season one, participation in season two will not be restricted to Nigerians only; instead we plan to make it a Pan African event and this means wider participation across Nigeria and Africa and we look forward to a continued, mutually beneficial partnership with Dana Air as we forge into 2019.’’

Dana Air is the headline sponsor of the first ever cabin crew contest. The airline’s commitment and investment in training and retraining of its crew which she describes as safety officers has seen the airline’s flight operations crew bag numerous awards.

last year. It will give more opportunity for customers to redeem and accumulate miles. It is a complete new programme and very effective.

It is considered as the best from that of the European carriers.

Thirdly, we will commence new destinations which will be of interest to the Nigerian customers. We will operate to Las Vergas and Boston.

We will work together with Delta airlines in a much better way. It is a lot of opportunities for the Nigerian customers because US market is one of the biggest markets, they can get connected to 256 cities in the US together with Delta, AirFrance and KLM. What is the detail of your partnership with Delta airlines?

We are going to increase the partnership because we are going to completely work together on the corporate account to offer joint opportunity for corporate account.

Last year, we were offering corporate fares for AirFrance and KLM on one side and corporate fares on Delta on the other side. Now, we are merging it. We are working together with Delta for the benefit of the Nigerian customers. With the partnership with Delta, this will be the strongest

alliance out of Nigeria to the US. We have the best programme for small and medium enterprises which offers them the opportunities on their flights. It is called BlueBiz. This is something all the other European carriers do not have. This is like the loyalty programme for small and medium carriers. Every time you travel, you accumulate points.

How has the Port Harcourt route been to your operations?

We could not operate the whole network in 2018 and it will be the same in 2019. We have crew shortage. Some destinations have been suspended for summer 2019 and Port Harcourt is one of them. We are going to keep an office and representation in Port Harcourt and try to convince passengers to operate via Lagos or Abuja. We expect to come back one day to Port Harcourt but this may not be possible now due to the lack of crew for 2019 to operate Port Harcourt in an efficient and fair way for the Port Harcourt customers.

What is the capacity of your new A330?

There are 36 seats in business class, full flatbed; the premium economy with 21 seats; the economy is also completely refurbished.

Emirates introduces entertainment playlist syncing ahead of travel for Nigerian Travellers

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mirates has introduced an innovative new function on its app to allow Nigerian customers create bespoke playlists ahead of their flight and sync it to their seats once on board. Customers can plan their trip more effectively, and maximise their onboard experience by using the Emirates app to browse the expansive entertainment catalogue at any time.

Ice, Emirates’ award-winning inflight entertainment has reached a new milestone of over 4,000 channels of on-demand entertainment. The catalogue includes over 1,000 movies, more than any other airline, popular television box sets, tens of thousands of music tracks, podcasts and games.

Nigerian Travellers can get to watch the highly celebrated Nollywood movie ‘The Royal Hibiscus Hotel’ (Nigeria), a romantic movie produced by the makers of the ‘Wedding Party’. The movie starred top Nollywood actors and actresses such as Zainab Balogun, Kenneth Okolie, and Jide Kosoko, amongst others.

Similarly, they can get entertained with other African movies such as ‘Supa Modo’, Kenya’s 2019 Oscar submission in the Best Foreign Film category, ‘I Am Not A Witch’ (Zambia), ‘Farewell Ella Bella’ (South Africa), to mention but a few.

For lovers of TV shows, they can enjoy ‘African laughs: Chinedu’, one of Africa’s comedy shows with funniest

stand-up comedians.

Nigerian music playlists available on ice for the month of February include music by Fela Kuti, Davido’s ‘Son of Mercy EP’, WizKid’s ‘Sounds from the Other Side’, and Burna Boy’s ‘Outside’. Other African music to choose from are Dj Ganyani’s House Grooves, Best of Yvonne Chaka Chaka, African Pop Mix, and Diamond Platnumz’s A Boy from Tandale.

Travellers can sync their entertainment selections Aplo ahead of travel by first booking a flight on Emirates App, and then visit ‘My trips’ on the app to see what’s showing on ICE, after which they will be expected to scroll through thousands of movies, TV shows, music and podcasts, pick out their favourites, and add them to the playlist, and the playlist is ready to take him on board.

The traveller will then be expected to connect to Wifi on board and pair his playlist with the seat back screen after which he enters the seat back number. That way, pairing is complete and so he can sit back and enjoy a personalised entertainment.

Tim Clark, President, Emirates Airline said: “In keeping with our ‘Fly Better’ promise, our teams work tirelessly to provide ever better worldclass travel experiences. Every detail is carefully considered as we continually enhance and develop innovative products and services for our customers.

54

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Leadership

Thursday 07 February 2019

Shaping people into a team

The Big Idea: why money manages us Kathleen D. Vohs

W

e spend a great deal of time thinking about money. We talk about it, worry over it, wonder if we have enough to meet our immediate needs. If we’re lucky and have a lot of money, we think about using it to buy a new car, a new house or a dream vacation.

Since the days of our earliest ancestors, money has been one of our most important tools.

But different from most other tools, money — even just thinking about it — influences our behavior in negative ways. We become more likely to prioritize our feelings, desires and goals over getting along with and helping others. Money creates a tension between individualistic and interpersonal motives.

