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Seplat full-year profit hit on deferred tax adjustment ... stocks down by 3.57% as investors sell; revenue rises by 65% on production uptime of 85% ... Amukpe to Escravos alternate export pipeline ready in Q2 IHEANYI NWACHUKWU

eplat Petroleum Development Company plc, a leading Nigerian indigenous oil and gas company listed on both the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE), has released its audited results for the full year

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What Visionscape’s bond default means for Lagos V LOLADE AKINMURELE & JOSHUA BASSEY

isionscape’s bond payment default has some consequences for its guarantor, the Lagos State government, and companies without a strong financial history seeking to raise debt capital will not be

As firm misses coupon payment of N4.5bn State’s borrowing costs set to rise

spared. Lagos may not be the primary obligor for Visionscape Sanitation Solution’s bond, but it guar-

anteed investors who lent money to the waste management company employed by outgoing Governor Akinwunmi Ambode

to rid Nigeria’s economic hub of festering waste dumps that

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Inside Nigerian universities lag global peers in race for artificial P. 2 intelligence, 5G Governorship polls: States to watch and why P. 32 Understanding the economy of Nigeria’s 36 states – Zamfara & North-Central Akinwunmi Ambode (m), governor, Lagos State, with Idiat Oluranti Adebule (2nd l), deputy governor; Hakeem Muri-Okunola (l), head of service; Tunji Bello (2nd r), secretary to the state government (SSG); Adeniji Kazeem (r), attorney general/commissioner for justice, Lagos State, and other members of the State Executive Council, at a press briefing ahead of the Governorship and House of Assembly Elections at Lagos House, Alausa, Ikeja, Lagos.

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States’ economies seen growing as Fund’s intervention targets 500,000 homes, 1.5m jobs CHUKA UROKO

he intervention by the Family Home Fund (FHF) in the Nigerian housing sector to deliver affordable housing to low-income earners in the country will significantly improve the GDP and economy of the states where the intervention is already yielding fruits, peoplefamiliarwiththeFundhavesaid. A special purpose investment vehicle with the Nigerian Sovereign Investment Authority (NSIA) and the Federal Ministry of Finance Incorporated as founding shareholders, FHF is out on a mission to support the development of 500,000 homes and create 1.5 million jobs for lowincome Nigerians by 2023. The Fund’s target is to provide as many affordable housing units as possible in each of the six geopolitical zones of the country. In doing this, the Fund is collaborating with state governments to donate land, and firms with building technology expertise to deliver the houses with speed and in large numbers. Whereas the fund is in the process of signing a partnership agreement with iBuild, an international technology company, to capture data on the number of jobs it has created, it is in talks with Echostone to work on its Lagos housing project.

EchoStone is a property development firm that deploys an innovative technology which allows rapid and scalable construction of houses. It is currently building 2,000 housing units beginning with 250 units of two-bedroom detached bungalows in Idale Badagry, Lagos. FHF is to build 20,000 housing units in Lagos. So far, about six state governments including the FCT have donated land for the development of various numbers of housing units, including Ebonyi State which has donated land for developing 1,200 homes. Kaduna State has also donated land for its millennium city which promises about 650 homes; the ancient city of Kanohas757homes; Asaba,DeltaState, about 620 homes; Ogun State, about 1, 074homes;FCT,about580homes,while AkwaIbomhasdonatedlandandsigned MoU with the fund for the construction of 5,000 low-income houses. There is an expectation that through a combination of these housing development activities, 1.5 million jobs will be created for both skilled and unskilled labour that will be working at the construction sites. Analysts say the creation of 1.5 million jobs will have significant impact on the economies of the states, more so with the multiplier effect of job creation.

L-R: Anders Kristiansson, chief financial officer; Yunus Saliu, director; Joseph Umolu, company secretary, and Paul Gbededo, group managing director, all of Flour Mills of Nigeria plc, during the court-ordered meeting of the company in Lagos. Pic by Pius Okeosisi

Nigerian universities lag global peers in race for artificial intelligence, 5G ISAAC ANYAOGU & STEPHEN ONYEKWELU

W Investors snap up GTBank shares on •Continues online at www.businessday.ng

impressive full-year scorecard

... directors propose final dividend of N2.45k on profit of N184.639bn IHEANYI NWACHUKWU

uaranty Trust Bank Plc (GTBank) on Wednesday released its audited financials for the year ended December 31, 2018. The snapshot of the Group’s operating results for the year in review shows gross earnings grew to N434.698 billion, from N419.226 billion in 2017. The bank’s profit before income tax (PBT) increased to N215.586 billion, from a low of N197.685 billion in 2017, while after tax profit for the year increased to N184.639 billion, from a low of N167.912 billion in 2017. Its earnings per share (EPS) increased to 654 kobo, from 594 kobo in 2017.

At the stock market, GTBank’s shares recorded increased bargains which pushed the price higher by 35 kobo or 0.93 percent, from N37.6 to N37.95. The stock has gained 10.2 percent year-to-date (ytd). During the 2018 financial year, the directors declared and paid an interim dividend of 30 kobo per ordinary share on the issued capital of 29,431,179,224 ordinary shares of 50 kobo each for the half-year (H1) period ended June 30, 2018. The directors recommended the payment of a final dividend of N2.45 kobo (only) per ordinary share of 50 kobo, bringing the total dividend for the financial year ended December 31, 2018 to N2.75 kobo (2017: N2.70 kobo per share).

ith lecture halls in many federal universities lacking electric sockets and master’s degree students still compelled to produce handwritten research works, Nigerian universities look like relics when compared to their peers in Asia and Europe registering patents for artificial intelligence. In the race for innovation in technologies including artificial intelligence and 5G networks, universities from China, Korea and Taiwan are registering more patents than even their US peers in wireless communications, but Nigerian computer science departments are still looking for funds to buy computers. “Nigerian universities at this point are struggling to modernise and equip their computer science laboratories. Some of the universities are still not able to introduce and use basic technology in the classroom,” said Terae Onyeje, managing director, Wowbii Limited, a technology company that produces interactive board and classroom teleconference facilities. So, with up to half of white- and blue-collar jobs expected to disappear due to artificial intelligence, Nigerian students will lack the skills needed to compete with their peers in a rapidly-changing world. Emmanuel Mkporjiogu, head, Department of Computer Science,

Veritas University, Abuja, said curriculum is a big problem as old computer science professors regard artificial intelligence as a component of computer science. “Artificial intelligence comprises natural language, voice and text processing. It also includes robotics, machine learning and big data analytics. These things are not taught in our universities,” said Mkporjiogu. “NUC needs to invite professionals who understand current AI trends to review the curriculum. Some older professors of computer science still see it as an arm of mathematics but this has to change,” he said. In preparation for this future, primary and secondary schools in China teach AI courses in classrooms and technology companies like Squirrel.AI are building personalised learning platforms with AI. Many public secondary school students in Nigeria still stare at laptops with a sense of wonder. In 2018, three Nigerian universities – Covenant University, University of Ibadan, and the University of Nigeria, Nsukka – were included in the 2019 Times Higher Education World University Rankings which featured 1,250 universities in 86 countries but none of them has a functional programme on wireless technology. Covenant University and University of Ibadan occupy fifth and sixth positions, respectively, on the table of all the 28 African ranked institu-

tions for the 2019 ranking, but their peers are better positioned to prepare their students for the technologies of the future. Wits University in South Africa teaches AI and Google is opening an AI lab even in Ghana. No Nigerian university has a patent in any of the latest technologies. The most some Nigerian universities have done is set up discussion groups pretending to be hubs or mention AI in passing at introduction to computer classes. “We have an AI hub in the Computer Science Department in association with DataScience,” said Victor Odumuyiwa, computer science lecturer at the University of Lagos. Unlike in Europe, Asia and America where corporate labs turn out commercially successful inventions, corporate Nigeria relies on talent from abroad for the most basic services. Microsoft Research, corporate lab of Microsoft, employs 1,000 scientists and engineers who focus on dozens of areas of computing and openly collaborate with academic, government and industry researchers to advance state-of-the-art computing. Google x, a corporate lab established by Google, created self-driving cars, but such partnerships are lacking in Nigerian universities. While public universities are poorly motivated to think innovation, funding is a major constraint

Continues on page 38

Poor health indices mean Buhari must change tactics in second term ODINAKA ANUDU & ANTHONIA OBOKOH

igeria has one of the worst health indices in the world, meaning that President Muhammadu Buhari must invest more, attract private capital to and declare emergency in the sector if he wants his name written in the hall of fame. “We should first be asking basic questions on primary healthcare centres starting from personnel to cotton wool,” Doyin Odubanjo, chairman, Association of Public Health Physicians of Nigeria, Lagos chapter, told BusinessDay in a telephone interview. Before the close of today’s business, 3,000 women will have died

of preventable diseases, said Faisal Shuaib, executive director, National Primary Healthcare Development Agency (NPHCDA). Ten percent of all the children born will have died, according to the United Nations Children Fund (UNICEF), while 432 Nigerians will have been killed by tuberculosis, according to the World Health Organisation (WHO). Similarly, 80,000 breadwinners will die of cancer and 300,000 children will be killed by malaria between now and March 2020. Also, 15,000 friends and relatives will no longer be alive due to heart-related diseases, as hundreds of thousands will have been taken out by fake drugs. About 2,000 doctors will have left for the United Kingdom, the United

States or Asia to make more money, while perhaps one more pharmaceutical company will have gone under. These grim statistics and harsh realities characterise Nigeria’s healthcare system, which ranks 197 out of 200 countries in the WHO ladder or 171 out of 195 (in terms of investment) on the Institute for Health Metrics and Evaluation (IHME) at the University of Washington’s table. Francis Durosinmi-Etti, consultant, clinical oncologist and chairman, National Programme on Cancer Management in Nigeria, said one major area that should now be taken much more seriously is cancer prevention. “With the new launch of the cancer centre in Lagos University

Teaching Hospital (LUTH), I would say it is proper that we have one each at every geopolitical zone in the country,” Durosinmi-Etti said. “We must also place more emphasis on preventing cancer,” he added. Nigeria has allocated only 2.9 percent of its total budget to health in the last three years, as against South Africa’s 14 percent over the same period. Budget allocations to the health sector in the last three years represent 0.2 of the gross domestic product (GDP), according to BusinessDay analysis. Both Nigeria and South Africa are yet to reach the 15 percent of the national budget for health reached at the Abuja Declaration, but the latter’s consolidated health expenditure

varies between 3.7 and 3.9 percent of GDP, according to UNICEF. Healthcare spend is low in the country. The 2018 budget provides $5 per head for the health of each of Nigeria’s 198 million citizens when the N340 billion health budget is calculated on per capita basis. This is completely dwarfed by South Africa, which proposed a health budget of R205.446 billion ($17.1 billion) in 2018, representing $299 per head when compared with its population of 57 million. Industry experts say the country has a shortage of 200,000 beds at the tertiary level.

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Real estate investors want Buhari to assure int’l community Nigeria is open for business … canvass friendly policies, review of Land Use Act CHUKA UROKO

nvestors in the Nigerian real estate sector say President Muhammadu Buhari, as he starts the next four years of his presidency, should quickly assure the international community, including private, portfolio and institutional investors, that this time around, Nigeria is open for business. The investors recall that the Federal Government under Buhari has, in the last three and a half years, carried on with the burden of correcting the impression that it is anti-business and this sentiment has prevailed in some quarters of the business community. In some cases, those who could not cope with the changed business environment have had to relocate from the country. Reasons for this impression, according to the investors, are the unfavourable tax policies, the continued delay in signing the Petroleum Industry Bill (PIB) into law to attract private investment into the oil and gas sector, and seemingly punitive and antiinvestor policies as reflected

in some cases involving government agencies and companies. “Buhari should reach out to the international community and let them know that Nigeria is open to business. He should set up (or retain) his cabinet very quickly to give clear indication of his intention to work speedily this time around,” Gbenga Olaniyan, CEO, Estate Links, said in an interview. Buhari was quoted as saying that Nigerians should brace up for a tough time in the next four years and, according to Olaniyan, this sends a wrong signal to both local and foreign investors who may interpret that statement in various ways. Femi Akintunde, CEO, Alpha Mead Group, agrees, saying “the country needs all the foreign investment it can get”. “The money circulating in the economy now, which is self-generated, is grossly inadequate, more so as the country is more of a consuming than producing nation,” Akintunde said. “We are not producing enough for local consumption not to talk of export.

So, the more money we get from outside, the better for our economic development. We cannot afford to send a wrong signal to investors both local and foreign,” he said. Government’s perceived anti-business stance has a lot of implications for the real estate sector, which has remained in recession long after the wider economy exited recession in the second quarter of 2017. In spite of the role the sector can play in the growth of the economy through job creation and wealth generation, government is not giving adequate attention to the myriad of problems plaguing the sector, especially lack of long-term funds for developers as well as the Land Use Act. “People will always need houses to live in, and moving to a better home or a better neighbourhood is normal aspiration of most people. So, there will always be demand – latent or active – for real estate. However, the real estate sector will not thrive in isolation,” said a developer who did not want to be named.

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NPA seeks 30% reduction in tariff, shipping charges to attract cargoes to Eastern ports AMAKA ANAGOR-EWUZIE

overnment agencies operating in the nation’s seaports must review tariff and charges on ships calling ports in the Eastern part of Nigeria with imported cargo by at least 30 percent to encourage effective utilisation and patronage of Warri, Rivers and Calabar ports, the Nigerian Ports Authority (NPA) says. Speaking at a day focus group meeting organised by Obiageri Obi, directorgeneral, Nigerian Chamber of Shipping (NCS) on Maximising the Economies of the Eastern Ports,” held in Lagos on Wednesday, Hadiza Bala-Usman, managing director of the NPA, pleaded with agencies like the Nigerian Maritime Administration and Safety Agency (NIMASA) and Nigeria Customs Service (NCS) to join the NPA in cutting cost for the shippers. Usman, who was repre-

sented by Iheanacho Ebubeogu, general manager, Security, said if the cost differentials between Lagos and Eastern port were down by 30 percent, importers would be attracted to use the port. “NPA have reviewed its tariff earlier, and when I mean review of tariff across board, NPA tariff has to come down, NIMASA should review their Cabotage tariff, Customs tariff should come down so that, people can be motivated. I do not want us to think that addressing security alone that everything will be achieved,” she said. Usman however said there was need for synergy between NPA and security agencies to ensure comfort to shipping and prevent host communities from interfering in shipping through piracy and other related crimes. She identified the need for development of deep seaports for bigger vessels to call at Nigerian ports, adding that the depth of water channels cannot handle modern

vessels. “Because our channels are long, it is good for NPA to carry out dredging optimisation study, which we have started. “We need deep seaports where these bigger ships will come in because we have responded to economy of scales where these other ports will become transhipment port with the inland container depot to get all goods. If we don’t do that, we will see ships going to Abidjan, Senegal because they have deeper draft and the ships will lighten the cargo before coming to our ports,” she said. She urged promoters of new seaports in Nigeria to make plans for Port Master plans instead of planning for the individual ports alone to forestall the Apapa mistake. Earlier, Andy Isichie, president of the NCS, said the underutilisation of the Eastern ports had taken toll on the nation’s economy and it contributed to the gridlocks experienced daily on the road leading to Apapa and Tin-Can Island ports.

Sterling Bank advances financial innovation with open banking

terling Bank plc has formally committed to the development of the Application Programming Interface (API) standard for financial institutions in a bid to chart a new course for the financial services industry in Nigeria and the African continent. First of its kind on the continent, the initiative will ensure the launch of a standard and non-proprietary Open Banking API gateway in the country. This revelation emerged with the recent successful signing of a Memorandum of Understanding (MoU) between Sterling Bank and Open Technology Foundation, the non-profit organisation driving the development and adoption of Open Banking standards in Nige-

ria. With the development of an API standard, it is expected that more banks and fintechs would be able to successfully meet the rapidly evolving demands of customers, in the same manner in which various applications, including social media, have also progressed to meet these needs. This is mainly because now there would be reference points and standards to guide. “As always, it is our pleasure to be at the frontiers of financial innovation for not just the banking industry in Nigeria but also for stakeholders in the financial services industry across Africa,” said Olayinka Oni, chief information officer, Sterling Bank. “We look forward to a

future where more users of financial services can consistently access qualitative solutions real-time, save, manage their investments, and generally maximise their funds as they desire. We are optimistic that by the token of our pioneering role in Open Banking, the opportunities for various players within the value chain have been broadened and that the ripple effects would trickle down into diverse segments of the economy,” Oni said. Open Banking Nigeria would work with Sterling Bank through various stages for the implementation and delivery of APIs, which would subsequently serve as the standard for banks and fintechs in Nigeria and, consequently, Africa.

AXA Mansard restates commitment to partnering customers ENDURANCE OKAFOR

XA Mansard Insurance plc, a member of the AXA Group and global leader in insurance and asset management, has restated its commitment to service excellence. In line with one of the company’s goals for 2019-“Customer First,” the company and all its employees are committed to fulfilling its promise to all its customers and to ensuring sterling and world class service standards at every point of contact. Speaking with the Group Head of Strategy & Marketing at AXA Mansard Insurance

plc, Kola Oni, he stated, “It is in the company’s DNA to consistently provide exceptional service that leaves memorable experiences in the minds of our customers. We promise to make our customers our partners, not just premium payers. All our employees understand our brand’s promise to our clients and are sufficiently equipped and willing to deliver on this promise at all times.” He further noted, “In an attempt to serve our customers better, the company has a number of initiatives geared towards the continuous improvement of services. One such initiative is the AXA First Responder service which pro-

vides on-the spot assistance to customers at accident scenes, including immediate claims settlement for smaller sums.” AXA Mansard Insurance plc is a member of the AXA Group, the worldwide leader in insurance and asset management with 166,000 employees serving 105 million clients in 62 countries. The AXA Group is a worldwide leader in insurance and asset management, with 160,000 employees serving 105 million clients in 62 countries. In 2016, IFRS revenues amounted to Euro 100.2 billion and IFRS underlying earnings to Euro 5.7 billion. AXA had Euro 1,429 billion.

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CBN to give SMEs loans at 5% through NIRSAL MFB ONYINYE NWACHUKWU, Abuja

… national MFB to take off with N5bn capital

he new National Microfinance Bank being set up by the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), the Nigeria Post Office and the Bankers’ Committee will take off with N5 billion initial capital, Godwin Emefiele, governor, Central Bank of Nigeria (CBN), said on Wednesday. The Bankers’ Committee provided the set-up equity capital and owns 50 percent of the bank, while NIRSAL and NIPOST own 40 percent and 10 percent, respectively. The CBN governor said this at the tour of the NIRSAL MFB in Gwagwalada, Abuja. Emefiele said the loan would be issued under the Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS), an initiative of the Bankers’ Committee, saying the

loan would run for tenure of seven years with two years moratorium. He said the fund, made up of 5 percent Profit After Tax (PAT) from Deposit Money Banks (DMBs), was being set aside to support the SMEs in agriculture and other types of small businesses. According to Emefiele, the initial capital base of the bank is N5 billion, saying accessing credit facility is a major hindrance to SMEs development because of their inability to provide collateral. He, however, said SMEs operators would access the loans without necessarily providing any collateral, saying, “The asset that we are financing for them will act as the collateral. “That collateral will be registered in our national collateral registry as something that is eligible to serve as collateral or security for a

loan that has been taken. “We truly need to be able to set up MFBs that will reach out to the unbanked and help deepen financial inclusion. “That way we will make it easy for people to access credit, particularly the small and unbanked people because we have always said that these are the very weak along the chain. “We have already set a target that by 2020, the rate of financial inclusion must increase to 80 per cent from about 48 per cent a year and half ago.’’ The MFB is a collaboration of the Bankers’ Committee, NIRSAL and the Nigerian Postal Service (NIPOST), and will be set up in all the 774 local government areas (LGAs) to bridge the financial inclusion gap. “We are just inspecting one out of the first seven and we are scaling up to the next 50 in the next phase.

We believe that before the end of this year, we would have moved substantially in making sure that they are set up and be able to provide finance to small businesses,” he said. On the NIRSAL MFB crowding out other MFBs, the governor said that was not the intention. He said rather, the NIRSAL MFB would complement the services of the existing MFBs and see to it that whatever services were being provided by them would be seen to be fair to their customers. “I also know about the rural communities where the microfinance banks charge very prohibitive interest rate, but here we are talking about making fund available to these people. “This will help to create some form of competitive landscape so that those kinds of practices will no longer arise.’’

L-R: Claire Henshaw, project manager, Arc Skills; Dola Arilesere, former president, Nigeria Institute of Building; Ijeoma Mezu, Lagos State Employment Trust Fund (LSETF) Employability officer; Adeyemi Jubril Adesina LSETF employability trainee; Ewoma Oloye, head, corporate services, and Karibo Ekeopara, corporate communications manager, both of Construction Kaiser Limited, during the LSETF/Arc Skills graduation ceremony of its construction trainees in Lagos, yesterday. Pic by Olawale Amoo

South-south pensioners laud Obaseki’s uninterrupted payment … as Edo leads in ease of doing business

gainst the backdrop of issues of unpredictable pension payment regime and unpaid pensions plaguing different states in Nigeria, the South-South Zone of the Nigerian Union of Pensioners (NUP) has hailed the Governor Godwin Obaseki-led administration in Edo State for a regime of uninterrupted pension payment in the state. Chairman, South-South Zone of the NUP, Pullen Noruwa, said this at the South-South Zonal Forum of the NUP, held in Benin City, the Edo State capital. Noruwa lauded Governor Obaseki for his commitment to the welfare of pensioners,

whose monthly pension had been uninterrupted since he assumed office. Noruwa, who is also the chairman of Nigerian Union of Pensioners (NUP) Edo State chapter, appealed to the state government to reinstate the deduction of 1 percent union dues, among other requests. Edo State Head of Service (HoS), Isaac Ehiozuwa, said Governor Obaseki’s passion to keep retirees happy had paved the way for the state to develop a phased payment plan in settling pension arrears accumulated from as far back as 1999. Ehiozuwa said this plan by the state had resulted in the payment of arrears of pensions

without hindrance, stressing that the days of waiting on rolls to get paid were over. Noting that the state government has approved the automatic migration to the pension system for retired civil servants, he said, “I appeal to civil servants who are about to retire to key into the laid down procedure to avoid a situation where pensioners will have to suffer avoidable hardship after disengagement from service.” This strategy, he said, will put an end to protests by pensioners and tackle the nonpayment of pension arrears. He advised aggrieved members of the NUP to channel their grievances through the

duly recognised NUP body led by Noruwa for redress. Meanwhile, the state governor has urged electorate in the state to vote candidates of the All Progressives Congress (APC) vying for seats in the March 9 State Assembly election, to sustain the sanity and best practice in revenue collection at markets and motor parks across the state. Obaseki, who called on electorate across the state to come out in their numbers to vote for APC candidates in the election, said an APCcontrolled House of Assembly would ensure that touts do not return to lay siege on markets and motor parks for revenue collection.

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We did not hinder NOSDRA from investigating explosion site - Aiteo

ontrary to some reports in the media, oil company, Aiteo Eastern Exploration and Production Company (AEEPCo) did not stop National Oil Spill Detection and Response Agency(NOSDRA) from investigating thefire incident at its oil well in Nembe, Bayelsa State on March 1, new evidence suggests. On March 2, 2019, several national and international media outlets had erroneously reported that scores of people were missing after an explosion occurred along the Nembe Creek Trunk Line(NCTL), the major crude oil pipeline traversing the Nembe area. Aiteo is the operator of the NCTL as well as the Oil Mining Lease(OML) 29. Further details on the incident from the affected area as well as statements from Aiteo and the Nigerian National Petroleum Corporation (NNPC) have cleared that it was not a pipeline explosion but a fire at a nearby oil well. Also, Aiteo stated that there was no casualty from the incident. This was corroborated by community people who later confirmed that there were no missing individuals. Fresh documents made available to newsmen indicate that Aiteo had contacted the relevant agencies, including NOSDRA on the matter within 24 hours as stipulated by law. A document referenced AEEPCo/PRD/2019/05 and signed by its Chief Operating Officer, Emmanuel Ukegbu reads:

“At the early hour of today 01/03/19, we received a report from the Mile 1 Community of a suspected explosion at Nembe Creek Well-7, following which, our Operation ER Team was triggered. Preliminary investigation suspects a possible explosion that resulted into fire at about 01.00 hours in the vicinity of Nembe Creek Well-7.By 01:30hrs, the fire has tapered down. “It is important to note that prior to this fire incident, allfacilities were shut-indue to NCTL outage about 17.00hrs on 28/02/19. We are continuing with investigations and further information will be communicated.” On Monday, NOSDRA had accused Aiteo of frustrating efforts to investigate the incident. Umeh told the News Agency of Nigeria (NAN) in Yenagoa that the stance of the oil firm was slowing NOSDRA from promptly carrying out its mandate. The NOSDRA field office boss also said Aiteo did not report the incidence within 24 hours of occurrence as stipulated by law. “The incident occurred on Friday and it took them some time to report it officially to NOSDRA; we have plans to visit the site, but the operator is resisting and frustrating our efforts,” Umeh said. NOSDRA’s assertions seem inconsistent with available evidence and definitely suggests either a communication gap within the organisation or an inexplainable fabrication.

Carrot.ng celebrates womanhood with discount

n celebration of the International Women’s Day on Friday, Carrot.ng says it is offering a special weekend discount of N5,000 off its standard price of N35,000 to celebrate womanhood on their global winning platform. In a statement, Carrot.ng, an innovative, secure, convenient and affordable platform for planning estate online, notes the offer is valid till Sunday, March 10, 2019. The company is a global award winning platform incorporating both online and offline activities associated with processes for creating an estate plan for everyone irrespective of their income level, marital status and location. The statement further clarifies that Carrot.ng also helps subscribers to create, update and schedule execution of their Wills and or other testamentary instruments such as Deed of Gifts, Living Wills, Trusts and Power of Attorney

etc. on a convenient, affordable and secure platform in real time, anywhere.” For a onetime fee of N35,000, inclusive of N10,000 payables to the Court for stamping, you can become a subscriber, create a valid Will in few minutes, it is processed at Probate and then delivered to your desired location”. All subscribers are also rewarded with free N1,000,000) Personal Accident Cover and Medical Expense Cover of up to N100,000. Also, subscribers can buy healthcare and travel insurance policies on the platform. It assured that the company helps to eliminate all barriers preventing many families from getting solid legal and financial protections they need and deserve should the unexpected happen stating that its experienced team comprises of experts who are lawyers, trust and estate practitioners, bankers, tax consultants and financial advisers.

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A Tale of low expectations: A nation where mediocrity is the norm

Zeal Akaraiwe

here was once a tale of a lecturer, largely unknown and difficult to find papers he wrote, who was later selected to become a deputy governor: a rather limited and fairly inconsequential role & so, he couldn’t help but be mediocre. By ill-fate of one, he became governor. The People had hoped he’ll be different and will be significantly more progressive. He wasn’t. He simply carried on with mediocrity. Due to the weird logic unique to us as Nigerians that where you’re from is far more important than your capacity, boom, our mediocre lecturer became VP. But again, an extremely limited role and so it was perfect cover for continued mediocrity till similar ill-luck struck again and he became the no.1 citizen. For some weird inexplicable reason, the people expected that despite a lifetime of mediocrity, he would just vanish and suddenly be a star performer. I have to say though, the people are often mad. Was our lecturer an outlier situa-

tion? Not at all. An army general forced into early retirement spent 3 decades of his life doing nothing. No book, not on any board, didn’t start a foundation nor lead any sensible advocacy. 30 years as the epitome of nothingness. Exact same 3 decades when a baby boy was born, wore diapers, stopped; sucked breast, stopped; went to school, stopped and started a company. In the same 30 years of one general doing absolutely nothing, this baby established one of the largest companies in the world today and he is worth $30 billion. But somehow, like the first lecturer, the people expect that magically, he will leave his trend of 30 years and suddenly become an excellent active achiever, deliverer and performer. Like I said, it’s the people that are mad. I once wrote and mentioned that beyond poverty of the mind and pocket we have a serious case of poverty of expectation and ambition and we have been robbed of the capacity to dream in a manner that drives progress because of counter-productive, brain numbing religious experiences. But why are we mad like this? Could it be that we too, after decades of being fed that “God is a magician” who allows you sleep as a pauper and wake up wealthy without having to lift a finger to work, now fully believe it applies to all things? Or that you can fool around in school for 4 years and after one night of vigil, without ever visiting a library to study, all your grades will magically change and become As? Or that you can take a loan for an

ill-thought out business idea and after the business fails, God will magically “disappear the records” of your loan and make you debt free? I don’t know which God you were introduced to, but the one I know says you reap what you sow and even if you don’t know God, nature, the universe, karma are very explicit that you reap what you sow or as we Nigerians prefer “as you make your bed, so will you lie on it”! Personally, I see a trend: you cannot sow stupidity, bad planning, inefficiency, incapacity and expect to reap wisdom, organized society, efficiency and success. If you know how or where, please teleport me to that planet. We want a good country, top notch education; we want a better life, we want success, we want improved standards of living...We want the very basics of life but what are we willing to give? We can’t even have decent, realistic & proper expectation of our leaders. We want criminals who crosscarpet and receive instant forgiveness as famously quoted and captured on TV, to suddenly and magically desist from their evil ways? A fish cannot climb a tree! No, it has nothing to do with the tree nor training the fish better; it’s a capacity issue that’s drawn from a simple case of unrealistic (let me say, un-educated) expectation. And personally, I’ll rather get a monkey to climb the tree than pray for a miracle for the fish to do it. I know God can do all things, but I also know monkeys climb trees and if God wanted fish to do it, it’s not my fasting that would change what

‘

If when you’re ill you see it as normal and “within your means” to fly abroad for an “ear infection”, then no, you won’t improve healthcare for the common man

sensibility can fix. Back to our lecturer. If you don’t value performance and you were content living as a mediocre PhD holder, then no you won’t strive to improve performance of academia. If you didn’t value courage and strength of character to rise above your own mediocrity as Deputy Governor, Governor and Vice-President, then no, you won’t demand anything but mediocrity from those around you. And for our General; if you didn’t value education while in school nor over a 30 year retirement; no, you won’t value it now. If when you’re ill you see it as normal and “within your means” to fly abroad for an “ear infection”, then no, you won’t improve healthcare for the common man. And no, the madness isn’t your incapacity, nor your failure nor your lack of vision, the madness is my expectation. When Joseph de Maistre said “a people get the leaders they deserve”. I thought he was insane but now, I see different. Different because it isn’t about individual conviction or choice but as a collective. So, even if I, as an individual, believe that I deserve far better than I have ever received, however as a collective, we have either chosen, allowed, been complicit about or encouraged the largely sub optimal leadership we end up with, I pay the price as well. We, the people, did this to ourselves. Akaraiwe is an experienced treasury and financial advisory executive with a demonstrated history of working in the banking industry.

Jimi Agbaje and the power of leadership Taofeek Bello

eadership…. practical skill encompassing the ability of an individual or organization to “lead” or guide other individuals, teams, or entire organizations. Jimi Agbaje has shown phenomenal leadership skills and has proven himself to be a great leader so far. Why would we say this? Jimi Agbaje has organised his party and political campaigns single handedly over the years, building his own political structure. The first attempt under DPA was wholly on his own. Today, as the PDP flag bearer for Lagos, the party machinery is very much dependent on him to personally lead and in the process gather together the contenders for the election battle for the house of Reps and even Senate. He is endlessly strategizing and working out a winning game plan individually and collectively. This requires leadership skills to guide, mentor and counsel such men and women, with which he is so pre-occupied. So, when people ask what JK has been up to these past years, they should ask these men and women. The party, which is so desperate to win Lagos, gave JK the mandate. They know that the question about his absence was never valid. Jimi Agbaje answers to no one but the Lagos people he wishes to serve. There is no Godfather in the background directing affairs. The buck clearly stops on his table today

and will continue to do so. There is no Godfather, pulling strings in the background. JK is so firmly in charge. The truth is that, whilst, his opponent only needs to worry about the location of his next speaking engagement and take strategic decisions on which colour suit and tie to wear, JK is dealing with the huge challenge of fund raising for his campaign and how to deal with the endless and wanton destruction of his billboards and campaign infrastructure, working hard to convince potential donours to stop being intimidated by the threats of huge reprisals by ‘Bourdillon’ because he knows he, Jimi Agbaje will win this elections. JK commands so much respect based on his pedigree, family background, accomplished parents, brothers and sisters. He is so trusted…Jimi we know, Jimi we trust. This is what great leaders are made of. Someone who can inspire and be emulated. His focus and fight for Freedom, reminds one of the great Freedom fighters of East and South Africa, who had to fight for Freedom, very much in the way that Jimi is now fighting for Freedom from poor liveability, freedom from a broken economy and freedom from a discouraging future. One can therefor understand why JK is so, admired today for displaying such courage to fight for the economic and social emancipation of the people of Lagos. Talking about JK’s Pharmacy business pales into insignificance when you compare his past skills to the skills he has been able to garner politically. He has envisioned and then engaged men and women to align with his vision, which has always been larger than the current rhetoric of his opposition, who

believe that by doing what is expected of them, they will be doing the people of Lagos a great favour. JK has always, in his plans for Lagos, thought big and large in line with what a megacity like Lagos needs. When he started his journey at his first stab at Governorship his plan was to ignite the entrepreneurial spirit of the state, hence his strategy for the state was to drive entrepreneurial governance. This, vision grew bigger when he embarked on his second political journey to Lagos State house, where he stepped up and decided that Lagos would need very Bold and audacious Ideas and be ready to take advantage of the fresh opportunities, which these bold ideas will create for the entrepreneurial spirit of Lagos to lock into. Now he is talking about BIG IDEAS to re-anchor Lagos on an education paradigm – so different and so uniquely relevant to Lagos’ challenges. His opponent might have long CV’s and propagated track record in the public and private sector, but however, these are the professionals that great visionary leaders employ to execute their vision. There are many able and competent men and women out there, but the question is, who do they serve? Whose interests are they engaged to protect, whose call do they answer? Great Leaders like JK, have a knack for putting great teams together. That is why his campaigns over the years, outclassed and frightened the opposition, who, despite their enormous campaign war chest, failed to buy the heart and soul of even the people they engaged for their campaign. The skilled people that committed their skills and expertise to JK’s cause did so with little

or no compensation. Only true leaders can inspire such commitment. Leaders like JK create the vision, pull everyone towards that vision and do not have to buy or pay for it. Lagos needs a great visionary leader that can leapfrog the state into the global megacity category. We have a large pool of great managers, accountants, strategists, bankers, project managers, sincere civil servants, who, like JK’s opposition candidate, are standing by to execute the leader’s vision. JK is that leader. Lagos needs a strong, honest, focused, sincere, well meaning, fair, democratic, equitable leader. JK has shown great strength, coming back and back again, fighting the huge state backed machinery of vested interests without relenting. Even when he tired a bit and then focused on fixing his party to create a stronger platform for himself, it was only to come back and say…no, I will not give up, I must not give up. We must rewrite the story of Lagos. JK is going to free the state of Lagos from the political, economic and social bondage created by vested interests. He will lead the battle for freedom from the negative things that face this state and lead the battle for freedom to gain access and benefit from the positive things the state can offer. Not to understand this new leader’s cry for Freedom, is to pity so many that have gotten used to not being free and so do not appreciate that they are in captivity. I vote for a leader and not a manager. I vote for a Leader and a visionary. I vote for Jimi Agbaje– Our Freedom fighter.

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Feb 23 polls: A victory for the Keynesian school? UCHE UWALEKE

he outcome of the recently conducted Presidential election confirmed the prediction of many that it would be a two-horse race between the candidates of the ruling party’s All Progressives Congress, and the Peoples Democratic Party, the major opposition party. With majority votes just shy of 4 million in favour of the APC, the Independent National Electoral Commission declared Muhammadu Buhari, the APC candidate, as the winner of the Presidential election. Although the PDP has expressed intent to challenge it in court, the result seems to be a referendum on the electorate’s choice regarding the pathway to their economic wellbeing as enunciated in each party’s campaign messages and economic blueprint. Whereas the PDP’s plan of ‘getting Nigeria work again’ reflects a huge dose of ideas espoused by the classical school of economics; the APC, in its ‘Next Level’ roadmap, tilts more to the Keynesian school of thought. To be sure, the Classicals and Keynesians are both schools of thought that are different in approaches to the attainment of macroeconomic goals. The Classical school, which is regarded as the first school of economic thought and pioneered by the 18th Century Scottish economist Adam Smith, stresses the importance of a free market economy. On the other hand, Keynesian economics, the brain child of John Maynard Keynes, makes a compelling case for greater levels of government intervention for an economy to succeed. Consistent with the Classicals’ stance of limiting government intervention and ensuring that markets are

free from potential barriers to their efficient operation, the presidential candidate of the APC, Atiku Abubakar, had canvassed votes on the premise of establishing a more liberal economic space and market-friendly business environment. According to the Atiku’s Plan titled ‘Let’s get Nigeria working again’ the major planks of the PDP economic development strategy, if voted into power, would entail ‘a firm commitment to the promotion of a private sector-driven competitive and open economy’ including through the privatization of State-Owned Enterprises among which are all the governmentowned refineries as well as the ‘concession of Nigeria’s sea and airports to reputable buyers’. The PDP strategy also includes the ‘liberalization of the downstream sector of the petroleum industry to among others, allow market determined prices for Premium Motor Spirit and eliminate subsidies for its consumption’. To this end, it provides for the privatization of the Nigerian National Petroleum Corporation, the oil company through which the federal government participates in the country’s petroleum industry. Contrariwise, the APC’s ‘Next level’ document makes no allowance for the privatization of government-owned refineries, the sale of NNPC or the concession of Nigeria’s sea and airports. Instead, it will continue to entertain government interventions in critical sectors of the economy including transport infrastructure where it plans to ‘provide finance for the upgrade of existing airports to international standard as well as complete all airport remodeling projects across the country’. Apparently, the PDP takes the view that the power sector will perform better if left completely in the hands of the private sector. Part of this strategy includes ‘accelerating the privatization and decentralization of the Transmission Company of Nigeria’ as well as ‘creating an environment that will enable distribution companies recover full costs for power supplied to their consumers’. In contrast, the APC plans to ‘embark on nationwide expansion of transmission network for electricity through TCN projects and provide access to power in

key economic clusters/markets around Nigeria through the Energizing Economies programme’. Further, Atiku Abubakar is in support of the IMF recommendation to float the naira and completely allow market forces hold sway in the foreign exchange market. In an interview with the ‘Africa Report’, he was quoted to have said ‘’I would prefer to float the naira because I believe that will bring about a more stable exchange rate. We have to create more incentives for foreign investment and relax conditionalities, remove regulations as much as possible’’. While reacting to this statement, Godwin Emefiele, Governor of the Central Bank of Nigeria, had warned that floating the naira would have negative consequences for the nation’s economy. According to him “the implication can better be imagined. It will certainly lead to capital flight, lead to massive depreciation of the currency and ultimately to currency crisis in Nigeria”. So, it is safe to conclude that the two parties differ in their approach to determining the exchange rate. Also, while the PDP strategy includes running an open economy and quickly signing the African Continental Free Trade Area agreement, the APC government is in no hurry to do this. Rather, it hopes to scale up efforts to stem the import of items that can be produced in the country in line with the import-substitution strategy. To this end, the CBN would sustain the implementation of the ‘’not valid for forex items’’ policy. Another point of departure between the two schools has to do with accumulation of public debt. While the classical school stresses the importance of reducing government borrowing and balancing the budget, the Keynesian view suggests that government borrowing may be necessary not least because it helps to increase overall aggregate demand especially for an economy struggling to exit a recession. Contrary to the stance of the ruling party which has always argued that the country is not facing any debt crisis given the low debt-to-GDP ratio and therefore has room to borrow, the PDP’s plan is to ‘slow down the rate of debt accumulation by promoting more Public Private

‘

Going by the outcome of the February 23 polls, the Keynesian approach, ceteris paribus, resonated more with a majority of the citizens

Partnerships in critical infrastructure funding’. Again, consistent with the Classical school which focuses more on the long run, Atiku Abubakar’s plan emphasizes long run solutions including restructuring and the ‘policy priority of building a broad-based, dynamic and competitive economy with a GDP of approximately US$900 billion by 2025’. The APC ‘Next Level’ document seems to be more concerned with short term solutions stating no target beyond 2023 when the four-year term is expected to lapse. This is in line with the Keynesian focus on short-term problems that the government must deal with to assure the long-term growth of the economy. Indeed, the Keynesians believe the short term challenges need to be targeted first because as argued by John Keynes, ‘’Long run is a misleading guide to current affairs. In the long run we are all dead’’. This perhaps explains the seeming emphasis by the APC on Social Intervention Programmes and the raft of stop-gap measures the government has embarked on such as the monthly stipends to support the N-Power beneficiaries and the assistance to the poorest and the most vulnerable through the National Cash Transfer Programme as well as the Tradermoni and Marketmoni schemes. By and large, both the APC and the PDP have drawn up plans that are in sync with macroeconomic goals of any economy. Both parties recognize that improved living standards for Nigerians can only come from sustained GDP growth, enhanced job opportunities, low and stable prices as well as healthy external balance. They only differ in their approach to attaining these goals. Going by the outcome of the February 23 polls, the Keynesian approach, ceteris paribus, resonated more with a majority of the citizens. Hence, the challenge for President Muhammadu Buhari is to prove to Nigerians that, by giving him a second mandate, they chose the better route. 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

Corporate ethical culture: The role of the board

Bisi Adeyemi

ulture is fundamental to the success or failure of an enterprise. The misconduct of a senior executive – or even that of a junior officer – in this era of social media can cause irreparable damage to the company’s reputation. Underscoring the importance of corporate culture, principle 1 of the Nigerian Code of Corporate Governance 2018 provides that an effective board is responsible for providing entrepreneurial and strategic leadership as well as promoting ethical culture and responsible corporate citizenship. It is expected the board charter shall set out as a key board priority, the establishment and maintenance of the company’s values and standards as well as modelling these values and standards.