To understand why money has such a hold on us, it’s helpful to look back at its predecessor: trade. Early humans and Neanderthals overlapped for roughly 5,000 years, and, biologically speaking, Neanderthals should have had the advantage. They were on Earth first and they had larger bodies and brains. So how did our human ancestors come out ahead? They traded more than Neanderthals and across longer distances, giving them access to more and varied resources, and improving their chances of survival. Anthropologists sometimes call these early humans “homo economicus” to signify the attribute that set them apart.

The creation of money made trade much easier. Consider, for example, what would happen if you had oranges and wanted a cow, but no one who had a cow wanted oranges. Finding someone who has exactly

what you want and who wants exactly what you have can be challenging. Now consider the role of time: Is what you have to trade perishable, as with milk?

Is it time-bound in some way, as with cows, which age past their prime? Now add in exchange rates. If you need a cow, and you have oranges, that’s not a very equitable trade — but the cow can’t be divvied up to create a better deal. Money solved these problems by being a store of value, allowing people to save for and thus plan for the long term.

With money, we became the humans we are today — for better and for worse, as I have learned.

My research focuses on how we use and think about money.

In an experiment, colleagues and I asked one group of people to perform a task that involved money and another group to perform a similar task that didn’t. For instance, some peo-

ple mentally tallied up the value of a stack of cash, whereas others tallied up numbers printed on pieces of paper. This and similar experiments have found two broad buckets of effects when people are reminded of money.

The first is generally positive: They prefer tasks that allow them to go it alone; resist being helped on tough problems; and perform better, longer and harder. From an organizational and societal perspective, these are good things. Our second finding reveals a darker side: They share, help and empathize less than people who have not thought about money. When it comes to the moral fabric of society, these are not ideal behaviors.

We’ve also found these behaviors in children. In an experiment with 3- to 6-year-olds, we gave them either coins and bank notes or buttons and paper, and then asked them to do helpful

things, such as bringing crayons to an adult, or cognitive tasks, such as completing a maze or puzzle. The children who had played with money were less helpful, though they worked smartly and diligently, for instance persisting on challenging puzzles and finding the correct way through a maze.

Since money has some helpful effects, my more recent work looks at whether we can mitigate its harmful ones. Colleagues and I studied groups of people who care deeply for each other. One experiment looked at romantic partners; the other, people in a collectivistic society (India).

In both cases we found similar, familiar effects: After being reminded of money, people were less kind, less helpful and less generous with each other. When it comes to how money influences us, these results are not the most encouraging.

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

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Which brings us back to the overarching question of why people care so much about money. The answer, in part, is that money is deeply rooted in how we’ve evolved. It has a direct line to the success of our species, which helps explain why it takes up so much space in our minds. Money also continues to produce powerful effects on our behavior that go beyond the symbolic governmental backing of a coin or bill’s value. As the ways we use and think about money change over time — think credit cards, Venmo and Bitcoin — we need to keep studying the ways it affects our relationships with others. Money, while integral to who we’ve become, may also play a role in driving us apart.

Kathleen D. Vohs is a professor of marketing at the University of Minnesota.

Thursday 07 February 2019

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BUSINESS DAY

55

CITYFile

Edo flags off road construction in Uhunmwode

E

Registered voters gathering to collect their Permanent Voter Cards (PVCs) at the Independent National Electoral Commission’s AMAC Office in Karu, Abuja on Tuesday.

NAN

do State government has flagged off the construction of the 740 metres College road project in Uhunmwode local government area with the assurance that the project would boost socio-economic activities in the area.

At the flag off ceremony in Ugieghudu, last weekend, Isaac Ehiozuwa, Edo State head of service, said the road was part of the state’s Employment and Expenditure for Result (SEEFOR) projects, noting that the funds to ensure its completion have been budgeted for.

He assured residents in the area of government’s commitment to embarking on more projects.

The residents applauded the state government for ongoing projects in the area.

The residents, who spoke to journalists at the flag-off ceremony, said the government was bringing development to their doorsteps.

Ekiti: 37 communities get N216m for self-help projects T

Gunmen kill 15, kidnap 6 in Zamfara

AKINREMI FEYISIPO, Ibadan

T

he Ekiti State government has distributed cheques worth N215, 873,268.00 to 37 communities across the state to enable them complete selfhelp projects The state governor, Kayode Fayemi, while flagging off the distribution at the Government House, Ado-Ekiti, said the gesture would enable the communities complete their abandoned and on-going projects.

Fayemi, who advised the communities to use the money specifically for the projects, also assured that contractors handing the five-kilometre per local government roads across the state have been

recalled and work would soon commence on the roads.

Calling for absolute transparency in executing the projects, Fayemi urged the contractors to abide by the contractual agreement on the projects assigned to each of them.

Speaking earlier, the permanent secretary, ministry of local government, community development and chieftaincy affairs, Ayoola Owolabi appreciated the governor for his prompt intervention in ensuring that the projects, which some of the communities had lost hope, on, are would be completed.

Owolabi, who lauded the state’s commitment paying the counterpart fund of N19.450 million on behalf of the benefitting communities, appealed to traditional rul-

ers, community leaders and all stakeholders to ensure adequate supervision and close monitoring of vendors involved in the execution of the projects to avoid hitches.