The starting point will be for the board to define what kind of culture it wants to enthrone in the organization, assess the prevalent corporate culture, determine if this is a desirable culture and in alignment with the espoused values, how to reinforce it if it is durable, and remould it if it is not. Defining the core values, a code of ethics (incorporating business conduct) a robust ethics and compliance program, designating an ethics officer, approving a transparent whistle-blowing mechanism that protects whistle blowers and clear communication across the organization are steps towards defining a corporate couture. It entails ensuring that hiring, reward, compensation and firing polices are underpinned by the espoused culture. Performance targets and indices should also be set and appraised with the underlining culture as a basis. Given that directors don’t spend enough time on the shop floor, it is difficult for them to assess corporate culture. Usually, the most they see are senior executives who appear at quarterly board and committee meetings to make presentations on their respective areas of oversight. This does not give the board sufficient opportunity to assess what the prevalent culture in the organization is. To assess corporate culture, the board should commission employee and customer

surveys – this is best outsourced, and parameters clearly defined. The right atmosphere will need to be created to reassure employees of non-reprisals for speaking up. It is good practice to undertake this survey periodically to enable the Board keep a tap on espoused and actual corporate culture. Another useful tool in assessing corporate culture is to review the whistle blowing reports and how complaints are handled. It is not enough to accept reports of incidents as duly resolved. The board needs to ask questions and gather as much information as possible to form as clear a picture as possible of the prevalent corporate culture. The Board is encouraged to have occasional informal interaction with senior and middle level staff – company retreats, end of year events, etc. Directors should pay attention to little details – body language of executives at board and committee meetings. Is the effort to put up a common front contrived or genuine? Is there an effort to cover up infractions? What kind of side comments do executives make? Are these signs that there could be some toxic elements in the organization? These signs should not be ignored but be further interrogated by the board. With a clearer picture of what the culture is, the board will then need to take action. Where it finds a misalignment between the

corporate culture in practice and the espoused culture, the board will need to commission and acculturation that will seek to translate the core values, code of ethics and other elements of the corporate culture into action. In certain cases, this will entail replacing leadership, as to a large extent the CEO is a key driver of corporate culture and employees take their cue from him/her. An acculturalization process will entail staff and stakeholder workshops, identifying culture champions, rewarding good behaviour, punishing bad behaviour regardless of who the offender is, slogans that reinforce core values and open, consistent communication. Deliberate steps will need to be taken and periodic reports of progress presented to the board. Where the assessment indicates a positive culture, the board will take steps to ensure this is reinforced and sustained and that the occasional sound-check is undertaken. It is critical for the board to keep a constant oversight of culture and develop over time appropriate measurement metrics that enable it ascertain that the programs and policies it has put in place continue to be fit for purpose, and where they are not, review these. Adeyemi is the Managing Director, DCSL Corporate Services Limited. Kindly forward comments and reactions tobadeyemi@dcsl.com.ng

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Government must end subsidy on petrol now!

he 2019 presidential election, barring contrary pronouncement from the courts, have been won and lost. For the winner, he has another four years to set Nigeria on the part of sustainable growth and development. The last four years have not been the best for the country – and now he has an opportunity to re-write history. In setting an agenda for the next four years, one key area the presidency may consider is the issue of fuel subsidy. Last year, the federal government bandied several figures as expenditure on fuel subsidy or under recovery as it prefers to call it, since it officially denies that it still pays subsidy on petrol. The most current figure, according to Ibe Kachikwu, minister of state for petroleum is over N1.4 trillion ($3.9 billion). Going by the figures, it means about N3.76 billion is spent daily on subsidising petrol. This was a stag-

gering 386 percent higher than the earlier figure of N774 million daily given on March 5, 2018 by the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, for the importation and distribution of petroleum products in the country. Since the price of crude oil and imported petrol are not static, the figures would have since changed and we suspect they may now be higher. This expenditure would have been understandable were Nigeria a developed e c on omy with massiv e and adequate investments in education, healthcare, and infrastructure and the economy is booming. But no; this is a country adjudged to be the poverty capital of the world, with the highest number of people – over 90 million people - living in extreme poverty in the country. Worse is that the situation is getting worse with approximately six Nigerians sliding into the extreme poverty gap every minute and about 8,000 daily.

This is a country where the health, education and social infrastructure are almost broken and with little or no investments in these sectors. This is a country with record high unemployment rate, high dependency rate, security challenges and the absence of right economic policies and programmes that will be a catalyst to lifting people out of poverty. Pray, what rational and sensible government could afford to leave millions of its citizens in poor health, ravaged by avoidable diseases such as malaria, yellow and Lassa fever, cholera, typhoid etc while it continues to spend billions of dollars and trillions of naira yearly to subsidise consumption of petrol by the rich and the middle class? Despite Nigeria being a signatory to the World Health Organisation recommendation for ever y government to spend at least 13 percent its annual budget to health, Nigeria has not allocated more than 6.57 percent of its budget to the health sector.

A good example is the 2018 budget where only N340.45 billion, representing 3.9 percent of the N8.8 trillion expenditure plan, was allocated to the health sector. We believe there can no longer be any rational or sensible explanation for the humongous amount of money spent daily on subsidising the consumption of petrol to the detriment of other critical sectors and needs in society. Petrol is a commodity like any other that is best left to market forces of demand and supply. The little political capital derived from maintaining the huge and extremely corrupt fuel subsidy regime is not commensurate with the long-term damage that is being done to the economy, growth and development of the country by that wasteful expenditure. What is more, now that the elections have been won and lost, the government no longer has any rational explanation for keeping the policy. Nigeria cannot afford to be travelling down an escalator that is clearly going up.

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

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KEDCO targets SMEs sets to spur investment in three states

Pg. 14

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

BANKING

Access, Diamond Bank shareholders ratify merger LOLADE AKINMURELE & DAVID IBIDAPO s part of the regulatory requirements for the proposed merger, shareholders of Access Bank and Diamond Bank have approved the merger of the two banks. At a cour t-ordered meeting which took place on Tuesday at the Balmoral Convention Centre Federal Palace Hotel, shareholders of Access Bank voted overwhelmingly in support of the proposed merger. At the meeting, about 97.89 percent representing 14.3bn of a total of 14.6bn shares, of access bank shareholders voted in support of the merger while 2.10 percent voted against the merger. Simultaneously, shareholders of Diamond Bank at their court-ordered meeting, held at the Grand Banquet Hall Civic Center, Ozumb Mbadiwe Avenue, Victoria Island Lagos gave their nod to the merger exercise.

“Together, we will bring the power of banking to millions across Nigeria, focused on speed, service, and security.” “We are determined to ensure that both Access Bank and Diamond Bank customers will experience no disruption to normal banking services while we join forces to create Nigeria and Africa’s largest retail bank by customers.” “While there may be some changes in due course, we are committed to informing you ahead of time and in a way that is most convenient for you,” Diamond Bank said. Paul Uzum, a Lagos based stockbroker, said the approval by shareholders was expected and this will not lead to any market reaction. Henry Ogbuaku, Group Head Growth and Asset Management Limited, also said he does not see any market reaction because market sentiments are currently weak and also investors are not sure what Diamond Bank is bringing into the new entity in terms of liability.

At the meeting, about 99.98 percent (15.1bn shares) voted in favour of the proposed merger. Meanwhile, 0.02 percent voted to abstain while 0 percent voted against the merger. The shareholders charged the management of the two banks to ensure a seamless post-merger exercise. The shareholders also charged the management to ensure consistent payment of dividends for shareholders and fast recovery of legacy loans. At the end of trading on Tuesday, Access Bank shares gained marginally by 0.84 percent with a total trade by volume of 14.22 million, valued at N85.32 million according to data from Bloomberg. The share price of Diamond bank, however, remained flat at N2.50 after the close of trading on Tuesday. Total volume traded amounted to 119.78 million units of shares. The merger between both banks will give birth to the Nigerian bank with the largest customer base in Sub-Saharan Africa.

INSURANCE

Insurers blame audited results delay on IFRS, seek extension from NSE SEGUN ADAMS

o less than one-third of the insurance companies listed on the Exchange have cited the IFRS 9 and IFRS 4 as the reason for the delay in releasing their audited financial statement for 2018. According to the companies which include Mutual Benefits, Guinea Insurance, Africa Alliance, Royal Exchange, Law Union and Rock and Universal Insurance, the adoption and implementation of the IFRS 9 and IFRS 4 (as amended for insurance contracts) has delayed their audit process

and consequently impacted on their ability to meet up with the deadline. Royal Exchange, one of the companies affected, pointed out that National Insurance Commission, the primary regulator of the Insurance sector, ‘’ recently issued guidelines for implementation of the Standards and held a stakeholders meeting with insurance companies on the 12th of February, 2019’’ Consequently, some of the Insurance companies requested for an extension of deadline while the others expressed optimism on meeting up at dates speci-

fied in their notice to the Exchange. The IFRS 4 which NAICOM has mandated, provides guidance for the accounting of insurance contracts while the IFRS 9 standard accounts for the treatment of financial assets. According to a report by PricewaterhouseCoopers, the IFRS 9 is based on the concept that financial assets should be classified and measured at fair value, with changes in fair value recognized in profit and loss as they arise (“FVPL”), unless restrictive criteria are met for classifying and

measuring the asset at either Amortized Cost or Fair Value Through Other Comprehensive Income (“FVOCI”). Regarding the rules of the NSE for Filing Financial reports, guidelines state that ‘’Audited annual accounts shall be filed with The Exchange not later than ninety (90) calendar days after the relevant year end, and published in at least two (2) national daily newspapers not later than twenty-one (21) calendar days before the date of the Annual General Meeting. The Regulator also requires that the results be

‘’posted on the company’s website with the web address disclosed in the newspaper publications’’ and an electronic copy of the publication be filed with The Exchange on the same day as the publication. However, section 2.2 of the Rule Book of the NSE for the filing of accounts and treatment of default filing allow companies, which run the risk of missing the timeline set by the Nigerian Stock Exchange (NSE), apply for an extension from the Nigerian Stock Exchange. The delay in filing of reports by Insurers was

Edited by LOLADE AKINMURELE (loladeakinmurele@gmail.com) Graphics: David Ogar

however not limited to the financial reporting standards, as some other players in the industry like Sunu Assurance and Cornerstone Insurance among others have independently stated their reasons which include awaiting approval of NAICOM to their Audited results. At the close of trading Tuesday, the Insurance index which has gained some 4 per cent in 2019, was down 0.27 per cent underperforming the All Share Index which rose 0.14 per cent and emerging the worst performing sector in the day.

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Business Event

POWER

KEDCO targets SMEs sets to spur investment in three states ISRAEL ODUBOLA

he Managing Director of Kano Electricity Distribution Company (KEDCO), Jamilu Gwamna, disclosed that plans are on-going to create sustainable small-scale markets that would foster investment in the three states under its coverage through adequate power distribution to all communities. Gwamna stated that research conducted by the electricity distribution firm discovered that the demand for energy end-use such as lightning, agricultural pumps and industrial machines, is expected to elevate the economies of rural communities in Kano, Kaduna & Jigawa states. According to KEDCO boss, the initiative when implemented would facilitate the

economic performance of these states, and address the key issues pertaining to affordability and access to electricity. The KEDCO helmsman implored the management of Transmission Company of Nigeria (TCN) to speedily fix faulty transformers to enable KEDCO provide quality services to its numerous customers. He added that host communities also have a role to play by protecting KEDCO installation and equipment from theft, vandalism, and sabotage. “We are thinking and fashioning out ways to improve the economies of KEDCO states through a programme called power for all communities. “From our research, we discovered that energy-end use such as lightning, agricultural pumps & industrial machines

in rural areas were factors necessitating the move”, he said, adding that “We will need the support of TCN and host communities. Without these it would be difficult to implement the programme”, he stated. Gwamna revealed that the programme was modeled in line with the quest of KEDCO to accommodate complaints from customers and improve the fortunes of communities that needed the power to grow their economies. He made an appeal to all KEDCO customers to develop the habit of paying for services rendered to them. KEDCO is responsible for distributing electricity between three states – Kano, Kaduna & Jigawa, all in the North-west region.

L-R: Femi Falodun, CEO, ID Africa; Oyindamola Black-Benjamin, finance and business administrator, BHM Group; Ayeni Adekunle, CEO, BHM Group, and Omolade Opanuga, corporate and legal services manager, BHM Group, at the announcement of ID Africa’s acquisition of TheNetng In Lagos

AVIATION

We have no plan to operate UAE flights from Port Harcourt -Air Peace IFEOMA OKEKE

ir Peace on Tuesday dismissed reports that it plans to originate its flights to Sharjah and Dubai in the United Arab Emirates (UAE) from Port Harcourt, Rivers State. A statement signed by Chris Iwarah,thecarrier’scorporatecommunications manager, said it had notaltereditsplantocommenceits SharjahandDubaiservicesfromthe MurtalaMuhammedInternational Airport, Lagos. The Lagos airport, the airline insisted, was strategic to the launch of its international flight operations. Air Peace assured that arrangements for its long-haul flight services to Dubai, Sharjah, London, Houston, GuangzhouChina, Mumbai and Johannesburg were nearing conclusion

and the development would eventually give all parts of the country and West Africa a reliable alternative. “Our attention has been drawn to reports in the media claiming we planned to operate our flights to Sharjah and Dubai in the United Arab Emirates from Port Harcourt, Rivers State. We wish to state that there is no truth in the reports and we urge members of the flying public to discountenance the claims. “Our plan to operate our Sharjah and Dubai services from the Murtala Muhammed International Airport, Lagos remains unchanged. Our strategic plan is to commence our international flight operations from Lagos, with Sharjah and Dubai preceding other routes. “As we have variously promised, we will eventually expand

our international operations to cover other cities and regions of Nigeria and even the West Coast of Africa. The goal ultimately is to leverage our broad domestic and regional route network in offering the flying public a reliable alternative. This will be clearer as our long-haul route network unfurls. But we envisage that the base of our international operations will remain the Murtala Muhammed International Airport in Lagos, while mini-hubs will be created in the North, East and South of Nigeria and West Africa. This, no doubt, will ensure we not only fully realise our vision to create seamless flight connectivity and positively impact the economies of our areas of operations, but also offer the flying public a whole new exceptional experience,” the carrier said.

Glo seals highest partnership with Africa CEO Forum to grow continent’s economy

n continuation of its desire to promote Africa’s economic development, digital transformation leader, Globacom, has announced its support for the 2019 Africa CEO Forum. Globacom’s support for the continental initiative was made known by its Executive Vice Chairman, Mrs. Bella Disu, who has held consultations with the Forum organisers. Mrs. Disu said that Globacom was pleased to partner with the organisers to provide a networking platform for decision-makers to identify ways to improve intraAfrican trade and investments. Globacom is the 2019 apex Diamond Partner of the gathering. She disclosed that Globacom was backing the forum as a testimony to its desire to support initiatives that nurture Africa’s economic potential. “Africa is rich in business

diversity and, when properly connected, African businesses can make greater contributions to economic expansion and human development,” Globacom’s EVC stated. “Globacom is intentional about fostering an environment for African businesses to thrive,” she added. The foremost annual international meeting for executives and investors in Africa brings together Chief Executive Officers (CEOs), international investors, experts, and high-level policymakers, and features discussions that mobilise African businesses to champion private sector-led growth while building sustainable organisations. The 2019 edition of the Forum is billed to hold in Kigali, Rwanda, from March 25 to 26. Themed ‘Open Africa: from continental treaties to business realities’,

and will feature over 40 panels, private-public workshops, and case studies. Disu, who will participate in this year’s forum and chair the Women in Business Initiative, added that in today’s global world and with tech-enabled access to knowledge and opportunities, there has never been a better time for women to look around and see other women who influence them. According to Jeune Afrique Media Group and Rainbow Unlimited, the forum will “unite its 2000 participants around a transformation agenda… What priorities must be identified to boost the level of intra-African trade and investment? What must a united Africa do to better protect its interests and industries? How can we mobilise the private sector around cross-border infrastructure and logistical projects?”

L-R, Hamzat Lawal, CEO, CODE; Kevwe Ogihde, information officer, CODE, and Hauwa Hadejia, founder, Silver Living Initiative, during the media briefing on the Outcome of 2019 Presidential Election in Abuja. Picture by Tunde Adeniyi.

Ayuba Jacob, acting director, National Environmental Standards and Regulations Enforcement Agency (NESREA); Ibrahim Goni, conservation-general of Nigeria National Park Service; and Bolatito Obisesan, representative of the Minister of Environmental, during the 2019 World Wildlife Day celebration organized by Federal Department of Forestry, in Abuja. NAN

L-R Chioma Okolie, Lead CSR Airtel Nigeria; Goodluck Okom, and Blessing Okom, mother, at the cheque presentation on behalf of Airtel Employees through the Employee Volunteer Scheme Initiative to Goodluck Okom and his family for a corrective appendectomy surgery.

L-R: Tina Mbagwu, head institution sales, Stanbic IBTC Asset Management; Olukunle Iyanda, CEO, BROOT consulting/ managing partner, DesignThinkers Academy Nigeria (DTA); Stephen Olusa, team lead, business intelligence, First Bank Plc, and Robert Bloom, managing partner, DesignThinkers Academy, South Africa, at the opening ceremony of Design Thinking Workshop for Innovation Leadership in Lagos

BUSINESS DAY

Thursday 07 March 2019

CITYFile

Gunmen kill 2 in Badagry

unmen have shot two motorcyclists dead in Badagry, near Lagos. A source said that the first killing occurred around 11 p.m on Sunday, while the second killing happened around 6 a.m on Monday. According to the, one of the motorcyclists met his fate at Ibereko community, while the other was killed at Atanda Filling Station at Topo Road in Badagry, which is west of Lagos. “The robbers laid siege for the “okada’’ rider at a junction in Ibereko, killing him instantly. They took away his motorcycle. “It is the same metod they used in Atanda Filling Station to kill the other okada rider. “The bodies of the cyclists have been deposited at the Badagry General Hospital,” the source said. Another source said that hoodlums had been having a field day in Badagry town of late following the retirement of a former DPO of Badagry police divison. “The former DPO was able to curb crime and cultism in Badagry for more than two years. But he retired on March 1 and within a few hours, armed robbers have killed two persons. “We want to appeal to the new DPO to do something about crime and killing of innocent people in Badagry. “We can no longer sleep with our two eyes closed in this town since the incident occurred,” the source said. When contacted, the spokesperson of Lagos police command, Chike Oti, said, however, that the command had yet to be briefed by the Badagry police station on the incidents.

NDLEA intercepts 88.6kg of cannabis in Osun

ational Drug Law Enforcement Agency (NDLEA) said it arrested one suspect after intercepting a car carrying 88.6 kg of cannabis sativa on Ife/Ilesa expressway in Osun State. State commandant of the NDLEA, Sam Egbeola, said in Osogbo that the car was traveling from Abeokuta to Kano when it was intercepted. “In continuation of our mop up operations for a drug-free election period, the command today intercepted a car loaded with 104 compressed cannabis sativa totalling 88.6kg. “The feat was achieved through the brilliant performance and vigilance of our officers,” he said, adding that the arrest was a demonstration of the resolve of the command to sustain the tempo of its operation. He called on parents to monitor their wards and counsel them against drug abuse as a way of curbing social vices in the society. NAN

Ogun State Mass Transit Bus burning near Alausa Secretariat in Lagos.

NAN

We regret going to Libya, Nigerians lament

ome young Nigerians who recently returned from Libya have described their sojourn in the foreign country as regrettable experience they wished never happened. About 2000 Nigerian returnees from Libya are currently being taught self-employment skills across the country. The National Commission for Refugees, Migrants and Internal Displaced Persons (NCRMI) flagged-off the five-day skills acquisition training for the returnees from across the six geo-political zones. Some of the beneficiaries of the training who spoke with newsmen on Tuesday in Ijebu-Ode, Ogun State, said they were full of regrets travelling to Libya. They lamented their disappointment at the level of hostility and discrimination suffered from Libyans, adding that the country became a place of false hope to them. One of them, Adenike Olanipekun said that the poor economy was what forced her to travel to Libya two years ago, only to end up

in a Libyan prison, before she was assisted to return to Nigeria. Olanipekun said like thousand others still currently on Libyan streets and prisons, she was openly discriminated against and denied interaction with other Nigerian brothers and sisters. She commended the Ogun State government for coming to their aid when they were arrested in Libya and repatriated to Nigeria. Olanipekun, who commended the NCRMI for involving her in phone repairs, said there was no place like one’s country. “We really suffered in Libya, I must confess. We were deceived and made to believe that life in Libya was rosy. I still regret going to Libya. “I am happy to be part of this training. After this training, I can set up my phone repairs business and go back to school. I can never go back to Libya again,’’ she said. Another Libyan returnee, Ogunaike Adewale, also decried the ill-treatment and denial he and other young Nigerians received from

the Libyans, adding that he had travelled to Libya to make money. Adewale appealed to young Nigerians planning to travel to Libya to jettison their plan. “I do not want any other young Nigerian to think or plan to travel to Libya, but to think of what they can be doing in Nigeria. “If I had the training opportunity being given us now, I wouldn’t have bothered travelling to Libya,’’ he said. Saidi Adebayo, another returnee, said that he travelled to Libya with the hope of making money, but was disappointed by the unfriendly disposition of Libyans towards Nigerians. Adebayo, who said that there were still many young Nigerians roaming the streets of Libyan and in prisons, swore never to go back to Libya. He said that they were treated badly by the Libyans, to the extent of being forced to change their Christian names to Muslim names, and were not allowed to greet other Nigerians on the streets.

5 years after, police rescue 2 abducted children …arrest suspected abductor JOSHUA BASSEY

wo children who were declared missing by the Lagos State police command in 2014 have been found. Christiana Onuchukwu, the spected woman-abductor of the children has also been arrested for investigation. Spokesman for Lagos police command, Chike Oti, confirmed the discovery of the children and arrest of the woman in a statement. According to Oti, the police on February 28, 2019, apprehended one Christiana Onuchukwu for stealing and keeping in her custody two children of different parents who were declared missing in 2014. Oti said that luck ran out on the suspect when one of the abducted children, named

Ikimot, 12, came to Denton Police Station and reported that she was taken away from her parents some years ago. Oti said the child claimed she was handed over to a woman she now called mum, adding that she mentioned her abductor’s address and asked the police to reunite her with her parents. “Based on her complaint, the DPO in charge of Denton Police Station, Saheed Quadri, led a team of detectives to No.1 Ogati Street, Fadeyi, Lagos, where the suspect was apprehended. “When the suspect and her victim were debriefed, the child stated that she was seven years old when she started living with the suspect and that her present age is 12. “She mentioned another little boy called Okashetu Musa as another victim of the suspect. Thus, the DPO dispatched a team of

detectives to rescue the boy who was abducted when he was six, but now eleven years old. “In his own account, the boy who could still speak Hausa, said he once lived in the Ebute Meta area of the state with his mother,” he said. Oti said that the leader of the Hausa community in Ebute Meta was invited to the station to help link the child with his parents. According to the police spokesman, the leader, after consultation with his subjects, claimed that the mother of the boy, a blind woman, had relocated to Katsina State having lost hope on finding her child. “Meanwhile, the children have been reunited with their parents, while the suspect has been charged to Ebute Meta Magistrate Court 5 with conspiracy, abduction and child stealing.

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Thursday 07 March 2019

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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 22 – 02–19)

31,070.0 32,515.52

N11.721 trillion

N12.126 trillion

2,252.69

1,498.95

800.75

Week close (01 – 03–19)

31,827.24

N11.869 trillion

2,237.67

1,450.22

800.75

Year Open

Percentage change (WoW) Percentage change (YTD)

-2.12 1.26

-0.67 1.94

NSE Lotus II

NSE Ind. Goods Index

NSE Pension Index

300.24

2,218.37

1,222.99

1,201.80

752.88

303.55

2,321.30

1,264.66

1,245.15

730.95

299.51

2,297.38

1,276.48

1,211.72

0.93

-2.68

3.12

0.35

NSE Banking Index

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

1,399.64

399.27

124.82

1,473.90 1,427.91

438.53

128.80

412.73

132.68

NSE 30 Index

-3.25

0.00

-3.12

0.72

0.87

0.76

-5.88 3.46

3.01 4.90

731.57

-2.91 -2.39

-1.33 -0.90

-1.03 2.84

Dangote Cement: Buy rating maintained on the stock Iheanyi Nwachukwu

frica’s largest cement pro ducer, Dang ote Cement Plc recently released its audited results for the full year ended December 31, 2018. The cement maker posted 91percent growth in Profit After Tax (PAT) at N390.325billion from N204.248billion in the preceding financial year. It grew revenue by 12percent to N901.213billion, from N805.582billion in 2018. The director of Dangote Cement proposed a dividend of N16 per share. Dangote Cement Plc, with three plants in Nigeria and expansions in 15 other African countries showed some surprises in its top-to-bottom line scorecards, surpassing most analysts’ estimates. At N196 per share and shares outstanding of 17,040,507,405 units, Dangote Cement Plc market capitalisation of N3.339trillion represents approximately 30 percent of the entire equities market capitalisation of the Nigerian Stock Exchange (NSE). The stock had touched a 52-week high of N290 and 52-week low of N170. Year-to-date (ytd), the share price has gained execs of 3.8percent. The ownership structure shows Dangote Industries Limited owning 85.1percent while other shareholders 14.9percent. Analysts’ views Vetiva analysts who sustained their positive outlook on Dangote

Cement Plc due to the decent full year 2018 numbers want investors to “Buy” the stocks following their target price (TP) of N240.68. “We remain convinced about the long-term potential of the Nigerian cement sector but foresee somewhat weak growth in 2019, dragged by distractions to public sector consumption. That said, we still project decent growth in volumes for Dangote Cement’s Nigerian operations as sales from new product lines in previously underserved markets are ramped up”, said Onyeka Ijeoma’s team of equity research analysts at Lagos-based

Vetiva Capital. Based on their expectations of increased overall volumes growth +7.8percent year-on-year (YoY), continued drive for cost containment, a stable exchange rate environment and lower finance costs, CardinalStone Research analysts are optimistic in their outlook for Dangote Cement in 2019 and have adjusted their estimates in the light of recent realities. Consequently, using their Discounted Cash Flow valuation model, CardinalStone Research analysts arrived at a target price (TP) of N249.25 for Dangote

Cement, “with a potential upside of 26.8percent, based on the last close price of N196.60 on March 1, 2019. Therefore, we recommend a BUY.” Takes from the Dangote Cement Conference Call The pan African performance stayed flat year-on-year (y/y) at 9.3 million tons, but management sees room for growth in 2019 mainly in Tanzania, Ghana, Congo, and Sierra Leone. The Tanzania plant now runs on gas, the gas turbine which was turned on in 2017 is now fully operational, Tanzania is expected to move to profitability in 2Q19 and further impact margins in pan Africa.

In Congo, sales boost by exports to Central African Republic and potentially Cameroon. In Ghana, 2018 sales volume was impacted by the switch of export route to sea from road, volumes are expected to increase in 2019 and management plans to setup a grinding plant by the end of 2020, which will be supplied clinker from Nigeria. In Senegal, sale of 32.5 grade increased and export to Mali was 428kt. In Sierra Leone, a return of the economy to normal activities and resumption of building activities is expected to boost sales in 2019 as volumes sold increased to 109kt in 2018 from 91kt in 2017. Zambia grew volumes to 1Mt in 2018 from 0.8Mt in 2017, on the back of improved logistics – use of third party trucks and rail to improve market penetration. The South Africa market remains flat at the moment, due to the subdued economy but management expects the government to maintain cement importation at current levels or even increase restrictions so as to encourage and protect local production, hence a positive for the South Africa operations. Earnings per share increased by about 96percent to N22.83, due to the reversal of income tax after the approval was given for the pioneer tax status, total tax credit was N134billion, putting effective tax rate at 12percent for Nigeria. Bulk sales increased to 9percent of sales on the back on of large scale construction work in Nigeria, management expects more bulk sales in 2019 as the government improves

Continues on Page 19

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United Capital Investment Views

Investor’s Square

(March 4 - March 8, 2019)

•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

Equities fail to cheer… NSEASI dips 2.1% week-on-week

espite the m a s s i v e capital inflow observed at the I & E window in the prior week, the equities market closed bearish as the just-concluded presidential election failed to spur bargain hunting. Particularly, whooping losses recorded in three of the five trading sessions during the week, outweighed the paltry gains recorded in the remaining two sessions. Consequently, the NSEASI tumbled -2.1percent to close at 31,827.2 points while market capitalisation plunged N256.7bn to finish at N11.9tn.

Year-to-date (YtD) return settled to +1.3percent. Performance across sectors was largely bearish as four of the six sectors under our coverage closed negative. The laggards included, Banking (-5.9percent), Consumer Goods (-2.9percent), Oil & Gas (-1.3percent) and Agricultural (-3bps) dragged by price declines in ZENITH (-7percent), NESTLE (-4.4percent). On the flip side, Insurance (+3percent) and Industrial (+0.9percent) closed higher, thanks to DANGCEM (+2.2percent) which submitted its full-year result for 2018 (Revenue was up 11.9percent to N901.2billion, PAT was up 91.1percent to N390.3billion), and AIICO (+2.8percent). Market breadth (Advancers/Decliners Ratio) – a proxy for investors sentiment - was underwhelming as it closed the week at 0.6x; 21

stocks advanced against 38 decliners. This week, we expect market performance to be characterized by a tussle between the bulls and the bears as two major themes; election uncertainties and earnings, to guide sentiments. Money Market: Political risk premium normalizes as FPI returns Last week, system liquidity improved on renewed offshore interest in the fixed income market, following the announcement of President Buhari as the winner of the 2019 presidential election. While the market started Monday on a relatively illiquid note, as the CBN maintained its weekly

wholesale FX sales worth $210million, the bank’s refusal to float further OMO auctions prior to the announcement of the presidential results, allowed liquidity (mostly foreign inflows) to build up in the system. Activities at the Investors and Exporters (I & E) FX window saw a significant rise, with daily turnover touching an all-time high of $1.3bn on Wednesday (the same day the Presidential result was announced by INEC) and setting a new high on Friday at $1.9bn (total: circa $4bn) as foreigners made attempts to quickly lock-in the high rates available in the fixed income market. Elsewhere, the bi-weekly Nigerian Treasury Bill (NTB) was auctioned on Wednesday, as total maturing bills worth N115.1bn was rolled over. Stop rates cleared significantly lower

from their previous auction levels: 91-day (10.90percent v e r s u s 1 0 . 9 7 p e rc e n t a t t h e l a st au c t i o n ) , 1 8 2 day: (13.01percent versus 13.40percent at the last auction), 3 6 4 - d ay : ( 1 4 . 3 7 p e rc e n t versus 14.95percent at the last auction). This was as the bills were overwhelmingly oversubscribed, with a total bid-to-cover ratio of 6.3x and with the 364-day bill recording the most demand (bid-to-cover ratio of 11.8x). By Thursday, on the back of OMO inflows (N399.3bn) and the already elevated liquidity in the system, the CBN floated an OMO auction which was significantly oversubscribed

with a total demand of N1.4tn vs. N400.0bn initially offered. Given the significant demand on the 364-day bill with a bidto-cover ratio of circa 4.9x, the CBN cut the stop rate by 70basis points (bps) to 14.3percent while maintaining stop rates at 11.9percent and 13.5percent on the 91-day and 182-day bills respectively. In the secondary T-bills market, the buoyant system liquidity gave the bulls some leg to run. Overall, average T-bill yield fell 130bps to settle at circa 13percent (previously 14.3percent). We e x p e c t f o re ig n interest to be sustained this week, especially as rates are anticipated to retrace post the 2019 election. Money market rates should start the week higher with the CBN expected to sustain its weekly wholesale FX funding while also maintaining a cautious stance on liquidity.

FMDQ Learning

Introduction to infrastructure bonds

bond is a debt instrument issued by the Government (Federal, State and Local), Agencies, Corporate entities, Supra-nationals, amongst others, to borrow money from the capital market at an agreed interest rate (coupon) and for a defined period (maturity). A bond represents a longterm financial obligation of an entity. It is a fixed income investment in which an investor loans funds to the entity who borrows the funds for a defined period of time at a variable or fixed interest rate. The entity that issues the bond is referred to as the issuer, while the investor that purchases the bond is known as the bondholder. Bonds are issued for a variety of reasons, including but not limited to, the financing of government budget deficit, business expansion of corporate establishments and the financing of infrastructure development initiatives, amongst others. This month’s edition of FMDQ Learning will focus on Infrastructure bonds, its fundamentals, including its characteristics, benefits and risk considerations. Definition of Infrastructure Bond A bond is mainly classified as an infrastructure bond (also called a project bond) if it meets all the following criteria: ▪ Issued to finance a specific infrastructure project ▪ Capital raised from the bond is repaid from the cashflow generated by the project ▪ Bond assumes (and its performance is subject to) the specific risk associated with the project it finances ▪ Issu e d by a p ro j e c t operating company (typically a government parastatal, SPV or a corporate entity) with investment grade credit rating Infrastructure bonds, therefore, are issued for and with the purpose of financing infrastructure projects for public utilisation. Typically, the bonds are structured by financial advisers (on behalf of the issuer) and issued by an issuing house. Other transaction advisers to the bond issuance include the legal advisers and bond trustees, amongst others. Investors subscribe to the bond at a stipulated issue price, while the funds realised from the issue are deployed

for the intended infrastructure project (for example, housing, road, sea port, power plant etc.). Upon the listing of the bond on an authorised Securities Exchange, such as FMDQ, investors can trade the bonds at market determined prices. Characteristics of Infrastructure Bonds ▪ They are usually longtenored, with maturities ranging from ten (10) to twenty (20) years ▪ They often come with credit guarantees (such as partial risk guarantee from the government or entities) to derisk the associated project(s) ▪ They are listed and traded on Securities Exchanges (such as FMDQ) ▪ They often offer impressive yields that match the inherent risks of the associated projects ▪ They provide a reasonable safeguard to capital; hence investors explore investment in infrastructure bonds as a strategy to mitigate market risk Benefits of Infrastructure Bonds ▪ Issuer Infrastructure bonds offer a potent funding alternative to address the infrastructure deficits across emerging economies. They have proved to be a veritable strategy for attracting private capital to the infrastructure space. Infrastructure bonds are a relatively cheaper, fixed and predictable source of longterm financing for specific infrastructure projects when compared to bank loans. ▪ Investor Infrastructure bonds offer relatively higher risk-adjusted yields, hence constituting an attractive investment alternative to p or tfolio investors and pension funds administrators. Long- tenored funds in the financial sector (particularly pension funds and insurance companies’

f u n d s ) a re att ra c t e d t o infrastructure bonds, given that they are relatively cheap, and could be used to match longer term liabilities. The bonds are liquid, and may be traded freely on a securities exchange, hence, investors can exit the investment prior to maturity, at market determined prices. In most countries, investments in infrastructure bonds are tax deductible, offering impressive tax incentives to investors. ▪ Capital Market Infra st r uc ture b o nds contribute to deepening the debt capital market (DCM) as they constitute an investable asset class for investors. They also enhance market liquidity especially through their attractiveness to pension funds administrators and insurance companies. Furthermore, infrastructure bonds bring more transparency to infrastructure investments, and to the financial market as the underlying projects are usually professionally and transparently structured, and managed. Risk Considerations Infra st r uc ture b o nds are not risk-free bonds, however, their risk profiles are comparatively low when compared to other bonds. The major risk consideration for an infrastructure bond is the issuer’s risk, that is, the credibility of the institution offering the bonds. Ideally, if an issuer is considered to have incompetent management, poor credit ratings, a history of faile d infrastr ucture projects and poor corporate governance, bonds issued by such issuer are considered risky. Investors therefore prefer to invest in infrastructure bonds that are issued by institutions with investment grade credit ratings (such as AAA, AA+, AA, and AAratings).

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Transcorp, Oando, Unilever, Access, FBNH, 33 others triggered last week’s N258bn loss Iheanyi Nwachukwu

he Nigeria stock market lost N258billion in a five-day trading week ended March 1, 2019 after the nation’s presidential and national assembly elections. The record loss was majorly caused by value decline seen in Transnational Corporation of Nigeria Plc, NPF Microfinance Bank Plc, Oando Plc, Unilever Nigeria Plc, Goldlink Insurance Plc, Wema Bank Plc, Eterna Plc, Japaul Oil & Maritime Services, Access Bank Plc, and FBN Holdings Plc. Though the stock market took-off this week on a positive note, the record negative outcome seen last week came on the heels of most research analysts’ positive outlook for the economy over the next four years as President Buhari’s victory signals policy stability. Transnational Corporation of Nigeria Plc which opened

last week at N1.45 lost 21kobo or 14.48percent to N1.24; it was followed by NPF Microfinance Bank Plc which had opened at N1.65, close at N1.44, after losing 21kobo or 12.73percent. Also, Oando Plc was down from N6.50 to N5.75, after its share price lost 75kobo or 11.54percent. Unilever Nigeria Plc was down from N43 to N38.70, down by N4.30 or 10percent; Goldlink Insurance Plc also declined from 48kobo to 44kobo, after losing 4kobo or 8.33percent. Wema Bank Plc share price had decreased from 84kobo to 77kobo, down by 7kobo or 8.33percent; Eterna Plc lost 40kobo or 8.33percent last week, from N4.80 to N4.40. Japaul Oil & Maritime Ser vices Plc stock price decreased from 25kobo to 23kobo, after losing 2kobo or 8percent; while Access Bank Plc had also decreased from a record high of N6.40 to N5.90, down by 50kobo or 7.81percent. FBN Holdings Plc had lost 60kobo or 7.19percent, from N8.35 to N7.75.

In all, twenty-six (26) equities appreciated in price during the review week, lower than thirty-four (34) in the preceding week. Thirty-eight (38) equities depreciated in price, the same with thirty-eight (38) equities of the preceding week, while 104 equities remained unchanged higher than 96 equities recorded in the preceding trading week. Cornerstone Insurance Plc recorded the highest advance after its share price moved up from 21kobo to 25kobo, up 4kobo or 19.05percent; followed by Livestock Feeds Plc which increased from 58kobo to 67kobo, up 9kobo or 15.52percent; and Veritas Kapital Assurance Plc which gained 3kobo or 14.29percent, from 21kobo or 24kobo. Taking a cue from last week’s performance, Lagosbased analysts at United Capital Plc in their March 4 note said, “This week, we expect market performance to be characterised by a tussle between the bulls and the bears

as two major themes; election uncertainties and earnings guide sentiments”, The Nigerian Stock Exchange (NSE) All Share Index decreased by 2.12percent in the review week ended Friday March 1, 2019 to 31,827.24 points; this is against a high of 32,515.52 points as at week ended February 22. The sell-off recorded in the review trading week had impacted on the market’s returns year-to-date (YtD) which stood lower at +1.26percent. Also, week-on-week (wow) the value of listed stocks decreased from N12.126trillion to N11.868trillion. “G i v e n t h e r e a c t i o n of investors to the election results last week, we highlight the possibility of negative sentiment persisting in the market this week. That said, we expect bargain hunting to drive positive trading as investors take up undervalued stocks leading to a mixed session at week start,” said Vetiva research

analysts in their March 4, 2019 note. “This week, we expect to see some buying activities particularly in the early part of the week as positive earnings results as well as bargain hunting drive buy interests. “Nevertheless, we expect this to be short-lived as weak investor sentiment stoked by the ongoing elections is expected to weigh on market performance. Thus, we maintain our bearish outlook over the near-term,” said research analysts at Lagosbased Afrinvest in their March 4 note. The NSE 30 Index lost 3.12percent last week; NSE Banking Index (-5.88percent); NSE Consumer Goods (-2.91percent); NSE Oil & Gas Index (-1.33percent); while NSE Industrial Goods was up by 0.93percent WoW. The volume of stocks traded last week increased to 1.750billion units, up by 18.43percent, from 1.478billion units recorded

the preceding trading week; while the value of stocks traded increased to N19.68billion, from N17.64billion representing 11.53percent increase. The stock market recorded a total turnover of 1.752 billion shares worth N19.681billion in 22,319 deals last week in contrast to a total of 1.481 billion shares valued at N17.647 billion that exchanged hands the preceding week in 20,449 deals. The Financial Services In d u st r y ( m e a su re d by volume) led the activity chart with 1.377 billion shares valued at N11.311 billion traded in 14,180 deals; thus contributing 78.63percent and 57.47percent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 115.142 million shares worth N168.128 million in 1,126 deals. The third place was Consumer Goods Industry with a turnover of 113.079 million shares worth N6.051 billion in 2,993 deals.

MT representing an increase of 11.4 percent over the volume of 12.72 metric tonnes sold during the preceding year. The increase in the Nigerian volume is attributable to higher building activities as the economy recovered from recession. Th e sa le s volu m e i n Nigeria is quite significant given the turbulent market situation as the election period approached and people usually hedge in the construction industry during such periods. Across Africa, the cement Group posted combined revenue of N901.21 billion, with Nigerian operations doing N618.30 billion, representing an increase of 11.9 per cent over N552.36 billion in 2017.

The Nigerian economy was earlier projected to have grown by 1.9 per cent in 2017, meaning that Dangote Cement outperformed the domestic economy. Pan-African operations recorded revenues of N263.26 billion, an increase of 9.6 percent over N258.44 billion posted in the corresponding period in 2017. While profit after tax surged and stood at N390.32 billion in contrast to N204.25 billion in 2018, earnings per share rose from N11.65 to N22.83. Dangote Cement is Africa’s leading cement producer with nearly 46Mta capacity across Africa. It is a fully integrated quarryto-customer producer, with a production capacity of 29.3Mta in the home market,

Nigeria. The Obajana plant in Kogi state, Nigeria, is the largest in Africa with 13.3Mta of capacity across four lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta, while Gboko plant in Benue state has 4Mta. Through recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries. It has operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).