He also advised the communities to ensure prompt payment of their own financial contributions as well as involve the local residents in executing the projects.

The general manager, Ekiti State Community Social Development Agency (EKSCSDA), Steven Bamisaye urged the benefiting communities to make the successful completion of the projects a priority.

Bamisaye also charged the communities to ensure that the projects were executed according to specifications by monitoring the contractors.

Anambra: Police rescue abducted child, arrest 4 suspects EMMANUEL NDUKUBA

T

he police operatives in Anambra State have rescued one Emmanuel Okafor Chinecherem, 13 years, reportedly abducted by six men in a red car (registration no yet unknown) on Feb. 1.

Spokesperson of the police in Anambra, Haruna Mohammed confirmed the incident to newsmen in Awka on Tuesday. Mohammed said the victim from Aguruzoigbo village in Aniocha local government area, was on an errand for his parents when he abducted and taken towards Onitsha.

Upon the report, a police patrol team attached to Awada division pursued the suspects which forced them to abandon

the boy. Mohammed said the victim was rescued in stable condition and reunited with his family.

Efforts, he said, is ongoing to arrest the fleeing suspects and bring them to justice.

In another development, three armed robbery suspects were arrested following intelligence report. Operatives attached to the command anti-robbery squad were said to have stormed hideouts of notorious criminals in Abakaliki in Ebonyi State to effect the arrest.

The suspects include Chukwu Efe, 25; Tobenna Onwujuobi (m), 22, and Nchekwube Ikpeabu, 28.

Mohammed said the suspects were involved in series of armed robberies in Anambra State including the murder of Emeka Chukwubelu, and Emeka Uzo-

chukwu, on November 27 and 30, 2018 respectively in Nnewi.

According to him, exhibits recovered from the suspects include one Barreta pistol and a Toyota Camry car with registration number VB 249 KJA. He added that a car snatcher suspect, Derick Akpojuekwe, aged 31 years, from Warri, Delta State was also arrested on February 3, 2019.

Exhibits recovered from the suspect include a Toyota Corolla with registration number DXZ 689 KM snatched at gunpoint in Warri and brought to Obosi in Idemili North local government area of Anambra State.

Mohammed said the cases were under investigation and effort ongoing to bring the suspects to justice.

he police in Zamfara have confirmed the killing of 15 persons and kidnap of six women by gunmen in Gusau local government area of the state.

The public relations officer of the police in Zamfara, Muhammad Shehu, confirmed this in a statement on Tuesday.

He said there was an attack in Wonaka, Ajja, Mada, Ruwan Baure, Doka, Takoka and Tudun-Maijatau villages of Mada district in Gusau area.

According to Mohammed, a woman was among the persons killed, while the attackers also kidnapped six women and a man.

“Fortunately, with the efforts of police and sister security agencies, the abducted women have regained their freedom and have re-joined their families. Normalcy has been restored to the affected villages, with improved deployment of PMF, CTU, Special Forces and military teams to the area to forestall further attack on neighbouring villages.

“The attack is presumably a reprisal to the attack on some Fulanis in a J5 vehicle on February 1, 2019 where seven Fulanis and their animals were killed and set ablaze,” he said.

In another development, the spokesperson said that the district head of Gwashi in Bukkuyum local government area reported to the police that armed bandits stormed Batauna village and killed 11 persons and set houses ablaze.

He, however, said that the details were sketchy to the police due to distance and terrain inaccessibility and lack of GSM coverage in area. “The entire area and environs have been subjected to co-ordinated bush-combing for possible arrest of the perpetrators.” NAN

56

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BUSINESS DAY

57

Live @ the Stock exchange Prices for Securities Traded as of Wednesday 06 February 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. 179,353.42 6.20 -1.59 161 14,463,902 UNITED BANK FOR AFRICA PLC 246,235.83 7.20 -0.69 179 10,226,029 715,840.06 22.80 0.22 373 55,737,450 ZENITH BANK PLC 713 80,427,381 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 267,419.93 7.45 -0.67 223 88,566,775 223 88,566,775 936 168,994,156 BUILDING MATERIALS DANGOTE CEMENT PLC 3,203,615.39 188.00 -0.79 74 453,770 105,382.15 12.15 -2.02 57 289,733 LAFARGE AFRICA PLC. 131 743,503 131 743,503 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 311,875.62 530.00 - 7 555 7 555 7 555 1,074 169,738,214 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,900.00 95.00 - 0 0 11,300.89 45.20 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) UPDC REAL ESTATE INVESTMENT TRUST 15,876.20 5.95 - 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 - 2 100,800 78,220.62 82.00 - 21 176,102 OKOMU OIL PALM PLC. PRESCO PLC 60,000.00 60.00 - 18 882,358 41 1,159,260 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES 1,500.00 0.50 -5.66 9 289,449 LIVESTOCK FEEDS PLC. 9 289,449 50 1,448,709

DIVERSIFIED INDUSTRIES 714.77 0.27 - 0 0 A.G. LEVENTIS NIGERIA PLC. 186.79 0.48 - 1 1,000 JOHN HOLT PLC. 1,903.99 2.93 - 0 0 52,842.39 1.30 2.36 87 12,449,180 S C O A NIG. PLC. TRANSNATIONAL CORPORATION OF NIGERIA PLC 25,643.54 8.90 -1.11 36 715,063 124 13,165,243 U A C N PLC. 124 13,165,243

BUILDING CONSTRUCTION 711.32 4.79 - 0 0 0 0 ARBICO PLC.