Dangote Cement: Buy rating... Continued from on Page 17 infrastructural spending. Nigeria’s margins remains strong at about 64percent due to fuel mix in major plants, own mined coal usage is increasing vs. gas which is more expensive. The London Stock Exchange listing will most likely come on in 2020, as it is still under consideration and management is in talks with banks. The interest in ARM cement still remains and engagement with representatives from ARM is ongoing which may lead to a deadline extension. BUA cement operations is not envisaged to impact own sales in the near term as Dangote’s Obajana plant is far

from BUA’s northern plant, hence haulage cost helps in differentiating target market, also BUA is seen to target more of export sales. Management views “This is a record financial performance by Dangote Cement, driven by a strong increase in our home market, Nigeria, despite heavy rains and uncertainties about the election. Although Pan-African volumes were unchanged in 2018, I am confident that we will see an increase in 2019, driven by higher volumes in Tanzania, Ethiopia, Congo and Sierra Leone. Now that we have gas turbines operating in Tanzania we will also see increased profitability in the Pan-Africa region and this will help to improve overall Group margins,” said Joe Makoju,

Group Chief Executive Officer, Dangote Cement Plc. Dangote Cement has maintained its dominance of the Niger ian market accounting for 65 percent of the total volume sold in the domestic cement sector in 2018. The company also exported 800,000 tons of cement to West African countries, strengthening Nigeria’s position as cement exporting country, creating jobs in the economy, and earning foreign exchange. Details of Dangote Cement’s audited results for the review year 2018 showed it sold a total of 23.54 million metric tonnes (MT) of cement across Africa indicating an increase of 7.4 percent over 21.92 MT sold in 2017. Nigerian operations accounted for 14.18

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Leadership

Wednesday 06 March 2019

SHAPING PEOPLE INTO A TEAM

Life’s work: Cal Ripken Jr. (part 2) was good at keeping that evenkeeled demeanor and approach. I’m not saying it was always easy. Slumps are horrible; it feels like you won’t get a hit again, like everybody’s booing each time you make an out with somebody on base. But the only way to be successful is to work through your issues and control what you can control.

ALISON BEARD

THE ALL-STAR RELISHED GETTING TO PLAY A GAME FOR A LIVING. n a two-decade career as an All-Star shortstop and third baseman for the Baltimore Orioles, Ripken played — at times alongside his coach and manager father, Cal Sr., and his second baseman brother, Billy — in a record-shattering 2,632 consecutive games, earning him the nickname Iron Man. Since retiring, in 2001, he has run a youth baseball organization and a charitable foundation.

You were known for your work ethic, preparation, focus, perfectionism. How did you keep pushing yourself to make those incremental improvements? Number one: Somebody can always come along and outperform you and take your job. There was always another shortstop in the minors or one aiming for a trade. So every time we took down balls, did plays, I was trying to prove I was better. Number two: I competed against myself to improve. I was never really satisfied. Did you try to mentor your teammates? Because of my background with my dad as a player, coach and manager, I knew about pitching, hitting and fielding, and I was able to offer some of that knowledge. In the later years I was 20 years older than some of my teammates, so the relationship was almost like a father to a kid. But it’s one thing to tell people what to do. It’s another thing to help. It wasn’t my job to yell at them. So where, when and how do you help? You don’t want to be critical or make someone feel bad. You don’t do it in front of everybody else. You maintain a rapport, do it one-on-one, offer your experience and understanding of the game and make sure they know you’re doing it for their benefit. I might pick a time in the batting cage or the training room and say, “I know it’s hard. Trust

me, I know. But you’ve got to force yourself to do it right. Just put forth the effort.” When teams change from year to year, even month to month, how do you learn to work together? The nature of baseball is turnover, so you have to be open-minded in working with new people. For a shortstop, a second baseman’s a critical co-worker, and I had a lot of different ones. You just work through each play, go through the process. If you get locked into why they traded that guy or didn’t sign this guy, you’re living in the past. You need to be in the present, looking at how, with this second baseman, you can have as good a double-play combination as you had with the last one. I wasn’t a particularly social person, but I learned a lot from Billy. By the end of the first or second day of spring training, my brother knew the names of all 70 or 75 players plus where they were from, and in many cases he’d given them nicknames. He would fill me in. When you’re in your own world,

getting your job done, dealing with the people close to you, you don’t necessarily pay attention to everyone. But I learned to make more of an effort to reach out, ask questions, spend a little time at the ballpark together. Let’s talk about the streak. After so many consecutive games, how did you maintain your performance and motivation? It’s interesting, because in other sports you can really draw on the adrenaline, the emotion; working yourself up into a frenzy might be a good thing. But in baseball, because you do it almost every day, you can’t get too high or cocky or try too hard. You have to stay at a place where you can relax and perform. My dad used to say things like, “You can’t replay yesterday’s game, and you can’t play tomorrow’s game before it gets here, so you might as well play this one.” That’s a fancy way to say, “Take it one day at a time. Clean the slate, look at today’s challenge and focus on what you can do to help your team win.” I

Why do you think your managers always chose to keep you in? It wasn’t a goal of mine to break Lou Gehrig’s record. I wanted to be an everyday player because there’s a great honor in that. You can play a 162-game schedule and the pennant boils down to one game. That happened my rookie year, and we all said, “Man, if we had gotten off to a better start or won back in June when we had a four-run lead, it would’ve been the difference.” You can never underestimate the importance of one game, and I always thought it was my responsibility to be ready to help win, so I never went into the manager’s office and said, “I need a break.” I wanted them to put me in if they thought I was one of the guys who could perform that day. I played five straight years without missing an inning, all because I didn’t ever beg out, not even in a blowout. I just played. And the streak was born. Interestingly, though, when you play a full season and finish strong in September, you prove that any problems you might have aren’t because of the number of games. It’s not that you’re fatigued. So then you start looking for real solutions in your swing or your defensive play, and you get better. In the games when you tied, then passed, Gehrig’s record, you hit home runs. Was it hard to execute under so much scrutiny? Again, it was keeping that calm demeanor, so you can stay with your fundamentals. If you get too amped up, you get outside your

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training. I learned that lesson in the All-Star games when I was really young and people that I’d watched as a kid were my teammates and I knew that everybody in the world was watching. At first I tried too hard, which doesn’t work. So I learned to calm myself and used that in other situations, especially games 2,130 and 2,131. It was important to celebrate not an attendance record but playing well. I was so proud, because even though we had fallen out of the playoff race, we beat one of the better teams in the league — the California Angels — in three straight, and I homered in all of them. How did you know when it was time to end the streak and, a few years later, retire? At some point the streak had to end. I decided in 1998 that if we fell out of the pennant race, I would sit so that the manager wouldn’t have to think about it anymore. The next year I had back surgery and it became harder to play, so I had to take periodic days off. I didn’t like it, but it was a way to manage. It took about a year and a half for my body to heal. I was playing, but it didn’t feel the way it had. Then came the 2001 offseason. I didn’t know what I had left in my tank, but I worked hard to find out and got myself in the best of shape. Unfortunately, I broke a rib 13 days before spring training, which affected everything. Our team was heading into another rebuilding phase, too. So, adding all these things up, I thought it was time to say goodbye, to play my last season. I came to the realization in June and decided to announce it then, not so that I could have a farewell tour but so that I could answer the question “What will you do next?” My aspirations were to help kids and get involved in youth baseball, so I thought it’d be a good thing to speak to the future and protect myself a little, since I knew I would miss playing. It was a nice way to say goodbye.

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Energy Report Oil & Gas

Power

Renewables

Environment

Egypt lures IOCs while Nigeria flounders Olusola Bello

hile Nigeria is still undecided on how to go about the reform of the oil and gas sector, Egypt, its North African counterpart, has extend an olive branch to international oil companies by giving them incentives that they find difficult to resist. The cornerstone of Egypt’s energy reforms aims to tempt foreign firms wary of setting foot in the Egyptian market. According to Petroleum Economist, the crux of Egypt’s ambitious energy reform has been a better deal for upstream international oil companies (IOCs). Stung by the failure of exploration rounds in 2012 and

L-R: Bayo Ojulari, managing director, Shell Nigeria Exploration and Production Company (SNEPCo); Elohor Aiboni, SNEPCo’s Bonga asset operations manager; and Antony Ellis, general manager Contracting and Procurement, at a celebration of SNEPCo’s 800million barrel of oil milestone from the Bonga field in Lagos.

2013, Cairo has guaranteed a higher minimum price for offshore producers. The old minimum price of $2.73/ mn Btu has been replaced by $3.95/mn Btu to give IOCs a stronger incentive to

invest. The pricing hike and other liberalisations, have seen a surge in exploration, led by the four IOCs that already dominate Egyptian production. Eni, flush from finding

he oil and gas sector faces challenges on multiple fronts and embracing artificial intelligence (AI) could be the solution that is required, Ernst and Young (E and Y) has said. According to the company, around the world, the emergence of increasingly sophisticated data, analytics, automation technologies, and artificial intelligence (AI) is transforming the way people work and live. The company said global spending on AI and other cognitive technologies was projected to hit US$19.1 billion in 2018, up 54.2% from 2017’s figures. By 2021, it’s expected spending will increase to US$52.2 billion per year. “Meanwhile, the oil and gas sector is in urgent need of transformation. It faces disruption from a range of economic, social, political and environmental challenges — and needs to find ways to cope with softening demand, price volatility, continued pressure on costs, and an emerging crisis of talent.” According to the renowned multinational professional services firm, be-

fore assessing the potential impact AI has on the oil and gas sector, it’s important to stress that AI is not just one algorithm, tool, platform or process. “Rather it is an ecosystem of technologies and capabilities, each of which is able to replace or augment certain human competencies.” These capabilities can be broken down into three key processes: E and Y said that AI can emulate human cognitive abilities, and therefore augment or replace them under the right conditions. In some cases, AI can detect patterns in sensory data that reveal signals beyond the boundaries of normal human perception, or in areas people would not typically be able to access. For example, sensors embedded in a storage tank may be able to recognise concentrations of different chemical elements stored in the tank. This type of data can then be fed to a machine learning model to evaluate the impact of those elements on the health and durability of the tank. Insights from such a monitoring system can help prevent accidents or scenarios that expose workers to hazardous environments. Companies can also use sensing to determine where to drill. For example, geo-

phones are ultrasensitive devices that send sound waves into the earth and record rebouncing ones. Deep learning is then applied to this data to generate reservoir predictions and mitigate risks and potentially reduce drilling costs. AI tools, E and Y explained, can not only analyse and process large data sets faster than traditional statistical approaches, but can also identify patterns in the data that would escape human analysts, developing better insights faster. An intelligent system enabled with computer vision, for example, could automate the process of identifying and tracking the movement of personnel around worksites, helping to optimize safety, identify opportunities for training and improve efficiency, it stated. Elsewhere, smart assistants with conversational interfaces can use machine learning and natural language processing to help enhance the human decision-making process, helping less-experienced workers tap into the pooled expertise of an entire industry. This can cover anything from predicting well performance to extracting relevant market insights from technical papers or investor presentations.

Olusola Bello, Team lead, Analysts: Isaac Anyaogu, Stephen Onyekwelu, Graphics: Joel Samson.

Even some of the discoveries that have been made have not been developed because of the delayed passage of the bill. The Petroleum Industry Governance Bill which was passed by the National Assembly was not signed by President Muhammadu Buhari because of complaints from some state governments who claimed that their revenues would be reduced if the regulatory authority was allowed. The oil and gas industry has been inactive for several years that the IOCs only service their existing assets. The latest move by the Federal Government to get the IOCs refund $20 billion as tax owed could further compound the problems of the industry as this is likely to delay some of the projects slated for development this year.

Shell inducts 30 graduates for industry internship

Artificial intelligence,solution to Oil and gas challenges Olusola Bello

the 30tn ft³ Zohr field in 2015 last summer surveyed another field, Nour, 31 miles off Suez, although both the company and the Egyptian government are tight-lipped about these developments.

The IOCs continue announcing new finds, while Egypt used the conference and exhibition EGYPS to unveil a dozen exploration licences, its largest ever auction. Consultancy Wood Mackenzie calls it “Egypt’s astonishing gas renaissance”, estimating there is 61tn ft³ of gas reserves in existing fields with another 45tn ft³ waiting to be found. Egyptians are adjusting to the new reality of their country, once an energy backwater. In Nigeria, things are not looking so bright. The failure to pass the Petroleum Industry Bill in the last 18 years has led to stagnation in the country’s oil and gas industry. In the past 12 years there have not been any exploration activities and consequently there has not been any new discovery.

hirty engineering graduates have been inducted to the fifth batch of the Shell Nigeria internship programme, a four-year old scheme designed to help young graduate engineers upscale their skills in readiness for employment in the energy sector. The internship programme, run in collaboration with the Petroleum Technology Association of Nigeria (PETAN), places the interns with various Nigerian oil and gas service companies to gain industry experience for one year. Olanrewaju Olawuyi, SPDC Nigerian Content Manager, described the programme as a critical intervention in bridging the manpower gap in the industry and enhancing local capacity. Olawuyi, who spoke in Port Harcourt during the induction of the new interns and the graduation of 30 interns of the fourth batch of the programme, said: “Out of the 140 graduates so far trained through the programme, 65 percent are now gainfully employed in the oil and gas industry.” He added: “I am excited at

the successful feat of the candidates. I encourage the incoming interns to make the best use of this unique opportunity.” Bank-Anthony Okoroafor, President, PETAN said, “The objectives of the programme is to give young graduates the opportunity to have one-year on-thejob training in their respective disciplines thereby enhancing their employability. The success of the Shell/PETAN internship scheme has gone beyond the shores of Nigeria.” One of the beneficiaries, Ugonna Queen Ochuba, said: “The Shell/PETAN internship was my first on-the-job training opportunity. The internship

Osagie Okunbor

did not just give me the opportunity to be hands-on but also helped to boost my skills and experience in my discipline.” The Nigerian Content Development and Monitoring Board (NCDMB) Manager Capacity Building, Angela Okoro, commended the Shell/PETAN collaboration. She said, “This is one of the capacity development initiatives that the Board is replicating.” Bashir Bello, general manager, Business and Government Relations of Shell Nigeria said: “Every year, the Internship supports fresh graduate talent through exposure to rich technical on-the-job work experience to equip them with practical industry experience, which will then position them favorably for employment opportunities after the programme.” The Shell/PETAN internship programme was conceived as part of the collaboration roadmap to support efforts at closing identified gaps in the availability of competent manpower in critical disciplines like Geology and Engineering, in the oil and gas industry

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Thursday 07 March 2019

Energy Report

‘Equinor’s Nwa/Doro gas field capable of doubling electricity generation for 25 years’ Heine Melkevik is the managing director of Equinor (formerly Statoil). His posting to Nigeria is the sixth of such assignments by his organisation. In this interview with Olusola Bello, he speaks about the company’s operations and it plans for the biggest deep water gas field, Nwa/Doro. Excerpts: Which areas have you worked before coming to Nigeria? was in Tanzania, Mozambique in the continent of Africa; Australia, Russia, and finally back in Nigeria, West Africa. This is basically a bit of my background. My going through all these process has been however coincidence. A lot of it has to do with the fact that we have different activities in different countries. For example, we had exploration activities in Tanzania and we set up a company around that. Again, we were doing drilling operations in Mozambique. It was like we needed someone to set things up in that place and I have the experience from Tanzania, so I had to be there. It was also the same thing in Australia. In oil and Gas sector it is like that; if you are flexible and you say yes you will get to see a lot places you never thought you would see. These however will help broaden your skills; set in a way you never probably thought even possible. In away if you look at that development it looks very logical. But when you are doing this it looks more coincidental. But looking back, it is like, well you did this and now ready to step up to be managing director for Nigeria. This is however not the first time I am managing

director. This is of course a very important country to us. It is a big role in the company. Nigeria is the fourth largest country in terms of production currently outside Norway. If Nigeria is it his strategic to you why is your company not as active as the other IOCs? A lot of these things have to do with coincidences. We drilled 10 wells in Nigeria. We were very active in exploration space earlier on. We have been here now 26 years, drilled 10 wells, had quite a lot of successes. We had 40 per cent discovery rate on those wells. But coincidentally the discoveries we made were licenses that are adjacent to us, such as Agbami. So it is coincidental why Equinor didn’t become an operator but rather Chevron which has a bigger equity shareholding. When did you make the Nwa/Doro discovery? Twenty years ago when that discovery was made might not have been the right time. And as you see now 20 years later there is no deepwater gas terms. So in a way this is also coincidental. But what we are doing now in Nwa/ Doro is trying to find ways to develop the field, and discuss with the government what would be the terms that would be workable for both parties. This is where

for Nigeria. But we are here to engage in fruitful conversation and dialogue.

Heine Melkevik

the future lies for Equinor in Nigeria. Nwa/Doro is a large field. If you bring it to shore and produce electricity from it, it will double the electricity generating capacity of Nigeria for the next 25 years. It is a phenomenally large industrial project. So these are things we are looking into to develop here now. It is something we have got to dialogue and collaborate with the authorities on. It is the authorities that can put the framework in place; there is predictability that you need for the investment and then our job is to come out with the set of technical solution and dialogue with government and start

the development. So this is where we are. How close are you to the transaction with the government? What we believe is that we are in a license where we have a discovery which we believe is commercial and given the right terms we are set to go. We are in discussion with the government on that subject right now by saying what we believe is the right step for the government to take for the project to move forward. So this is where we are. It is not a complete signatory but rather a development and it is really up to government to shape the policy they want

OVH Energy upgrades its fleet, acquires new bowsers for its aviation business FRANK UZUEGBUNAM

VH Energy Marketing Ltd, a licensee of the Oando retail brand, has announced its acquisition of brand new aircraft fueling bowsers as part of its expansion plans to deepen its service offerings in providing fueling solutions to players in the aviation industry. Manufactured by Flightline UK, the bowsers are equipped with latest technological and safety standards certified by the Joint Inspection Group (JIG), the world’s leading organization for the development of aviation fuel supply standards. With a combined capacity of 88,000 litres, capable of

dispensing up to 3,500 litres of aviation jet fuel per minute, these bowsers are designed to enhance safety and operational efficiency of partner companies. “This acquisition is one of the many investment initiatives we have for the downstream industry and we will continue to deepen our investments to consolidate OVH Energy’s leadership position in the aviation

sub-sector and the downstream oil & gas industry as a whole. We are committed to exceptional service delivery to foreign and local airline operators in the Nigerian aviation industry so that Nigeria becomes the destination of choice for international airlines to refuel their aircrafts,”HuubStokman, Chief Executive Officer, OVH Energy Marketing Ltd, said. BabafemiOlabiyi, Chief

Aside from Nwadoro which other areas are you looking at? Let us just take you back. I think it is very interesting in the dynamics that happens when you change the name of a company. Earlier, we were called Statoil, which means State Oil. Norwegian State is a major owner of the company and then we changed the name to Equinor. Equi is the beginning letter for such words as equlity, equity and equilibrium; this tells a lot about what we want to be and how we want to be recognised as a company, how we work with our suppliers, host governments, employee and work with the society at large. Then Nor is of cause for Norway where we are from. These two things together is something we are really very proud of. Why did you change to a new name? You think it would serve you better? The company is going into broader energy business. This means it is not only oil and gas but also other energy sources such as power and wind. For example, we have wind power currently just installed in Uk alone. We have sufficient wind generating capacity that can generate about 600,000 pounds and we have just open for solar,

So, one thing is that the company did notfundamentally change its strategy but the evolution. As you can see, the energy system that is being used globally is in transition. So it is rather as result of change in environment that we want to be part of. This is also going deep in the value chain. This means when we come back to Nigeria what we are looking for is further than trying to develop Nwa/Doro. I personally have the belief that Nwa/Doro is something we can do and I believe it is fundamentally important for Nigeria. We are also looking at deepening our relationship with Nigeria when it comes to products and crude. This means we are looking at how we can source more of the crude oil from Nigeria. We are a large crude trader globally. This is one part. In addition to this, about 40 per cent of our gasoline ends up in West Africa and majority of this ends up in Nigeria. If you have such a large market why is your company not thinking of setting up a refinery? Where we came from is upstream and we are secondlargest gas supply to Europe and the third-largest gas supply globally as a company. So one thing is to recognise our offshore capabilities. Equinor is the world largest offshore operator when it comes to gas.

AITEO clarifies Nembe Creek fire accident Marketing Officer, also stated that this acquisition positions the company to further improve its aviation customers’ experience amongst whom are leading international, local and specialized airline operators. He reiterated OVH Energy’s commitment to operational excellence whilst delivering exceptional customer service. OVH Energy is the marketer of choice providing trusted petroleum products and services in Nigeria with expertise in jetty and terminaling services as well as the marketing and distribution of refined petroleum products for retail, commercial and industrial purposes. Its aviation business spans over 25 years and is present in the major airport hubs within Nigeria.

suspected explosion occurred within the vicinity of Nembe Creek Well 7, behind Mile 1 Community in Bayelsa State, which is not too far from Nembe field logistics base (FLB) . Despite initial challenges, our operations team were able to access the well head area when the fire had completely died down on early hours of 2nd March and secured. This incident did not occur at or involve any part of the NCTL or other pipelines. It is important to note that prior to this incident, all facilities have been shut down since 28 of February 2019 due to NCTL outage. Accordingly, any account suggesting that this incident arose from or affected any pipelines is wholly inaccurate and misleading. Full investigations to determine the cause of the fire and, in particular, to deter-

mine whether this may have been caused by third-party infractions, remain ongoing. These investigations are being pursed with the utmost urgency and are have been given the highest priority. We are continuing to work with all the relevant authorities to restore full functionality to all the relevant installations and affected areas. In the time being, we express our gratitude to all our stakeholders for your continuing support and understanding whilst urging calm and vigilance. As becomes necessary, we shall continue to share information on these developments in due course. Preliminary investigations confirm that there were no fatalities; human incidents or damage to community property. All the wells and facilities in the immediate vicinity have been inspected

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Spending Trends

Why slump in Wheat price matters to flour millers BALA AUGIE

heat prices have eb b e d at the international market, and the implication for the Nigerian economy is that flour millers could be forced to reduce the price of product to fend off intense competition. Bench mark wheat prices are down -0.31 percent to $4.31 bushel, driven by robust supplies from Ukrain and South Africa, as supply glut heightens. Found in everything from bread to noodles, biscuits to cereals, beer to cakes - there is no more widely grown staple crop and more than 170 million metric tons trade every year. Nigeria is sensitive to fluctuation in prices because it depends on food imports and it forms the largest share of budget. BusinessDay analysis of the quarterly Foreign Trade Statistics released by the National Bureau of Statistics in 2018 has shown that importation of agricultural produce into the country steadily increased for most part of the year. Of note is wheat importation, which drove agricultural goods importation into Nigeria and accounted for N362.4

billion throughout 2018, representing 42.5 percent of the N852 billion officially captured to have been spent importing agricultural goods. The Agriculture Promotion Policy (2016 – 2020), stated annual demand for Wheat in Nigeria is 4.7 million metric tonnes whereas local production is only 60 thousand metric tonnes, leaving a deficit of 4.64 million metric tonnes driven by demand for various types of wheat (white, hard, durum), etc. for bread, biscuits and semovita. Analysts are of the view that flour millers could benefit from a slump in commodity price in form of improved margin while cost of raw materials are expected to dip. But they added that companies could also be forced to cut price of products to fend off competition as cheap imports loom. “It will be positive for them because wheat is a major raw material component in the manufacture of Flour assuming there are no issues with foreign exchange,” said Christian Orajekwe, equity research analyst at Cordros Capital. Ifedayo Olowoporoku, Research analyst at Vetiva Capital Management Limited said that revenues of flour millers could experience lower revenues due to

reduction in key products, further exacerbating the already anaemic position of companies grappling with ebbing top lines. There has been a reduction in cost of raw materials in the books of the largest millers in Africa’s largest economy. For instance, Flour Mills cost of raw materials fell by 7.55 percent to N306.25 billion in September 2018 from N331 billion as at September 2017 while Dangote Flour Mills’ cost of raw material were down 8.60 percent to N64.25 billion

in September 2018 from N70.24 billion the previous year. Expectedly, cumulative cost of sales or cost of production of the three largest millers quoted on the floor of the bourse- Flour mills Nigeria Plc, Honeywell Flour Mills Plc, and Dangote Flour Mills- fell by 8.39 percen to N338.92 billion. However, these firms are spending more to produce each unit of products as cumulative average cost of sales ratio fell to 85.37 percent in September 2018 from 50.52 percent the pre-

vious year. Menacing gridlock at the Apapa ports, low consumer purchasing power, double taxation, and decrepit infrastructure, have hindered flour millers from delivering higher returns to shareholders. Nigerians are getting poorer as the clock ticks, as they are not motivated to open their purse string. After the recession of 2016, Nigeria’s economic growth has been sluggish, sitting at 2.38 percent in the fourth quarter of 2018, lower than the 7.50 percent

growth recorded a decade ago, according to the Nationl Bureau of Statistics (NBS). While inflation has improved to 11.37 percent for the month of January from 11.47 percent in December, it is still below the 6 percent and 9 percent CBN’s range. Of a weak economic have left most Nigerians without in their purse strings to buy consumer good products. 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 per capita income is around $2,030, but South Africa’s is $13, 090; Ghana ($4,490); Kenya ($3,250); and Egypt ($11,360) Of course these challenges hard hit flour mills top lines as cumulative sales for the month of September 2018 dipped 11.0 percent to N389.25 billion while the combined net profit margin fell to 2.19 percent in September 2018 from 5.62 percent as at September 2017. Combined profit after tax of the three firms were down 65.25 percent to N8.55 billion in the period under review, and a further cut in the price of products could deal a great blow on profitability.

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Diaper brands battle for market share amid growing demand OLUFIKAYO OWOEYE

n recent times, there has been a surge in the number of Diaper brands making entry into the Nigerian market. Of course the country’s growing population that crave for consumption offers opportunities for Diaper makers to tap into and increase their market share. Increase hygiene awareness campaigns, high birthrate, the convenience that it brings for the modern woman, especially working mothers, are some of the factors that have facilitated the paradigm shift by nursing mothers from the traditional use of clothes as diapers to disposable modern diapers. Ifeoma Okon, a nursing mother said the number of brands in the market keeps increasing every day. She further noted that price is a major factor most nursing mothers consider when choosing their brands. “The truth is some of these brands leave a skin reaction to babies and nursing mother must choose their brands

carefully” she advised. According to a retail owner, Godspower, the Nigeria market has over 15 diaper brands with each jostling for market share and dominance nationwide, while some have emerged as the go-to brands with a national spread, some are confined to regional play. Pampers, from the stables of Consumer Goods giant, Procter & Gamble (P&G) is the first diaper brand ever produced and marketed in the country. The product made its entry into the Nigerian market in 2000, and over the years, the brand has dominated the market space and has also gone through various transformations and brand extensions. However, the arrival of new brands into the market caused a disruption, challenging Pampers hold on the title of ‘market-leader’. In response to the threat posed by the new entrants, and in a bid to increase patronage, Procter & Gamble (P&G), added Pampers Baby Dry and Pampers Premium to its diaper variants. The company also commissioned a $300 million industrial plant in Agbara,

Ogun State. However, in an unexpected turn of events, Nigerians woke up to the news that P&G has decided to shut down its plant in Agbara, Ogun State. While many attributed the closure to the inability of the company to cope with the growing competition in the market, management of the company said that it was part of its restructuring exercise in its Nigerian operations. An assurance was given that it would continue to operate in the country, albeit from its Ibadan plant only. In a market survey by BusinessDay, another brand that has taken the market by

Latest smartphone brands to watch for in 2019 (Part 1) BUNMI BAILEY

rom ever-shrinking bezels to dual rear cameras trickling down to budget devices, smartphones have changed radically in 2018. And consumers are about to experience more, new and innovative things in 2019. Brands like Samsung, Tecno, Huawei and Nokia has launched new versions of phones in the market. Although Brands like Tecno and Nokia had unveiled theirs in December of last year, these phones started penetrating the Nigerian market this year. According to the Jumia Mobile Report Nigeria 2018, Nigeria is fast becoming a mobile-first country with 162 million subscribers and penetration rate of 84 per cent in 2018 from 53 percent in 2016. And there are expectations from analysts at Counterpoint Research that the smartphone market in Nigeria may grow in double digits in CY 2018, driven by the entry of new players and changing OEM strategies. The top on the list is the Samsung Galaxy S10 series which was launched in February in order to celebrate a decade since the launch of the first Galaxy S. It is a step

up from its series 9. It comes in three series which are the Samsung S10, S10plus and S10e.With these new series, consumers can now do more of what they love. The Samsung Galaxy S10 series is set to hit the Nigerian market either this month or next month. The phones are currently pre order by consumers. According to Gargets 360, India’s biggest technology news website, the Samsung Galaxy S10 comes with a 6.10-inch touchscreen display and an aspect ratio of 19:9 and is powered by a 1.9GHz octa-core Samsung Exynos 9820 SoC processor. It comes with 8GB of RAM and its price ranges between N300, 000N350, 000 The Samsung Galaxy S10 runs Android 9.0 and is powered by a 3,400mAh non-removable battery. The

Samsung Galaxy S10 supports wireless charging, as well as proprietary fast charging. The Samsung Galaxy S10 measures 149.90 x 70.40 x 7.80mm (height x width x thickness) and weighs 157.00 grams. It comes in colours like Prism Black, Prism Blue, Prism Green, and Prism White colours. It features an IP68 rating for dust and water protection. And as the cameras are concerned, the phone on the rear, packs a 12-megapixel primary camera with an f/1.5 aperture; a second 12-megapixel camera with an f/2.4 aperture and a third 16-megapixel camera with an f/2.2 aperture. The rear camera setup has phase detection autofocus. It sports a 10-megapixel camera on the front for selfies, with an f/1.9 aperture. The front camera also features autofocus.

storm is Molfix Diaper from the stables of Hayat Kimya Nigeria Ltd., the fifth largest producer of Diaper in the world. Since making entry into the Nigeria market, it has been well received by nursing mothers. According to a market report by AC Nielsen, Molfix has taken over 44% diaper market share totally eclipsing Pampers. In an effort to boost its market penetration, manufacturers of the Molfix brand adopted a lower pricing regime which makes it affordable for the middle-class mothers. It also has a strong

distribution channel throughout all retail chains in both rural and urban areas, which makes it easily accessible. To be able to challenge the Pampers brand, Molfix invested $100 million in constructing an ultra-modern diaper/ tissue paper factory in Agbara Industrial Layout, Ogun State. The factory has the capacity to produce 1.3 billion units diaper and 13,000 tons of tissue paper per annum In terms of price strategy, Molfix is doing well in offering lower prices for quality products, while investing in backward integration to cut costs. With the company generating

its own power, the cost of production is lower and there is more control over pricing. Another big player in the market is the Huggies brand from the stables of KimberlyClark, an American multinational personal care company. The company recently announced plans to close its factory in Lagos in the second quarter of 2019 and build a new factory with advanced technology in its place. Findings by BusinessDay also showed that besides the children diaper, the use of adult diapers sale is also on the increase occasioned by persons with health challenges. A retailer, at the popular Ikeja mall, Mrs. Benedict told BusinessDay that the competition taking place in the diaper market is hitting hard on premium brands, adding that the segmentation trend has forced manufacturers and consumers alike to begin to play at the low end of the market. “This has put pressure on the market leaders like P&G, Huggies, and Hayat, who cannot compromise on quality because of the competitive strategies of fringe players in the market,” she said.

Kohinoor Experience Hub to provide lifestyle, retail experience for Nigerians BUNMI BAILEY

igerians seeking various lifestyle experiences will have most of their expectations fulfilled at the opening of The Kohinoor Experience Hub, a one-stop mall where amongst other things, lifestyle meets retail. Nkenie James, the commercial head, hinted journalists at a media briefing held at the company’s corporate head office at Kusenla, IkateElegushi, Lagos, that The Kohinoor Experience Hub is fully ready to hit the market and public space in the last week of March. James further revealed that The Kohinoor Hub is a one-stop center which hosts a supermarket – Madiba Mart, a restaurant, lounge and bar – Kohinoor Lounge, a pharmacy, a bakery, a fast food place, a farmers’ mart, an ice creams place, a café, a workzone with amazing work stations for lease. The mall has complimenting shortlet apartments, which, as well, hosts on its rooftop the Skyline Lounge, Skyline Spar and Skyline Gym.

Analyst: Bunmi Bailey Graphics: Fifen Eyemisanre Famous

“We have over 10 business units. Our Kohinoor E xp er ience Hub w ould be bringing a huge fascinating go-to-place for all lifestyle desires of her clients. By providing the convenience of shopping at affordable prices that gives one value for money, a place to relax with friends and a workzone that enables networking, amongst other offers, The Kohinoor Mall designed with exciting and tranquil ambience, incorporates the yearnings of all age groups under one roof. As part of our plans, we will be having amazing activations and discounts for customers on opening,” James revealed. She further added, “In a way to make our services second to none and ensure the continual satisfaction of our customers, we have invested in human capital development and intense trainings for our staff. There are plans in place to continuously update our training and innovate to maintain the greatest of standards. Close relationship with farmers for the farmers’ mart will see us add value to the agribusiness

and help local farmers grow and improve. She further stated that the launch of Kohinoor is the first of its kind in the neighbourhood. The company intends to bring in the vibes to the area with a huge difference from what is currently obtained in the industry. To further provide convenience, online shopping is available, where customers can purchase online, and their orders will be delivered to their doorsteps. There will also be two automated teller machines (ATMs) set up outside the mall to serve the residents in the environment. James reiterated with optimism that the opening of The Kohinoor Experience Hub would not just offer a lifestyle experience to customers but will also boost the nation’s gross domestic products as it will be creating opportunities for locally made products to gain exposure, acceptance and meet the needs of consumers, while The Kohinoor Hub Experience is going to provide a daily lifetime of exciting offers to everyone regardless of the age.

Thursday 07 March 2019

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Corporate Social Impact

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Onuwa Lucky Joseph (08023314782) Editor.

That MTN Drug Abuse Campaign ONUWA LUCKY JOSEPH

rate Social Impact CSI, we cannot but commend MTN for its wellcrafted video against drug abuse. It is very creatively executed and captures the demographic in a strong way. We expect more corporates to get involved in this fight, because with drugs come a raft of other vices that societies can’t cope with should they be allowed to expand. We expect especially the pharmaceutical sector to be stronger in this campaign. In the same way that the alcoholic beverages have the Don’t Drive and Drink Campaigns, it is important that the pharmaceuticals acting either jointly or as separate entities reach out via media and other advocacy campaigns to the demographic with compelling reasons why they

t us e d to b e that dr ug abuse was a fringe problem amongst Nigeria’s young people. While it was always there, as it does exist in every other society, Nigerians were generally considered low consumers and more of couriers who ferried from production centres to areas of high drug consumption. However, in recent years, the narrative has changed drastically. Owing in no small measure to peer influence, parental neglect, joblessness, and a growing sense of frustration, amongst other factors, young Nigerians now make up the bulk of the ever swelling ranks of Nigerian drug abusers. Only last year, some pharmaceutical companies were closed down briefly, government having identified them as manufacturers of some of the drugs which, though legitimate, had become the major sources of drug abuse. High on this list are Codeine and Tramadol. There are stories told, from all over the country, of young people who live life in a funk owing to the consumption of copious amounts of codeine-based cough mixtures as well as tramadol. However, as with many Nigerian problems, it has recessed somewhat even though in reality the issue is exacerbating rather than abating. Children in secondary school are high on cheap and not so cheap drugs. It’s very bad in the Niger Delta area but also in the Northern part of the country, Kano being a prime centre in view of its population and the social dislocation occasioned by unemployment and an army of young people, male and female who have nothing worthwhile to do with their lives. While not a single celebrity death in Nigeria has been attributed to drug abuse, the reason that is so is in large part our tendency to not speak ill of the dead. If there’s the likelihood of causing any embarrassment to the memory of the dead or to his family that’s still alive, every effort is made to shield the truth from the public. However, in the West, with its celebrity culture and corresponding culture of openness and transparency, it’s on record that lots of celebrities have had their lives and promising careers cut short by succumbing to the lure

of drug abuse. That trend has been on for quite a while. Below is a very short list that captures nowhere near 5% of deaths from drugs. Dinah Washington, died in 1963, Secobarbital and Amobarbital (39years old), Jimi Hendrix, 1970, Barbiturate (27) Janis Joplin, 1970, Heroin (27) Sid Vicious, 1979, Heroin (21) John Belushi, 1982, Unknown (33) Kurt Kobain, 1994, Suicide, while high on heroin (27) Ike Turner, 2007, Cocaine (76) Michael Jackson, 2009, Propofol and Benzodiazepine (50) Whitney Houston, 2012, Cocaine (48) Prince, 2016, Fentanyl (57) Truman Capote, 1984, multiple drugs (59) Rodney King, 2012, drowned under the influence of alcohol, cocaine, marijuana, (47) Gerald Levert, 2006, multiple drugs (40)

Even though thousands of ordinary citizens also die of drug abuse, the fact that celebrities routinely make the news as a result of death caused by drugs is explanatory of one major cause of the drug epidemic. The very folks that our young people look up to, that they want to be like live high and flashy. They get the best girls and the best guys. They wear the best clothes, own the best homes, and at least from the characters they depict onscreen and online own some lovely yachts and vacation in glamorous locations. It’s the life our young folks want to live. And why not? What is interesting about the daily misery that they encounter at home and outside their homes? Tackling the menace would definitely require the combined efforts of players at different strata of society, including government, civil society and the general citizenry. One group however that needs to up its game in this regard is the organised

private sector. Even though Nigeria is bursting at the seams with young people, they need to stay healthy mentally and physically in order to be able to contribute to any sector. Seeing therefore as the demand for young workers is bound to rise, the corporate sector share of voice in the war against drugs needs be much higher. That’s why at Corpo-

must not abuse drugs. Advertising and other communication agencies are on standby to help play a big role by ensuring that creative and compelling messages are crafted which address the issue and which ultimately help Nigeria bring down the numbers through prevention rather than high cost cure.

vote en bloc for him at the Federal Constituency elections, (he lost the elections), he elected to decommission

the borehole. Logic? Little is unacceptable from whom much had been given. (Scratch your head).

The Legislator and His Borehole

nayo Neb e, (AP GA), represents Awka North and South Federal Constituency in the Federal House

of Representatives. Just before the elections he had made an effort to incentivize the Amachalla Community by

commissioning a borehole to help meet their clean water needs. But after determining that the community did not

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Corporate Social Impact

Making HIV test a condition for employment is illegal – NACA DG ONUWA LUCKY JOSEPH

ack when HIV was the undeconstructed hydra headed monster, no one felt safe with an HIV infected individual around them. You couldn’t sleep on the same bed with them, couldn’t share spoons or a meal, couldn’t share cups, couldn’t share sits or live in the same space. Back then, if you were positive, you were either tight lipped about it or you committed suicide. If you didn’t do either, there was no hiding the symptoms which would become manifest in quick time leaving everyone in the know about that terrible secret you were hiding and as well leaving them no choice but to have you isolated. But things have since changed. ‘AIDS nor dey show for face’, to echo that popular commercial. The healthiest looking chaps just might have HIV. It’s not the death sentence it once was. There are drugs for managing it and keeping people healthy and

productive. Former basketball star and now business mogul, Magic Johnson, has remained the perfect poster boy. After coming out in 1993 as HIV Positive, he has not shrunk in size like Rock Hudson and other 80s/early 90s victims did. Much progress is being made in

tackling the disease. Unfortunately, in Nigeria, some corporate organisations still insist on an all clear from HIV before you are employed. That is DISCRIMINATION in Bodoni Bold! Despite the provisions of the National Workplace Policy on HIV/AIDS

Promasidor steps in for parents of kids with special needs ONUWA LUCKY JOSEPH

he stress of taking care of children with disability is better imagined. Especially over here where there are no safety nets available for the mass of the people. This is in addition to the social stigma that sometimes accompanies the condition and the emotional issues that come with that. To help mitigate these and to put the parents and guardians of children with disabilities in a better position to manage their circumstances, Promasidor Nigeria Limited has teamed up with the Children’s Development Centre (CDC), to come up with a low interest micro credit scheme tagged “We Too Can Grow”. The scheme is taking off with a grant from Promasidor which is being disbursed through cooperatives. The Special Adviser to the Lagos State Governor on Social Development, Mrs. Joyce Onafowokan, while commending Promasidor, lamented the ignorance of many with regards to the pains that parents with such children go through. “Some of these parents do not have academic degrees”, she said, “so they need to be empowered and trained in skills to help them take care of their children.” And would you know, “Medication of some of these kids are costly”. With the expected financial boost from the Promasidor/CDC Scheme, at least some parents on the lower rungs of society can now afford to start new businesses or inject fresh funds into existing businesses in order to give them more traction. There’s nothing worse than a parent looking at a child who is not well and knowing what to do but

reduced to a mere watcher having been financially incapacitated. To quote the SA, “The programme will boost the self-esteem of the parents. When you have a child with a disability and somebody steps up to say, ‘I will support you,’ the journey is easier. I feel very excited that this is coming from a corporate entity”. Continuing, she said, “It takes a community to raise a child, and this includes individuals, corporate entities and the government. Through this initiative, Promasidor has demonstrated that it is sincerely concerned about the total development of the country”. It was with this in mind that Mrs. Onafowokan promised that the State Government would partner with CDC and Promasidor to ensure that the programme enjoys deeper penetration. Our hope is that this promise will not end up like most government promises which are voiced enthusiastically but never actuated. Andrew Enahoro, Promasidor Head of Legal and Corporate Communications, while affirming the company’s interest in the development of young people however said his company believes “no segment of the society should be ignored in building a nation. ‘We Too Can Grow’ is a way of saying that we recognize that children with special needs are bona fide members of the society. They have the right to pursue their dreams like other members of

the society do.” Expatiating further on the scheme, Mrs. Delphine MisanArenyeka, CDC consultant and development expert, said ‘We Too Can Grow’ encompassed microcredit, therapy for the children and skill acquisition. “The whole idea is to empower the under-privileged parents and guardians of such children”, she said, adding that some guardians of children with special needs found it difficult to keep regular jobs. As well, some of those who had businesses could not expand because of the huge demands of caregiving. Some work for only two or three hours daily but spend the remaining time taking care of their children. “Some of them are so poor that they cannot even feed their children much less giving the required medications. We hope this scheme will make a lot of difference in the lives of the affected individuals,” she revealed. We believe it will. It is high time Nigeria started doing the needful for its special needs individuals especially the children. It will be a much better place if everyone, by virtue of being citizens of Nigeria can look forward to some lightening of their load. Kudos to Promasidor for taking the initiative in this regard. It’s not an area that many corporates would look at. And we consider what is being done a beginning, believing there will be a coalition of efforts from several quarters to help alleviate the pains and sufferings of special needs Nigerians There’s nothing worse than a parent looking at a child who is not well and knowing what to do but reduced to a mere watcher, having been financially incapacitated.

(2013) and the National HIV/AIDS Anti-Discrimination Act (2014), most states are yet to pass the law. This makes it a little difficult to manage cases of discrimination. However, according to Dr. Sani Aliyu, the DG National Agency for the Control of AIDS, (NACA), “The issue of stigma and discrimination is something that really continues to worry me because we cannot effectively tackle HIV if some people are still living with the stigma. I have never met anyone who willingly went out of his way to contract HIV”. Very true, there. Or do you know one such person? “Secondly”, continues the DG, “HIV is not even that infectious. There are other infections that people should run away from rather than HIV. Ebola, Lassa fever and even Hepatitis B is a hundred fold more infectious than HIV. Tuberculosis is more infectious. If you see someone with HIV on the road, you may not even notice because people are doing so well managing it”. Insisting that NACA will not tolerate stigma and discrimination, he of-

fered that NACA had done a lot of work in the recent past with people living with HIV who had had issues with their employers. “We have supported them with legal persons. Certainly, if we are aware of anybody who has been discriminated against, where employers are making HIV test a condition for employment, it is illegal. We will definitely make an example of employers that we know are trying to continue with this trend because it is unacceptable. A 2012 study of stigma among people living with HIV in Nigeria showed that 26 per cent of those surveyed had lost a job or source of income in the past year due to HIV-related stigma. Even worse is the knowledge that some schools close their doors against kids who are known to be HIV positive. “Unacceptable!” bellowed the DG. He called on schools and employers of labour to know that there is a law in place against discrimination and that if they were caught flouting that law, NACA will support the employee in taking them to court and make sure they get justice.

HP to empower 100,000 African entrepreneurs

P is following through on its pledge to empower 100,000 learners across Africa in the next three years through the HP Foundation’s HP LIFE (Learning Initiative for Entrepreneurs) programme. The commitment was made at the Global Citizen Festival: Mandela 100 which celebrated the 100th birthday of the former South African President, Nelson Mandela. HP had announced at the event its strategy to reach the 100,000 learners through the HP Foundation’s HP LIFE programme. To show its commitment, it opened a new tech-enabled HP LIFE Center in South Africa to support local entrepreneurs. The effort is being made, cognizant of the fact that by 2030, Africa will be home to 32% of the population under the age of 30, and the largest working age population by 2035. Yet, today’s youth unemployment in Africa is up to 3 times higher than adult unemployment. It is for these reasons that HP LIFE offers free, online learning for users to gain the skills to start and grow their own business or improve their employment opportunities. Building on the success of this global programme, HP is working with partners to open technology-enabled HP LIFE innovation centres to further support entrepreneurship and workforce development across the continent. “We believe that education is a human right, that technology in the classroom is a critical component for a 21st century education, and that in today’s economy our learning is never done,” said Nate Hurst, Chief Sustainability and Social Impact Officer, HP. “Africa is experiencing rapid

urbanization and digitization—and it’s essential that people have access to learn skills for the work of tomorrow. This new HP LIFE Center provides a launchpad for innovation and opportunity across the continent.” In collaboration with institutions such as the Ekurhuleni West TVET College in Katlehong and its Centre of Entrepreneurship Rapid Incubator, HP opened the HP LIFE Center in South Africa on November 30, a technology-enabled hub to facilitate learning, collaboration and entrepreneurship in a physical, face-to-face setting. Built on the belief that entrepreneurs are the backbone of the global economy, HP LIFE offers 30 free, online courses focused on business and IT skills – from business planning and marketing, to raising capital and design thinking. To date, HP LIFE has reached 744,000 learners in 200 countries and territories. All users need is a computer and Internet connection to access HP LIFE, and the new, physical center in South Africa will create a more formal educational environment. HP LIFE has an enrollment goal of 1 million users between 2016 and 2025. At the World Economic Forum’s 48th Annual Meeting in January, Youth for Technology Foundation (YTF) and HP Foundation announced a new 3D printing course to be delivered through the HP LIFE platform. 3D printing will fundamentally change the manufacturing industry. $4 to 6 trillion (USD) of the global economy will be disrupted in the next five to 10 years, shifting economic value and jobs across the globe. This new course is helping individuals to learn how to use 3D printing and create entrepreneurial opportunities.

Some CSR takeaways from the responsible business summit ‘13

usinesses cannot be successful when the society around them fails.” “We need to give leaders the time, space and resources to think if we want business to drive sustainability transformation.” “Business has come to believe the solution to problems lie within their own resources rather than in collaboration.” “When we inspire people by explaining why the destination is important, they develop the motivation to see the race through.” “CSR can be very hard for employees to relate to if we don’t make it tangible to their

everyday working lives.” “CSR isn’t a particular programme, it’s what we do every day, maximising positive impact and minimising negative impact.” “Loyalty is to the values of the company, not to the company. If there are no values, there is no loyalty.” “When the wind blows there are those that build walls and then there are those that build windmills.” (Courtesy HRZone.com) (For feedback, contact us at csrmomentum@gmail.com/ 08023314782)

Innovation

Apps

Fin-Tech

Start-up

Gadgets

Ecommerce

IOTs

Broadband Infrastructure

Bank IT Security

27 One year later, Gokada morphs into full tech transport company Thursday 07 March 2019

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FRANK ELEANYA

or many Lagosians who go through the daily stress of the traffic gridlock in most parts of the city, the option of hailing a commercial motorcycle - or okada as it is called in Nigeria, on their mobile phone in the past one year has provided some form of relief. Last week, one of the companies behind that solution said it is exploring other forms of transportation which it believes will significantly reduce traffic in the state and other parts of Nigeria. Gokada, a technology company that has brought a corporate touch and automation to okada business in Nigeria clocked one year on Tuesday, 26 February, 2019. For Deji Oduntan, who started the company with 20 motorcycles in a one room apartment at Yaba, the anniversary was a time to reflect and project its dreams into the future. The company have gained prominence with offering ondemand motorcycle taxi app and in doing so it has carved out a sizeable share of the $1 billion okada ride-hailing

market in Nigeria. For instance, the number of okada, in Gokada’s fleet has since grown from 20 to about 1,000 and completed 5,000 rides across Lagos’ mainland each day. Its customer base has also surged to over 100,000 which sort of create pressure points for the company. But Oduntan told BusinessDay that it is not only its on-demand ride service that will take it to its desired destination. The company has many ambitions. At its new head-

Nigerian online sports firm, 4 others compete for MEST’s $50,000 investment FRANK ELEANYA

igerian-based online sports company, AMPZ has been shortlisted among five promising startups across Africa to compete for a $50,000 equity investment, a place in the MEST Africa incubator of their choice and global mentorship to help their company scale. The winners will also pitch on a global stage in the finals at the fourth MEST Africa Summit scheduled to hold in Nairobi, Kenya, June 10-12. In a statement BusinessDay received, the organisers disclosed that the five startups were selected from nearly 1000 applicants from across the continent. “The winning startups stood out as a result of their impressive revenue growth and potential for expansion,” Aaron Fu, managing director MEST said in the statement. “There have been a growing number of companies who have managed to scale in a variety of sectors; so this investment will be vital in aiding these companies to join this expanding group.” The five finalists include

AMPZ.TV (Nigeria), data insights company OZE (Ghana); real-time cyber security platform Snode Technologies (South Africa); fintech company, WayaWaya (Kenya); and agritech company Seekewa (Cote d’Ivoire). Judges at the regional finals in Nigeria had included industry leaders such as Kola Aina, founding partner at Ventures Platform and Soromfe Uzomah, head of Strategic Partnerships (Africa Initiatives – 4Afrika) a Microsoft. AMPZ.TV the winning startup leverages technology as a tool to tackle issues around access to information and exploitation in African sports. The self-styled LinkedIn for Sports in Africa, provides sports talents on the continent access to verified information on opportunities and exposing them to scouts and agents across the world. The winner of the finals will be the second company to join MEST Africa’s portfolio without going through the MEST Training Program. The winner will also be joining the 2018 winner, Nigeria’s smart accounting platform Accounteer, which has since gone on to expand into Kenya and raised additional funding.

quarters on Tinubu Close, Ilupeju, the company has commissioned a good artist to highlight some of its future projects on a white wall. The projects include ferries, bicycle, and commercial buses amongst others. Oduntan believes that for a city like Lagos to grow to its full potential, businesses and people should be able to move about freely with comfort, quickly and safely. An intermodal transport system will only ensure that the time millions of people waste in

traffic is drastically reduced. “We don’t see Gokada as just a motorcycle hailing company,” says Oduntan. “We are investing in different means of modern transportation; the idea is to get people to their destinations as fast as possible and in a safe manner. We are rightly positioned to offer multiple services.” Among the many things the new headquarter has been scheduled for, one of the most important is a training school for drivers. This became expedient giving the

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surge in demand for Gokada’s services by customers and different feedback the company received. It is also part of a top of the list agenda of building Gokada into a recognisable brand. A courteous driver makes a happy and a loyal customer which rubs off on the brand. “We understand the reason okada was banned in Lagos,” says Oduntan, recalling a period in 2017 when the Lagos State government placed a ban on drivers from plying about 520 roads including major highways and bridges in the commercial city. The government had cited heightened security concerns and potential breakdown of law and order. Gokada’s model of verifying the drivers, providing and mandating riders to use helmets and pioneering hair nets worn under the helmets have since changed the narrative of the government and many Lagosians. So far the company has recorded 0.01 accident rate. Gokada hopes that its testimonial will also break down the walls of resistance put up by gated estates. Many estates in Lagos State do not allow okada drivers within their

environs. The company is in talks with some estate administrators to consider ways of leveraging Gokada’s services for residents within those estates. It currently services one of the big estates on the Lagos mainland. The new school however can only take up to 500 drivers per session. It is a good start. Nevertheless, it does not fully address the growing demand the company is now saddled with. There are also requests coming from states outside Lagos. Oduntan says it is an opportunity for the company to start considering investments in other modes of transportation. Providing ferries on Lagos waterways appears to be the next big project on the list, but Oduntan says there is the government side that needs to be addressed. The Lagos State government has made several promises to provide water infrastructure that will enable commercial water transport companies do their business with peace of mind. Gokada has instead set its sights on the logistics market for the meantime. “We need to make good use of our motorcycle assets,” he says.

Google demos African-tailored apps for Next Billion Users of the Internet CALEB OJEWALE

ut of an estimated 7.5 billion people o n e a r t h, o n l y about 3.2 billion have access to the internet, with the remaining population largely disconnected and unable to benefit from the immense benefits of the internet. To address this, Google is making plans to accommodate the Next Billion Users (NBU) of the internet. As part of it plans for this, the company is creating awareness of products that support connectivity for those challenged with internet access; particularly where it is poor or almost considered a luxury such as in Nigeria. The apps are meant to make it easier for users to connect to the internet, without worrying much about data consumption. In YouTube for instance, “YouTube Go lets people watch videos without worrying about Data,” said Adetutu Laditan, product-marketing manager for YouTube. Dubbed the NBU House, Google at an event hosted this week, gave users a chance to interact with the products it has developed specifically for the Next Billion Users (NBU)

of the internet. Currently only 36.1 per cent of Africans have access to the internet, according to Internet World Stats. According to a widely quoted World Bank research, for every 10 percent increase in broadband penetration in developing countries (like Nigeria), a corresponding 1.38 percent growth in Gross Domestic Product (GDP) will be achieved. Invariably, increasing access holds prospects even for an improved economy. Google’s Next Billion Users initiative is described as a company-wide drive to make its products and features more relevant to the emerging markets, taking into account the access challenges experienced by people in Africa. “We see a lot of potential in Africa to bring a huge population online,” said Juliet Ehimuan-Chaizor, Google country director, Nigeria. According to her, Google’s NBU initiative aims to further its mission of creating a more inclusive internet by creating products and features that are tailored to the needs of people in countries where they experience the internet on a mobile first basis, but have data, network and hardware constraints. “Today’s

event serves to showcase the progress we have made so far,” she said. The eight NBU products Google has announced in Sub Saharan Africa to date include; Google Go, Gmail Go, Android Go, Maps Go, YouTube Go, Datally, Files by Google and Google Station. Google Go: Launched in Nigeria in April 2018, Google Go was designed specifically to provide a vastly improved and better way to browse the internet. It works perfectly on high-end smartphones as well as for the next billion users, who are coming online with low-end devices with poor connectivity. Google Go is available on Android to users in Kenya, South Africa and Nigeria. Gmail Go: With Gmail Go, users are able to access a light, fast and smart inbox that keeps their messages safe and organised, allows them to read email both online and offline, and includes 15GB of free storage. AndroidTM 8.1 (Go Edition): Android Go, also referred to as Android Oreo (Go edition), is the slimmed down version of the Android Operating System released for entry-level phones. It provides data savings, great security,

Team: Frank Eleanya, frank.eleanya@businessdayonline.com; Caleb Ojewale, caleb.ojewale@businessdayonline.com

and high-end performance on low-end phones. Maps Go: Google Maps Go is pre-installed on Android Oreo (Go edition) devices. The app is designed to run quickly and smoothly on devices with limited memory and allows users to search for and get information about places, get directions, and see what is nearby their location. YouTube Go: YouTube Go launched in Nigeria in September 2017, and is designed to tackle challenges faced by YouTube users in countries like Nigeria, such as data costs and connectivity. It enables users to preview videos before they watch them, choose what resolution videos to watch and share videos instantly without using data. Datally: This is a smart and simple app that helps smartphone users understand, control, and save mobile data. Launched in November 2017, Datally enables users to track which apps use the most data, switch their data off at certain times (like bedtime) as well as blocking background app refresh and notifications which use data unnecessarily. The article is concluded online at http://www.businessday.ng/

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Balls in Motion: Achieving balance as a young female lawyer

younger friend of mine who got retained at a top tier law firm once reached out to me for advice. Her issue, “I have been retained at my firm, but I am not sure I can stay. I am getting married in a few months and I think with the demands of the job, going by my service year experience, I cannot successfully meet the demands of work and my marriage”. I have since found out that there are many more like her who are battling this confusion. Many female lawyers grapple with this seeming competition between various aspects of life and in some cases, female lawyers feel, short-changed, disappointed or, putting it in one word, like failures when they have to review or make choices between career success and success in other aspects of life. There is no doubt that the demands which make for progression and career success seem to be at loggerheads with other aspects of our lives, be it marriage, raising children, bonding with family, hobbies and leveraging personal ambitions; however, I think the origination of the issue lies first with how we think about career success vis-à-vis the other aspects of our lives. Often times, the phrase “worklife balance” is used to describe the rule of thumb that we should adhere to, implying that there is a world called work and another called life that you should strive to balance. I would like to think that it is not the complete story. There is no such thing as a world of work which is distinct and separate from the other aspects of our life. Work is part of your life and is not to be rated differently in the course of decision making and prioritisation. In other words, there should not be a time when you esteem work and jeopardise personal well-being.

Let me clarify, life in general, often demands that we make sacrifices and prioritise options, the cost of embracing a decision may be equal to a loss of another opportunity; Work should not be that option that obviates the relevance of the others. Your wholeness and total wellbeing is crucial and career success which does not take this into context is a pyrrhic victory. For many, this has been the gateway to grave unhappiness. That said, one cannot ignore, the gross disservice that women generally and young female lawyers have to endure for prioritising personal well-being when it is necessary. In some cases, they are literally punished, undergoing pay cuts, delayed promotions, poorer pay, general disregard and stereotyping and worst but by no means the least, abuse. The stories are numerous, and it is important that personnel managers in the legal services industry review the ethos of their organisations to accommodate the peculiarities that managing female personnel entails without detriment to them. It is also important that compliments be served on organisations who have taken the effort to create systems which ease the process of assimilation and growth and increasingly so, many organisations are setting up human resources infrastructure which enable women achieve efficiency with work. In one organisation, women returning to work after maternity need not bat an eyelid about the wellbeing of their infants, there is a creche provided to facilitate better oversight of their children while at work. In another, nursing mothers can work from home where it is necessary for them to personally oversee their family affairs. These options are not only commendable, they are necessary.

In the next paragraphs, I will elaborate on certain tips that young female lawyers can adopt to improve the quality of their lives and achieve a world which they can claim is balanced but I will like to emphasise that the responsibility for your wellness lies with you and it is your ultimate duty to ensure that you prioritise personal wellbeing in the course of your career decisions. As such, it is important to properly review the stakes you have to face at each point in time and ensure that you are not jeopardising personal wellbeing for career advancement; they work hand in hand. I will also like to single out the elephant in the room and prob-

ably the largest competitor; dealing with work after marriage and childbirth. For many female young lawyers, the demands of juggling responsibilities when pregnant, raising toddlers could be very challenging. Numerous young female lawyers have quit practice because of the pressure of work at this point; in some cases, they have done so prematurely and unnecessarily. It is important that we are more cautious to review our options and not set unnecessary limits when all that we need is proper prioritisation. You do not have to lose your family because you want to get ahead with work. The balls are always in motion, whether it be work, family, hobbies, ambition. You need to

keep them all in order and I share some tips below: Prioritisation: Learning to prioritise is a critical tip for attaining success. As you are at the beginning stages of your career, you may be finding it difficult to deal with new tasks and the learning curve may be long. It is important that you learn to decipher what is important to do per time and apply your energy circumspectly. Often, we complain about the system but our stress stems from a failure to prioritise responsibility and do the right thing when necessary. Speak Up tactfully: In her book “Lean In”, Sheryl Sandberg tells the story of how she had to grapple with grossly inconvenient parking while pregnant and how it was only then that she realised that there was need for management to review how parking was laid out to accommodate the need for pregnant women to have shorter walks to the office. Until she was a “victim” she did not know there was a problem despite being a leader in the organisation. Sometimes, championing the review of gaps or advocating better way of doing things may just be the difference between your sanity and total disorder. Please note that this is not a licence to be rude, make inordinate requests or declare war on your organisation. The ultimate goal of improving the quality of life of personnel is the success of the organisation. It is a win-win situation where there are solutions which make delivery at work more efficient. Tactfully communicate your suggestions, preferably through the human resources department (where applicable) or the personnel managers within the organisation and detail the benefits that it would yield. It is not mandatory Continues on page 30

NBA-SBL in collaboration with LBS, NIALS, Babcock Uni for Commercial Law Centre

s part of its vision and objectives to enhance capacity of its members and stakeholders, the Council of the NBA-SBL plans to establish a Centre for Commercial Law Studies (CCLS) that would replicate and be operated like the Queen Mary College, London. The Centre, when fully set up will deal with capacity building for members as well as serve as a Diploma awarding Institution. To this end, a Taskforce for the actualisation of this vision was set with Osaro Eghobamien, SAN, as the Chairperson of this Task Force/Committee. The Committee has since commenced its engagement with key Institutions such as the Nigerian Institute for Advanced Legal Studies (NIALS), Lagos Business School (LBS), Babcock

University to collaborate with it and berth the CCLS in Nigeria. Earlier this week, the leadership of the NBA-SBL Council and members of the Eghobamien-led taskforce had meetings

with NIALS, LBS and Babcock University to firm up plans for collaborations and establishment of the centre. These institutions, by virtue of their reputation, are

expected to provide content and other valuable information for the Centre, researches and empirical studies/practical teachings, legislative and regulatory trainings, bridge the

PHOTOFILE

L-R: Bankole Shodipo, NBA-SBL Chairman, Seni Adio, SAN, Dean of LBS, Dr Enase Okoned, Osaro Eghobamien, SAN, and NSA-SBL Administrator, Endurance Uhumuacbi

A group photo of the NBA-SBL Team and the LBS Team

gaps in legal trainings, make the participants fit for industry (market) purpose as well as assist in the sensitization of their various sector stakeholders about the CCLS.

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Highlights of European General Data ‘Clifford Chance Choice’ brings disruptive Protection Regulations change to the world of work GLOBALREPORT

eliance on internet electronic communication continues to increase. With its numerous benefits also come risks that legislation needs to address, and stay ahead of wherever possible. This is particularly as Data Harvesting and Processing, especially Big Data in the social media sphere, are now very lucrative legitimate and illegitimate businesses. The European Union (“EU”) General Data Protection Regulations (“GDPR”) is arguably now the world’s most up-to-date legislation on Data Confidentiality, Privacy and Protection for EU Resident Data Users or Subjects. A good example of the far reaching effect of the GDPR are the data breaches fines imposed on Google by France; and the on-going data breaches investigations by the EU on Facebook and some android companies. Organisations who have access to, and or process EU Residents (and non-EU residents) electronic data must therefore pay more attention to the new, salient and special provisions of the GDPR, some of which provisions are highlighted in this newsletter; most of which material are sourced from the 400+ pages Handbook on European Data Protection Law, 2018 Edition.

Key EU Data Protection Provisions A key, fundamental objective of the EU GDPR is not only the protection and safeguard of EU Resident Data Users rights to privacy but also their rights to the confidentiality of their personal data. Both of these rights are now fundamental human rights under EU Law. Automated and non-automated processed electronic data are also now protected under the GDPR. With only statutory exceptions allowed, underlining the GDPR is the unequivocal consent of the Data User or Data Subject on how his or her personal data is collected, processed, protected and disseminated. The Data User is also granted the unfettered right to freely withdraw his or her consent as to the use of his or her personal data provided the GDPR principles on the lawfulness, fairness and transparency of how the data is

…Introduces work choices that support lawyers and clients

L managed are adhered to. Personal Data Breaches, whether accidental or otherwise, must be addressed by the Controllers, Processors and Data Protection Officers in a timely and appropriate manner by the latter parties notifying the completely Independent Statutory Data Supervisory Authority of any material Data Breach within Seventy-Two (72) hours of such a data breach. The Data User is also required to be immediately notified if the data breach is likely to cause high privacy and confidentiality risks to such a Data User or Users. In more severe cases, a public communication of the data breach and the measures to ratify such breach is/ are required. Remedies, Reliefs, Compensation and Fines Some of the initial remedies that Data Subjects or Users have when their Data Rights are infringed include lodging with the Data Controllers and Processors a Complaint, seeking either or all of the following reliefs:- Data Rectification, Data Erasure, Portability of the User’s Data, etc. These remedial assistances are to be provided without any charge, costs or fee to the Data Subject or User. Where resort to the Data Controller or Processor does not ratify the data breach, the Data Subject has the further right to resort to the Supervisory Independent Data Regulatory Authority in his or her EU country before a further resort to judicial remedies for material and non-material damages are explored. From the Supervisory Data Regulatory Authority are additional remedies of full and effective compensation for the data breach or breaches. The Supervisory Data Regulatory Authority has, in addition to the cor-

rective powers enumerated above, the additional power to impose administrative fines for any GDPR infringement up to €20,000,000 (Twenty Million Euros). Where the infringement is by an undertaking venture, the higher of the latter sum of 4% of the undertaking venture’s total worldwide annual turnover will be imposed for the data infringement. Data Protection and National Security To balance individual data rights with national security and public safety, i.e. Police and Criminal Justice administration as examples, the processing of generic and other criminal administration data by public justice authorities is permitted subject to the data protection regulations in the GDPR and the Budapest Convention on Cybercrimes. Underlining this exception is the principle that there must be substantial public interest to be protected, which interest is provided for by Law. Among other countries, Bi-lateral Personal Data Protection Agreements also exist between the EU and the United States law enforcement agencies.

eading international law firm, Clifford Chance on Tuesday March 4th, announced the launch of Clifford Chance Choice, a framework to embrace the changing world of work to support the needs of both lawyers and clients. Starting this week, the scheme will initially feature two pilot programmes for current Clifford Chance lawyers and alumni. Eligible Clifford Chance lawyers in groups that are part of the pilot will be able to apply to take two months of unpaid leave in the 2019/20 financial year. Also within this scheme, Clifford Chance Choice will have an option tailored for former Clifford Chance lawyers. Alumni with the right skills will be able to apply to work as part of Clifford Chance teams on specific projects, with the option to work flexibly and from home where appropriate. More information will be available shortly in the Clifford Chance Alumni Zone.

According to Clifford Chance Partner and Global Head of People and Talent, Laura King, explains that the firm prides itself on providing the best advice to clients on their most complex and critical work. She said, “People are our most valuable asset and we work hard to attract and develop the brightest and best. And with over 8,000 registered alumni working in over 3,000 organisations across 100 different countries, our alumni bring a wealth of experience and insights in every sector and region of the globe. “Clifford Chance Choice is about embracing changes to the world of work. It gives our people the choice to excel in work but also pursue other interests. It gives our alumni the choice to remain a part of the Clifford Chance family after they move on to other things. And it gives our clients the choice of a wider and flexible pool of motivated, brilliant lawyers,” King said.

Conclusion Consequences of Data Breaches, especially to individuals, could be severe; from Identity Theft to Fraud and other Financial Losses; infringement of an individual’s rights to privacy and confidentiality which could lead to Defamation; Copyright Infringement; Child Pornography; unlawful hacking and surveillance; etc. Enhancing Rudimentary Public Enlightenment on the importance of Data Protection is therefore an essential modern day requirement when using the internet.

PHOTOFILE Lagos State Chief Judge, Justice Opeyemi Oke, delivering her welcome remarks during the introduction of the new Scout Commissioner and the Annual General Meeting of the Lagos Scout Council stated the following; In her remarks, the Chief Judge encouraged other scouts to continually have unity of purpose for that is what can help us truly make the impact we yearn for and desire to see. The Lagos State Scout Council is a movement committed to making significant contributions to the development of young people for the purpose of achieving their full potentials as individuals, as responsible citizens and as members of their communities.

JEE holds dispute resolution roundtable in collaboration with INTA and CIArb

L-R, Jackson, Etti & Edu (JEE) Partners, Chinyere Okorocha, Uwa Ohiku, Principal Partner, Folashade Alli and Associates & CIArb Fellow, Folashade Alli and Chairman, CIArb, Adedoyin Rhodes-Vivour during a roundtable organised by JEE in collaboration with International Trademark Association (INTA), themed,’Arbitration & Mediation: Effective Resolution Mechanisms for Intellectual Property Disputes.’

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‘Legally Engaged’ commences mentor- IWDFEATURE ing of 178 students and young lawyers Female lawyers speak on gender parity, balance, ahead of International Women’s Day tomorrow

egally Engaged (LE), a career centre for lawyers, on Tuesday announced the commencement of the third cycle of its mentorship programme, the Legally Engaged Mentorship Programme. Aimed at connecting law students and young lawyers with successful practitioners who can provide them with information and guidance on a one-on-one basis, the LE Mentorship programme started out with a rigorous application process, in which a thousand applications were received and screened. Speaking about the programme, ” Yimika Adesola, Founder of Legally Engaged explained that the objectives of the Programme includes access to an experienced professional who can act as a sounding board in the face of critical academic or professional decisions and providing mentees with no-holds-barred answers to burning personal questions about university, law school and the legal profession in general. To encourage more effective and engaging mentoring relationships, mentors and mentees are paired on the basis of similar professional and personal interests. According to her, the third cycle of the Programme will run for a period of nine months and will give 178 students and young lawyers the opportunity to learn from some of the brightest minds in the legal profession. Participants on the Programme will also have exclusive access to materials, online workshops and other resources designed to make their career journeys a more intentional one. BusinessDay also gathered that Mentors on the Programme were Nigerian and foreign legal practitioners living and working in Nigeria, the United States, the United Kingdom, France, Germany, Canada and Sierra Leone, amongst others. The goal according to the organisers is to cater to the broad range of interests and aspirations of our 178 mentees, these mentors are experts and practitioners in a wide range of practice areas including academia, governmental and international development. “We are continuing in our mission to

s the world celebrates women globally on the occasion of International Women’s Day, tomorrow March 8th; the 2019 theme, #BalanceforBetter is focused on “Building a gender-balanced world.” Gender balance is critical for any society to succeed. To promote this year’s theme, gender advocates are pushing for a gender-balanced boardroom, a gender-balanced government, gender-balanced employment and more gender-balance in economic empowerment. Gender-focused law firms such as Duale, Ovia and Alex-Adedipe (DOA) and others are celebrating the achievements of their women and raising awareness against bias. Organisations take action for equality and help forge a more gender-balanced world. In this edition, six DOA women speak about their experiences at a law firm that is #BalancedforBetter.

unmask the legal profession in Nigeria and place Nigerian lawyers on an equal footing with their foreign counterparts by offering free one-on-one coaching and guidance to lawyers and aspiring lawyers courtesy of our network of selfless volunteer mentors,” Yimika said. Also speaking about the programme, Head of Mentoring at Legally Engaged, Ifeoluwa Ogunbufunmi highlighted the benefits of mentoring, stating that the journey into and within the legal profession was smoother with the insight of someone who has already travelled the road. “We do not believe that sound career advice and direction should be enjoyed solely by those who have relatives in the legal profession. As a result, the Programme is open to all Nigerian law students and young lawyers,” she said. The head of Mentoring also revealed that previous participants on the Programme have cited increased career clarity, acquisition of essential soft skills, foreign postgraduate admissions and scholarships, new jobs and internships, and access to a large professional network as some of the things they gained from participating in the Programme. “Thus, we are looking forward to this cycle of the Programme being even more impactful in bridging the gap between academic study and professional life for Nigerian legal professionals. We must thank all of our mentors for their sacrifice and selflessness in giving back to the profession. We look forward to the establishment of lifelong mutually beneficial relationships between our mentors and mentees,” Ogunbufunmi said.

SOIBI OVIA, “As a woman, wife, mother of 3 and a legal practitioner, success means finding a seamless work-life balance. DOA has provided me with a conducive environment to build my professional career in dispute resolution whilst maintaining a happy home front. The culture at DOA is inspirational. With one voice we are changing the narrative and leveling the playing field across gender lines. It is for this reason that the theme for the IWD 2019, #BalanceForBetter means a lot to me personally. Our work culture is phenomenal. DOA is balanced for better. ” KITAN AROGUNDADE, “The DOA woman is free from gender stereotypes in the workplace and there is no limit to what she can achieve. As a DOA woman, I own my career, I am #BalancedForBetter.” BOLANLE DABIRI ‘The DOA woman has the opportunity to earn her seat at the table and I like being her because she is poised to achieve so much and nobody but her can stop her. I am the DOA Woman and I am #BalancedForBetter.”

CHIKA OKE “Being an avid supporter of gender equality, I value the pedestal given to me as a DOA woman as there is no limit to what I can achieve. We need to challenge the status quo; we need to be #BalancedForBetter.” BUBARI AGARA “At DOA, it is great to see how women effortlessly demonstrate courage and leadership skills in various interactions throughout the course of the day. I support women empowerment and I support being balance for better. ”

Balls in Motion: Achieving balance as a young female lawyer Continued from page 28

that it is adhered to but often times, change starts because someone takes responsibility to speak up and change the status quo. Get help and delegate smartly: Being in more than one place per time is often restricted to sci-fi and thriller movies but the way some young female lawyers live begs the belief that they are omnipresent. One is set up for failure when she thinks she can handle every single task that is required for a seamless day. Where feasible, rely on help from family, outsource duties as is necessary to enable full concentration at work (or at home) when your attention is required. In getting help, be careful to ensure that the delegation is done to persons who are capable of handling the tasks with minimal risk of negligence or recourse to you. Watch yourself and reflect periodically: Success is wholesome, there is no successful career woman who is happy to manage ill health stemming from improper manage-

ment of her health and vice versa. The demands of work could be intense, and you barely have time to think but think you must! It is important to review and ensure that you are living optimally. i.e. balancing your efforts in all aspects of your life to ensure fulfilment of your objectives. This means that you take responsibility to assess your life progression from time to time and if there is an area where you have been negligent, take corrective measures, like, a holiday, additional time with family, applying time limits to work periodically, exercise and indulgence in hobbies and other activities that make you happy. The truth is that you deliver better when your personal wellbeing and career advancement are well aligned. Build networks: It is International Women’s day on the 8th of March 2019, do not stay holed up at work; take some time out to share with other women and learn from them, there is a lot to gain, when you progress in a troop. We all have several tricks and you could get a

FUNKE ALABI “DOA, diversity and inclusion is one of our ultimate focuses. We strive to cultivate an environment that fosters an all-inclusive workforce through a dynamic approach where our team feels fully engaged and have a sense of value.”

lifehack that could literally change your life moving in these networks. More than ever before, there are thriving female networks addressing the challenges women face at work, leverage on them. Balance can be achieved, do not give up just yet. Happy International Women’s Day!

OYEYEMI ADERIBIGBE is a Senior

Associate at Templars. She is also the current Vice-Chairman of the Young Lawyers’ Forum of the Nigerian Bar Association -Section on Business Law and the Young Lawyers’ Committee Liaison Officer of the African Regional Forum of the International Bar Association. Feedback – Oyeyemi.aderibigbe@ templars-law.com; yemiimmanuel@yahoo.com.

SIDE NOTE: I will like to say thank you to the Management of BusinessDay and specifically to Ms. Theodora Kio-Lawson who have given me this platform. The Young Business Lawyer is 1 (one) today and I thank them for this privilege to air my thoughts. My gratitude also goes to the several readers who have also taken time out to read and share their feedback.

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BUSINESSTRAVEL OVH Energy upgrades fleet, acquires new bowsers for aviation business Stories by IFEOMA OKEKE

VH Energy Marketing Ltd, Nigeria’s leading provider of trusted petroleum products and services and licensee of the Oando retail brand, has announced its acquisition of brand new aircraft fueling bowsers as part of its expansion plans to deepen its service offerings in providing fueling solutions to players in the aviation industry. Manufactured by Flightline UK, the bowsers are equipped with latest technology and safety standards certified by the Joint Inspection Group (JIG) one of the world’s leading organisations for the development of aviation fuel supply standards. With a combined capacity of 88,000 litres, capable of dispensing up to 3,500 litres of aviation jet fuel per minute, these bowsers are designed to enhance the

safety and operational efficiency of partner companies. Commenting on the acquisition, Huub Stokman, chief executive officer, OVH Energy Marketing Ltd, stated “this acquisition is one of the many investment initiatives we have

for the downstream industry and we will continue to deepen our investments to consolidate OVH Energy’s leadership position in the aviation sub-sector and the downstream oil & gas industry as a whole. “We are committed to exceptional

service delivery to foreign and local airline operators in the Nigerian aviation industry so that Nigeria becomes the destination of choice for international airlines to refuel their aircrafts.” Babafemi Olabiyi, the Chief Marketing Officer, also stated that this acquisition positions the company to further improve its aviation customers’ experience. The customers include leading international, local and specialised airline operators. He reiterated OVH Energy’s commitment to operational excellence whilst delivering exceptional customer service. OVH Energy is the marketer of choice providing trusted petroleum products and services in Nigeria with expertise in jetty and terminaling services, as well as the marketing and distribution of refined petroleum products for retail, commercial and industrial purposes. Its aviation business spans over 25 years and is present in the major airport hubs within Nigeria.

Ethiopian Airlines takes delivery of B737 freighter

thiopian Airlines, the largest aviation group in Africa has taken delivery of its first B737-800 freighter, the first of its kind in the Ethiopian Cargo fleet mix, on March 01, 2019. Tewolde GebreMariam, the airline’s group CEO remarked: “We are excited to have taken delivery of the newest freighter a few days after being crowned with ‘African Cargo Airline of the Year’ and ‘Air Cargo Brand of the Year in Africa’ Awards for the fourth year in a row. “The arrival of this new freighter is a significant addition and propels both our capacity and frequency. The B-737-800 Freighter will give us a new capability to serve short haul destinations in Africa and the Middle East, more economically. This includes the export of Ethiopian meat, fruits and vegetables to the Gulf Region. As per our strategic roadmap, Vision 2025, we will keep introducing new systems and technologies and play an indispensable role to the socio-economic develop-

freighter market. The freighter has a carrying capacity of more than 23 metric tons of payload with excellent operating economics to maximise efficiency for cargo operations. Operating ten next generation dedicated freighters and with Africa’s largest transhipment terminal, Ethiopian Cargo and Logistics Services delivers cargo services spanning across 44 international destinations in Africa, the Gulf, Middle East, Asia, the Americas and Europe, augmenting the export of perishables from Africa and import of high value goods. By 2025, Ethiopian Cargo & Logistics Services envisions to become a full-fledged profit center of Ethiopian Airlines Group with annual revenue of US$ 2 Billion, 19 dedicated aircraft, annual tonnage of 820,000, and 57 international destinations. In its 70 plus years of operation, Ethiopian Airlines has become one of the continent’s leading carriers, unrivalled in efficiency and

ment of Ethiopia and Africa at large.” Developed with the industry’s most efficient and reliable technology, the new B737-800 freighter aircraft is the newest member of the freighter family and offers great efficiency for the standard-body

operational success. The airline commands the lion’s share of the Pan-African passenger and cargo network operating the youngest and most modern fleet to more than 119 international passenger and cargo destinations across five continents.

Turkish Airlines redesigns travel comfort with “Flow Sleeping Set”

ringing various innovations to the sky in order to ensure a perfect travel experience for its guests, Turkish Airlines now offers the new “Flow Sleeping Set” to the passengers with a wondrous design. The new collection which was offered from February 19, in Business Class promises a sleep as comfortable as your home, only above the clouds. Produced with the successful collaboration of Turkish Airlines and Zorlu Tekstil while carrying the signature of expert designers, this collection aims to offer a healthier and higher quality sleep environment. Combining elegant lines with comfort, all pieces of the new set are developed with the expectations of the passengers to enjoy a relaxing sleep in order to finish their flights in a happy and fit state. The design of the collection reflects Turkish Airline’s ‘flow’ philosophy which represents the airline’ dynamic brand identity and continuous service concept. Opting for contemporary and minimalist designs, the materials of the collection were all chosen for their comfort and ability to help sleep. The patterns of the collection are also visually compatible with the designs of the new cabin uniforms and cabin interiors. Chief aspects of the “Flow Sleeping Set” are its blanket, sleeping pad and pillow. The “blanket” of the collection possesses a two-sided design along with a soft texture. Thanks to its ability to support air flow, the product also helps maintaining the ideal temperature during all four seasons.

British Airways releases low spring return fares

SAHCO deploys world class ground support equipment to Port Harcourt operations

kyway Aviation Handling Company PLC (SAHCO) has deployed a state-of-theart Ground Support Equipment (GSE) to boost operations at its Port Harcourt station. The Ground Support Equipment is a High loader Air Marrel (LAM 35). The GSE is a 35-ton capacity self-propelled heavy-duty main deck loader that also has the capacity to load and offload containers up to 40 tons. In a statement issued by Vanessa Uansohia, manager, corporate communications, SAHCO, “The equipment offers the most advanced features required by the end user, including a clear deck for the loading and offloading of oversized loads which is also able of operating under severe weather conditions and suitable for use of lower deck to handle pallets. The GSE can also be used by wide body aircrafts like the Airbus A380, B777 and the likes. “The GSE was built by Air Marrel, a major ground support manufacturer and exporter of cargo loaders and transporter based in France. The equipment modelled according to specifications of European airlines who are specialised

in cargo operations, is one of the most technologically advanced in today’s market.” Uansohia stated that SAHCO has presence in all commercially operated airports, hence, the need to ensure quality deliveries across its stations. With the LAM 35, loading and offloading can be done in record time and efficiently, which is a feat that SAHCO is known for. This new GSE which is the only one of that capacity in the country is a further assurance to clients on safe, speedy and efficient ground handling services. This is also a testament that SAHCO will continue to go to any length to maintain and exceed client expectations. The Skyway Aviation Handling Company PLC is a Ra3 and IATA Safety Audit for Ground Operations (ISAGO) certified Aviation Ground Handling Service Provider, offering services in Passenger Handling, Ramp Handling, Cargo Handling/ Warehousing, Training Services, Aviation Security, Baggage reconciliation, Hospitality/Lounge services, and other related Ground Handling Services, in all the commercially operated airports across Nigeria.

ritish Airways, the flag carrier and the largest airline in the United Kingdom has released low fares as spring surfaces. The return fares goes for as low as $169 in economy class, $2, 009 in business class and $5, 800 in first class. The fares are already on sale for outbound travel from now with return date anytime within the next 12 months. Sales ends on the 29th of March, 2019. This promo is only applicable for customers who plan to travel to UK and Europe with a minimum stay of three days and maximum stay of 12 months. Speaking on the promo, Kola Olayinka; British Airways Regional Commercial Manager for West Africa stated that “one of the reasons we have introduced this promo is to encourage people to visit fascinating places in UK and Europe. We want them to witness Britain’s rich and diverse history and culture. “Like the pillar of rock jutting from the Atlantic off the Scottish Isle of Lewis which is recorded in the Guinness Book of Records for being the windiest place in the UK, the summit of Scaffell Pike at 978m, the highest point in England, the Museum of London, a vast facility showcasing the history of the great city from the prehistoric to modern day with more than 1.1m objects on display and so many other fascinating places to visit, to relax and spend holidays.”