INFRASTRUCTURE/HEAVY CONSTRUCTION 34,320.00 26.00 - 11 105,650 165.00 6.60 - 0 0 JULIUS BERGER NIG. PLC. ROADS NIG PLC. 11 105,650

REAL ESTATE DEVELOPMENT 4,677.11 1.80 - 17 124,771 UACN PROPERTY DEVELOPMENT COMPANY PLC 17 124,771 28 230,421

AUTOMOBILES/AUTO PARTS 954.53 0.20 - 0 0 DN TYRE & RUBBER PLC 0 0

BEVERAGES--BREWERS/DISTILLERS 12,683.78 1.62 - 4 103,144 CHAMPION BREW. PLC. 242.22 0.89 - 0 0 GOLDEN GUINEA BREW. PLC. 142,374.88 65.00 - 29 18,539 GUINNESS NIG PLC 257,875.86 30.00 -0.83 20 6,319,785 INTERNATIONAL BREWERIES PLC. 623,758.36 78.00 - 86 4,277,775 NIGERIAN BREW. PLC. 139 10,719,243

FOOD PRODUCTS 31,750.00 6.35 4.96 45 451,778 DANGOTE FLOUR MILLS PLC 163,200.00 13.60 0.74 38 440,564 DANGOTE SUGAR REFINERY PLC 77,907.21 19.00 2.43 47 580,196 FLOUR MILLS NIG. PLC. 9,436.94 1.19 -0.83 126 11,116,550 HONEYWELL FLOUR MILL PLC 1,340.10 0.36 - 0 0 MULTI-TREX INTEGRATED FOODS PLC 703.89 3.95 - 1 9,200 N NIG. FLOUR MILLS PLC. 47,424.95 17.90 - 10 10,922 NASCON ALLIED INDUSTRIES PLC 3,676.41 13.45 - 0 0 UNION DICON SALT PLC. 267 12,609,210

FOOD PRODUCTS--DIVERSIFIED 18,782.02 10.00 - 24 439,487 CADBURY NIGERIA PLC. 1,157,278.13 1,460.00 2.82 52 115,832 NESTLE NIGERIA PLC. 76 555,319

HOUSEHOLD DURABLES 1,680.31 22.10 - 3 12,984 NIGERIAN ENAMELWARE PLC. 4,992.95 4.79 - 14 118,995 17 131,979 VITAFOAM NIG PLC.

PERSONAL/HOUSEHOLD PRODUCTS 44,866.39 11.30 - 20 37,434 P Z CUSSONS NIGERIA PLC. 212,565.20 37.00 0.27 34 17,324,024 UNILEVER NIGERIA PLC. 54 17,361,458 553 41,377,209 BANKING 53,500.50 2.31 0.43 73 11,021,448 DIAMOND BANK PLC 256,893.72 14.00 -0.36 31 17,741,824 ECOBANK TRANSNATIONAL INCORPORATED 69,539.51 2.40 -0.42 97 6,579,423 FIDELITY BANK PLC 1,021,261.92 34.70 1.76 234 20,879,791 GUARANTY TRUST BANK PLC. 14,732.12 0.50 -2.00 11 520,100 JAIZ BANK PLC 10,687.83 0.77 - 0 0 SKYE BANK PLC 67,945.39 2.36 0.43 220 2,826,650 STERLING BANK PLC. 182,004.70 6.25 - 18 135,971 UNION BANK NIG.PLC. 9,585.26 0.82 - 7 89,553 UNITY BANK PLC 26,616.38 0.69 - 32 3,300,946 WEMA BANK PLC. 723 63,095,706