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Governorship polls: States to watch and why the development challenges confronting the state. The APC standard bearer said the state had fallen into the tragedy of a failed government and regretted that those entrusted with the task of providing security, welfare had become ‘treacherous accomplices’.

OWEDE AGBAJILEKE, Abuja

s the rescheduled governorship and states’ assembly elections hold Saturday, there are alignment and realignment of political forces across various states of the federation. The results of the Presidential and February 23 National Assembly elections have sprung surprises, with political commentators predicting that the last poll will be a tip of the iceberg when compared to this weekend’s exercise. For instance, 25 serving senators including Senate President Bukola Saraki, Oyo State governor, Abiola Ajumobi, his Gombe State counterpart, Ibrahim Dankwambo as well as Kaduna State Deputy Governor, Bala Bantex, lost their senatorial elections, in what political watchers have described as the biggest political upset in the present administration. According to the Independent National Electoral Commission (INEC), 1,068 candidates would slug it out for the governorship positions across 29 states of the federation, as against 14,643 contenders for state assembly seats across the 36 states. The seven states where governorship election will not hold include: Ondo, Kogi, Edo, Anambra, Bayelsa, Ekiti and Osun. Out of the 29 states where governorship elections will hold this weekend, APC is in control of 17 while PDP is in charge of 12 states. By the same token, 105 contestants would vie for the six Area Council Chairmanship positions across the Federal Capital Territory (FCT), also scheduled for the same day. Sokoto After losing all the senatorial and House of Representatives seats to the opposition All Progressives Congress (PDP) in the February 23 poll, the re-election of Sokoto State Governor, Aminu Tambuwal, hangs in the balance. Although the contest is between Tambuwal and his former deputy, Ahmed Aliyu of the All Progressives Congress (APC), pundits say the battle is a bragging right of some sort between two political gladiators, Attahiru Bafarawa, and his ex-deputy and successor, Aliyu Wamakko. While Bafarawa has the support of Governor Tambuwal of the PDP, Wamakko, on the other hand is backing APC gubernatorial candidate, Ahmed Aliyu. To compound Tambuwal’s political woes, most of his political appointees have resigned to join the APC, even as he lost the state to APC in the just concluded presidential election. Recall that APC got 490,333 votes while PDP garnered 361,604. In a chat with BusinessDay, a political analyst, Chidi Igbuzor said, “It will take a miracle for Tambuwal to surmount these political forces against him”. Akwa Ibom It is going to be an epic battle in the oilrich Akwa Ibom State as the stage is set

Aminu Tambuwal, PDP

Udom Emmanuel, PDP

Samuel Ortom, PDP

Babajide Sanwo-Olu, APC

Jimi Agbaje, PDP

Abdullahi Ganduje

Ifeanyi Okowa, PDP

Nasir el-Rufai, APC

Nyesom Wike, PDP

for the Governor, Udom Emmanuel and his immediate past predecessor and estranged political godfather, Godswill Akpabio. While Emmanuel is seeking reelection on the platform on the platform of the People’s Democratic Party (PDP), Akpabio who defected from PDP to APC, has thrown his weight behind APC governorship candidate, Nsima Ekere. The main opposition APC is optimistic of winning the state with the backing of President Muhammadu Buhari and Akpabio, even as the PDP, on the other hand, is said to be in high spirit having defeated Akpabio in the Akwa Ibom North West senatorial election and clinched all other National Assembly seats in the last exercise. It was further gathered that APC’s confidence stemmed from the results of the presidential election in the state where it scored 175,429 as against PDP’s 395,82. “We are optimistic that with this number we got at the presidential election and with federal might on our side, we will cause an upset this weekend,” an APC leader told BusinessDay on condition of anonymity.

election in the state. Despite the fact that Lagos could be said to be the headquarters of the APC, it delivered far less number of unexpected votes to the President, and had a very slim margin against the figure recorded for the PDP. A few days ago, a group of activists staged a protest march, saying “Enough is Enough” against the alleged dominance of Tinubu in Lagos politics. Since after the February 23 election, Lagos has not known peace as ethnic rivalry has been elevated to a very high level. The rhetoric is that a certain candidate has been anointed and that if any other person emerges winner there would be bloodshed. Some prospective voters, who spoke with BusinessDay said they had made of their mind not to step out of their apartments to vote for any of the candidates for fear of their lives. Although over a dozen candidates are slugging it out at the governorship, it will be a straight fight between Babajide Sanwo-Olu of the All Progressives Congress (APC) and Jimi Agbaje, candidate of the main opposition party, the People Democratic Party (PDP). Some pundits say that there is the possibility of protest votes against APC as a result of the manner the incumbent Governor, Akinwunmi Ambode, was refused return ticket, masterminded by the National Leader of the Party, Bola Ahmed Tinubu.

Benue In the North Central state, it is a twohorse race between the state governor, Samuel Ortom of the PDP and APC standard bearer, Emmanuel Jime. While the incumbent governor has the support of former Senate Presidents, David Mark and Iyorchia Ayu, Jime, a former member of the House of Representatives and onetime Speaker, Benue State House of Assembly, has the backing of President Muhammadu Buhari as well as Chairman, Senate Committee on Army, George Akume. Like in Akwa Ibom State where Akpabio was retired politically by the governor, PDP enthusiasts in Benue State are still basking in the euphoria of the defeat of Akume in the Benue North West senatorial election. However, APC supporters are said to have renewed hopes of winning the state following President Buhari’s victory in the presidential election. On his part, Jime insisted that he was determined, with the support of the party, to rescue Benue from the clutches of underdevelopment and poverty. For him, the issue of non-payment of salaries and inability of the governor to tackle the herdsmen-farmers clashes will swing votes in his favour. He regretted that the sacrifices of the founding fathers of the state were being mortgaged by politicians without foresight and pledged to tackle

Lagos The gubernatorial election in Lagos on Saturday is expected to be tough and could witness massive voter apathy. The permutation arose from the disturbances that trailed the Presidential

Delta The major parties that will slug it out in the governorship race are the PDP and the APC, with Ifeanyi Okowa and Great Ovedje Ogboru as the candidates, respectively. The oil-rich state has been under the control of the PDP since 1999. However, this is the first time the party will be contesting governorship election in the state without being at the centre. Nonetheless, drawing strength from the February 23 election where it emerged victorious, the PDP is upbeat of winning the election. It also banks on the support of former governor, James Ibori, a strong factor in Delta politics. On the other hand, Okowa’s main challenger, Ogboru, is not new to politics as this is his fourth time of vying for the position. The businessman and politician had previously contested for the governorship seat in the 2003, 2007 and 2015 on the platforms of Alliance for Democracy (AD), Democratic Peoples’ Party (DPP) and Labour Party (LP) in the 2003, 2007 and 2015, respectively. But with the immediate past governor, Emmanuel Uduaghan and federal might on his side, some observers say Ogboru has a greater chance of clinching the top job in the state. This, however, depends largely on how the APC national leadership reconciles the aggrieved party members in the state to forge a common front in the election. Kano There are strong indications that the results of the presidential and National Assembly elections in Kano will have a bandwagon effect in favour of the APC. Having won all the National Assembly seats in the state, analysts say APC governorship candidate and governor of the state, Abdullahi Ganduje, looks set to be re-elected. Recall that the APC won Kano State with 1.4 million votes as against PDP’s 391,593. Observers say the nullification of the candidature of PDP governorship candidate, Abba Yusuf, by a Federal High Court on Monday, may have given Ganduje ‘unassailable’ victory. Yusuf is the son-in-law to former Kano State Governor and serving senator, Rabi’u Musa Kwankwaso. “With Monday’s high court decision, the PDP is officially dead and buried in Kano. You can take that to the bank,” a journalist who is familiar with Kano politics, told our correspondent. Kaduna In Kaduna, it is a straight fight between incumbent governor, Nasir el-Rufai, of the APC, and his main opponent, Isa Ashiru, of the PDP. BusinessDay reports that although

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Southern Kaduna remains a PDP stronghold, el-Rufai is expected to coast home to victory in Zaria, Igabi, Giwa, Soba, Birnin-Gwari, Kaduna North, Sabon-Gari, Kudan, Ikara, among others. However, observers have expressed divergent views on whether the victory of Buhari over Atiku in the presidential election in the state will have a bandwagon effect in the forthcoming election. Rivers Right now, most persons can hardly remember a name that would face Governor Nyesom Wike on Saturday, after the knockout of almost every notable name on the guber ballot. But, most observers can’t understand why the more Wike’s challengers get knocked out along the way, the fiercer the Saturday governorship election becomes. Outside the state, most persons say Governor Wike of the PDP is now unopposed, but inside the state, many think that trouble is just starting. Now, the ‘Kick Wike Out’ campaign is gathering momentum. Insiders say an election with APC would be violent but one without them seems destined to disaster. The opposition says it is united in seeing Wike out of office; what is not known is who would climb in, since almost everyone is out. Wait oh! Another theory is that there may even be no big candidate in the election in the first place. Many have pointed to a court case pending in an Abuja court which would be decided on Friday, few hours to the election. There may be no chance for stay of execution before the next day, Saturday. It is a certificate forgery case where the governor is accused of presenting a birth certificate from a local council that was yet to be created before the date on the certificate. Some say since the courts have knocked out many other big candidates, another court could as well complete the knockout series. If that happens, only unknown names would face the ballot like it happened in Imo State years ago: Ohakim loading? Names that have fallen along the way include APC’s Tonye Cole and Dumo Lulu-Briggs of Accord Party. Precious Elekima of Social Democratic Party (SDP) is said to have lost his running mate who defected with the entire party structure, and Wike says the electoral laws does not have space with a candidate without a running mate. Now, 64 other candidates had decamped to the PDP while another 56 last weekend endorsed Wike. It is thus difficult to find any man standing against Wike. Yet, battle rather grows fiercer. Top APC leaders say they are now ensuring that Wike leaves office. Their supporters are still waiting for a name to be given to them to follow. The APC had hoped to get Cole back on the ballot at all costs but it failed last week in another court. The next but secret hope was to fall back on Lulu-Briggs who until few weeks back was an APC financier who went to Accord Party. Wike seemed to read the move and a court hit Lulu-Briggs, popularly called Dumo, on the head. Also, almost all other parties joined in the mass exodus to the PDP, except Labour Party’s Isaac Wonwu, African Democratic Congress’s Eniye Braide and Action Democratic Party’s Victor

Uche Nwosu, AAC

Emeka Ihedioha, PDP

Hope Uzodimma, APC

already vowed to resist what happened in Orlu zone last week where a Returning Officer, a professor, was held hostage and manhandled until he declared a particular person winner as senator-elect. In this case, the governor seems to have played out his biggest card and the people say they are now wiser. Barring any upstage, it is PDP’s Ihedioha that may emerge winner in Imo State on Saturday. Bayo Adelabu, APC

Seyi Makinde, PDP

Fingesi. Now, a group organising guber debate in Rivers State has found it difficult to pin down the settled names to face Wike. If not Wike, then what? Many say the confidence in the language of the APC and the Minister of Transportation (Chibuike Amaechi) seems disturbing. Many wonder how a party without guber candidate still says it is sure of removing Wike. Many have interpreted this to mean that the security agencies would play a critical role. Many already fear that political thugs would unleash mayhem to a scale that may lead to a stalemate or cancellation of the exercise. This would leave Rivers State out for some time. This is the calculation that now breeds anxiety and fear in the pregnant state where big companies are considering a brief lockdown. Already, trouble is brewing. Wike is at loggerheads with the Army and SARS, and he has threatened to drag the Army to the International Court. Abonnema has taken up the challenge and is now at war with the Army. Will this grow to a bigger scale? Right now, Rivers is a state no man can predict. Many thus conclude that if normal election holds, and Abuja court spares Wike, he would win; but if chaos holds, Wike could leave.

enough is enough in Imo State. The biggest challenge Ihedioha faced was the Ngor-Okpala vs Mbaise loggerhead. Ihedioha was seen by the NgorOkpala side to have overstayed in the National Assembly (three terms) each. They thus felt outsmarted as usual by the Mbaise people, despite Ihedioha’s explanations that more democratic dividends come by staying longer. Now, another Ngor-Okpala person (Bidi Eke) has climbed into the parliamentary seat Ihedioha left behind and has been allowed to ‘overstay’, too, with votes from both Mbaise and Ngor-Okpala. This has greatly calmed the animosity against Mbaise and Ihedioha, sources in the place said. With Owerri zone now looking intact, the rest is the larger Imo, and they voted PDP in the presidential, despite a sitting APC governor. Should this trend continue, PDP would easily clinch victory. Upstages are also not ruled out. A faction of the Imo Elders Council said last week that of all the candidates, Ikedi Ohakim is the only one promising to return LGA allocations, unlike in these Rochas Okorocha years. The next is the possible desperation or determination of Governor Okorocha to win back some relevance by delivering Imo to APC, despite the vow by most Imo groups to resist handing power to any Orlu person or to his son-in-law. Okorocha wanting to appease national APC would amount to jettisoning his personal interest (sonin-law) and going back to his vomit, APC’s Hope Uzodimma. That is yet to be seen. The calculation is that Owerri zone has one candidate in the top four (PDP); Orlu has two (AA and APC) and Okigwe zone has two (APGA and Accord Party). The thinking is that if Owerri zone delivers intact, and Emeka gets votes in Orlu and Okigwe, he would coast home dry. Those in the PDP say they are sure to pick Imo, except the security agencies decide to step in at collation centres and change the will of the people. This fear runs deep. Thus, the Imo Elders Council has begun visitations to the Army and Police commands in the state pleading for level-playing ground on Saturday. The Council has

IMO The presidential election came and the PDP beat APC with more than double of the figures, showing for once that the PDP is back. The trend may repeat itself on Saturday. After the PDP’s feat in Okorocha’s state, the elders of the state remembered the battered rotation principle called Imo Charter of Equity. The likes of Achike Udenwa, Emmanuel Iwuanyanwu, Charles Ugwu, and many Orlu zone leaders came together after the elections to endorse Ihedioha and went ahead to get the entire state elders to do same. The state has vowed not to allow Orlu to go from 16 to 24 years without the owners of the state capital getting a peep in. Now, what is endorsement worth? Many have asked if these leaders still had any electoral value in the state. But, there seems to be a feeling of

KWARA Going by the landslide victory recorded by the All Progressives Congress (APC) in Kwara State, where the Senate President, Bukola Saraki of the People’s Democratic Party (PDP) lost his return bid to the Senate, among others who failed to realise their ambition, has thickened the permutation that Saturday would be a day of harvest for the APC. The outcome of both elections came as a surprise to many political observers who had predicted PDP victory at all levels in the state going by Saraki’s political clout. The PDP loss in Kwara only confirmed talks about increasing resentment against Saraki’s dominance of the political scene in the state. A source told BusinessDay that “Many people in Kwara are becoming wiser. Unlike before when they asked no questions but just follow, follow, today, they have woken up from the slumber, and are reviewing their benefit of many years of loyalty to the Saraki family. If you visited Kwara during the campaigns, the serial defeat suffered by the PDP in the state would not have been surprising.” Unless there is a significant change in the pattern of voting in Kwara on Saturday, the APC is likely to coast home, effortlessly. OYO Oyo State has a history of not returning its governors for a second term, but Governor Abiola Ajimobi broke the jinx. But when he tried to cross over to the National Assembly after his tenure on May 29, he was roundly rejected and stopped. At jeopardy also are the chances of his gubernatorial candidate, Bayo Adelabu, who is having a tight battle with the PDP’s gubernatorial candidate, Seyi Makinde. Pundits say that going by the outcome of the Presidential election in the state and the general pattern of voting in Oyo, anything is possible. Explaining the possible reasons that cost the ruling party the state, an analyst, who spoke on condition of anonymity, said: “There are many reasons why the APC lost in Oyo and may likely lose the governorship, if care is

not taken. One, Ajimobi tampered with the traditional institution in the state. During his faceoff with the Olubadan, the governor took some decisions that were considered abominable in the tradition of the people. To humiliate the Olubadan, he elevated some chiefs to the position of Oba. These Obas have no territory to preside over. The aim is to ensure that the people are no more submissive to the Olubadan. Now, the new Obas are saying, we too are also Obas, so why must we respect the Olubadan? “Two, the governor also sees Ibadan as the beginning and end of Oyo State. Despite the number of universities and other institutions of higher learning in Ibadan, the state capital, he also sited the state university there. He did not consider it appropriate to site the institution somewhere else. So, the people said, ‘this man, we don’t want you again.’ They trooped out to vote and defended their votes.” This sentiment may negatively ruboff on the APC on Saturday. OGUN Forty-one (41) political parties will be vying to take over the governance of Ogun State come March 9, 2019 from the incumbent and outgoing governor, Ibikunle Amosun. The prominent ones are the All Progressives Congress (APC) whose candidates are Adedapo Abiodun and Salako-Oyedele Noimot Olurotimi as the governorship and deputy governorship candidates ; People’s Democratic Party (PDP) whose candidates are Buruji Kashamu and Reuben Abati as the governorship and deputy governorship candidates; Action Democratic Congress (ADC) whose candidates are Isiaka Nasir Adegboyega and Olabisi Olukemi Okeowo-Bolade as the governorship and deputy governorship candidates, and Allied Peoples Movement (APM), whose candidates are Akinlade Adekunle Abdulkabir and Adepeju Adebajo Olufemi as the governorship and deputy governorship candidates. Few days to the D-Day, there have been a lot of political realignments as the political gladiators engage in a battle of wits. What’s interesting in all these developments? It is the fact that, the incumbent and outgoing governor of the state, Ibikunle Amosun, wants to eat his cake and have it. As a member of the ruling APC, under which platform he has been elected as a senator for the second time, governor Amosun is supporting and financing the governorship candidate of APM, whom he initially wanted to install as the APC governorship candidates. It may not be possible to say exactly which party will win on Saturday although there are three prominent ones which are APC, ADC and APM. The much awaited court order on who the appropriate candidate of the PDP in the state will come up on March 6, 2019. The case is between the current PDP governorship candidate and his challenger, Ladi Adebutu Kensington and wherever the pendulum swings will determine the next line of political realignments and the eventual winner. Additional reports by Ignatius Chukwu, Sabi Elemba, Iniobong Iwok and Teliat Sule .

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Ogun guber: Amosun’s unrepentant belief in APM candidate INIOBONG IWOK

n Monday, February 11, 2019, President Muhammadu Buhari gave an advice that may likely determine the electorate’s choice of voting in Ogun State on Saturday. Buhari had declared that the people were free to choose whoever they liked as governor in the governorship election. “On Saturday, February 16 (before it was rescheduled to February 23), you are to vote for Presidential candidate of the APC. But I want to urge you to choose whoever you like across the parties as governor of Ogun State. “There is no problem about it. I have no problem about it. The rest people of Ogun State will decide,” the President said. The above statements may have conditioned the minds of voters in the state on what they should do on March 9. Ogun is one of the states that many Nigerians are eagerly waiting to see how the gubernatorial election on Saturday will go. Incumbent Governor Ibikunle Amosun has already secured a place in the yet-to-be inaugurated 9th National Assembly, having won the senatorial election February 23. Observers say that the governor’s modest transformation agenda in his eight-year rule effortlessly purchased him the victory. Those who follow Ogun politics and the Amosun administration say that the governor has faithfully operated from the carefully designed blueprint to re-engineer Ogun

Governor Ibikunle Amosun

State’s economic, infrastructure and industrial sectors. “Under his eight years’ stewardship, Ogun has become a growing industrial hub. The state’s internally generated revenue (IGR) profile has improved; insecurity has disappeared and infrastructure is being given serious facelift,” an Abeokutabased analyst said. It is expected that his successor would continue with the rural rehabilitation leg under a peoplecentered continuation agenda. This agenda is also expected to put an end to the problem of exclusion of

Ogun west from the highest political office in the land. The Saturday’s election is not directly about Amosun, because he is neither contesting the governorship nor a House of Assembly seat. However, the governor is a major stakeholder because it does matter to him who succeeds him. He is interested in who completes the relay race he has energetically started and nurtured up till this point. Observers say that Amosun will be the happiest man on the day of his handover; to hand the baton to a person he believes will not

only maintain the momentum, but increase it, in the area of delivery of the democracy dividends to Ogun people. “So, as Amosun prepares to bow out, what all well-meaning citizens and friends of Ogun State are expecting is a continuation of the giant strides and more development,” a pundit told our correspondent. Although the national secretariat of the APC has suspended Amosun for alleged anti-party, the governor has continued in the cause he believes in. He has continued to openly campaign for the APM candidate. A political commentator recently noted that “If Amosun were as selfish as being alleged, having gotten his senatorial ticket in addition to delivering the state for President Buhari, he would bow out without a fight and allow the wish of Ogun people to be trampled upon. But the people who have trusted and followed him for these past eight years on the basis of the social contract agreement he reached with them would not forgive him for abandoning them at the time they most needed a fearless leader to deliver them from the rapacious usurpers who neither know the origin nor care for the conclusion of the development path they have collectively set the state on.” “History will definitely record that in the run up to the 2019 governorship election in Ogun State, the clannish agenda unleashed by APC on the state chapter polarised an otherwise peaceful political family and caused so much rancour. Thank God for the tenacity of Amosun who has refused to be part of injustice

and would rather want history to remember him as a true leader who never deserted his people in the face of intimidation and oppression.” According to the commentator, “The choice of Akinlade to continue the work started by Amosun was seen by all well-meaning citizens to be in the best interest of Ogun. Akinlade has proved himself as a strategic hand with profound experience, integrity and unalloyed fidelity to the rebuilding project. Between 2011 and 2014, he served the state in various capacities that touched on the core areas of the re-building project. It is believed he would be a round peg in a round hole.” When some cabal in the party decided for Dapo Abiodun, who allegedly “did not participate in the contest and has neither public service experience nor any strong knowledge of or input into the journey so far to warrant being handed the driver’s seat to pilot the affairs of Nigeria’s most politically sophisticated state”, Amosun decided to stick to his choice, Akinlade. Forty-one political parties will be slugging it out on March 9, 2019. Of all the motley governorship candidates, that of Allied Peoples Movement (APM), Akinlade Abdulkabir Adekunle is enjoying the backing of the out-going governor. This incumbency support is said to place the APM candidate at a vantage position in the contest. Other notable candidates in the race include Adedapo Abiodun of the All Progressives Congress (APC); Buruji Kashamu of People’s Democratic Party (PDP), and Isiaka Nasir Adegboyega of Action Democratic Congress (ADC).

Between Buhari and Atiku: Let Nigeria be the winner OSA VICTOR OBAYAGBONA

f late, presidential elections in Nigeria have been like war. The rhetoric and sabre-rattling in 2015 was so alarming that statesmen like former head of state, Abdulsalami Abubakar, Bishop Matthew Hassan Kukah and others formed a National Peace Committee (NPC) that got the contestants to sign a peace pact, pledging to abide by the best electoral practices, eschewing violence. Thankfully, former president, Goodluck Jonathan, kept his word that his ambition was not worth the blood of any Nigerian, and conceded victory to his main opponent, Muhammadu Buhari even before the vote counting was over. It was a watershed moment. The contest for the office of the President in 2019, unfortunately, turned out warlike too. Again, the Abdulsalami Abubakar peace com-

mittee got the candidates to sign the peace treaty. The presidential election has since come and gone. In some parts of the country, it was war, with dozens of casualties. But in most parts of Nigeria, it was peaceful. A winner was declared, in the person of the incumbent President, Muhammadu Buhari of the All Progressives Congress (APC). While most of the candidates in the election have accepted the result, the candidate of the former ruling party, People’s Democratic Party (PDP), Atiku Abubakar, refused the outcome. He alleged that he was denied victory at the polls through irregularities and unfair circumstances. He rejected the results as announced, and had gone to the election tribunal, discounting entreaties by some well-meaning Nigerians including former heads of state and fellow contestants. Since independence, virtually all elections in Nigeria have been adjured flawed and rigged by the

losers. The only exceptions were the 1993 elections, which Chief M.K.O Abiola was set to win before it was annulled by the military authorities, and that of 2015. But the issue of flawed elections is not an exclusive preserve of Nigeria. Twice in the recent past, issues of electoral irregularities have rocked the greatest democracy in the world, the United States of America (USA). The world watched with some amusement at the allegations of fraud in the US presidential elections of 2001 that produced President George Walker Bush. The Democratic candidate in the election, former Vice President, Al Gore Jnr, had alleged electoral fraud, which he had proof of. For a while, the results of the election hung inconclusive, to the great embarrassment of the nation. But statesmen stepped in quickly and persuaded Al Gore that this pursuit of his right should not embarrass the nation. He gave in for the sake of the nation. Gore sacrificed his ambition

for the sake of the nation, which otherwise was going the way of banana republics. History will not forget him. And the result of the 2016 US presidential election was a shocker. Right round the world, discerning observers believed that the Democratic candidate, Hilary Clinton, had it in her pocket. But Donald Trump turned out the surprise winner. The Democrats alleged that Trump won as a result of Russian interference with the electoral process. They, however, didn’t pull down the nation in consternation. They have been methodically pursuing every little lead to prove their point and hopefully get Trump impeached or shamed into resignation. Incidentally, the extant Nigerian president, Muhammadu Buhari, had been a victim of presidential elections, which he considered flawed. He pursued redress thrice to the Supreme Court and lost all three. But when providence decided in his favour, he got it on the fourth attempt (for which he was practically dragged

out). He didn’t wreck the country when he felt he was unfairly denied the position. And to his benefit the country remained intact for the time that providence marked out for him. Much as militant rhetoric was unfortunately deployed in the run-up to the 2019 presidential election, the climate following the announcement of the winner has been very sober on the side of the winners. There have not been vulgar celebrations, wanton provocation nor the baiting of losers. This is a plus for Nigerian democracy. It is within the rights of Atiku Abubakar to go to the tribunal where he feels cheated. This judicial process, just like the electoral process before it, will also come to an end, favouring either the applicant or maintaining the status quo. Whichever way it goes, it is of utmost importance that the interest of Nigeria, which they both wish to serve must be uppermost. The interests of the country have to tower above the personal ambitions of both the president-elect and the challenger.

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Thursday 07 March 2019

Live @ The Exchanges Top Gainers/Losers as at Wednesday 06 March 2019 GAINERS Company

LOSERS Opening

Closing

DANGCEM

N196

N196.5

0.5

GUARANTY

N37.6

N37.95

0.35

N6.1

0.1

ACCESS

Market Statistics as at Wednesday 06 March 2019

Change

Company

Opening

Closing

Change

SEPLAT

N619

N596.9

-22.1

CCNN

N20

N19

-1

N11.9

N11.5

-0.4

N14

N13.7

-0.3

N2.93

N2.64

-0.29

GLAXOSMITH

UCAP

N3.25

N3.3

0.05

ETI

FBNH

N8.1

N8.15

0.05

ETRANZACT

ASI (Points) ASI (Points)

32,121.74 30,821.80

DEALS (Numbers) DEALS (Numbers)

3,246.00 3,319.00

VOLUME (Numbers) VOLUME (Numbers) VALUE (N billion) VALUE (N billion)

208,604,112.00 359,091,422.00 2.784 4.828

MARKET CAP (N Trn MARKET CAP (N Trn

11.978 11.493

Seplat leads basket of 19 laggards as market fails to sustain gain Stories by Iheanyi Nwachukwu

igeria stock m a r k e t failed to sustain previous day’s gains as Seplat Petroleum Development Company Plc led the basket of 19 stocks that lost their values as against 8 gainers. At the sound of closing gong, the equities market closed on a negative note as the Nigerian Stock Exchange (NSE) All Share Index (ASI) depreciated by 0.16percent to 32,121.74 points as against

32,173.66 points recorded previously. The value of listed stocks on the NSE decreased by N20billion to N11.978trillion compared to preceding day high of N11.998 trillion. The stock market’s year-to-date (YtD) returns currently stand at +2.20percent. Seplat decline most by N22.1 or 3.57percent, from N619 to N596.9. Cement Company of Northern Nigeria Plc followed after its share price lost N1 or 5percent, from N20 to N19; while GlaxoSmithKline Consumer Nigeria Plc lost 40kobo or 3.36percent,

from N11.9 to N11.5. On the advancers table, Dangote Cement Plc occupied topmost position, from N196 to N196.5, adding 50kobo or 0.26percent; followed by GTBank Plc which rallied from N37.6 to N37.95, up by 35kobo or 0.93percent; while Access Bank Plc gained 10kobo or 1.67percent, from N6 to N6.1. Zenith Bank Plc, GTBank Plc, Fidelity Bank Plc, Access Bank Plc, and Transcorp Plc were actively traded stocks on the Bourse. In 3,246 deals, stock traders exchanged 208,604,112 units valued at N2.784billion.

Shareholders approve Flour Mills, Golden Fertilizer scheme of external restructuring

hareholders at a Court Ordered Meeting held in Lagos on Wednesday March 6, 2019 approved the scheme of external restructuring between Flour Mills of Nigeria Plc and Golden Fertilizer Company Limited. The Scheme had prior to the shareholders’ endorsement, received preliminary approvals from the Securities and Exchange Commission (SEC). Golden Fertilizer Company Limited is the fertilizer business of Flour Mills, unlike its other lines of business (example Sugar, Ports, etc.) does not exist as a standalone entity, and as such, it limits Flour Mills’ flexibility in raising funds as and when the need arises. “Upon the Scheme coming into effect, the entire fertilizer business (fertilizer division) of Flour Mills, that is, the assets, liabilities and undertakings attached to the fertilizer business will be transferred to Golden Fertilizer Company Limited. Furthermore, the eq-

uity interests in the eligible subsidiaries owned by Flour Mills will be transferred to Golden Fertilizer”, said Paul Gbededo, chairman, Golden Fertilizer Company Limited. He said that “Golden Fertilizer will then continue the business of the fertilizer division of Flour Mills, as a wholly owned subsidiary, and the agro allied group, of Flour Mills”. The board of directors of Flour Mills of Nigeria Plc considered the scheme of external restructuring as fair, reasonable, and in the best

interest of the company, according to John George Coumantaros, chairman, Flour Mills of Nigeria Plc. As part of the scheme of external restructuring, the board of Flour Mills Nigeria Plc engaged the services of FCMB Capital Markets Limited and KB & Company as financial adviser and solicitors respectively, to guide the company in the restructuring process. The financial adviser to the scheme of external restructuring noted that the restructuring is in the need to

improve operating efficiency and enhance shareholder value because of the expected improved profitability. The restructuring enables each of the business value chains under Flour Mills Group to target appropriate investors and markets attracted to the specific businesses. It will also increase the capital allocation capacity and flexibility of the Flour Mills Group, as each business value chain will be able to attract new capital targeted at the specific opportunities of the respective businesses. The external restructuring allows each business value chain to focus on its core market, and effectively grow market share. It also allows for uniformity and ease of comparison of each business value chain with competitors in their respective sectors. This enables a better understanding of the independent and related groups by analysts and investors, therefore ensuring better value ascribed to the businesses.

Nestlé proposes final dividend of N38.50 per share amid N43bn profit

estlé Nigeria Plc has released its financial results for the year ended December 31, 2018. The results at the Nigerian Stock Exchange (NSE) showed the company posted revenue of N266.3billion, recording a growth of 9.1percent over the preceding year level of N244.151billion. Gross profit for the review year 2018 stood at N113.9 billion, compared to N100.9billion in the preceding year. Nestlé Nigeria posted N60.6 billion as results from operating activities in 2018 as against N55.7 billion during the preceding financial year. Nestlé Nigeria Plc profit before income tax grew by 27.6percent to N59.750billion in 2018 from N46.828billion in 2017; while its profit for the 2018 period in review stood at N43billion, up by 27.5percent when compared to N33.723billion in 2017. In addition to N20 per share interim dividend already paid, the Board

of Nestlé Nigeria Plc proposed a final dividend of N38.50 per share for 2018. This is subject to shareholders’ approval at the company’s Annual General Meeting on May 28, 2019. At N1, 510 per share which Nestlé Nigeria Plc closed on Wednesday, its stock price remained unchanged on the Nigerian Stock Exchange. The stock had reached a 52week high of N1, 617.10 and a 52-week low of N1, 317. Commenting on the results, Mauricio Alarcon, Managing Director/ CEO, Nestlé Nigeria Plc said, “We are pleased with our 2018 results considering the increasingly competitive business environment. The growth was driven by the continued loyalty of our consumers as we focused on consistently delivering high quality, tasty and nutritious food products adapted to their preferences. The discipline and dedication of our people also supported this business outcome.”

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Live @ the Stock exchange Prices for Securities Traded as of Wednesday 06 March 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. 176,460.63 6.10 1.67 183 15,610,877 UNITED BANK FOR AFRICA PLC 263,335.54 7.70 -0.65 152 4,835,031 769,214.10 24.50 -0.81 478 45,371,111 ZENITH BANK PLC 813 65,817,019 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 292,546.64 8.15 0.62 159 9,919,014 159 9,919,014 972 75,736,033 BUILDING MATERIALS DANGOTE CEMENT PLC 3,348,459.71 196.50 0.26 55 876,236 112,754.57 13.00 -0.38 77 1,176,812 LAFARGE AFRICA PLC. 132 2,053,048 132 2,053,048 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 351,242.56 596.90 -3.57 35 52,902 35 52,902 35 52,902 1,139 77,841,983 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 - 0 0 76,312.80 80.00 - 5 3,772 OKOMU OIL PALM PLC. PRESCO PLC 75,000.00 75.00 - 0 0 5 3,772 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,770.00 0.59 -1.67 13 522,550 13 522,550 18 526,322 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 900.08 0.34 - 2 991 JOHN HOLT PLC. 202.36 0.52 - 0 0 1,903.99 2.93 - 0 0 S C O A NIG. PLC. TRANSNATIONAL CORPORATION OF NIGERIA PLC 51,216.47 1.26 0.79 146 13,859,680 23,338.50 8.10 - 25 148,362 U A C N PLC. 173 14,009,033 173 14,009,033 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 36,300.00 27.50 - 4 6,300 ROADS NIG PLC. 165.00 6.60 - 0 0 4 6,300 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 4,729.08 1.82 - 3 40,235 3 40,235 7 46,535 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 12,135.72 1.55 - 21 326,670 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 147,084.21 67.15 - 43 38,098 INTERNATIONAL BREWERIES PLC. 232,088.27 27.00 - 9 3,007,189 NIGERIAN BREW. PLC. 639,752.16 80.00 - 70 144,894 143 3,516,851 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 54,500.00 10.90 -0.91 93 1,136,307 DANGOTE SUGAR REFINERY PLC 175,800.00 14.65 - 67 823,433 FLOUR MILLS NIG. PLC. 81,802.57 19.95 - 30 254,326 HONEYWELL FLOUR MILL PLC 10,309.26 1.30 -3.70 52 1,560,799 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 0 0 NASCON ALLIED INDUSTRIES PLC 52,988.77 20.00 - 20 91,282 UNION DICON SALT PLC. 3,676.41 13.45 - 0 0 262 3,866,147 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 19,157.66 10.20 -1.92 25 378,367 NESTLE NIGERIA PLC. 1,196,910.94 1,510.00 - 33 21,364 58 399,731 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 5,003.38 4.00 - 10 141,678 10 141,678 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 48,042.77 12.10 -0.41 28 369,754 UNILEVER NIGERIA PLC. 222,331.71 38.70 - 32 152,587 60 522,341 533 8,446,748 BANKING DIAMOND BANK PLC 57,669.37 2.49 -0.40 39 1,007,667 ECOBANK TRANSNATIONAL INCORPORATED 251,388.85 13.70 -2.14 25 365,765 FIDELITY BANK PLC 66,352.29 2.29 -2.14 161 20,170,591 GUARANTY TRUST BANK PLC. 1,116,913.25 37.95 0.93 230 23,081,262 JAIZ BANK PLC 18,562.48 0.63 5.00 13 984,038 SKYE BANK PLC 10,687.83 0.77 - 0 0 71,400.24 2.48 - 7 14,451 STERLING BANK PLC. UNION BANK NIG.PLC. 203,845.27 7.00 - 46 446,077 UNITY BANK PLC 10,871.08 0.93 - 7 47,406 WEMA BANK PLC. 32,788.30 0.85 -1.18 49 6,781,377 577 52,898,634 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 5,059.05 0.73 2.74 17 784,635 AXAMANSARD INSURANCE PLC 23,100.00 2.20 - 4 380 CONSOLIDATED HALLMARK INSURANCE PLC 2,276.40 0.28 7.69 1 500,000 CONTINENTAL REINSURANCE PLC 19,811.94 1.91 - 0 0 CORNERSTONE INSURANCE PLC 3,682.38 0.25 - 0 0 GOLDLINK INSURANCE PLC 2,001.98 0.44 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,416.73 0.33 - 6 606,010 LAW UNION AND ROCK INS. PLC. 2,234.09 0.52 - 2 3,227 LINKAGE ASSURANCE PLC 5,040.00 0.63 - 0 0 MUTUAL BENEFITS ASSURANCE PLC. 2,000.00 0.25 - 2 1,088 NEM INSURANCE PLC 12,831.62 2.43 - 7 275,134 NIGER INSURANCE PLC 1,780.08 0.23 - 0 0 PRESTIGE ASSURANCE PLC 2,906.58 0.54 - 1 5,757 REGENCY ASSURANCE PLC 1,733.88 0.26 -3.70 3 600,020 SOVEREIGN TRUST INSURANCE PLC 2,085.21 0.25 -3.85 28 4,189,100 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 5 428,858 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 3,328.00 0.24 - 0 0 WAPIC INSURANCE PLC 5,353.10 0.40 -2.50 51 11,909,947 127 19,304,156 MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 3,384.22 1.48 0.68 9 1,029,371 9 1,029,371

MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,116.00 0.98 - 1 896 7,370.87 0.50 - 0 0 ASO SAVINGS AND LOANS PLC INFINITY TRUST MORTGAGE BANK PLC 5,922.05 1.42 - 0 0 RESORT SAVINGS & LOANS PLC 2,265.95 0.20 - 0 0 2,949.22 3.02 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 1 896 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 9,380.00 4.69 -3.70 120 2,200,027 CUSTODIAN INVESTMENT PLC 34,408.91 5.85 -0.85 29 4,467,138 660.00 0.44 - 0 0 DEAP CAPITAL MANAGEMENT & TRUST PLC FCMB GROUP PLC. 40,793.58 2.06 -1.44 94 10,493,794 1,800.88 0.35 - 5 193,521 ROYAL EXCHANGE PLC. STANBIC IBTC HOLDINGS PLC 477,209.77 46.60 - 31 261,801 UNITED CAPITAL PLC 19,800.00 3.30 1.54 55 829,516 334 18,445,797 1,048 91,678,854 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 1,065.94 0.30 - 1 35,600 1 35,600 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 544.04 0.55 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 7,425.00 4.95 - 5 353 13,752.58 11.50 -3.36 15 181,487 GLAXO SMITHKLINE CONSUMER NIG. PLC. MAY & BAKER NIGERIA PLC. 4,140.56 2.40 - 5 20,410 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1,329.41 0.70 - 2 200 556.71 3.62 - 0 0 NIGERIA-GERMAN CHEMICALS PLC. PHARMA-DEKO PLC. 325.23 1.50 - 0 0 27 202,450 28 238,050 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 1 300 1 300 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 1 5,000 NCR (NIGERIA) PLC. 648.00 6.00 - 0 0 TRIPPLE GEE AND COMPANY PLC. 381.11 0.77 - 0 0 1 5,000 PROCESSING SYSTEMS CHAMS PLC 939.21 0.20 - 1 3,500 E-TRANZACT INTERNATIONAL PLC 11,088.00 2.64 -9.90 1 110,000 2 113,500 4 118,800 BUILDING MATERIALS BERGER PAINTS PLC 2,391.04 8.25 - 3 9,000 CAP PLC 23,800.00 34.00 - 8 13,152 CEMENT CO. OF NORTH.NIG. PLC 249,726.52 19.00 -5.00 11 121,143 612.00 0.29 - 2 70,000 FIRST ALUMINIUM NIGERIA PLC MEYER PLC. 286.87 0.54 - 2 2,476 1,999.41 2.52 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC PREMIER PAINTS PLC. 1,279.20 10.40 - 0 0 26 215,771 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 3,962.97 2.25 - 9 265,393 CUTIX PLC. 9 265,393 PACKAGING/CONTAINERS BETA GLASS PLC. 39,497.79 79.00 - 0 0 GREIF NIGERIA PLC 388.02 9.10 - 0 0 0 0 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 1 6 1 6 36 481,170 CHEMICALS B.O.C. GASES PLC. 1,577.57 3.79 - 2 5,195 2 5,195 METALS ALUMINIUM EXTRUSION IND. PLC. 1,803.64 8.20 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 50.60 0.23 - 0 0 0 0 2 5,195 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,315.17 0.21 4.76 41 12,306,723 41 12,306,723 INTEGRATED OIL AND GAS SERVICES OANDO PLC 70,859.05 5.70 -0.88 63 1,576,486 63 1,576,486 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 64,907.15 180.00 - 14 9,733 CONOIL PLC 15,960.90 23.00 - 14 20,301 ETERNA PLC. 5,738.24 4.40 - 2 1,009 FORTE OIL PLC. 36,469.47 28.00 - 42 222,551 MRS OIL NIGERIA PLC. 6,354.80 20.85 - 1 100 TOTAL NIGERIA PLC. 67,904.37 200.00 - 12 3,257 85 256,951 189 14,140,160 ADVERTISING AFROMEDIA PLC 2,219.52 0.50 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 16,576.10 1.70 - 2 1,025 2 1,025 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 411.72 0.35 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,947.48 5.00 - 5 44,436 TRANS-NATIONWIDE EXPRESS PLC. 304.75 0.65 - 1 300 6 44,736 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,801.22 3.10 - 0 0 IKEJA HOTEL PLC 4,427.84 2.13 - 1 12,000 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 45,222.40 5.95 - 2 862 3 12,862 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 241.92 0.40 - 1 1,000 LEARN AFRICA PLC 1,126.32 1.46 -2.67 7 298,912 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0 UNIVERSITY PRESS PLC. 970.67 2.25 - 0 0 8 299,912 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 895.16 0.54 - 4 1,560 4 1,560

38 BUSINESS DAY NEWS What Visionscape’s bond default... Continued from page 1 marred its street corners, that it

would step in to bear the cost in the event of a default, drawing from its Internally Generated Revenue (IGR). To this end, an Irrevocable Standing Payment Order (ISPO) was issued by the State Executive Council March 2017. It provided that Lagos

State would dip hands into its IGR to settle investors if Visionscape reneged on its debt obligations. It meant the Lagos State government was agreeing to be on the hook for the bond programme the Visionscape Group, through its Special Purpose Vehicle (SPV), was set to issue. With the backing of Lagos State, Visionscape sold the first tranche of its

C002D5556

proposed bond issuance, a N27 billion, 17.5 percent, fixed rate 5-year bond due 2022, to high net worth individuals. Investors lapped up the bond which had been rated A+ by credit ratings agency Agusto & co and Global Credit Rating agency, largely on the back of the Lagos State guarantee. Agusto estimated that the duly executed ISPO on Lagos State’s revenue account constitutes sufficient security for the issue as the remittances...will be adequate to cover the

L-R: Olusoji Akintola, business executive, retail and consumer banking (Lagos), Sterling Bank; Adelola Adewole, vice president, Lagos Zone, National Association of Nigeria Travel Agencies (NANTA), and Bankole Bernard, national president, NANTA, at the monthly meeting of NANTA sponsored by Sterling Bank in Lagos.

Seplat full-year profit hit on deferred... Continued from page 1 ended December 31, 2018.

Seplat grew its full year revenue by 65 percent to $746 million, up from $452 million in 2017. Its operating profit of $310 million in 2018 as against $112 million in 2017 represents 177 percent increase. Also, profit before deferred tax (PBT) of $238 million in 2018 compared to $41 million in 2017 represents an increase of 480 percent. After adjusting for deferred tax of $91 million, Seplat reported net profit after tax (PAT) decreased by 45 percent and stood at $147 million as against $265 million PAT in 2017. Seplat’s cash flow from operations increased by 12 percent to $502 million, from $447 million it reported in 2017. The company’s cash flow position is significantly ahead of capital expenditures of $88 million in 2018 as against $33 million in 2017, representing an increase of 167 percent. The board has recommended a final dividend of $0.05 per share. The company’s 2018 gas revenue was at a record level of $156 million and accounted for 21 percent of total revenue in the year. Most investors may not have been impressed with the hit on Seplat’s profit as they placed the stocks for sale at the Nigerian Stock Exchange (NSE) on Wednesday. Seplat’s share price decreased by 3.57 percent to N596.9 at the sound of trading gong of the Exchange on Wednesday, as against Tuesday’s high of N619. At the current price, Seplat’s stock is heading to its 52-week low of N520, having reached a 52-week high of N769. Seplat in its results presentation noted that its Amukpe to Escravos alternate export pipeline is nearing completion. It is anticipated to be fully commissioned and operational in Q2 2019, ramping up to initial permitted capacity of 40,000 barrels per day (kbpd) during Q3 2019. It said access to three separate export routes at its

western assets and two at its eastern assets providing adequate redundant capacity will significantly de-risk distribution of oil production to market. “Seplat has delivered an excellent operational and financial performance resulting in robust profitability and cash flow generation providing us with an extremely solid foundation for growth in the coming years,” said Austin Avuru, Seplat’s chief executive officer. “At our core assets in the West, OMLs 4, 38 and 41, the extension of the licence to 2038 means that we can confidently plan and invest long into the future to realise the full potential of those blocks,” he said. Avuru said as the company continues to enhance production and revenue diversification with new wells scheduled at OML 53 in the East, the board took the Final Investment Decision to invest in the large scale ANOH gas and condensate development which will form the next phase of transformational growth for its gas business. “Disciplined capital allocation continues to remain at the core of our activities evidenced by our continual deleveraging of our debt levels to the currentbalanceof$350million.In2018, we reinstated the dividend, increased capital investments and with the resources and headroom in our capital structure, we are equipped to capitalise on organic and inorganic growth opportunities as they may arise,” he said. The company successfully concluded debt refinancing in Q1 2018, including debut $350 million bond which diversifies the long-term capital base and new four-year $300 million revolving credit facility (RCF). Seplat’s cash at bank at $585 million and gross debt of $450 million result in a net cash position of $135 million at end 2018. It deleveraged further post period end by paying down $100 million to bring the RCF to zero while retaining the undrawn headroom in the capital structure to support

growth. As a result, current gross debt is solely the bond at $350 million. “Average working interest production for full year (FY) 2018 stood at 49,867 barrels of oil equivalent per day (boepd) compared to 36,923 boepd in FY 2017,” Effiong Okon, operations director, Seplat, noted in a presentation following the released full year 2018 results. “Liquids production of 25,669 barrels of oil per day (bopd) against FY 2017 of 17,853 bopd; gas production in 2018 was 145 Million standard cubic feet per day (MMscfd) as against FY 2017 level of 114 MMscfd. Production uptime was 85 percent while average reconciliation losses were around 8 percent,” Effiong said. Seplat FY 2019 working interest production guidance shows oil (24,000-27,000 bopd), and gas 146164 MMscfd (25,000-28,000 boepd). On its western assets – OMLs 4,38 and 41 – the 2019 outlook shows the Amukpe to Escravos pipeline is expected to be commissioned in second-quarter (Q2) 2019, with “back payments between pipeline owner and contractor now resolved”. The company hopes to drill up to 7 new oil production wells; 1 new gas well; 1 rig-based re-entry of an existing oil well; and 1 appraisal well. It also hopes to focus on Sapele integrated gas processing facility project, and liquid treatment facility upgrades to enable increased deliveries of dry crude in Sapele and Amukpe. On the OPL 283, Seplat said preparation work would begin this year for development of the Igbuku field, in addition to concept selection and FEED. On the eastern assets – OML 53 – 2019 outlook shows Seplat development of the Ohaji South oil reserves with the drilling of 3 new oil production wells; 1 rig-based workover of an existing oil production well at the Jisike field; appraisal well at the Owu oil discovery; and expansion of oil production facilities at Jisike and Ohaji South. On OML 55, the company restated its continued monetisation of liftings towards full recovery of the $330 million discharge sum.

cumulative obligations (coupon payments and principal repayments) of the Series 1 Note 1.03 times. Enter 2019 and the plot has gone terribly wrong. That’s after Visionscape defaulted on an initial coupon payment of N4.5 billion due March 5. The Lagos State government has distanced itself from the bond, causing investors to panic. An official of Lagos State and member of Governor Ambode’s cabinet told BusinessDay that the state government has no obligation whatsoever to bond holders in respect of Visionscape because it never issued the bond. “We never issued the bond, Visionscape did, so we don’t have an obligation to the bond holders,” the source said on condition of anonymity. According to the official, what the state signed with Visionscape was a contract to pay the municipal waste managing company an agreed amount for lifting up to 12,000 tonnes of waste per month. “Agreed that the political situation in the state among other issues worked against that contract, in the last seven months, Visionscape has not lifted waste to warrantee that payment,” the source said. He, however, said talks were ongoing to resolve the issue with Visionscape. “We expect Visionscape to resolve theirs with its bond holders. There’s what they call political risk in business and I think Visionscape must have factored that in,” the official said. Other sources familiar with the matter say Lagos State has gone cold on its contract with Visionscape following the unexpected exit of Governor Ambode, who lost his bid for a second term in office to fellow party member, Babajide Sanwo-Olu, at the primaries in October 2018. Soon after Ambode’s loss, Simon Reading, chairman, Board of Investors of Visionscape, announced plans to shut down the company’s operations. He said the decision was reached following “heightening political tension in the state” and reported cases of attack on its employees, destruction of

Thursday 07 March 2019

itsoperationalvehiclesandequipment. “Of utmost concern are the recent developments surrounding the turbulent political environment wherein it was reported that the opposition in the upcoming gubernatorial race used subversive language about the residential collections contract and called it ‘a misadventure’,” Reading said. “After Visionscape suspended its operations, Lagos State lawmakers made it illegal for any payment to be made to the waste company,” a source with knowledge of the matter said. “The implication of this is that going forward, any ISPO against IGR is worthless,” said the source who spoke anonymously. The brewing impasse threatens to jack up borrowing costs for Lagos State when it goes seeking to refinance an N80 billion bond this year. It also sends a signal that contract enforcement in Lagos is fickle and unpredictable. Because the state government sets the tone for borrowing costs in Lagos, it means companies seeking to raise debt capital would also be incurring higher borrowing costs. Visionscape was handed residential waste disposal, a turf that was prior to this run by Private Sector Participants (PSPs), by Governor Ambode. Critics say Visionscape did a sub-par job in handling waste disposal in Lagos and that it fell short of the standard set by the previous operators. Visionscape’s management responded by saying that after necessary infrastructure was in place, their services would improve. The Lagos State-backed bond was supposed to deliver that infrastructure. In the information memorandum of the bond programme, the waste management company projected that about N16.3 billion of the proceeds would be used to acquire fleet for the transfer loading stations, strategic acquisitions and related infrastructure, expected by September 30, 2017. Containers and operational equipment were to cost N3.13 billion. Waste facilities upgrade was estimated to take up N2.58 billion, while working capital would gulp N2.5 billion.

Nigerian universities lag global peers in... Continued from page 2

for private universities. The average wage bill of a medium-sized private university per annum is about N500 million. Setting up a well-equipped electronic engineering department costs about N80 million and profit is strictly a game of numbers. It takes at least a decade to have the number of students needed to break even. With shoestring education budgets, Nigeria’s fiscal plans show that education does not rank high in its priorities. This compares poorly with China which spent nearly ¥4.3 trillion ($675.3 billion) on education in 2017, an increase of 9.43 percent from 2016. Nigeria has not made a dent on the UNESCO recommendation of 26 percent budget spend for education.

Even those hired to manage education often fall short. The current Chinese minister of education is an academic administrator; Nigeria’s education minister is a journalist. Analysts say the future belongs to businesses that have successfully built incubators and innovation-focused research labs and partner with universities to build creative solutions for problems that impact companies and consumers in big ways. Nigerian university lecturers who teach entrepreneurship and management skills to graduate students shut down universities in endless strike over wages and some private universities major in minor as they battle to align students with some parochial moral codes.

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Tribunal grants PDP, Atiku leave to inspect Presidential election materials FELIX OMOHOMHION, Abuja

he Presidential Election Petitions Tribunal sitting in Abuja, Wednesday, granted the request by Peoples Democratic Party and its presidential candidate, Atiku Abubakar, to be allowed to inspect the electoral materials used by the Independent National Electoral Commission for the February 23 Presidential election. The three-man panel led by Justice Abdul Aboki made this ruling on Wednesday in its inaugural sitting. However, the panel unanimously rejected other prayers by the applicants seeking orders permitting them to, among others, photocopy and scan the electoral documents. The three-man panel, in a pre-hearing session of the tribunal yesterday, entertained the applicants’ argument for about 45 minutes and rose to deliver ruling. It promised to return in one hour’s time to deliver its ruling. The applicants’ counsels led by Chris Uche (SAN), made submissions on behalf of the team. As expected, in an ex parte application, the three respondents, President Muhammadu Buhari, the All Progressives Congress and the Independent National Electora Commision, were not represented by their lawyers. Uche said during the Wednesday’s hearing that the ex parte motion contained six prayers, one of which sought the tribunal’s leave to bring the motion up in the tribunal pre-hearing session. He added: “Prayers 2 to 6 are in summary seeking orders of this honourable court to allow the inspection and production of election docu-

ments used by the Independent Electoral Commission for the conduct of the presidential election to enable the applicants to institute and maintain an election petition.” However, members of the panel expressed reservations about whether the tribunal could grant some prayers contained in the application for orders allowing them to scan and photocopy electoral materials as well as allow them to conduct forensic examination and forensic audit of the materials. Responding, Uche insisted that there were authorities of the Court of Appeal which had interpreted section 155 of the Electoral Act to mean that petitioners could be granted all the prayers sought in the ex parte application While rising to prepare the tribunal’s ruling, Justice Aboki, requested the applicants’ legal team to submit the said authorities within the one hour period the panel gave to finish writing the ruling. Atiku and the PDP had on Tuesday filed the exparte motion supported with a 12 paragraph affidavit deposed to by one Colonel Austin Akobundu (retd.), Director of Contact and Mobilisation for the Atiku Abubakar Presidential Campaign Council., praying for an order compelling the Independent National Electoral Commission (INEC) to allow them Inspect the register and other vital documents used in the conduct of the election. In the ex parte motion dated March 4, Atiku and the PDP applied that the appellate court serving as the presidential election petition tribunal to compel the electoral body to allow their agents to scan and make photocopies of vital documents used in the last presidential election for the purpose of maintaining their petition against the

L-R: Oladapo Ojo, GMD, DM Holdings; Enyioma Anaba, group head, brands, Interswitch; Ibrahim Saad, deputy director of education, National Examinations Council (NECO), and Akachukwu Anumudu, winner, InterswitchSPAK 1.0, at the press briefing unveiling InterswitchSPAK 2.0 in Lagos, yesterday, Pic by Pius Okeosisi

‘FG’s satisfactory rating in global EITI rankings calls for increased reforms in transparency sector’ HARRISON EDEH, Abuja

igerian gove r n m e n t ’s ‘s at i s f a c t o r y rating’ following the report of Nigeria’s validation conducted by the International Board of Extractive Industries Transparency Initiative (EITI) has heightened the call for increased and deep-rooted reforms in Nigeria’s extractive sector, Waziri Adio, executive secretary, Nigeria Extractive Industries Transparency Initiative (NEITI) said. Adio, who made case for the expansion of the reforms, informed newsmen on Wednesday in Abuja that the EITI board had hailed the reforms in the Nigeria’s extractive sector as satisfactory in its latest validation, while stating that the NEITI

Women protest at INEC headquarters, oppose military involvement in elections OWEDE AGBAJILEKE, Abuja

head the March 9 governorship and state assembly elections, women groups on Wednesday warned against militarisation of the exercise. The women, who protested at the headquarters of the Independent National Electoral Commission (INEC) in Maitama, Abuja, on the auspices of Save Democracy Women, also cautioned that the election must not be postponed. Led by May Uneku, convener, Impact Future Nigeria, the women carried placards with various inscriptions to press home their demands. Some of the placards read: ‘Nepotism must stop,’ ‘Restore our stolen mandate,’ ‘No place for tyranny in modern democracy,’ ‘Save our de-

mocracy,’ ‘Black cloud over Nigeria,’ ‘Let our votes count,’ ‘Steal our votes, steal our future,’ ‘INEC secure our husbands,’ among others. The protest comes a day after the main opposition People’s Democratic Party (PDP) protested at the headquarters of the electoral body, rejecting the results of the just concluded presidential election. While stressing that the police remains the lead agency for election security and calling on the army to steer clear of Polling Units, Uneku attributed the low voters turnout in some parts of the country in the February 23 election to high presence of military. She said: “Unfortunately, these military men helped President Buhari to rig the presidential election for him to come back. “We condemn in totality the involvement of military in

our elections. During the just concluded elections, people were killed. The election was a total charade because they were video and pictorial evidence of people screaming for their lives, soldiers were harassing and shooting people. “In 2015, there were court judgments in Abuja, Sokoto and Lagos - two federal high court judgments and one Court of Appeal judgment against the involvement of the military that the President had no powers to involve the military in the elections. “But few days to the 2019 elections, the President categorically said the military should shoot anybody that will pick ballot boxes. Though we are not supporting those who will snatch ballot boxes but that pronouncement caused a lot of rancour as military men harassed, intimidated voters.”

reports had shaped major reforms initiated in the sector, including those by the Nigerian National Petroleum Corporation (NNPC). The validation report on Nigeria considered by the EITI board assessed the level of implementation of the EITI standards in Nigeria’s extractive sector and impact on ongoing reforms, lessons learnt, stakeholders’ participation and engagement, and prospects for the future. On the impact of EITI in Nigeria, the board quoted Nigeria’s finance minister, Zainab Ahmed, as saying, “The NEITI reports form the basis for reforms in the oil, gas and mining industry, as was laid out in President Muhammadu Buhari’s manifesto,” while saying, “Inspired by the EITI, Nigerian government now

conducts monthly routine reconciliations for all sectors, not just for the extractives, which has increased government revenues.” The EITI validation, it would be noted, is an essential feature of the EITI process designed to assess performance of member countries, promote dialogue and learning at country level. It is also important tool used to measure level of progress and compliance to its principles and requirements, and holds implementing countries to the same global standard. EITI board also looks at multi stakeholders sector, licensing and contracting, production, revenue collection, socio-economic contribution and impact on outcome of your efforts before validating a particular country.

Also, global ratings bodies such as the United Nations and the Transparency International also rate countries with EITI higher ratings better in their ranking. The NEITI board chair, Frederik Reinfeldt, noted after Nigeria’s satisfactory rating exercise in Ukraine that, “Over 15 years of implementing the EITI, the Nigeria EITI (NEITI) has become an independent watchdog that holds stakeholders in the crucial hydrocarbons – and more recently solid minerals – sector to account. “Since 2017, NEITI has disclosed key data on its allocation of licenses, on the administration of oil and gas subnational transfers and on crude sales and other processes within the Nigerian National Petroleum Corporation (NNPC).”

March 9 polls: IGP deploys 7 DIGs, 10 AIGs, others to boost security INNOCENT ODOH, Abuja

n line with his commitment towards providing adequate security for the general elections, Mohammed Adamu, acting Inspector General of Police (IGP), has deployed seven Deputy Inspectors General of Police (DIGs) to the six geo-political zones across the country to coordinate the security arrangements in the areas. This was disclosed in a statement issued on Wednesday by the Force Public Relations Officer, Frank Mba, who said 10 Assistant Inspectors General of Police (AIGs) had also been deployed to the police zonal commands and additional 277 Commissioners of Police to complement the efforts of the respective commissioners of Police in

the 36 state commands and the FCT. The statement noted that with this deployment, each command now had additional three CPs deployed to the three senatorial districts in their respective states of assignment, which will form part of security management base for the command CPs. However, based on security assessment earlier carried out by the Force, some local government areas in Plateau, Benue, Imo and Taraba states have one Commissioner of Police each deployed to coordinate security in the LGA, the statement said. Each of them is expected to work with the Command CP and to ensure that no stone is left unturned towards emplacing adequate security including the supervision of security personnel

deployed to each of the Senatorial Districts under their watch, the statement added. Meanwhile, four (4) Commands, Anambra, Bayelsa, Edo and Sokoto have new CPs posted specifically as Command CP for purposes of the election. The IGP assured that just as in the recently concluded Presidential and National Assembly elections, the Nigeria Police Force shall remain civil, firm, optimally professional and apolitical in the discharge of our duties in the 9th March, 2019 elections. The DIGs deployed to the Geo-political regions include; DIG Usman Tilli Abubakar- North East Zone; DIG Abdulmajid Ali – Coordinator; DIG Frederick Taiwo Lakanu – SouthSouth Zone and DIG Anthony Ogbizi Michael– South-East Zone.

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Why power sector needs reorganisation ADEMOLA ASUNLOYE

ince the advent of the democratic regime in Nigeria, there have been significant strides in the reform of the power sector; but efforts so far have been unable to provide adequate and stable power supply in the country. As the largest economy in Africa, it is entangled with limitations in the power sector which continue to constrain economic growth. Nigeria is endowed with large oil, gas, hydro and solar resource, and it already has the potential to generate 12,522 megawatts (MW) of electric power from existing plants with thermal and hydro capacities of 10,142 MW and 2,380 MW respectively. Unfortunately, the sector is only able to generate about an average 4,000 MW, which is very far from sufficiency. Nigeria has privatized its distribution companies, so there is a wide range of tariffs. Over the past decade, the Federal Government has been able to complete the privatisation processes while the Federal Government retains the ownership of the transmission assets (management under concession) with the generation and distribution sectors fully privatised. The Nigerian power sector privatisation by the Nigerian Electricity Supply

Source: NBS, BRIU

Industry (NESI) is reputed to be one of the boldest privatisation initiatives in the global power industry over the last decade, with transaction cost of about $3 billion. Despite the sector’s 202 trillion standard cubic feet (scf) gas reserves, Nigeria has not been able to harness enough of its gas for power generation for reasons including poor execution of projects, market liquidity challenges, capacity shortages and government’s laid-back attitudes to taking critical decisions on the sector. Before the privatisation, reports indicated that out of the 79 generation units that the country had, only 19 were

operational and average daily generation peaked at 1,750MW. The government which ran the sector reportedly built no new electric power infrastructure between 1989 and 1999. Following the conclusion of the 2013 reforms in the sector which sought to change docile public power systems, upgrading the capacity of Nigeria’s electricity market to guarantee stability for the country has faced various challenges. Even though the reform was initiated to reposition the sector, it is yet to lead Nigeria out of unstable public electricity supply. Reports from various agencies associated with the power sector indicated that up to about

55 per cent of the country’s citizens are yet to be connected to the national grid, while the percentage on the grid manages an average of the said 4000MW generated and transmitted daily to the grid. The Executive Director, Association of Nigerian Electricity Distributors, Sunday Oduntan, in 2018 said

the country’s power sector while it continued to be confronted with challenges that are not well managed. Insufficient gas supply to some thermal electricity generation companies (Gencos) especially those of the National Integrated Power Projects (NIPPs) have remained an issue yet to be resolved by the country. Some measures like chronic illiquidity which impacts heavily on capacity expansion as well as government’s silence on key regulatory and market decisions helped to ensure that the sector achieved a measured progress. In Q4 2018, power generation was pitched at an average daily generation of 68,625 MW of energy leading to an average 2,859 MWh generated hourly by thermal power stations. On the other hand, hydro power stations generated an average hourly energy of 1,163 MWh accumulating to an average 27,193 MW daily. Thermal stations outperformed hydro stations as they generated 1,908,870MW, 2,101,726MW and 2,302,946MW

783,869MW respectively within the aforementioned months with declines of 9 per cent and 7.8 per cent respectively. Monthly energy consumption increased by 4.7 per cent and 6.10 per cent from October to November, and November to December respectively in 2018 across the 11 Electricity distribution companies; this measure up to 7,062,313 MW of energy in the last quarter of 2018. Available records showed that 16,532 prepaid meters were distributed in commensuration to the same number of customers in Q4 2018 across the discos in Nigeria owing to 1 per cent increase from 1.65 million customers in Q3 2018 to 1.67 million customers in Q4 2018. The graph show e d that the sector has struggled to sustain an average daily power production of 61,576 MW, 70,058 MW and 74,248MW in October, November and December respectively in 2018 by the thermal stations. Also, after

of energy in October, November and December respectively in 2018 amounting to 10.1 per cent increase from October to November, and 9.6 per cent increase from November to December. While hydro stations underplayed as they generated 934,193MW, 849,964Mw and

the thermal stations and hydro stations achieved a peak power generation of 80,856MW on December 20, 2018 and 32,681MW on the 21st of October 2018 respectively, it however largely struggled to keep up with the trend by 2018 year end.

Source: NBS, BRIU

that Nigeria must generate at least 180,000 MW of electricity to have adequate and stable power supply in the country. Whereas, generating 1,000 MW of electricity will require about $1.2 billion. However, between 2017 and 2018, progress was recorded in

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What PMI and Business Expectations Index say about the direction of the economy TELIAT SULE

he Purchasing Mangersâ&#x20AC;&#x2122; Index (PMI) and Business Expectation Survey Index are two critical reports of the Central Bank of Nigeria (CBN) that give investors and other stakeholders information about the direction of the Nigerian economy. The PMI indicates the changes in the level of business activities in the current month compared with the preceding month, with focus on both the manufacturing and nonmanufacturing sectors. For manufacturing PMI, factors such as the production level, level of new orders, suppliersâ&#x20AC;&#x2122; delivery time, employment level, raw materials inventory and work in progress are considered. On the other hand, business activity, level of new orders, employment level, raw materials inventory are the variables under consideration for the non-manufacturing index. Furthermore, the Business Expectations Survey Index summarises the expectations of the people in the business community within the nation, taking into consideration factors such as the access to credit employment and expansion plans, business constraints, expectations on exchange rates, borrowing rates, level of inflation, among others. What changed in February 2019? Manufacturing PMI The manufacturing PMI averaged 57.1 percent in February 2019, which amounted

Source: CBN

to further expansion in the manufacturing sector for the twenty three months in a row. Business expansion was recorded in 14 sub sectors within the manufacturing industry, namely petroleum and coal products, electrical equipment, transportation equipment, plastics & rubber products; food, beverage and tobacco products; textile, apparel, leather and footwear; non-metallic mineral products; chemical and pharmaceutical products; furniture and related products; printing and related support activities; cement and fabricated products, as well as paper products. When gauged by the variables that are components of PMI, production level index recorded an improvement for twenty four months in a row, albeit slowly. From the 14 manufacturing sub sectors,

nine witnessed increased production; three remained unchanged while there was a decline in two sub sectors. Overall, new orders grew for the 23rd month in a row. In particular, twelve sub sectors recorded more orders; one sub sector remained unchanged while another one contracted in February 2019. The manufacturing supplier delivery time was not exempted from the slow growth recorded by the manufacturing PMI in February as it stood at 58.2 points. Eight sub sectors witnessed improved employment generation, five sub sectors remained unchanged while 1 reported decline in the level of unemployment. Similarly, the manufacturing inventories index at 56.2 points grew for the 23rd consecutive month in February. Fourteen sub sectors record-

ed improvement, a sub sector remained unchanged while four sub sectors witnessed downward trend in raw materials inventories. Non-Manufacturing PMI The non-manufacturing PMI hovered around 58.4 points an indication that all the sub sectors surveyed witnessed growth. The sub sectors in question include management of companies; arts entertainment and recreation; utilities; information & communication; finance & insurance; repair maintenance/washing of motor vehicles; educational services; real estate rental & leasing; wholesale/retail trade; transportation & warehousing; health care & social assistance; electricity, gas , steam & air conditioning supply and agriculture. Others are accommodation & food services; construction; professional, scientific & technical services; and water supply, sewage & waste management. Business activities at 59.7 points sustained it growth, albeit at a slower pace, for the twenty-third month in a row. Fifteen sub sectors grew, while one apiece remained unchanged and declined. New orders slowly grew for the twenty-third month in a row and of the seventeen sub sectors under consideration, fifteen recorded new orders, while 2 posted decrease in new orders. Employment level perfor-

mance in the non manufacturing PMI stood at 57.3 percent as growth was recorded in fifteen sub sectors while two sub sectors witnessed decline in employment level within the period. And for the non-manufacturing inventory for the period, the attainment of 58.2 point signalled growth for the twenty-second consecutive month. Fifteen subsectors grew while 2 recorded a decline in inventory levels. Business Expectations Survey Index Meanwhile, the business expectations survey index sought the views of 1,050 businesses nationwide, attaining a response rate at 97.4 percent. Based on the breakdown, 54.7 percent of the firms were from the services sub sector; 32.6 firms were from the industrial sub sector; 8.7 percent of the firms from the wholesale and retail sub sector, while 3.9 percent of those firms from the construction sub sector. Altogether, the owners of the firms expressed optimism on the macro economy in February, while their total orders, business activities, and financial conditions were positive. On the flip side, perennial challenges such as insufficient power supply, high interest rate, unfavourable economic climate, financial problems, unfavourable political climate, unclear economic laws, insufficient demand and access to credit as major factors that were seen as the major bot-

tlenecks to businesses. Those who provided the above responses are the real players in the Nigerian economy, as the survey design ensured that only the target respondents were approached. In terms of company size, 57.3 percent of the firms employ less than 50 employees and they are otherwise known as small firms; 28.9 percent or medium sized firms employ between 50 and 200 employees, while the large firms which constituted 13.7 percent of the sample size employ more than 200 workers. By profession, 17.4 percent were importers; 1.9 percent were exporters; 13.9 percent were engaged in both export and import businesses, while 66.8 percent were neither importers nor exporters. Unanimously, the players whose views were sought in the Business Expectation Survey index expressed greater optimism about the macro economy in March. From 22.1 percent, their confidence level about the economy is expected to rise to 58.5 percent in March 2019. The interesting thing about this rising optimism is that it came majorly from the players in the services sub sector, 33.4 percent; and those in the industrial sub sector, 17.7 percent. In terms of job creation, 26.1 percent of the respondents in the services sub sector show the highest prospect for job creation. Industrial players indicated prospect of job creation to the tune of 24.6 point while players in the wholesale/ retail trade sector expressed optimism by 22.5 percent. Again, the services sub sector indicated the greatest prospect for business expansion in March at 27.1 points. This is followed by wholesale/ retail trade, 10 points, and industrial and construction were very low on business expansion optimism at 4.0 points apiece. Insufficient power supply is seen by businesses as the major constraint, for which reason it was rated 63.3 percent. Unfavourable economic climate and high interest rate both rated at 55.2 percent each. Financial problem is next at 53 percent while unfavourable political climate is next on the ladder at 51.8 percent.

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EPI: Women train to take over future of entrepreneurship IGNATIUS CHUKWU

he agenda is very clear, objective is direct: to turn women into a formidable force through entrepreneurship. Yet, these are already professional women holding firmly on their own, but Mercy Bello Abu says they can even surpass the limits, break the bounds and take over the future through entrepreneurship. The get going, the former chairperson of NECA Network of Entrepreneurial Women (NNEW) in Rivers State established a special purpose vehicle, Entrepreneurship Platform Initiative (EPI) to convey women to the new destination. The fuel for the vehicle seems to be the philosophy of every successful woman striving to derive joy only by making the next woman happy through multiplying success. Abu pulled in another sharp motivator and coach, Mounfiq Raiyan Abu, the CEO of Rainyaninspires Consulting Limited, to hone the skills of her converts. Her work plan seems to be to recruit women from time to time, groom them, empower them, and then set them loose to replicate themselves same way. Now, EPI is in 10 states of Nigeria with over 1,000 members in just three years of effort. To Abu, this is just the start. To keep honing her converts, she brought in a top expert to show the women entrepreneurs how to convert every message in their system into commercial success and profit. This was at an induction ceremony in Port Harcourt at the weekend, Abu turned her members into smartly packaged enthusiasts and go-getters for their induction at the Nostalgea

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IGNATIUS CHUKWU

yesom Wike is the governor of Rivers State and he wants to go back after the first four years. He thinks he has done very well on the job and deserves another term. Emeka Ihedioha was deputy speaker of the Federal House of Representatives who made history by serving three terms in the National Assembly for his Aboh-Mbaise-NgorOkpala Federal Constituency. He too thinks he deserves a chance. Both men are of the People’s Democratic Party (PDP). Both think they are able to stroll through without much ado, if only federal might could stay at home for once. They have been in federal might before and could know what ordinary mortals may not know about federal might. Both men have serious complaint about the Army. They would want an election without the Army. Many say if armed youths step out,

…Experts coach top women in PH on how to turn every message to profit Event centre (CFC) close to Garrison area of the Garden City. Before unleashing the resource person on her members, Abu made it clear that EPI is about women helping others to excel and succeed. She said it is a preferred platform to share success stories and guarantees access to successful women entrepreneurs. “Entrepreneurs Platform Initiative (EPI) is a non-profit business membership organisation established in 2016 to promote and nurture entrepreneurship among women and youth. It’s about impacting and influencing lives. EPI is a platform that shares inspirational challengeturned-success stories, as well as a forum where start-ups, struggling, and established female entrepreneurs can leverage on to create, thrive and win through mentorship and coaching from seasoned entrepreneurs.”

Mercy Bello Abu, EPI boss

Cross section of inductees

As the orientation got hotter, the convener went on: “We partner with organisations like Grofin, Bank of Industry (BOI), Bank of Agriculture (BOA), and many more, to assist members to start up or grow their businesses through forms of financing such as loans and grants. We imbibe and encourage core values including treating everyone on this platform with respect, no matter how successful one is. We also insist on integrity by good conduct and honesty with professional ethics. Others include the spirit of always learning, taking responsibility, celebrating our successes, and committing to strong and trustworthy relationships.’ She said seminars were very key tools at EPI and 2019 is set aside to create sustainability and global impact for members. “It is our goal never to allow anything committed to any of our hands to die. See yourselves as part of a movement to help celebrate, motivate and inspire women globally, own the vision and run with it.” How to take over: Insisting that the future of entrepreneurship is women, the guest

speaker, Mounfiq Raiyan Abu, (CEO of Rainyaninspires Consulting Limited), set the goals women must pursue to conquer. She said because five per cent of entrepreneurs are women, the opportunities for them are bigger, but some goals must be captured. She outlined them as the goal to fight for gender parity in business in terms of bank financing; the goal for inclusion and learning to share the spotlight with their male counterparts; the urge to improve their online influence and visibility; to have the right mindset reset and don’t feel intimidated by men; to learn to be more competitive; to learn to have more financial discipline; to seek investors and financing as more financial companies are introducing diversity in their lending process; learning to turn their passion into profit and monetise their message; and to realise that brand development is a key growth opportunity to harness. Challenges: Mercy Abu had earlier talked about challenges as part of human growth and mentioned the ones confronting EPI, but the guest lec-

turer itemised the ones confronting women entrepreneurs such as inability to secure funding, due to absence of collateral. She described this as the biggest challenge faced by women-owned businesses across Nigeria, as access to capital is crucial to any small business’ growth trajectory. Others mentioned were lack of role models and access to mentorship programmes, inability to secure good business space, cultural values and limitations, and the tendency of female entrepreneurs to struggle with balancing business and family. She said: “Although we live in an age and time where women are becoming more daring and opinionated, many women still face the challenge of running their own business because the society believes men should be the ones to make money and provide for the family. To overcome this entrepreneurial challenge, you must be prepared to breakthrough this limiting tradition; you must stick to what you believe in.” She excited the women by recounting some female role models in business in Nigeria such as Uche Pedro (Nee Eze), the very young but influential African fashion and entertainment blog; Ola Orekunrin, the founder of “Flying Doctors”, listed among “Young Global leaders” by the World Economic forum in 2013; Tara Fela-Durotoye, a Nigerian lawyer and beauty entrepreneur that founded House of Tara International who was named among Forbe’s ‘20 Young Power African Women’; Folorunsho Alakija, who has consistently stayed on top as not just the richest woman in Nigeria but in Africa as a whole, with a net worth of $1.9 billion.

Of victory, Wike and Ihedioha who else can step out with them, police? That is the snag. On the other hand; how can your people love you, want you, but the Army becomes the issue? Would it not be a kind of coup if the will of the people expected to be expressed through the ballot is openly stopped by the jackboot? If soldiers are to be brazenly allowed to decide who governs a state, would it not be better to allow them to simply appoint the governors? But, has the Army admitted that they subvert elections? Or, is there anything the Army, Police, or INEC is doing now, that they were not doing in the previous 16 years? There was even a time of hooded security operatives, The then opposition cried foul but the PDP then saw it as advanced democracy. Truth I, evil can only get bigger. Common observation shows that both Wike and Ihedioha can easily stroll through the park on Saturday but what is stopping this? There are thousands of armed youths in both Rivers and Imo and elsewhere, who pose huge threats at elections and all civilian gatherings and activities. Even when the BBC organised a debate in PH, hoodlums laid siege and forced their choice candidate

who was not selected by the organisers to get into the hall and unto the stage. Some event centres no longer accept bookings for political engagements despite the almost N1m fee available as rent. They do not want trouble, despite assurances of high mobilisation of security. This is an indication that the civil authority is losing ground fast to irregular armies. Now, if a debate could be disrupted by hoodlums, is it voting that would be spared? Many say let the police handle them, but have they fared well over the years. In fact, how much did the previous administration aid the police to gain superior power over thugs? It has been a steady decline of police firepower and will over the years. This has justified the unleashing of the Army for elections, an action that looks odd but, what can the nation do? Even soldiers are being killed. If soldiers stay home and policemen are busy with polling centres, would the foreign observers even go un-kidnapped? Truth is, elections are war in these parts. The army is for war. But, is it not expected that soldiers should show a difference and fight for democracy by simply staying vigilante? Would they

Governor Nyesom Wike

Emeka Ihedioha

not bring out their guns only if youths bring out guns? Is it possible that soldiers wearing the eagle pips of honour and well respected uniforms would descend so low to snatch result sheets and ballot boxes in the presence of Youth Corpers and civilians? For now, it sounds unthinkable but eye witnesses abound. The nation must wake up to this. If the Army has resolved to reject coups and allow civilians, the least they can do is remain neutral at all times in the polls. Our soldiers often go for international duties. Look, nobody outside Nigeria would respect an army that is known for snatching ballot boxes. This is not the image the Nigerian Army has cultivated outside Nigeria, in the Congo, Burma, Liberia, etc. The army has continued to say these stories are not true. I wish they were not true. Whatever the case, the army may not sheath their sword unless armed hoodlums sheath theirs. And, the hoodlums are owned by the politicians. So, it could be the politicians that are inviting the army by inviting hoodlums. Let all eyes be on both army and hoodlums on Saturday, please.

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Investing in Rivers State Wealth creation:

Chambers of Commerce, Rotary may forge common front to boost devt … As Obafunsho Ogunkeye flies Rotary’s value proposition Ignatius Chukwu

proposition has been tabled that may boost wealth creation, jobs, and business development, should Nabil Saleh’s suggestion for Chambers of Commerce across Nigeria to join Rotary clubs and vice versa. This is as a leading lawyer, arbitrator, negotiator, and top Rotary leader in Ibadan, Obafunsho Ogunkeye, has tabled what he called ‘value proposition’ to old members and incoming business leaders and professionals aspiring to lead a rewarding vocational life in the Rotary International family. Saleh, a chief in Port Harcourt, but with Lebanese roots, is the current president of the Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA). His administration is committed to definite boost in wealth and job creation in the Niger Delta especially as he now heads the Organised Private Sector (OPS) in the state and chairs the job creation committee in Rivers State. Floating the proposal at Rotary’s ‘International Night’ at the White Hall in Vineyard Mall, Woji Road area of the GRA 2 in the Garden City close to where a 7-story tower collapsed in December, Saleh made it clear that a partnership between Rotary Clubs and Chambers of Commerce around Nigeria would create a boost. He said in particular that a partnership with PHCCIMA is proof of synergy and the connection is that both Rotary and Chambers of Commerce talk business and promote business success and values. On that note, the CEO of M-Saleh Group said: “We pledge to support the Rotary club in any way that would help foster this relationship towards helping the community. We urge Rotarians not yet in PHCCIMA to consider it ripe now to do so, and let Chamber members not yet in Rotary take action, now. . It is the best thing to do.” He made donations in support of the efforts to finally kick polio out of Nigeria, hopefully by August 2019. Nabil was toasted at the event as a worthy ‘Port Harcourt Boy’. Reacting to the partnership offer, Ibadan-based Ogunkeye said the suggestion could start off immediately through honourary membership

L-R: Nabil Saleh of PHCCIMA and Ibim Semenitary of Rotary PH Cosmopolitan

offer to Chamber members. Ogunkeye actually attended his first Rotary meeting in PH way back in 1980 as a Youth Corps member prodded by Graham Douglas (lawyer). He is a past district governor and now Rotary Coordinator Zone 20A (Ibadan) as well as founding/principal partner of the leading law firm Ogunkeye and Ogunkeye, established in 1983 in Ibadan. The top Rotarian tabled the Rotary value proposition in his dinner speech thus: “The most important matter any person must resolve at heart in deciding to be part of the fantastic Rotary family worldwide is to resolve the lingering question of; ‘what is in it for me? Why am I in Rotary, actually?’ In dealing with this matter, consider the core values of Rotary: Friendship, leadership, integrity, diversity, service, and fellowship. These values add up to define a man and help a lot of people to achieve destiny and a worthy life. “Where else would one find all these values imbedded in our cause or vocation? It is therefore necessarily to effectively communicate the core values to new members so they can quickly resolve within their inner minds their purpose in the journey. This would help them travel better and achieve objectives which have been properly set. “It is a fact that Rotary loses about 70 per cent of its new members in the first three years. This could be

because most persons do not form a strong motivation that would be a driving force within as they belong. Rotary is for business and professional people. Business people give mere sums of money to communities but Rotary multiples that sum to give service. That is our value proposition.” Ibim: Conflicts ruin communities Welcoming her guests, Ibim Semenitari, the president of PH Cosmopolitan, pointed to true love and friendship as the only remedy to global conflicts and violence which she said had resulted in 68 million displacements globally in 2018 alone, regretting that more than half of the victims were children. Ibim spoke as some communities in Rivers state go through pains of conflicts and violence, too. She said: “In a year that Rotary marks 114 years in existence, the former Information Commissioner in Rivers State said Rotary works in six areas of focus, one of which is peace and conflict resolution and prevention. “As Rotarians, we refuse to accept conflict as a way of life, and as Rotarians we choose to “see a world where people take action to bring about lasting change in the world, in our communities and in ourselves”. She went on: “Today, we celebrate the friendship and harmony that Rotary brings and we are delighted at the mix of friends in this room. Special appreciation must go

to our friends from the Lebanese, Indian, Italian and Chinese communities for making this evening truly colourful. Tonight, we specially celebrate two Port Harcourt Boys, Chief Nabil Saleh, President Port Harcourt Chamber of Commerce as our Special Guest of Honour for the night and Past Ditrict Governor Obafunsho Ogunkeye, our guest speaker for the evening. Both of them are men who have continued to serve humanity selflessly.” She explained thus: “For those of our guests who may not know, Rotary is a special global network of neighbours, friends, leaders, and problemsolvers who see a world where people unite and take action to create lasting change – across the globe, in our communities and in ourselves. “Solving real problems takes real commitment ad vision. For more than a century, Rotarians have used their passion, energy, and intelligence to take action on sustainable projects. From literacy and peace to water and health, we are always working to better our world, and to we stay committed to the end. With a mission to provide service to others, promote integrity, and advance world understanding, goodwill, and peace through our fellowship of business, professional, and community leaders, “Rotary International is inspiring leaders around the world to effect real and lasting change”.