INSURANCE CARRIERS, BROKERS AND SERVICES 4,117.00 0.20 - 0 0 AFRICAN ALLIANCE INSURANCE PLC 4,851.14 0.70 6.06 24 2,143,135 AIICO INSURANCE PLC. 20,580.00 1.96 - 8 109,353 AXAMANSARD INSURANCE PLC 2,357.70 0.29 -6.45 15 3,823,475 CONSOLIDATED HALLMARK INSURANCE PLC 19,811.94 1.91 - 0 0 CONTINENTAL REINSURANCE PLC 3,093.20 0.21 5.00 11 584,397 CORNERSTONE INSURANCE PLC 2,411.47 0.53 - 0 0 GOLDLINK INSURANCE PLC 1,289.40 0.21 -8.70 1 541,000 GUINEA INSURANCE PLC. 487.95 0.38 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 2,197.03 0.30 - 5 200,000 LASACO ASSURANCE PLC. 2,191.13 0.51 - 4 150,000 LAW UNION AND ROCK INS. PLC. 5,120.00 0.64 - 3 1,010,000 LINKAGE ASSURANCE PLC 1,760.00 0.22 - 4 119,200 MUTUAL BENEFITS ASSURANCE PLC. 12,937.23 2.45 - 6 153,000 NEM INSURANCE PLC 1,702.69 0.22 - 3 55,922 NIGER INSURANCE PLC 2,798.93 0.52 - 2 66,269 PRESTIGE ASSURANCE PLC 1,600.50 0.24 9.09 36 7,045,000 REGENCY ASSURANCE PLC 1,751.57 0.21 5.00 43 3,578,795 SOVEREIGN TRUST INSURANCE PLC 4,483.72 0.48 - 0 0 STACO INSURANCE PLC 2,582.21 0.20 - 1 1,500 STANDARD ALLIANCE INSURANCE PLC. 2,800.00 0.20 -4.76 12 742,354 SUNU ASSURANCES NIGERIA PLC. 516.46 0.20 - 0 0 UNIC DIVERSIFIED HOLDINGS PLC. 3,200.00 0.20 - 0 0 UNIVERSAL INSURANCE PLC 2,912.00 0.21 - 3 600,000 VERITAS KAPITAL ASSURANCE PLC 5,353.10 0.40 - 15 191,458 WAPIC INSURANCE PLC 196 21,114,858

MICRO-FINANCE BANKS 11,799.67 2.58 - 0 0 3,269.89 1.43 - 11 203,350 FORTIS MICROFINANCE BANK PLC NPF MICROFINANCE BANK PLC 11 203,350

MORTGAGE CARRIERS, BROKERS AND SERVICES 4,116.00 0.98 - 0 0 ABBEY MORTGAGE BANK PLC 7,370.87 0.50 - 0 0 5,922.05 1.42 - 0 0 ASO SAVINGS AND LOANS PLC INFINITY TRUST MORTGAGE BANK PLC 2,265.95 0.20 - 0 0 2,949.22 3.02 - 0 0 RESORT SAVINGS & LOANS PLC UNION HOMES SAVINGS AND LOANS PLC. 0 0

OTHER FINANCIAL INSTITUTIONS 8,340.00 4.17 1.71 29 379,921 AFRICA PRUDENTIAL PLC 36,467.56 6.20 -8.82 13 219,000 660.00 0.44 - 0 0 CUSTODIAN INVESTMENT PLC DEAP CAPITAL MANAGEMENT & TRUST PLC 41,585.69 2.10 0.48 58 1,498,601 FCMB GROUP PLC. 1,440.70 0.28 - 2 16,000 480,281.93 46.90 - 16 1,973,700 ROYAL EXCHANGE PLC. STANBIC IBTC HOLDINGS PLC 19,800.00 3.30 0.61 63 2,991,647 181 7,078,869 UNITED CAPITAL PLC 1,111 91,492,783 HEALTHCARE PROVIDERS 1,680.29 3.37 - 1 455 959.35 0.27 - 4 384,000 EKOCORP PLC. UNION DIAGNOSTIC & CLINICAL SERVICES PLC 5 384,455

MEDICAL SUPPLIES 544.04 0.55 - 0 0 MORISON INDUSTRIES PLC. 0 0

PHARMACEUTICALS 366.17 0.50 - 0 0 7,050.00 4.70 - 2 520 EVANS MEDICAL PLC. FIDSON HEALTHCARE PLC 14,350.52 12.00 - 8 23,963 GLAXO SMITHKLINE CONSUMER NIG. PLC. 4,037.05 2.34 -4.49 6 210,780 1,253.44 0.66 - 8 328,407 MAY & BAKER NIGERIA PLC. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 556.71 3.62 - 0 0 325.23 1.50 - 0 0 NIGERIA-GERMAN CHEMICALS PLC. PHARMA-DEKO PLC. 24 563,670 29 948,125

COMPUTER BASED SYSTEMS 710.40 0.20 - 0 0 0 0 COURTEVILLE BUSINESS SOLUTIONS PLC

COMPUTERS AND PERIPHERALS 1,470.89 0.50 - 0 0 0 0 OMATEK VENTURES PLC

IT SERVICES 6,413.06 2.54 - 0 0 648.00 6.00 - 0 0 CWG PLC NCR (NIGERIA) PLC. 381.11 0.77 - 0 0 0 0 TRIPPLE GEE AND COMPANY PLC.

PROCESSING SYSTEMS 939.21 0.20 - 0 0 CHAMS PLC 13,650.00 3.25 - 0 0 E-TRANZACT INTERNATIONAL PLC 0 0 0 0

BUILDING MATERIALS 2,144.69 7.40 5.71 6 53,156 BERGER PAINTS PLC 22,225.00 31.75 - 15 212,023 CAP PLC 289,157.02 22.00 - 28 211,248 654.21 0.31 -3.12 3 225,000 CEMENT CO. OF NORTH.NIG. PLC FIRST ALUMINIUM NIGERIA PLC 286.87 0.54 - 3 42,750 1,999.41 2.52 - 0 0 MEYER PLC. PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,279.20 10.40 - 1 3,000 PREMIER PAINTS PLC. 56 747,177 2,256.91 2.09 - 0 0 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 3,434.58 1.95 - 11 71,332 CUTIX PLC. 11 71,332 PACKAGING/CONTAINERS 32,998.15 66.00 - 6 11,443 BETA GLASS PLC. 388.02 9.10 - 0 0 GREIF NIGERIA PLC 6 11,443 AGRO-ALLIED & CHEMICALS 100,754.14 62.50 - 0 0 NOTORE CHEMICAL IND PLC 0 0 73 829,952 CHEMICALS 1,577.57 3.79 - 1 56,000 B.O.C. GASES PLC. 1 56,000 METALS 1,803.64 8.20 - 0 0 ALUMINIUM EXTRUSION IND. PLC. 0 0