Toasting Nabil Saleh: Toasting the PHCCIMA boss, Ibim described Saleh as a special character who is always extending the frontiers of peace. “He supports and identifies with this noble cause. He brings the Lebanese community closer to Rivers people. He promotes international understanding and peace. That is why we need his name on the fight to end polio in Nigeria. This is the right time at the right bus stop.” Goodwill message; Goodwill messages came from Barry Rassin, Rotary’s International President, who noted thus: “Let each Rotary Club come up with one highimpact project. For instance, by merely providing a jeep for Haitian midwives, they were able to reduce mortality rate of pregnant women and children in a remote rural area that was endangered for years. It requires careful planning and good research to deliver highimpact projects, not all the money.” Adeyemi Oladokun, District Governor RID-9141, added: “Rotary is humanity in action. People must pause and wonder what the world would be without Rotary. Think of simple, maybe not capital intensive, meaningful projects that would satisfy service opportunities of your communities. And, if clubs come together in cities and states to execute projects, it would create meaningful impact on communities.” Pearl on magic of donations: Assisting Ibim to decorate Saleh, Ijeoma Pearl Okoro revealed how the financials of the war against polio run. “If you give one Dollar, Bill and Melinda Gates Foundation will match it with three Dollars, to eradicate polio. It costs higher on advocacy, instead of on the drugs. It takes a lot to get to remote communities, and convince them to accept polio vaccines. Often, they rather ask for schools, food, and other basic needs. Also, it takes a lot to convince most rural people that the vaccine is not a contraceptive mechanism that may stifle their reproductive abilities in the future. The drug is about 60 cents each but advocacy is huge cost.” Conclusion: The night went into dinner session and American auction to raise funds for more projects. The foundation was thus laid for Rotary and Chambers of Commerce to form a collaboration to push businesses and community works.

Accountability: CSO takes advocacy to Ogoni-born Rivers lawmaker Innocent Eteng

onsidering the range of issues bedevilling Ogoni people in Rivers State, a civil advocacy group, Citizens Trust Advocacy and Development Center (CITADEC), has taken its advocacy to Innocent Barikor, a member of the Rivers State House of Assembly who represents Gokana Constituency in Ogoni. A delegation of CITADEC visited

Barikor at his private office in Port Harcourt on Wednesday, February 20, 2019 where he was briefed about social issues confronting his constituents and Ogoni in general. Presented issues revolved around environmental pollution, poor healthcare system, broken educational institutions, insecurity in form of violence perpetrated by cult groups, and gender-related abuse. Meanwhile, the visit comes a week after CITADEC concluded a threeday dialogue with scores of Ogoni

natives and stakeholders in Gokana and Khana local government areas to identify issues most pressing to them. It was at the dialogue that the above stated issues were identified as needing attention. However, the dialogue also included training on how the natives can engage their legislative representatives to demand active, inclusive and accountable representation. CITADEC’s director, Lawrence Dube, who described the issues as“multiple-sectorial” said the visit

was therefore to present the issues to Barikor so they could form the bases for making laws that would help solve them. He said moving forward, the advocacy would be taken to all lawmakers representing Ogoni at the state and federal levels. Responding, Bariko thanked CITADEC for the visit and said he has take note of the issues. He however said the problem is not the absence of laws to tackle the issues, but “there is a huge problem of enforcement.”

He also blamed it on “the problem of (lack of) resources, even with the agencies that should enforce a lot of these things. When you meet them they would tell you they don’t have enough budgetary allocation. It’s a cyclical problem.” While he said some of the issues fall on the purview of the federal government to address, he added that partnership and collaboration between the state and federal governments are key to solving the problems, as against “antagonistic relationship”.

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Thursday 07 March 2019

MADE IN ABA

4 key issues holding back Aba leather industry ODINAKA ANUDU

ba leather sub-sector is thriving in chaos because several issues hold back the N120 billion industry. The industry is made up of shoes, trunk boxes and belts. It provides employment for tens of thousands, with many specialising in different stages of production such as designing, patterning, cutting, skiving, stitching, peeling and finishing. It is made up of clusters such as Powerline, Imo Avenue, Bakassi, Aba North Shoe Plaza, Omemma Traders and Workers, ATE Bag, and Ochendo Industrial Market, comprising input suppliers, among others. One million pairs of shoes are produced by more than 80,000 leather makers in Aba each week. With 48 million pairs produced each year at an average price of N2,500 a pair, the industry is worth N120 billion. One of the major factors inhibiting the growth of Aba leather industry is the type of machines used. BusinessDay found, during a recent visit to Aba, that the majority of players are small-scale and they crude machines

which require much of human labour. “One of the challenges we face here is that our machines are not as good as those of Lagos producers,” said Emmanuel Onyeke, a shoemaker in Powerline. “Because of this, job takes time to finish,” he said. If machines are a problem, funding is even a bigger problem, as several shoe and belt makers require money to execute contracts and even procure raw materials. Deposit money banks

and other financial institutions are not interested. They say many leather makers in Aba do not have bankable business models and plans. “ It t a k e s $ 2 5 0 , 0 0 0 to N750,000 to set up a standard shoe factory,” said Ken Anyanwu, secretary of the Association of Leather and Allied Industrialists of Nigeria (ALAN), who produced Nigerian armed forces shoes in 2016. “ S o, w h e n p e o p l e come here with N300,000, I sometimes wonder what that can do for an indus-

try is capital intensive,” he added. Another challenge hurting the growth of the industry is lack of raw materials locally. Most times, raw materials like animal skins are imported, despite that they are locally available. Shoe, belt and trunk box makers say they are forced to import inputs for reasons beyond their control. “What happens is that the tanneries in Kano and Kaduna process animal skins and sell them as leather in the global market, earning foreign

exchange,” said Chinatu Nwagbara, coordinator of Made-in-Aba Project, who produced shoes for Olusegun Obasanjo in 2016. “So we go to China and other countries to buy. Sometimes, we buy our products and re-import,” he said. This makes business sense for the tanneries as many of them earn foreign exchange from such export. But it does no favour for local shoemakers who have to seek scarce foreign exchange

to import inputs. Moreover, the poor state of infrastructure in Aba remains a big issue. Aba roads are bad and the players are still waiting for Geometric Power to berth. Currently, power supply is poor in the industrial city and many of them are looking forward to regular power supply. “We expect that soon, Geometric will come in and help us,” Ogbonna Onyeaku, a trunk box producer, told BusinessDay. “We learnt that the company will come in this year and we could only wish they came as fast as possible,” he said. According to the United States Agency for International Development (USAID)’s Power Africa’s Fact Sheet for Nigeria, Nigeria has the potential to generate 12,522 megawatts (MW) of electric power from existing plants, but most days are only able to generate around 4,000 MW, which is insufficient. The Manufacturers Association of Nigeria (MAN) says that it wants a review of some of the requirements for the uptake of the 2,000 megawatts (MW) stranded electricity so that players can leverage on the initiative.

How local partnership with farmers can improve production in Aba GBEMI FAMINU ba remains one of Nigeria’s largest industrial hubs, producing bags, shoes, belts, boots, cosmetics, plastics, and paints. It has its major markets such as Ariaria Market, New Market and Cemetery Market, where some of these products are made and sold. Despite various challenges those in the industry encounter, they are still able to make products that meet global standards. The industry encounters many challenges, especially high production cost, caused by inability to easily access raw materials such as leather, animal skin, and glue, among others, for production pur-

poses. Although, some of these materials are available locally, artisans have to source for inputs abroad, as most of the hides and skin in Nigeria are being exported to other countries. The shoemakers will then need to import these products back at a higher rate, with naira being weak against the dollar. This causes an increase in the cost of production Furthermore, Aba artisans face infrastructural problems, especially power, transportation, and industrial machines, which cause setbacks for the industry, An example is the inability to meet market demand in terms of the quantity and quality of items produced.

Unlike the Aba artisans, foreign shoe and bag producers have programmes that encourage partnership with those that provide raw materials needed for production locally and internationally. Ethiopia, even as an emerging market, is making waves in the shoemaking industry locally and internationally. Since 2000, it has emerged as a shoemaking hub and has got better overtime to get recognition from foreign investors like China’s Huajian. “There is a need to have a local value chain that will support Aba,” James Eze, a financial analyst, said. “This will include healthy partnerships with local herdsmen,” he said. Ethiopia has 56 mil-

lion cattle and with its well-organised and formalised leather industry. It is able to provide raw materials to its shoemakers easily. Similarly, Nigeria has 131 million cattle, goats and sheep, according to the Federal Ministry of Agriculture (2011 figures). Despite the similarities between them, they are far apart in terms of development because while Ethiopia makes its raw materials readily available for further production, Nigerians prefer to export their raw materials for higher profits in foreign currency. The result of this is that producers have to source for these materials internationally and pay a higher price for it, coupled with the transfer of these

materials down to the local factories. “Once the tanneries are through with production, they export the entire finished leather to the detriment of local leather works manufacturers. This is affecting the finished leather sector in Lagos, Onitsha and especially the Aba cluster,” Ken Anyanwu, national secretary, Association of Leather and Allied Industrialists of Nigeria (ALAIN) told BusinessDay. This means that local shoemakers must begin to think of partnering with herdsmen to supply them with sufficient hides and skin. The effect of this partnership is that it establishes a friendly business relationship.

Stakeholders in the industry need to liaise with local partners in order to access the raw materials, especially for leather, which is the major material used. This can be obtained from cattle rearers or butchers, conveniently and at a cheaper rate. Furthermore, the industry can partner with farmers in states such as Kano, Kaduna and Oyo for raw materials that could be obtained from farm products such as cotton and glue, among others. The government should also help in establishing infrastructure and factories like the Nigerian Institute Of Leather and Science Technology (NILEST) to increase the quantity of local leather produced.

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World Business Newspaper

Trudeau’s political crisis: the controversy explained

Pressure mounts on Canada’s prime minister over allegations involving engineering company SNC NIKOU ASGARI AND JOSHUA OLIVER

ustin Trudeau is facing the biggest crisis of his political career, as pressure mounts on the Canadian prime minister over allegations that he improperly interfered in a corruption case involving one of the country’s biggest companies. Canada’s former attorney-general, Jody Wilson-Raybould, alleged that she was pressed by senior officials in the prime minister’s office to prevent the prosecution of SNC-Lavalin, a Montreal-based engineering company charged with fraud and corruption. SNC-Lavalin employs more than 8,000 people in Quebec, a province that is crucial to Mr Trudeau’s re-election in polls set for October. The revelations have been costly for the 47-year-old leader. Two cabinet ministers, including Ms WilsonRaybould, have resigned, along with Mr Trudeau’s closest adviser, while the leader of the country’s opposition party has called on the prime minister to step down. Here the Financial Times explains the controversy embroiling the Canadian leader. What is SNC-Lavalin accused of? Global engineering and construction management company SNC-Lavalin is facing charges of fraud and corruption in relation to payments worth C$47.7m made to Libyan officials between 2001 and 2011 under Muammer Gaddafi’s

regime. If convicted, the company would be banned from bidding for federal government contracts for a decade. SNC-Lavalin had hoped that the charges would be settled through a so-called deferred prosecution agreement (DPA), whereby, instead of a criminal trial, the company would pay a fine, enforce compliance measures and retain the ability to bid for contracts. The company had lobbied federal officials for a DPA in more than 80 meetings between 2016 and 2017, according to the Globe and Mail, a Canadian national newspaper. In October 2018, Canada’s director of the public prosecution service refused to negotiate a DPA with SNCLavalin, a decision the company appealed against. How is Trudeau involved? In February, the Globe and Mail reported that in the autumn of 2018, Mr Trudeau’s office had “attempted to press” Ms Wilson-Raybould, then Canada’s attorney-general and minister of justice, to intervene in the SNC-Lavalin prosecution case to secure a DPA. In testimony to Canada’s parliamentary justice committee last week, Ms Wilson-Raybould said that she had “experienced a consistent and sustained effort by many people within the government to seek to politically interfere” in her handling of the case. She said it was “an inappropriate effort to secure a deferred

Carlos Ghosn released from Tokyo jail after 108 days Stage set for blockbuster trial of former chairman of Japanese carmaker Nissan KANA INAGAKI AND LEO LEWIS

arlos Ghosn was released from jail on Wednesday after 108 days, ending his controversial imprisonment and setting the stage for Japan’s biggest legal clash in decades. Mr Ghosn left the Tokyo Detention Center disguised as a construction worker, wearing a blue cap, glasses, a paper mask and high-visibility yellow vest after posting ¥1bn ($9m) in bail. The former Nissan chairman’s release was broadcast live on Japanese television, as he was driven away in a work van labelled Nakamura Kogyo, or Nakamura Industries, pursued by journalists on motorcycles and helicopters. After an hour-long drive, TV footage showed Mr Ghosn, with grey thinning hair, arriving at his lawyer’s office in the centre of Tokyo. Having removed his construction clothing in favour of a dark sweater, Mr Ghosn smiled as his lawyer slapped him on the shoulder. Mr Ghosn was forced to accept unprecedented restrictions as a condition of his bail. In stark contrast with a luxury lifestyle that included criss-crossing the globe in a private corporate jet and making use of numerous company-owned residences, he will be restricted for

much of his day to a residence in Tokyo where the entrance will be under 24-hour camera surveillance. Among the constraints facing Mr Ghosn, who has continued to assert his innocence and refused to confess, is a ban on the use of any internet-enabled mobile phone or computer to prevent him from tampering with evidence. As in a previous bail application, Mr Ghosn agreed to surrender all three of his three passports — French, Brazilian and Lebanese — to his lawyer to ensure he cannot flee Japan. Legal experts said the rare decision by the Tokyo court to grant bail had been influenced by international condemnation from human rights groups of a justice system that prolongs the detention of defendants who maintain their innocence and do not confess. “The bail conditions themselves are not really effective in practical terms, so it does seem like the court was affected by outside pressure,” said Norio Munakata, a lawyer and former prosecutor. “Not everyone is as famous as Mr Ghosn and this is a special case.” The experts also believe that the trial will put a system with a 99 per cent conviction rate under the microscope. Mr Ghosn has assembled a “dream team” of leading lawyers who have a record of challenging it.

prosecution agreement with SNCLavalin”. Mr Trudeau was part of the intervention, Ms Wilson-Raybould told the justice committee. She said he had asked her to “find a solution” that would avoid SNC-Lavalin having to cut jobs or move from Montreal. Mr Trudeau has challenged her account and has denied any improper attempt to help the company avoid criminal prosecution. Ms Wilson-Raybould was named minister of veterans affairs in a cabi-

net reshuffle in January. She resigned a month later, following the publication of the Globe and Mail report. Days later, Gerald Butts, Mr Trudeau’s longtime senior adviser, also resigned, and on Monday, Jane Philpott, a senior cabinet minister close to Ms Wilson-Raybould stepped down, saying that she had “lost confidence in how the government has dealt with this matter”. What does this mean for Trudeau? Mr Trudeau said that the conversations with Ms Wilson-Raybould

about the SNC-Lavalin case were within the rules. Ms Wilson-Raybould echoed this in her testimony, saying the pressure she experienced was “incredibly inappropriate” but not illegal. The controversy, however, continues to escalate and threatens to overshadow Mr Trudeau’s bid for re-election. His approval ratings had slipped dramatically since he took office in 2015 and recent polls show his ruling Liberal party neck and neck with the opposition Conservatives.

Italy set to formally endorse China’s Belt and Road Initiative White House hits out at plan to sign agreement that is likely to alarm Brussels DAVIDE GHIGLIONE , DEMETRI SEVASTOPULO, MICHAEL PEEL AND LUCY HORNBY

taly is preparing to become the first G7 country to formally endorse China’s controversial Belt and Road global investment drive, in a move that has drawn a sharp response from the White House and is likely to cause alarm in Brussels. Michele Geraci, undersecretary in the economic development ministry, told the Financial Times that Rome planned to sign a memorandum of understanding to support the contentious infrastructure programme by the end of March during a visit to Italy by Chinese president Xi Jinping. “The negotiation is not over yet, but it is possible that it will be concluded in time for [Xi’s] visit,” Mr Geraci said in an interview. “We want to make sure that ‘Made in Italy’ products can have more success in terms of export volume to China, which is the fastest-growing market in the world.” The move, however, has drawn a critical reaction from the White House, which said the project was unlikely to help Italy economically and could significantly damage the country’s international image. “We view BRI as a ‘made by China, for China’ initiative,” Garrett Marquis, White House National Security Council spokesperson, told the FT. “We are sceptical that the Italian

government’s endorsement will bring any sustained economic benefits to the Italian people, and it may end up harming Italy’s global reputation in the long run.” Mr Marquis said US officials had raised concerns about what he called the negative effects of “China’s infrastructure diplomacy”, and urged “all allies and partners, including Italy, to press China to bring its global investment efforts into line with accepted international standards and best practices”. China’s BRI plan aims to finance and build infrastructure in more than 80 countries in Eurasia, the Middle East and Africa. But the US and major European countries are concerned it favours Chinese companies, creates debt traps for recipient states and is being used to further Beijing’s strategic and military influence. Several central and eastern European countries, as well as some states in Asia, the Middle East and Africa, have agreed to sign bilateral memorandums supporting it. The documents are typically confidential and the exact commitments made are unclear, but they often include phrases confirming that the country “highly appreciates and supports the BRI”. Italy’s support for China’s BRI would undercut US pressure on China over trade and would undermine Brussels’ efforts to overcome divisions within the EU over the best approach

to deal with Chinese investments. Italy is a founding member of the EU. Mr Xi is due to arrive in Italy on March 22 on his first visit as president. He is scheduled to his meet Sergio Mattarella, the Italian president, and attend a state dinner that evening, according to the Italian president’s office. The Chinese leader is also expected to meet Giuseppe Conte, Italy’s prime minister, and attend a military ceremony before travelling to Sicily. The visit would immediately follow an EU gathering on March 21 in Brussels during which EU member states intend to debate developing a common approach to Chinese investments into the bloc. A separate summit in the Belgian capital with representatives from Beijing is scheduled to take place on April 9. Chinese investments have become increasingly contentious in the EU. Diplomats in Brussels and influential western European capitals have long worried the 16+1 grouping of China and central and eastern European states, including 11 EU members, is a Trojan horse to divide the bloc. Beijing has denied this suggestion. EU member states such as Germany and France have pushed for tougher screening criteria for Chinese investments. They want the bloc to develop a more unified strategy amid rising tensions over the security implications of using Chinese technology from companies such as Huawei, the telecoms group.

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FT N Korea rebuilding missile site after Trump-Kim summit collapse

US approves first depression drug in decades Johnson & Johnson given green light to sell a nasal spray based on ketamine

Satellite imagery taken 2 days after meeting failed to reach denuclearisation deal

HANNAH KUCHLER

DEMETRI SEVASTOPULO AND SONG JUNG-A

orth Korea has begun rebuilding a missile launch facility that was partly destroyed last year, according to satellite imagery taken two days after Donald Trump and Kim Jong Un failed to reach a denuclearisation deal at their summit in Vietnam. The North Korean regime is “pursuing a rapid rebuilding” of a long-range missile test site at Sohae, according to satellite images obtained by the Center for Strategic and International Studies, a Washington-based think-tank. The photos were captured on March 2, two days after the collapse of the Hanoi summit and before Mr Kim had even returned to Pyongyang. North Korea last July dismantled part of the Tongchang-ri missile launch facility in Sohae, in what was seen as a nascent sign of progress just after the landmark Singapore summit between Mr Trump and the North Korean dictator. The reversal comes on the heels of the decision by Mr Trump in Hanoi to reject a proposed deal in which Pyongyang would destroy a large portion of its nuclear infrastructure in return for lifting crippling economic sanctions. Victor Cha, a North Korea expert at CSIS, said there had been no signs of activity at Sohae in the days leading up to the Hanoi summit, suggesting that the move was a direct response to the failure to get sanctions relief from Mr Trump. “This is called Option B, flipping the bird at the US,” said Mr Cha, who negotiated with North Korea during the administration of George W Bush. “It is very obvious to do it 48 hours after Hanoi. It is pretty clear it’s a reaction to the summit.” Mr Cha said the satellite images showed activity at Sohae, including the removal of a cover used to protect the launch pad from the weather, movement of trucks and cranes and activity involving rail tracks that would be used to move a missile to the launch site. “When you put all those three things together, that’s not just routine maintenance,” he said. Dennis Wilder, a former top CIA official, said the move suggested Mr Kim was trying to create leverage with the US after his efforts to persuade Mr Trump to remove most of the sanctions on Pyongyang failed. “Kim may have overplayed his hand in Hanoi and now he needs to create uncertainty, particularly for Seoul and Beijing,” said Mr Wilder. The White House declined to comment. But in an interview on Fox television on Tuesday, John Bolton, the national security adviser who has been sceptical about whether North Korea was serious about abandoning its nuclear weapons, said the Trump administration could impose more sanctions on Pyongyang if no progress was made. “If they are not willing to do [denuclearise], President Trump has been very clear, they’re not going to get relief from the crushing economic sanctions . . . and we will look at ramping those sanctions up,” he said.

Thursday 07 March 2019

Michael Bloomberg rules out White House run Former New York City mayor cites crowded Democratic field of contenders for decision JOSHUA CHAFFIN

ichael Bloomberg, the billionaire former New York City mayor, has ruled out a run for the White House, citing the difficulty of making it through a crowded Democratic field that is increasingly pulling to the left. Mr Bloomberg, 77, had for months flirted with a run, tapping his fortune to assemble a seasoned campaign team and spending more than $100m to boost the Democratic party’s chances in the midterm elections in November. In an opinion article published on Tuesday by his Bloomberg News service, the former mayor expressed confidence that he would have defeated Donald Trump, US president, in a general election. But Mr Bloomberg, who has traditionally appealed to pragmatic independent voters, did not believe he would get the chance, acknowledging that he was “clear-eyed about the difficulty of winning the Democratic nomination in such a crowded field”. He pledged instead to work from outside Washington to advance causes he has championed over the years, including combating climate change, gun control and education. As he took himself out of the running, Mr Bloomberg also delivered a warning to those seeking to unseat the president. “It’s essential that we nominate a

Democrat who will be in the strongest position to defeat Donald Trump,” he wrote. “We cannot allow the primary process to drag the party to an extreme that would diminish our chances in the general election and translate into ‘Four More Years’.” To some political observers, Mr Bloomberg’s decision was another sign of the eroding middle ground of US politics, and a Democratic party that is increasingly under the sway of an ascendant group of progressives. That faction of the party, embodied by Alexandria Ocasio-Cortez, the 29-year-old representative, recently flexed its muscles by chasing online retailer Amazon from Queens, effectively spoiling a deal engineered by a Democratic governor. Their victory was a particular rebuke for Mr Bloomberg, who as mayor had laid the groundwork for Amazon by pushing to reinvent the city as a hub for tech companies after the devastation of the 2008 financial crisis. “Amazon told everyone that the AOC [Alexandria Ocasio-Cortez] wing of the party was in charge,” said Hank Sheinkopf a veteran political strategist who has worked with Mr Bloomberg. “What does it mean? It means you have to fight them to get through to first base.” Mr Sheinkopf echoed Mr Bloomberg’s concerns that the two-dozen Democratic candidates now declared for, or seriously testing, a primary run were shifting too far to the left as they

sought to emerge from the crowd. “The Democratic party is coming up with niche candidates who are competing for the same turf,” he said. Given his age, Mr Bloomberg, a three-time New York City mayor, may have ended his career in elected office by passing up the 2020 race. He drew up detailed plans to run as an independent in 2016 but ultimately dropped them for fear that his candidacy might split the Democratic vote and deliver the presidency to Mr Trump. In the event, Mr Trump won anyway. Mr Bloomberg emerged as a vocal critic of the new president, a fellow New York billionaire, whom he called “a threat to the Constitution”. Speculation about a 2020 run began to build as he brought on board campaign operatives form the Obama and Clinton teams. Then, in October, the longtime Republican made a public show of changing his registration to Democrat after he and his advisers concluded that there was no route to the White House for an independent candidate. Some analysts argued all along that Mr Bloomberg’s chances were slim in spite of his name recognition and his vast financial resources. A billionaire titan who supported aggressive policing policies was out of step with a ‘MeToo’ era in which many Democrats appear to favour passion over Mr Bloomberg’s brand of pragmatism.

Profit warning comes as the megabank shuts branches and cleans up trading book LEO LEWIS

izuho Financial Group has disclosed a shock ¥680bn ($6.1bn) loss from impairment charges and restructuring costs as Japan’s second-largest bank confronts the realities of a moribund domestic business, wafer-thin interest rates and the perils of chasing yield overseas. The writedown forced the bank to make an 86 per cent cut to its full-year profit forecast. Mizuho now expects just ¥80bn of net income for the financial year that ends on March 31. Tatsufumi Sakai, chief executive, said he would forgo his performancerelated pay to take responsibility for the profit warning. Credit analysts warned that Mizuho’s bombshell, which included ¥180bn of losses from restructuring a securities portfo-

lio freighted with foreign bonds, highlighted risks shared across the entire Japanese banking sector. The risks are seen as particularly high for banks such as Mizuho that have pushed their trading desks to invest heavily in overseas bonds in an effort to offset flagging profits from the core lending business at home. Mizuho’s huge writedown was announced just a few weeks ahead of the financial year end and includes losses arising from the planned closure of about a fifth of its 500 domestic retail branches. Mizuho is the only Japanese bank that has branches in all 47 of the country’s administrative prefectures — maintaining a presence in parts of the country that, according to analysts, make little economic sense as Japan’s population shrinks. Brian Waterhouse, a veteran banks analyst, said Mizuho’s ap-

parent attempt to clear its balance sheet suggested it was anticipating significantly lower revenues and business opportunities from its domestic banking business. In that context, he said, it was now reasonable to ask whether other megabanks and even larger regional banks heavily involved in derivatives trading would now “fess up” and drastically cut earnings guidance. “Mizuho has also relied very heavily on profits from its trading desks, especially in derivative products, to help support the massive costs involved in attempting to integrate the disparate parts of Mizuho Banking Group into ‘One Mizuho’ . . . It now seems that marking some of these massive positions properly to market may lead to significant reductions in the current market value of those assets,” said Mr Waterhouse.

S regulators have approved the first drug to treat depression in decades, paving the way for Johnson & Johnson to sell a nasal spray based on ketamine, a drug often abused for recreational purposes. The Food and Drug Administration approved esketamine, which will be sold under the brand name Spravato, for adults who have already tried at least two other antidepressant treatments. As the first new type of antidepressant since Prozac was released more than 30 years ago, the drug was given a “breakthrough therapy” designation and fast-tracked through the approval process. The drug is the first to use esketamine, one of the mirror molecules that make up ketamine, which is a schedule III-controlled substance in the US and a class B drug in the UK. Ketamine is used medically as a general anaesthetic. Clinical trials showed the spray could have an effect in as little as two days. In longer-term trials, patients taking the spray on top of their existing antidepressant showed statistically significant delays in relapsing into depression. But the risk of serious side effects — most notably sedation and dissociation — means the drug will have to be administered in a doctor’s office or clinic, and patients will have to be monitored for two hours after receiving the dose. Tiffany Farchione, acting director of the division of psychiatry products in the FDA’s Center for Drug Evaluation and Research, said there had been a “longstanding need for additional effective treatments for treatment-resistant depression, a serious and lifethreatening condition”. Shares in Johnson & Johnson were flat in after-hours trading when the approval was announced. Mathai Mammen, global head of Janssen Research and Development, a subsidiary of Johnson & Johnson, said Spravato was a “unique and innovative medicine” that had the potential to offer “new hope” to the third of people with major depressive disorder who have not responded to existing therapies. Some sufferers of depression have been turning to ketamine infusions at so-called wellness centres but doctors have not been able to prescribe the treatment and health insurers will not pay for it. Esketamine acts on a completely different system than previous antidepressants. While traditional drugs work on the brain chemicals serotonin, dopamine and norepinephrine, esketamine acts on the glutamate system, which processes information and memory. It is thought to help restore connections between brain cells for a rapid and sustained improvement. Allergan, a Dublin-based pharmaceuticals company, is developing another antidepressant based on the glutamate system. It hopes to announce the results of its phase-3 clinical study on Rapastinel soon.

Thursday 07 March 2019

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Xi Jinping needs a trade deal just as much as Donald Trump does While elected leaders can blame predecessors in bad times, China’s leadership must appear unfailing RAGHURAM RAJAN

he outcomes of the trade negotiations between China and the US depend to some extent on which country is more eager to reach an agreement. That country will, arguably, come away with less. Although the trade tariffs hurt China more, it seems at first glance that the US should be more eager to reach agreement. After all, the thinking goes, President Donald Trump has to fight elections soon, while his Chinese counterpart, Xi Jinping, does not. The Communist regime can take a longer-term view, disregarding the effect on its people. Such thinking is deeply flawed. While Mr Trump may indeed settle for an easy, cosmetic win — without securing serious and verifiable measures to check Chinese expropriation of intellectual property — this may have more to do with the president’s personality than any intrinsic weakness of democracies in bargaining with unelected regimes. The administration of a democratic country enjoys something an unelected leadership does not: the automatic legitimacy of being in power having won an election. For the unelected regime, legitimacy has to be earned constantly through competent leadership. The regime can, of course, suppress mass public protest with force, but this is extremely costly and risks loss of control. Far better to enjoy widespread popularity so that the costs of repressing a small number of critics are kept low. Not only might the horizons of the leaders of the Chinese Communist party on matters of jobs and economic growth be just as short as those of democratic politicians, their choices may be more circumscribed. A democratic leader can blame a sequence of errors by previous administrations for the current parlous state of the stock market and the economy. Mr Trump can (and does) blame his predecessors for negotiating bad trade deals. And, while he currently uses the stock market as a barometer of his administration’s success, he may stop doing so if it turns south. Such flexibility in allocating blame gives

democratic leaders some freedom of action. By contrast, even though Mr Xi inherited an over-leveraged economy, he cannot blame his predecessors for the difficult hand he was dealt or for the current slowdown. They too were from the party, and if the party is fallible, does it not follow that people should have the right to vote for a different regime? He has to maintain the fiction that the party has always made the best decision under the circumstances. That means the Chinese administration has to rescue the stock market if it tanks, and flood the economy with stimulus if growth slows significantly. In fact, it has very short horizons when reacting to potentially adverse economic developments. Chinese investors, confident that the government will bail them out if too many fail, pile in to risky assets without adequate diligence or fear, preventing Chinese markets from allocating capital appropriately. Mr Xi’s tight control over policy also makes it hard to diffuse blame. He must defend his own departure from his predecessor Deng Xiaoping’s dictum that to prosper, China should hide its capabilities and bide its time. From his early days in power, Mr Xi asserted that “the Chinese nation has gone from standing up, to becoming rich, to becoming strong”. Some argue his actions have been tantamount to waving a red rag at the Americans, and are directly responsible for today’s trade imbroglio. To quell criticism that he has dragged China’s growth down by challenging the US geopolitically too soon, Mr Xi needs a positive resolution to the conflict. None of this is to suggest that China behaves as if it is a democracy. It has a repressive apparatus to keep dissidents and minorities in place. But it does need to keep a broad majority satisfied. To be sure, the Chinese Communist party has earned its legitimacy after 40 years of expansion. Against the odds, the party is largely a meritocracy. The Chinese people are probably willing to cut it substantial amounts of slack. Yet the system works because no recent leader has taken that slack for granted.

Global stocks rally cools in European trade MICHAEL HUNTER AND HUDSON LOCKETT

omentum ebbed from global stocks equities in European trade, with investors nervous of taking the region’s indices higher without clearer signs on a breakthrough in international trade relations. There was room for stronger gains in China where hopes that the country’s annual congress could signal economic stimulus policies to head off slowing economic growth. They left the CSI 300 as the best performing major benchmark, taking it up a further 0.8 per cent to a nine-month high and extending its year-to-date advance to almost 28 per cent.

There was a more wary feel in Europe, with investors on watch for proper evidence for a breakthrough between Washington and Beijing, with analysts saying such clarity is needed to justify the 2019 rally. Frankfurt’s Xetra Dax 30 slipped 0.4 per cent, trimming its year-todate advance to just under 11 per cent. Carmakers were hit by bleak numbers from a bellwether parts supplier, which were enough to stoke doubts about the sector’s led role in the rebound. The Stoxx index tracking auto stocks and parts makers was down 1 per cent, against a steady showing for the wider Stoxx 600. According to futures trade, Wall Street’s S&P will fall 0.2 per cent, with the sense of caution reaching New York.

US president Donald Trump meets his Chinese counterpart Xi Jinping in Beijing in 2017. The Chinese administration is probably at least as politically constrained as the US © AFP

Exxon to sharply ramp up capital spending this year and next Oil major plans to spend $30bn in 2019 and $33bn-$35bn in 2020 ED CROOKS

in 1999.

Mr Woods said that even in a world in which the world cut greenhouse gas emissions in an attempt to meet the goal of limiting global warming, there would still be a need for heavy investment in oil and gas production to offset natural decline in producing fields. “Perhaps the biggest risk to the industry today is under-investment,” he said. “Society needs us to make these investments.” The increased investment over the next couple of years is intended to deliver a 46 per cent increase in earnings over 2020-25, assuming a Brent crude price of $60 a barrel, the company said. Exxon also intends to step up

xxonMobil, the largest listed US oil company, plans to sharply step up its capital spending over the next few years, to deliver a “significant increase” in its volumes of production of oil and gas. At a presentation for analysts in New York, the company said it planned capital spending of $30bn this year and $33bn-$35bn next year, up from about $26bn last year. Darren Woods, chief executive, said the investment opportunities available to Exxon, following its acquisition of assets in the Permian Basin in the US and its oil discoveries in Guyana, were more attractive than at any time since Exxon and Mobil merged

its asset sales over the next three years, selling businesses worth about $15bn, it said. The presentation follows Exxon’s announcement on Tuesday of plans for a steep increase in production in the Permian region, the heartland of the US shale boom, to 1m barrels equivalent of oil and gas by 2024. That growth and the start-up of production at the large oilfields Exxon has discovered off the coast of Guyana, are expected to drive a rapid increase in the group’s total output. Its presentation did not give precise numbers for the expected growth, but showed a potential expansion from 3.8m barrels of oil equivalent per day last year to up to about 4.5m boe/d in 2021 and over 5m boe/d in 2025.

PE group Advent in talks to buy Italy’s Cerved in €1.85bn deal JAVIER ESPINOZA AND RACHEL SANDERSON

S buyout group Advent International is in talks to buy Cerved, an Italian public company that gives credit information, for roughly €1.85bn, according to three people with direct knowledge of the transaction. Conversations between Advent and the company have been ongoing for over a month and a deal is expected to be announced in the next few days, these people said.

But people with direct knowledge of the process warned that Advent is still considering making a formal offer, that a sale was not guaranteed and that the timing could slip. If successful, this would be Advent’s second acquisition of a public company in days, after the private equity group acquired a unit of Germany’s Evonik on Monday. It comes as buyout groups have raised record amounts of capital and are increasingly looking to buy

public companies which they can take away from quarterly scrutiny to run efficiently before selling on. This would be the third time that Cerved has ended up in private equity ownership. It was previously owned by Bain and Clessidra before it was sold to CVC in 2013. CVC listed the business on the Italian stock exchange a year later. Advent declined to comment. A Cerved spokesperson was unable to comment.

A road map for Brexit Britain to strengthen its tech appeal Let’s go out and scout international talent and pay relocation costs for overseas stars BRENT HOBERMAN

he UK needs to take dramatic steps to demonstrate that it plans to remain a leader after Brexit in the global race for tech talent. Here is a road map to insure that our tech scene is taken seriously. First, Britain needs a cathedral workspace for entrepreneurs, a fitting rival to France’s Station F, which is Europe’s largest shared workspace for entrepreneurs. In this space, the smartest minds, top founders and best companies can work together to solve the world’s biggest problems. The Founders Forum group, which I chair, wants to make this happen. We envision a collaborative space to educate the next generation, produce world-beating companies, and inspire innovation, and provide a social impact zone for those working to address sus-

tainable development goals. If we also incorporated a UK response to Dubai’s Museum of the Future, we would help demystify entrepreneurship and technology and showcase it to the public as a force for national good. London would become an obvious destination for founders and tech experts. The next mission is to make the UK the best place for start-ups to work with established companies. According to CBInsights, the end of 2018 saw 429 corporate venture capital firms operating globally, the most ever. Partnerships between start-ups and corporates can be transformational for both sides. From the company perspective, start-ups offer cost-effective, pilot solutions that can be rapidly implemented. For start-ups, companies provide infrastructure and international presence to speed up and strengthen efforts to grow. The UK has a competitive edge

due to the sheer number of large companies that are based here. We are also top of Forbes’ best countries for business list. Britain should play to this strength and rank companies for their support and stimulation of regional start-ups. This would bring out the competitive edge and promote corporate VC investment. The government could further encourage these relationships with a fund or tax incentives that support corporatebacked pilots. The third thing to focus on after Brexit is talent retention. The threat of leaving the EU has made the UK less attractive to young internationalists. Immigration data and anecdotes from tech founders corroborate this. We must counter this by fostering and importing talent. The UK’s new £200m artificial intelligence programme is a step in the right direction. Corporate-funded graduate degrees and research fellowships will encourage careers in the field.

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Thursday 07 March 2019

ANALYSIS Mike Turner resigns from Barclays in board clear-out Five directors depart as bank looks to head off pressure from activist Edward Bramson DAVID CROW

Idlib: Russia and Turkey dig in for a final Syria battle Encircled by Assad’s forces the fate of the last opposition stronghold — and its 2.5m population — lies with Moscow and Ankara

HENRY FOY , CHLOE CORNISH, ASSER KHATTAB , AND LAURA PITEL

n the Russian Black Sea resort of Sochi on Valentine’s Day, President Vladimir Putin welcomed the leaders of Turkey and Iran with tea and biscuits. The topic of their conversation? Idlib. It was not the first time the trio had discussed the Syrian province but Moscow made it clear that it was rapidly running out of patience with its Turkish partner. After eight years of bloodshed that has killed as many as 500,000 people and forced 7.6m from their homes, Idlib, in the northwest of the country is the last bastion of opposition — including extremist elements — to President Bashar alAssad’s regime. It is also the site of a geopolitical showdown — stretching from Ankara to Moscow and Tehran and pulling in Washington — between powerful foreign militaries with opposing ambitions. For Mr Putin, who supports the Assad regime, and Turkey’s Recep Tayyip Erdogan, who has backed those seeking to overthrow the Syrian leader, what happens in Idlib could determine the fate of their marriage of convenience, one that has muddled its way through the war, but is now stretched to breaking point. For the 2.5m people trapped in the province — an area slightly smaller than North Yorkshire in England — with no way out, the tense Sochi tea date was a matter of life and death. The population of the province has swelled by 600,000 since 2011, with thousands fleeing to Idlib from other opposition areas that have fallen to Russian air strikes and pro-regime forces, a process that has accelerated over the past two years. Syria Idlib map Among them is Halima, a 38-yearold women’s rights activist who watched the Sochi talks from her home in Idlib city, just as towns in the south of the province were being shelled by regime forces. “The fate of the area is to be decided by international agreements,” she says. “[But] these agreements will never be in favour of the Syrian people, who have been suffering all these years. Those countries are only looking after their interests and no one else’s.” Last September, Mr Putin and Mr Erdogan struck an agreement that was credited with avoiding a Syrian massacre. As part of that deal, Russia agreed to halt a planned assault on Idlib by Syrian forces that had encircled the province. In return, Turkey promised to remove the extremists, who had vowed to make Idlib their last stand, from the area bordering regime-held territory — effectively creating a demilitarised zone. That deal is now in tatters. In Sochi, Mr Putin berated his Turkish counterpart for not only failing to clear out the militants, but allow-

ing them to grow in number and influence. Meanwhile the ceasefire is fraying: a two-week blitz of shelling and air strikes by pro-regime forces in February killed more than 60 people. The fragility of the deal reflects the web of alliances between foreign powers operating in Syria — and their contrasting views on the country’s future. When Isis, the Islamist group, was in its ascendancy, foreign powers were able to paper over political differences to fight a common enemy. But as a military victory for Damascus grinds closer, those rivalries are again being exposed. Tensions have been exacerbated by President Donald Trump’s December pledge to withdraw US forces from the north-east of the country. Mr Erdogan is stalling for time amid the wrangling over the fate of the Kurdish-controlled north-east, and the US presence in the region. But the Kremlin is growing impatient with Ankara’s approach to Idlib. What Moscow intended as a swift and efficient military intervention in September 2015 to prop up Mr Assad and protect Russia’s naval assets on the country’s Mediterranean coast has turned into a three-and-a-half year campaign that has become increasingly unpopular at home. The Syrian regime says it wants to retake every inch of the country. With Russia’s help it has clawed back probably two-thirds of it. And the rise of jihadi groups in Idlib has given Moscow and Damascus a strong pretext for an assault on the final opposition holdout. The UN has warned that such an assault could trigger the “worstscale humanitarian crisis of the 21st century”. With millions of civilians trapped, and aid groups unlikely to be able to operate, the potential for high casualty rates is clear. After the Sochi talks Mr Putin warned that “the creation of the Idlib ceasefire zone is a temporary measure”. “Idlib is coming back under the Syrian government’s control,” warns Mohammed Khair Akkam, a Syrian MP aligned with the regime. “Maybe not tomorrow or the day after, but the battle is drawing nearer.” World powers have meddled in Syria’s civil war since the first peaceful mass demonstrations broke out in 2011 only to be met by a brutal crackdown. Alongside Gulf and western countries, Turkey provided weapons and funding to rebels fighting to overthrow the autocratic government. Russia stood by its longtime ally, along with Iran. As the seemingly unstoppable rise of Isis by 2015 threatened the entire region, Russia lent its air power to the regime’s campaign against the Islamist group. Yet most of that firepower was turned on opposition rebels, including some backed by Turkey, rather than the black-clad jihadis. Moscow’s intervention was

decisive. Despite backing opposing forces in Syria and having different goals in the country, Russia and Turkey have managed to forge a working alliance on Syria over the past two years, supported by a broader strategic and economic relationship between Mr Putin and Mr Erdogan that both are keen to protect, amid souring ties with western countries. In Idlib that alliance is breaking down. Turkey is desperate to avoid a military onslaught that could drive hundreds of thousands of refugees towards its border. Yet Russia wants the extremists eliminated and the war brought to an end. And Syria’s regime wants to permanently subdue any remaining rebels. “We are getting impatient . . . We want to continue to be partners with Turkey. On one hand we don’t want to jeopardise our partnership,” says one senior Kremlin official. “But on the other we don’t want Turkey to jeopardise it through their inaction.” Turkey insists it is doing its best to uphold the agreement. “Both [sides] want the Idlib memorandum to remain in place,” says a senior Turkish official. Ankara argues that regime attacks on civilians in Idlib show that there are violations on both sides. “While Moscow is clearly disappointed, it does not despair of the situation,” says Dmitri Trenin, director of the Carnegie Moscow Center. “I don’t think that Moscow has ever deluded itself about the unity of the coalition . . . In a way, it is a miracle that Russia has managed to keep the coalition functioning.” The prospect of Russia running out of patience and bowing to the Syrian army’s demand for a full-on assault terrifies those trapped in Idlib. Raya, who manages a women’s organisation, estimates that up to 80 per cent of people in the province “are wanted by the regime . . . so you can imagine the size of the catastrophe and the bloodshed if the regime enters this area”. Government forces have been accused of human rights abuses from imprisoning and torturing opposition activists to chemical attacks on their own citizens. “We need assurances from guarantor countries that the regime will never enter,” says Raya. But, says one western diplomat in Beirut, “Russia can’t [physically] stop Assad going into Idlib”. Damascus will however need Russia’s air support for any offensive giving Moscow leverage. For those trapped inside, there is almost nowhere left to run. To the west, Idlib shares a 100km border with Turkey, which Ankara has closed and fortified. To the east lies Syria’s second city, Aleppo, held by the regime. Turkish proxies control the land at its northern tip, the only escape route.

ity veteran Mike Turner who ran BAE Systems and chaired GKN is resigning as a Barclays director, as part of a boardroom clearout designed to head off pressure from activist investor Edward Bramson. The announcement of Mr Turner’s departure means that five of the bank’s directors — including chairman John McFarlane — have either stepped down or will leave at its annual meeting in May. The departures come as incoming chairman Nigel Higgins, a longserving Rothschild banker, prepares to make his mark at a time when Mr Bramson is trying to force his way on to the board. Mr Bramson, Barclays’ fourthlargest investor with a 5.5 per cent stake, hopes to win enough votes at the annual meeting to secure a directorship, which he plans to use to force the bank to perform a strategic U-turn and shrink its investment bank. He has described the division as a “black box with too much leverage” and wants Barclays to reduce its trading operations and focus on its retail business, in effect dismantling the UK’s last remaining global investment bank. In recent weeks, Mr Higgins has been meeting large investors and has promised to reform the board without Mr Bramson’s assistance, according to several people briefed on the discussions. One person familiar with Mr Higgins’ plan said he wants to make the 15-person board smaller and ap-

point directors with more expertise in banking. Economist Dambisa Moyo and Reuben Jeffery, a former Goldman Sachs banker, will also not seek reelection at the annual meeting, while Gerry Grimstone stepped down last month. Mr Turner, who ran BAE Systems between 2002 and 2008, had been seen as a potential future chairman of Barclays, although investors said his lack of banking experience counted against him. Mr Grimstone had also been seen as a possible successor to Mr McFarlane until he ruled himself out. “On behalf of the board, I wish to express my gratitude to Reuben, Dambisa and Mike for their service and dedication to Barclays,” said Mr McFarlane. He added: “It isn’t always an easy decision to be on a major bank board, particularly over a difficult period for the sector, and I am grateful to all of them for undertaking this with such commitment.” The Barclays boardroom clear-out comes as the bank moves to fend off Mr Bramson, who is struggling to win backing from other large investors. His plans were dealt a blow last month when Aviva, which has backed Mr Bramson’s activism at other UK companies, said it would vote against him at the annual meeting. Several large investors said they were unhappy that Mr Bramson had amassed the majority of his Barclays stake with a $1.4bn loan from Bank of America, arguing that his highlyleveraged position meant he was not aligned with other big shareholders.