MINING SERVICES 852.39 0.20 - 0 0 MULTIVERSE MINING AND EXPLORATION PLC 0 0 PAPER/FOREST PRODUCTS 50.60 0.23 - 0 0 THOMAS WYATT NIG. PLC. 0 0 1 56,000 ENERGY EQUIPMENT AND SERVICES 1,252.54 0.20 - 11 36,158,865 JAPAUL OIL & MARITIME SERVICES PLC 11 36,158,865 INTEGRATED OIL AND GAS SERVICES 61,535.49 4.95 -1.00 52 340,150 OANDO PLC 52 340,150 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 64,907.15 180.00 - 16 15,274 11 PLC 16,134.39 23.25 - 25 77,988 CONOIL PLC 5,607.82 4.30 - 24 643,815 ETERNA PLC. 35,166.99 27.00 - 48 131,147 FORTE OIL PLC. 7,055.81 23.15 - 4 766 MRS OIL NIGERIA PLC. 75,000.37 220.90 - 18 6,067 TOTAL NIGERIA PLC. 135 875,057 198 37,374,072 ADVERTISING 2,219.52 0.50 - 0 0 AFROMEDIA PLC 0 0 AIRLINES 18,038.70 1.85 - 0 0 MEDVIEW AIRLINE PLC 0 0 AUTOMOBILE/AUTO PART RETAILERS 411.72 0.35 - 0 0 R T BRISCOE PLC. 0 0 COURIER/FREIGHT/DELIVERY 3,242.23 5.50 - 4 14,100 RED STAR EXPRESS PLC 323.50 0.69 - 0 0 TRANS-NATIONWIDE EXPRESS PLC. 4 14,100 HOSPITALITY 642.33 0.20 - 0 0 TANTALIZERS PLC 0 0

HOTELS/LODGING 4,801.22 3.10 - 0 0 CAPITAL HOTEL PLC 3,430.01 1.65 - 5 60,527 IKEJA HOTEL PLC 7,862.53 3.50 - 0 0 TOURIST COMPANY OF NIGERIA PLC. 46,362.46 6.10 - 2 28,200 TRANSCORP HOTELS PLC 7 88,727

MEDIA/ENTERTAINMENT 4,800.00 0.40 - 1 20,000 DAAR COMMUNICATIONS PLC 1 20,000

PRINTING/PUBLISHING 247.97 0.41 - 0 0 ACADEMY PRESS PLC. 1,157.18 1.50 9.49 7 185,850 LEARN AFRICA PLC 1,183.82 1.99 - 0 0 STUDIO PRESS (NIG) PLC. 931.84 2.16 - 2 33,600 UNIVERSITY PRESS PLC. 9 219,450

ROAD TRANSPORTATION 646.50 0.39 - 3 8,000 ASSOCIATED BUS COMPANY PLC 3 8,000

SPECIALTY 852.12 3.60 - 0 0 INTERLINKED TECHNOLOGIES PLC 1,126.31 0.20 - 0 0 0 0 SECURE ELECTRONIC TECHNOLOGY PLC

TRANSPORT-RELATED SERVICES 4,600.00 5.75 - 0 0 GLOBAL SPECTRUM ENERGY SERVICES PLC 4,089.30 6.45 - 2 10,005 NEWREST ASL NIGERIA PLC 5,229.98 3.22 -3.01 42 1,308,693 NIGERIAN AVIATION HANDLING COMPANY PLC 44 1,318,698

SUPPORT AND LOGISTICS 3,654.44 9.04 - 3 24,706 C & I LEASING PLC. 7,371.12 2.20 - 3 34,000 CAVERTON OFFSHORE SUPPORT GRP PLC 6 58,706 74 1,727,681

BUSINESS DAY

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Opinion Can Nigeria’s weak institutions survive under president Buhari?

CHRISTOPHER AKOR

S

hortly after president Buhari assumed power in 2015 and following the crash of oil prices and the consequent pressure on pressure on the Naira – Nigeria’s currency, there were debates on whether to devalue the naira to reflect market realities or to maintain a fixed exchange rate regime with its unsavoury consequences. While the Monetary Policy Committee of the Central Bank – a statutorily independent body - was contemplating how to respond, President Buhari in far away France, in September 2015, announced his decision: “I don’t think it is healthy for us to get the naira devalued,” Buhari said in an interview in Paris with France 24 broadcast.

Expectedly, after the pronouncement and even before that, the CBN lost its independence to determine the country’s monetary policy and had to rely instead on reading the ‘body language’ of the president and taking actions that will conform to that ‘body language’. The apex bank kept dishing out funny policies to defend the naira until the centre could no longer hold and it was forced to officially devalue the naira.

Not done, one of his party’s governor –

Nasir el Rufai pointedly ordered the apex to either cut the interest rate or have it cut for it by fiat.

Then, in December 2015, the Nigerian army killed over 347 members of the Islamic Movement of Nigeria (IMN), a Shiite minority group, after a minor altercation.

Not satisfied with the killings, the army proceeded to the group’s headquarters, levelled it to the ground, killed as many of its occupants and arrested its leader, Sheikh Ibraheem El-Zakzaky, his wife, and several members of the group.

A panel of inquiry later indicted the army for the killings, describing them as crimes against humanity. It also recommended that those responsible must be brought to justice. Not only has the president ignored the panel recommendation, he has continued to hold the leader of the group and his wife in detention since then despite the clear orders of several courts granting them bail.

Ditto the former National Security Adivser, Sambo Dasuki, being prosecuted for corruption. He has been granted bail severally by the courts but the government has refused to release him. In frustration, Dasuki approached the court of the Economic Community of West African States (ECOWAS) and the courts on October 4, 2016, declared his arrest and detention unlawful, arbitrary and a violation of local and international rights to liberty. The court also held that both the initial arrest and the further arrest and detention of Mr Dasuki by the government even after he was granted bail by courts of law in Nigeria amounts to a mockery of democracy and the rule of law.

The government still refused to release him. The president was later to justify his refusal to obey the court orders by saying

“where national security and public interest are threatened the individual rights of those allegedly responsible must take second place in favour of the greater good of society.”

Also, in November 2018, the Statistician General of the country, Yemi Kale, raised an alarm that his agency couldn’t complete work on the unemployment figures of the country because funds have not been made available to the agency. Analysts didn’t take him too seriously, arguing that the cashcrunch was common to virtually all government agencies in Nigeria as government revenue targets have not been met.

When the results were eventually released in December 2018 showing record unemployment, Kale was summoned and the president ordered him “to change the high unemployment statistics.” Although Mr Kale has so far called the bluff of the presidency, no one can say if he will retain his job after the 2019 elections.

Since coming to power, President Buhari has mounted an unusual assault on the country’s institutions – in the guise of fighting corruption – personalising power, undermining the independence and impartiality of critical security institutions like the police, the military and anti-corruption agency (the EFCC chairman goes about with the president’s re-election badge pinned to his chest as a sign of personal loyalty. The police chief has specialised in framing and openly harassing opposition politicians; and service chiefs were once commandeered to attend a campaign function of the president). He detests the slowness or rule-bound procedure of democracy that he often reminiscences his days as a military dictator where he issues orders and those orders are obeyed without question.

‘

When the results were eventually released in December 2018 showing record unemployment, Kale was summoned and the president ordered him “to change the high unemployment statistics

He seems uncomfortable with an independent legislature and judiciary and so tries to weaken, undermine and consequently place them under his control. He’s unsuccessfully tried the Senate President and his deputy for corruption. He’s gone beyond the legal requirements to invade and arrest judges that have delivered judgments deemed unfavourable by the government or some of its agencies. He’s even gone further to forcefully remove the Chief Justice of the federation against the prescription of the constitution. In matters of corruption, the president is, at once, the accuser, prosecutor and judge.

Ultimately, institutions are critical to the sustainable development of every society.

They are needed, in the in the words of Ricardo Hausmann, to “protect the country and its people, keep the peace, enforce rules and contracts, provide infrastructure and social services, regulate economic activity, credibly enter into inter-temporal obligations, and tax society to pay for it all).” Consequently, societies that prioritise building and strengthening of these institutions are ultimately successful while those that depend on rule by philosopher kings, moralists and strongmen ultimately become poor and fail.

Sadly, at the end of the president’s tenure, Nigerian institutions may become weaker and dysfunctional than they were before he came to power.

Chris Akor, a First Class graduate of Political Science, holds an MSc in African Studies from the University of Oxford and is BusinessDay’s Op-Ed Editor christopher.akor@businessdayonline.com

As we prepare for landing: Words from BRF, the powerful MOP+

IK MUO

I

n late 2015, I wrote among others, two articles on PMB and his ministers.

In one of them (Buhari’s Ministers: Saints, sinners and noisemakers; Guardian15/11), I suggested that a comprehensive reorientation be organized for Lai Mohammed before he talked us into trouble because it would be very difficult for him to differentiate between his duty as the rabble-rousing speaker for APC and his duties as a Minister for all Nigerians. Last two weeks, I x-rayed the recent statement of Lai Mohammed to the effect that APC has fulfilled ALL of its promises. (As we prepare for landing: words from the great the great Lai, BusinessDay, 24/1/19). This is something we should take to the bank because PMB has reiterated that declaration several times in recent times. But there is more from Lai. On 14/12/18, he authoritatively declared that the greatest threat to the 2019 elections were hate speech and fake news. So, how does my saying that Lai is from Anambra State(fake news) or as an Anambra born APC enthusiast said ,that anybody who said negative things about the second Niger Bridge would not live to see it( hate speech), constitute a threat to the 2019 elections. How about increasing political intolerance or apparent bias by security operatives? How about the refusal to sign the electoral amendment bill, and the recent scandalous desecration of the Judiciary? By the way, the claim

by Lai that Boko Haram has been defeated

when they have been hitting us big time is also fake news. How does that constitute a threat to the 2019 elections instead of just enhancing the nation’s lie index?

In another article (Buhari’s believers and the challenge of talent portability, Guardian, 27/12/15) I had argued that we should moderate our expectations from Fahola because Alausa was not Abuja. I had argued that ‘For BRF, his word was the law as he decided the if, what, why, how and when of everything while he was oga at the top in Lagos. Now, he has to watch the body language of PMB who may be busy globetrotting (about 30 per cent of his tenure so far spent in the presidential jet and foreign lands) to give any clarification. And even if he were around, the numerous roadblocks would make access herculean. He may also be unlucky to have some subordinates who are more powerful than him because they have more access to the rock or are better able to decode the body language. In effect, Fashola of Alausa is not Fashola of Abuja!’

Today, I have an assignment for my readers: examine the extent to which these caveats held true with these ministers ( Lai and BRF) in the last 4 years.

Today, I wish to x-ray the recent quotable quotes of our honourable 3pple Minister. Fashola, a SAN, the Minister of Power, Works and Housing, and probably the most powerful minister Nigeria ever had and one almost revered because of his Lagos track-record, was not used to double speak. He said it as he saw it and rarely made political statements.

Somewhere along the line, he became political and he has also started reaping the returns from politicking and allied matters. It was in the politicking process that he declared that the only way to have electricity was to vote out the PDP (12/7/14); that was where the electricityin-6-months statement came (or was manufactured) from. By an act of God, he became the minister of power and 4 years down the line he bold-facedly told us that… if you don’ t have power , it is not

‘

And to worsen matters, BRF is busy boasting all over the place of how the Buhari Government has improved power supply, after saying it is not Governments business!

the government ’s problem! Even though I am a Spirit, I would never have imagined that BRF would be capable of such an inglorious utterance. It smirks of ignorance, arrogance, insensitivity and indeed, acute cluelessness. Where was he when his party was promising 20000 megawatts to Nigerians by 2019? Does he not know that FGN owns 40% of all the DISCOs and GENCOs and 100% of TCN? Why is he planning to complete 4 NIPP power projects, managing the Rural Electrification Agency and the Bulk Electricity Trading Co, pumping in N1.2trn intervention funds and loans, arranging the N701bn power fund, contracting 108 firms to supply pre-paid meters and facilitating the ongoing WB/ADB Power Sector Reform Implementation Programme of $7.6bn, when it is not his business? How can somebody of BRFs caliber tell us that power is not Governments business when he, his government and even others before them have been doing everything to make it governments business?

And to worsen matters, BRF is busy boasting all over the place of how the Buhari Government has improved power supply, after saying it is not Governments business! And in the most recent case, he had to lie about it! Recently he indulged in usual politician’s self-adulation by declaring that power generation has increased by 100 % ( 4000 to 8000mw) in the last three years. But the Transmission Company of Nigeria authoritatively declared that the peak generation on 3/2/19 was 4976MW and that the peak power transmission ever recorded was 5222MW on 18/12/17! Has BRF retracted and apologized? He can’t because he is now a politician. Has he resigned? He can’t because he is a Nigerian politician.

Sad indeed. That is what you get when a technocrat becomes a politician!

Other matters: Ambode will not be impeached!

Sometimes around 2011, the ‘owner’ of Lagos, Ahmed Tinubu ( BAT) wanted to disrobe Fashola( BRF) of his gubernato-

rial attire; to prevent him from going for an encore. There were threats and counter threats and eventually, BRF had his way.

This time around, Ambode is not so lucky; he is not going for a second term, neither is he retiring to the senate, as has become our ‘political culture’. He has become a lame-duck governor as can be seen in how his VisionScape project was thrown away with ignominy by people who had okayed it previously. Then, to complete the humiliation, the Lagos Assembly threatened to impeach him over gross misconduct as regards the yet to be presented 2019 budget. It is obviously about ‘revenue sharing formula’, and to ensure that the cake would be shared by a more malleable fellow! On Monday, 4/2/19, however, the matter took a new twist as BAT announced to the whole world that ‘We have resolved that there would be no question of impeachment in Lagos State…’. And immediately after that, the 2019 budget was presented! Signs and wonders! Was BAT making the announcement as the speaker of or for the Lagos State House of Assembly? So there was no gross misconduct in the first instance or is it that all political ‘old things have passed away’(2Cor,5:17)?

We know Lagos is in BATs pocket( though BAT s in Gods pocket) but it is good that we pretend about these things. Lets not act in such a way that even the blind sees and the deaf sees. Meanwhile for all the political power wielders all over the land, especially those who throw about their weight with reckless abandon, let us remember that all is vanity. After all, where is Mugabe and his Gracefull wife today? We also had Alhaji Adedibu told us on National TV that Ladoja had to be impeached because the governor give him ‘even one-quarter’of the security vote! All this shall come to pass!

Ik Muo, PhD. Department of Business administration, OOU, Ago_Iwoye 08033026625, muoigbo@yahoo.com, muo.ik@oouagoiweye.edu.ng

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