Algeria shows how resistance builds against entrenched autocracy An exceptionally patient people take to the streets to protest against a political charade ROULA KHALAF

bdelaziz Bouteflika is strapped to a wheelchair. He can neither walk nor, apparently, speak. He hasn’t made a speech in six years and the last time he ran for office, in 2014, he failed to make an appearance on the campaign trail. Yet the 82-year-old Algerian president and, more precisely, those in control of his being, are determined to hold on to his place at the helm of the gas-rich North African state. For once, the exceptionally patient people of Algeria are rebelling. After enduring, in stoic silence, decades of abuse, they are taking to the streets to rage against Mr Bouteflika’s candidacy for the April poll. If this were anywhere but Algeria, someone — the people, the opposition, western allies — might have objected long ago. It is an open secret that Mr Bouteflika is incapacitated, only maintained as a figurehead behind which a nexus of military, intelligence and business interests exert control. Until a few weeks ago, though, Algerians had largely watched this charade from a distance. Still numbed by the trauma of a decade-long civil war in the 1990s, they remained quiescent even when their neighbours were convulsed by uprisings in 2011. But there is often a moment when the insult becomes too humiliating, even for those who are accustomed to pain. Algerians have reached that moment. The social media-organised, mainly youth protests that have

rocked the country may eventually fizzle out or face repression by the regime that has kept Mr Bouteflika in power for 20 years. But the affront of another presidential term being handed to the ailing leader has finally rescued the country from apathy. Algeria’s war was the first conflict I covered as a foreign correspondent, in the 1990s. It was the same contempt by the authorities that had driven people on to the streets in 1988, forcing an authoritarian regime, with its legitimacy underpinned by the “onemillion martyrs war” of liberation from France, to democratise. In an evolution that bears striking similarities to the events that followed the Arab spring some two decades later, the Algerian army intervened in 1991 to stop an election victory by an Islamist party. The Islamists took up arms and Algeria descended into civil strife. That the scars of that war have taken so long to heal has not surprised me. Algeria’s silent majority was terrorised for years, caught between the brutality of the regime and the viciousness of extremist rebels. Watching Algerians march today reminds me of the words of Kenneth Roth, executive director of Human Rights Watch. Earlier this year, I heard him speak about “the return of the resistance”. It is, of course, true that the democratic order has been in steep decline over the past decade, its regression aggravated by the more recent erosion of American moral leadership. But, as Mr Roth says, the defenders of democracy and human rights are gaining strength — even if not dominating the headlines.

Thursday 07 march 2019

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UNDERSTANDING THE ECONOMY OF NIGERIA’S 36 STATES

he purpose of this series is to present evidence-based picture of Nigeria vis-a-vis the current presentations by politicians and various interest groups which are not backed by facts and figures. Such presumptuous speculations have driven the various national discourses or debates on the future of Nigeria, including such thorny issues as restructuring, whether fiscal, political, geographical or administrative. Facts are sacred, they say, and as such must be given priority in our search for national viability and survival.

‘Understanding the Economy of Nigeria’s 36 States’ series presents such an objective, dispassionate picture of the state of the economy and so viability and sustainability of the various component parts, sub-nationals or federating units of the country going forward. This series will serve to either buttress or discountenance some of the claims made on both sides of the restructuring argument. The series, written by Cambridge-trained economist, Dr. Ayo Teriba, looks at each state at a glance in the context of its geopoliti-

cal zone and as it compares to other states. The data present irrefutable facts about each region and its component states and raise the question: are they viable as constituted today and going forward? Each series examines a state’s realities from the perspectives of economy, resource endowment, state of wellbeing of its populace, and its budget (revenue and expenditure profile). Today’s edition covers Zamfara State in North West region and an overview of North Central regions.

ZAMFARA Zamfara State Summary • Economy

Zamafara’s Gross State Product was 2.46 percent of Nigeria’s GDP in 2017, 5th in the North-West, 8th in the North and 12th in the country. Agriculture was 80 percent of the Zamfara’s GSP, Services were 18 percent and Non-Oil Industry was 2 percent.

• Endowments

Zamfara’s Land Area is 4.17 percent of Nigeria’s, 2nd in the North-West, 8th in the North and the country. With no coastline, the State shares a boarder with Niger Republic and is bounded by five States; four- Kaduna, Kano, Kebbi and Sokotofrom its region and Niger from North-Central.

• Wellbeing

Population in the State is 2.6 percent of national population, 6th most in the North-West, 11th in North, and 22nd in Nigeria. Zamfara is the country’s 30th most dense, 28th most literate, and 24th in life expectancy with a Per Capita GSP that is 2nd in the North-West, 4th in the North and 8th in Nigeria.

• Budget

tural produce in the country, 4th in the North-West, 6th in the North and in Nigeria. • N2.1 trillion in crops was 96 percent of the State’s agricultural output, • N66 billion in livestock was 3 percent, and • N31 billion in fishery was 1 percent, • Forestry was Nil. – N100 billion 2017 Non-Oil Industrial output in the State was 0.4 percent of the gross Non-Oil Industrial output in Nigeria, the 4th among the North-Western States, 9th in the North and 22nd in the country. Manufacturing (mainly Food, Beverage and Tobacco) and Construction jointly produced 98 percent of the State’s non-oil output. – Zamfara’s N500 billion Services were 0.8 percent of Nigeria’s Service sector, 5th in the North-West, 10th in the North and 23rd in Nigeria. Inter-State Comparisons With a Gross State Product (GSP) of N2.76 trillion or 2.46 percent of the gross outputs produced in the country, the 5th in the North-West, 8th in the North and 12th among the 36 States and the FCT. 4.6million Population in the State is 2.6 percent of national population, 6th most populated State in the North-West, 11th in the North and 22nd in Nigeria. The State’s 37,900/km2 Land Area is 4.17 percent of Nigeria’s land mass, 2nd in the North-West, 8th in the North and the country. N64.7billion Revenue of the State is 2.16 percent of all States’ total revenue, 3rd in the North-West, 5th in the North, and 13th in Nigeria.

Zamfara retained 2.1 percent of States’ revenue in 2017, 14th in the country; expended 2.4 percent of States’ outlays, 5th in the country, incurred a deficit, and held 1.7 percent of States’ total debt, 24th in the country.

1. Economy

Structure Zamfara’s estimated 2017 Gross State Product (GSP) was N2.76 trillion or 2.46 percent of Nigeria’s GDP, 5th in the North-West, 8th in the North and 12th in the country. Agriculture was 80 percent of the GSP, Services, 18 percent, and Non-Oil Industry, 2 percent. – The State’s N2.2 trillion 2017 Agricultural output was 9.15 percent of all agricul-

Endowments

Zamfara State was carved out of Sokoto State in 1996. The State has no coastline, shares a boarder with Niger Republic to the north and is bounded by five States, Sokoto to the northwest, Niger to the south, Kebbi to the west, Katsina to the northeast, and Kaduna to the southeast. Zamfara State’s land area of 37,900/km2 is 4.17 percent of total land mass in Nigeria, 2nd in the North-West, 8th in the North and the country. Major towns and cities are; Tsafe, Bungudu, Anka, Maradun, Birni Magaji, Gusau, Maru, Shinkafi, Bakura, Gummi, Zurmi, Kaura Namoda, Bukkuyum.

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UNDERSTANDING THE ECONOMY OF NIGERIA’S 36 STATES 3. Wellbeing

4.1.2.1 Revenue N64.7 billion 2017 Actual total revenue in the State was 2.16 percent of all States’ actual total revenue, the 3rd in the North-West, 5th in the North and 14th among the 36 States and FCT. The revenue components in 2017 were: • Statutory Allocations of N28.2 billion was 1.9 percent of the total allocations to all States and the FCT, the least in the North-West, 14th in the North and 26th in the country. • Internally Generated Revenue of N5.3 billion was 0.69 percent of total, 6th in the North-West, 15th in the North and 30th among the 36 States and FCT. • Value Added Tax of N9.8 billion was 2.01 percent of States’ total, the smallest in the North-West, 14th in the North, the 26th in the country. 4.1.2.2 Spending Total expenditure of N161.9 billion in the State was 4.39 percent of actual total spending by all States, the 2nd in the North-West and the North, 5th in the country. The spending components in 2017 were: • Recurrent Spending of N153.9 billion was 5.8 percent of the recurrent outlays of all the States and FCT, the 2nd in the North-West and the North, the 3rd in the country. • Capital Spending of N8 billion in the State was 0.77 percent of States and FCT’s total capital outlays, the 6th in the North-West, 18th in the North, 33rd in Nigeria. 4.1.2.3. Deficits Zamfara State is one of the 25 States and FCT that had deficits in 2017. The State made an overall deficit of N97.2 billion, the highest among the 6 States in the NorthWest that had deficits, among the 17 States in the North that had deficits and among the States that had deficits in the country. 4.1.2.4 Debt Total outstanding debt of N80.5 billion in the State was 1.7 percent of the States and FCT’s total debts, the 3rd in the North-West, 8th in the North and 24th in the country. • Domestic Debt of N69.9 billion in December 2017 was 2.1 percent of States and FCT’s domestic debts, the 3rd in the North-West, 9th in the North and 20th in the country. • Foreign Debt of N10.6 billion in December 2017 was 0.8 percent of the total foreign debts of the States and FCT, 6th in the North-West, 13th in the North and 30th in the country. 4.1.3 2013-2017 Trends

Zamfara State’s 4.6million Population is 2.6 percent of national population, 6th most populated State in the North-West, 11th North and 22nd in Nigeria. With a land area of 37,900/km2, the State’s density is 123 people per km2 compared to the country average of 219 people/km2; the most sparsely populated State among its equals in the North-West, 13th in the North and 30th among the 36 States and FCT. Zamfara’s literacy is the 2nd among the North-Western States, 11th in the North, and 28th in the country. Life expectancy of 49 years in the State is the 5th in the North-West, 9th in the North and 24th in Nigeria. The State’s female life expectancy of 51 years is the 3rd in the North-West, 8th in the North and 23rd in the country. Male life expectancy of 47 years is the 5th in the North-West, 9th in the North and 23rd in the country. Per Capita GSP of N594 thousand in the State is the 2nd in the North-West, 4th in the North and 8th in Nigeria.

Zamfara’s Total Spending: Total spending grew from N71 billion in 2014 to N161.9 billion in 2017; Recurrent spending grew from N22.2 billion in 2015 to N153.9 billion in 2017, while Capital spending declined from N24.3 billion in 2014 to N8 billion in 2017.

4. Budget 4.1. Fiscal Realities of Zamfara State 4.1.1 2018 Aspirations Zamfara State’s 2018 budget of N133billion is 1.43 percent of all States’ and FCT’s 2018 budget, the least in the North-West, 15th in Northern Nigeria and 30th among the 36 States and FCT. 4.1.2 2017 Realities

Revenue Use: Zamfara’s growing recurrent spending meant a current deficit of N89 billion, and N97 billion overall deficit, compared with total revenue of only N64 billion in 2017. Financing: • Revenue financing: overall deficit of 28.2 percent of total revenue in 2014 gave wat to an overall surplus of 26 percent of total revenue in 2015, and an overall deficit of 150.2 percent of total revenue in 2017. • Spending finance: overall deficit of 21.9 percent in of total spending in 2014 gave way to an overall surplus of 30.8 percent of total spending in 2015 but an overall deficit of 60 percent of total spending in 2017. • Capital budget: overall deficit of 64.2 percent of capital budget in 2014 gave way to an overall surplus of 93.5 percent of capital budget in 2015 but an overall deficit of 1,215 percent capital budget in 2017. Zamfara’s Debt: • Foreign debt stock by the State grew from N5.1 billion in 2013 to N10.6 billion in 2017, from 8.3 percent of revenue in 2013, to 16.4 percent in 2017. • In the last four years, Domestic debt stock by the State grew from N28.2 billion in 2013 to N69.9 billion in 2017; from 46.6 percent of revenue in 2013 to 108.1 percent in 2017. Total debt stock rose from 55 percent of revenue in 2013 to 124.5 percent in 2017

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understanding the economy of nigeria’s 36 states

North-Central Summary • Economy NC’s GRP is 17.4 percent or a little over a sixth of Nigeria’s GDP, the largest in the North, and 3rd in Nigeria. This was made up of 52 percent Services, 33 percent Agriculture and 15 percent Non-Oil Industry. With 27.5 percent of all agricultural output by all Regions, NC is 2nd in the North and in Nigeria. NC contributes 19.2 percent of Non-Oil Industrial output in Nigeria, the largest in the North and 2nd in Nigeria. NC also contributes 16.1 percent of Nigeria’s Service output, the largest service economy in the North, and 2nd in Nigeria. The FCT accounts for 49 percent or about one-half of NC’s GRP, Niger and Benue account for one-sixth each, while the remaining one-sixth is split among the four other states in the region. • Endowments NC holds 25 percent or a quarter of the country’s land mass, 2nd in the North and in the country. It has no coastline but is bordered by Benin Republic on the west, Cameroon on the east, and is the only region that shares boundaries with all the other five Geopolitical Zones in the country, with Kebbi and Kaduna in the North-West, Bauchi and Taraba in the North-East, Oyo, Osun, Ekiti and Ondo in the South-west, and with Edo and Cross River the South-South and Anambra, Enugu and Ebonyi in the South-East.

* The Region’s gross Agricultural output of N6.6 trillion was 27.5 percent of all agricultural output by all Regions, 2nd in the North and in Nigeria. • Crops contributed N6.39 trillion or 97.15 percent of the Region’s agricultural output, • Livestock contributed N180 billion 2.7 percent, • Fishery contributed N100 billion or 0.15 percent, • Forestry is Nil. * The Region’s N2.9 trillion Non-Oil Industrial output was 19.2 percent of the gross Non-Oil Industrial output in Nigeria, the largest among the 3 Northern Regions, the 2nd in Nigeria. 86 percent of North-Central’s non-oil production was Manufacturing (majorly Food, Beverage and Tobacco) and Construction. * N10.3 trillion Service output in the Region was 16.1 percent of Nigeria’s Service output, the largest service economy in the North, and 2nd in Nigeria. • Inter-region Comparisons

• Wellbeing NC has 14 percent of Nigeria’s population, 2nd in the North and 4th in Nigeria. NC’s density of 128 people per km2 compared to the national average of 219 people per km2, is the 2nd most dense region in the North and 5th in Nigeria. Literacy in the Region is 1st in the North, and 4th in the country. Life expectancy of 49 years in the Region is the highest in the North, and 4th in Nigeria: Female life expectancy of 51 years in the Region is the highest in the North, 4th in the country; Male life expectancy of 46 years is 2nd in the North and 5th in the country, the. The Region’s Per Capita GRP of N686 thousand is the highest in the North and third in Nigeria. • Budget NC retains 13.2 percent of the revenue available to the regions, spends 14.7 percent of regions’ outlays, incurs 20.5 percent of the regions’ deficits, and holds 14 percent of the sum of regions’ domestic and foreign debts.

1. Economy • Structure North-Central Region’s estimated Gross Regional Product (GRP) was N19.8 trillion in 2017, or 17.4 percent of Nigeria’s GDP, the largest in the North, and 3rd in Nigeria. This was made up of 52 percent Services, 33 percent Agriculture and 15 percent Non-Oil Industry.

With a Gross Regional Product (GRP) of N19.8 trillion or 17.4 percent of Nigeria’s GDP in 2017, North-Central was the largest economy in the North, 3rd in Nigeria. 28.9million Population in the Region is 14 percent of national population, the 2nd most populated Region in the North, the 4th in the country. North-Central’s 226,500/km2 Land Area is 25 percent of Nigeria’s land mass, 2nd in both the North and in Nigeria. N396.3bilion total Government Revenue in the Region is 13.2 percent of all Regions’ total revenue in the country, 2nd in the North, 4th in Nigeria.

2. Endowments

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Thursday 07 March 2019

understanding the economy of nigeria’s 36 states The North-Central Geo-Political Zone or the Middle Belt of Nigeria is made up of six States and the FCT: Benue, Kogi, Kwara, Nasarawa, Niger and Plateau, and the Federal Capital Territory (FCT). It has no coastline but is bordered by Benin Republic on the west, Cameroon on the east, and shares boundaries with all the other five Geopolitical Zones, with Kebbi and Kaduna in the North-West, Bauchi and Taraba in the North-East, Oyo, Osun, Ekiti and Ondo in the South-west, and with Edo and Cross River the South-South and Anambra, Enugu and Ebonyi in the South-East. North-Central’s 226,500/km2 land area is 25 percent of Nigeria’s land mass, 2nd in the North, the 2nd in the country.

3. Wellbeing

• Value Added Tax of N68.6 billion was 14.5 percent of regions’ total, 2nd in the North, 4th in the country. 4.1.2.2 Spending NC’s actual total expenditure of N542 billion in 2017 was 14.7 percent of regions’ total, 2nd in the North, 4th in Nigeria. The spending components in 2017 were: • Recurrent Spending of N431.6 billion was 16.3 percent of regions’ total, 2nd in the North, the 4th in the country. • Capital Spending of N110.15 billion was 10.6 percent of regions’ total, the least in the North, the 5th in the country. 4.1.2.3 Deficits NC’s N145 billion deficit, 20.5 per cent of regions’ deficits was the 3rd in the North, and in Nigeria. 4.1.2.4 Debt Total debt of N646.9 billion was 14 per cent of regions’ debts, 1st in the North, and 3rd in the country. • Domestic Debt of N554.6 billion was 16.6 per cent of regions’ total, 1st in the North, and 3rd in Nigeria. • Foreign Debt of N92.2 billion in December 2017 was 7.4 per cent of regions’ total, and the least in Nigeria. 4.1.3 2013-2017 Trends North-Central’s Revenue: N-C’s Total Revenue declined from N531 billion in 2014 to N396 billion in 2017. Much of the slump in revenue came from gross statutory allocations (GSA), as internally generated revenue and value added tax proved relatively resilient in the face of oil price slump and concomitant recession in the national economy.

North-Central’s Spending: North-Central’s Total Spending fell from N589 billion in 2014 to N541 billion in 2017. Recurrent spending increased by 20 percent from 2014 to 2017, while capital spending fell by over 50 percent from 2014 to 2017.

North-Central’s 28.9million Population is 14 percent of national population, 2nd most populated Region in the North, 4th in Nigeria. density in the Region is 128 people per km2 compared to the national average of 219 people per km2, 2nd most densely populated Region in the North, and 5th in Nigeria. Literacy in the Region is 1st in the North, and 4th in the country. Life expectancy of 49 years in the Region is the highest in the North, and 4th in Nigeria: Female life expectancy of 51 years in the Region is the highest in the North, 4th in the country; Male life expectancy of 46 years is 2nd in the North and 5th in the country, the. The Region’s Per Capita GRP of N686 thousand is the highest in the North and third in Nigeria.

4. Budget 4.1. Fiscal Realities of North-Central 4.1.1 2018 Aspirations The Region’s 2018 budget of N927 billion is 9.9 percent of all Regions’, the 3rd in the North, and 5th in Nigeria. 4.1.2 2017 Realities

North-Central’s Revenue Use: N-C had kept one-third of total revenue in current surplus in 2014, using it to fund 69 percent of its capital outlays that year. This changed from 2016 as revenue increasingly went on recurrent headings and current surpluses shrank until it gave way to current deficits in 2017, having to borrow to fund the full capital budgets and some recurrent items. North-Central’s Financing • Revenue financing: overall deficits rose from 13 percent of total revenue in 2014 to 36 percent in 2017. • Spending finance: overall deficits as percentage of total spending was 21 in 2015, and 25 in 2016 and 27 in 2017. • Capital finance: deficits as percentage of capital spending was 31 in 2014, 62 in 2015, 85 in 2016, and 131 in 2017. North-Central’s Debt • Foreign debt stock rose from N39.6 billion in 2013 to N92.5 billion in 2017; from 7.4 percent of revenue in 2013 to 23.4 percent in 2017. • Domestic debt stock rose from N244.8 billion in 2013 to N554.6 billion in 2017; from 46.1 percent of revenue in 2013 to 104.4 percent in 2017. • Total debt stock rose from 53.5 percent of revenue in 2013 to 127.7 percent in 2017.

4.1.2.1 Revenue 2017 NC’s actual total revenue of N396.3 billion in 2017 was 13.2 percent of all Regions’ total, 2nd in the North and 4th in Nigeria. The revenue components in 2017 were: • Statutory Allocations of N217.8 billion was 14.9 percent of regions’ total, 2nd in the North, 3rd in Country. • Internally Generated Revenue of N77.1 billion was 10.1 percent of regions’ total, 1st in the North, 3rd in Nigeria. For enquiries, please call Teliat 08098710024, Chuks 08116759816 or teliat.sule@businessday.ng

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54 BUSINESS DAY NEWS ‘Nigeria must up economy, human capital to tackle talent deficit’ www.businessday.ng

TEMITAYO AYETOTO

f Nigeria must curb the huge talent deficit that has accompanied the migration of its skilled professionals to advanced economies, President Muhammadu Buhari needs to treat economic growth and investment in human capital as priority, Adeoye Abodunrin, executive director, Xpos Technologies, says. He said it was also imperative for the government to embark on massive implementation of strategic policies to stimulate economic growth as talents only have natural tendency to move from a region of lower appreciation to that of higher appreciation. The search for greener pastures among Nigeria’s talents, according to Abodunrin, has impacted adversely on both the private and public sectors and may persist if the country fails to provide conducive environment with broad opportunities to nurture the talents. “Primarily, the economy

has to be manned well. I’m worried about how we have two ministers in charge of every sector and nothing is working. Let the best brains come together to build a meritocratic culture that is all-inclusive. We need to create human capital structure that includes revival of our vital sectors,” Abodunrin explained while speaking at his induction as a Fellow of the Institute of Management Consulting in Lagos. Nigeria’s real GDP grew at an annual growth rate of 1.93 percent in 2018, compared with 0.82 percent recorded in 2017, but the impact might be undermined by a population growth rate the World Bank report has averaged 2.6 percent since 2015. The implication therefore is that while the economy seems to be improving, the resources available to the average Nigerian has been steadily on the decline. Also for the third quarter of 2018, labour statistics re-

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port by the National Bureau of Statistics pegged headline unemployment figure at 23.1 percent, an18.8 percent increase from first quarter. Of the 9.7 million people that did absolutely nothing, 8.77 million or 90.1 percent were first time job seekers. Going forward, Ayo Ebo, chairman, Afrinvest, said the country cannot continue at a slow pace of growth rate lagging behind population growth rate and expect improvement in the standard of living or infrastructure, as available resources will give in to pressure. The motivation behind migration, Ebo explained, does not end in improving personal economic condition, but also tied to the failings in the education and health system, which many do not want their children to experience. “Beyond personal gains, there is a focus on giving children better future and not make them go through a lot of the issues in Nigeria,” he said.

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Mobile transfers in Nigeria rise 81% in February 2019 BUNMI BAILEY

he volume of mobile inter-scheme transactions (mobile transfers) via mobile devices increased (yearon-year) by 80.8 percent to 932,355 in February 2019 from 515,692 in February 2018, and on a month-on-month basis by 28.6 percent from 724,803 in January, according to an analysis by BusinessDay. Data from the Nigeria Interbank Settlement System (NIBSS) show that the value of mobile transfers also rose year-on-year by 34.4 percent to N30 billion in February 2019 as against N22.3 billion in the same corresponding period in 2018, while month-on-month it rose by 12.1 percent. Johnson Chukwu, CEO, Cowry Asset Management Limited, said February of this year was an election or pre-election month and so normally economic activities were meant to increase. “There are a lot of liquidity movements from elections related expanses like campaigns. So, one would

that the level of financial transactions would certainly be higher than the proceeding periods,” Chukwu said. Similarly, the volume of Point-of-Sales (POS) activities rose (year-on-year) by 54.5 percent to 25.8 million in February, from 16.7 million in February 2018 and month-on-month, it reduced by 8.5 percent from 28.2 million. The value of POS transactions rose by 33.5 percent to N193.4 billion in February 2019, as against N144.9 billion in the same corresponding period in 2018, while it dropped on a month-on-month basis by 13.2 percent from N222.9 billion in January. Gbolahan Ologunro, an equity research analyst at Lagos-based CSL Stockbrokers in his own opinion, said pre-election spending was not the major driver for this growth. “One would expect that pre-election spending should be the major factor but contrary to historical trends, I don’t think we saw much of electioneering spending to lift economic activities,” Ologunro said.

“So, I think it is driven more on consumers or the banking population shifting towards the use of electronic banking channels for financial transactions. So, there is an increased use of digital channels for transactions and mobile payments,” Ologunro said further. Additionally, the value of transactions on NIBSS instant payment (NIP) platform rose by 33.9 percent to N7.5 trillion in February 2019 from N5.6 trillion in February 2018, while its volume increased by 65.4 percent to 72.6 million in 2019 from 43.9 million in 2018. While on a month-onmonth basis, its volume increased marginally by 0.4 percent from 72.3 million and its value declined by 7.4 percent from N8.1 trillion. The increased penetration of electronic payment systems is already having an impact on the volume of cheque transactions as it fell by 18.3 percent to 640,497 in February 2019 from 784,659 in the same period of last year, while on a month-onmonth basis, it also declined by 10.1 percent.

NPA summit advocates re-positioning Nigeria for post oil national economy FRANK UZUEGBUNAM

L-R: Andrew Clark, vice president, Moven; Olufemi Muraino, executive director, Inlaks; Anil Uttamsingh, International Business, Moven; Femi Adeoti, managing director, Inlaks, and Kesh Talwar, global revenue officer, Moven, during a courtesy visit to Inlaks head office in Lagos.

NLNG explains role in rescue of distressed trawler off Bonny coast AMAKA ANAGOR-EWUZIE

n response to the report that the Nigeria LNG Limited’s (NLNG) failed to respond to a recent distress call by a trawler 45 kilometres SW of Bonny Fairway Buoy, the gas company has explained the role it played on receiving the distress call. A statement by Andy Odeh, manager, corporate communications and public affairs of the NLNG, sent to BusinessDay on Wednes-

day, stated that on receiving the call at around 21:07hrs on February 6, 2019, it responded by dispatching a long range security boat to the location. “On getting there, the crew of the long range boat found other sister vessels engaged in rescuing the crew of a distressed trawler, MV Orc IV. The boat returned to base after confirming that the trawler boat crew had been rescued by sister vessels,” the statement said. It read: “At 13:20hrs on February 7, 2019, after re-

ports of a fishing boat on fire in the same location, NLNG sent a tug boat with firefighting capabilities and two security boats. The tugboat put out the fire and the crew of the security boats doused small fires in the fish hold. According to Odeh, the move was in line with one of NLNG core values of caring, for people and the environment to enhance safety and sustainability through partnership with relevant agencies. Odeh further disclosed that NLNG was recognised

with “The Best Caring Company” award by the Nigerian Maritime Administration and Safety Agency (NIMASA) for its outstanding contributions to the realisation of the agency’s mandate on safety on the waterways, especially the Bonny-Port Harcourt sea route, which borders our area of operation in Rivers State. At the event, NIMASA commended NLNG for the rescue of 12 victims involved in a boat mishap on the Bonny Sea in November 19, 2018.

he 3rd Nsukka Professionals Association (NPA) annual summit with the theme, “Positioning for a Post Oil National Economy” in Lagos, organised by Brandzone Consulting LLC, brought together professionals, policy makers, investors and academicians across the different industry value chain. Steve Okolo, managing director, Zebra Energy, founding member/Fellow, Nigerian Association of Petroleum Explorationists (NAPE), who was also the chairman of the 3rd NPA Annual Summit in his opening remarks, said the theme was carefully selected and aimed at being used to create a ground to discuss key solutions and better positioning of Nigeria’s economy, in view of the huge downturn in the oil market which is the major contributor to the nation’s revenue inflow. “The drastic change in the global oil market which impacted negatively on the nation’s economy is a call for a diversification of the economy into other virgin sectors for a strong growth and continuous economic advancement,” Okolo said adding that the Nsukka Professionals Association is strongly committed to creating ideas that will aid economic growth and development in the South Eastern region and ultimately, Nigeria at large

leveraging its vast network of professionals. The keynote speaker, MD/CEO, Zinox Technologies, who was represented by CEO, Activedge Technologies, George Agu, said the nation had to reduce its dependence on oil to build a stronger labour force of highly skilled individuals. He emphasised on the need to maximize the potentials of various other industries such as information and communication technology (ICT), manufacturing and agriculture to establish the nation’s growth. He further buttressed his stand by citing the evolutionary shift in statistics of the world’s richest companies from the likes of ExxonMobil (being number 1 at the time), General Electric, Gastron, Citi Group, Bank of America, Shell and HSBS in 2006 to the likes of Apple, Google, Facebook, ExxonMobil (which dropped to the fourth position), Amazon, Microsoft China Mobile in 2016. He was of the pointed out that harnessing technology will accelerate the growth of Nigeria’s economy. Fabian Ajogwu of Lagos Business School said that “the post oil economy is not a situation where Nigeria waits for oil to vanish but one in which the country rapidly develops other sources of income to outperform oil as it is and achieve a Gross Domestic Product, greater than what oil has provided the economy.

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CBN to give SMEs loans at 5% through NIRSAL MFB ONYINYE NWACHUKWU, Abuja

… national MFB to take off with N5bn capital

South-south pensioners laud Obaseki’s uninterrupted payment … as Edo leads in ease of doing business

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Opinion

What will happen to Tinubu’s empire in Lagos?

CHRISTOPHER AKOR

t is an indubitable fact that Bola Ahmed Tinubu has built a formidable political empire in Lagos and has extended his suzerainty and influence to other parts of the Southwest and the country at large. From the modest position of being rewarded with the governorship ticket of his party, the Alliance for Democracy, mainly as reward for his services to NADECO during the days of the dark-goggled dictator, Sani Abacha, the Asiwaju of Lagos or Jagaban, as he is as he is popular called by his admirers, has not only presided over the dismantling of the Western region’s gerontocracy or, at best, reliance on elders for political directions, but has equally built from scratch a formidable political structure that has given him total control of the politics and governance structure of Lagos from which he has extended his influence to other states. The decisive moment for him was when he became the only surviving governor of his party, following the unholy alliance elders of his party entered into with Obasanjo’s PDP, which saw the PDP sweeping his party out of power in the Southwest region. Perhaps, that was when it dawned on him that he could not continue to rely on the wisdom of the elders of his party, which has always ensured the region was isolated from the centre and the various mutations of his party, from independence, has continued to play only ethnic politics without a realistic prospect of grabbing power at the centre.

Haven cemented his hold on Lagos, especially by ensuring the states’ relative fiscal independence through harnessing its tax powers, Tinubu proceeded with his new party, the Action Congress (AC) and later Action Congress of Nigeria (ACN) to gradually recapture old grounds and even extended its influence to the old Midwestern region, with the capture of Edo state in 2008. Two attributes that endeared him most to people and made his politics and party quite appealing were his supposed rare managerial acumen of men and resources and his penchant for spotting and unearthing rare talents in governance and the states bureaucracy. He was reputed to have presided over an inclusive and participatory administration that not only empowered individuals and groups but, most importantly, saw to the utilisation of technology to increase internally generated revenue in the state. Over the last 18 years, the IGR of Lagos has risen from a mere N600 million monthly in 1999 to about N30 billion in 2017. At the completion of his mandate in 2017 and even against stiff opposition from his new political family and party, he insisted on making Babatunde Fashola, his erstwhile Chief of Staff, a nonpolitician and technocrat, governor of Lagos state. That choice would turn out to be a brilliant one. Fashola’s performance drew praises for Tinubu from far and near further cementing his status as a visionary leader and apostle of good governance. Naturally, he became the toast of politicians in the country and it wasn’t long before they came calling seeking alliances to either retain or capture power in the centre. Rumours had it that he entered into one with Goodluck Jonathan in 2011, which enabled the latter win the presidential election at the time. However, any possible deal between them broke down shortly after as Tinubu spearheaded the coalition of regional parties that formed a new and formidable political party (the APC) that finally sacked Jonathan in 2015 and made history as the first opposi-

Local politics is the real deal The Public Sphere

CHIDO NWAKANMA

itizens across the 36 states and the Federal Capital Territory go to the polls again on Saturday, March 9, to choose representatives closer home. The Governorship and State Assembly elections are as consequential as those of last week featuring the choice of Mr President and Abuja-bound legislators. As all politics is local, the closer to the locality the more intense and significant it should be. Elections for federal seats ended on February 23. It threw up many issues. Congratulations to Muhammadu Buhari for the INEC declaration that he won the elections. The Igbo voter remained a central figure in the narrative of Elections 2019. Last week in Lagos and across the land, APC treated him with contempt. During this week, the APC Lagos gubernatorial candidate, Babajide Sanwo-Olu, continued the path of persuasion less trodden by his party. He arranged a meeting with the Ohanaeze Lagos where he sought and got endorsement of the Igbo in Lagos. In “No to apartheid in Lagos”, I pointed out former governor Bola Tinubu as the one stoking the fire. The Lagos State Commissioner

for Information who is a former Chief Press Secretary to Governor Tinubu says other factors are responsible for Tinubu’s outburst. He blames Ohanaeze and even mentions Jonathan for the unfortunate statement of his boss and defames Ohanaeze President John Nnia Nwodo. Here is his response, first published yesterday as letter to the editor. Chido Nwakanma and the Tinubu Doctrine Chido Nwakanma argues in his article, No to Apartheid in Lagos, in BusinessDay of February 28, 2019 that the incidents that took place in significant Igbo residential neighbourhoods during the presidential and National Assembly on February 23, this year were executed in pursuance of a Tinubu Doctrine which he defined as an attempt to blackmail the Igbo to support the All Progressives Congress. He lied. The narrative that defined the context in which the incidents took place did not start with the address to party members by APC National Leader and former Governor of Lagos State, Asiwaju Bola Ahmed Tinubu on Wednesday February 20, 2019. It started the day the dominant faction of the Igbo political organization, Ohaneze Ndigbo formed an alliance with the Peoples Democratic Party to deliver the votes of the Ndigbo to the party at the Nike Lake Resort on November 14, 2018. This was forcefully articulated again on January 24, 2019 when its president-general, Dr. Nnia Nwodo pronounced the Nwodo Doctrine as follows: “The nomination of our son, Peter Obi as the Vice-Presidential Candidate has given Ndigbo an opportunity for inclusivity. Ndigbo must seize the moment”. The second excuse for handing over Ohan-

tion party to defeat an incumbent in a presidential election in Nigeria. That electoral victory and the fact he delivered the Southwest to his party cemented his reputation as an uncommon political operator and strategist. He has one ambition though – to become president of Nigeria. In 2015, he reportedly wanted to become Vice President but was prevailed upon to drop his ambition as the country was not ripe for a Muslim-Muslim ticket. However, shortly after the victory of his party, he began to experience a series of political set-backs that is threatening to tear down his beautifully constructed political empire. First, for two or three years, he was virtually sidelined by President Muhammadu Buhari and his band of northern cohorts who took over control of the government. He only became relevant again when the president began seeking a second term in office and knew he couldn’t do without him. Secondly, Lagos’ status as the centre of good governance and his judgement has come into question recently as the Lagos state governor, Akinwumi Ambode, (singlehandedly selected by Tinubu) was denied a second term due to what some party members described as poor performance and communication skills. Thirdly, not a few people in Lagos feel his stranglehold of the state is becoming strangulating. He is not only the godfather of Lagos state politics, but is seen by most people to be the de facto governor, who never really allows sitting governors to govern without frequent and undue interferences. What is more, the president he helped into power was adjudged to have performed so poorly that it took a lot of subterfuge, vote-buying, voter suppression and security agencies’ subtle intimidation to get the president re-elected for a second term last month. The fact that two bullion vans were pictured entering his house on the eve of the presidential election further lent credence to the story that most of the votes gotten in the state were bought. Even at that, the president

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The Tinubu doctrine, which Nwakanma quotes copiously and derides as “blackmail” is based on the principle of reciprocity

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...his firm grip on Lagos is loosening and it will only be a matter of time before his carefully constructed empire crumbles

eze to the PDP was an alleged pledge of the PDP candidate to restructuring. According to Nwodo: “That the presidential candidate of the PDP, Alhaji Atiku Abubakar has made an avowed commitment to the restructuring of the federation”. The fallacies in these propositions were quickly exposed by the secretary-general, Uche Okwukwu who contended that Nwodo used Ohaneze to make a deal with his friend, Abubakar rather than to protect the Ndigbo. Okwukwu argued that it was best to “seize the moment” with a candidate such as Kingsley Moghalu, an Igbo running for the presidency, or at the least, support Muhammadu Buhari, who appointed Igbo such as Ibe Kachikwu and Chris Ngige ministers and whose second term tenure is more viable to provide opportunity for Ndigbo to run for presidency on the APC platform in 2023 than the wild goose chase Nwodo was taking the Ndigbo on by supporting a potentially two-term candidate. Indeed, APC senatorial candidate in Enugu State, Mrs. Juliet Ibekaku-Nwagu summed it up as follows: “It is now clear that the organization has stopped representing the common interest of Ndigbo and as such ceased to be the mouthpiece of the Igbo nation.” Allegedly empowered with a 300million pocket money, the Nwodo faction suspended dissentients such as Okwukwu and launched a ferocious campaign of intimidation to force Ndigbo in the heartland and other parts of Nigeria to abandon their individual right, guaranteed by the Nigerian Constitution, to choose candidates of their free will. As Churchil Nnobi has argued, this was unnecessary because Igbo already knew Peter Obi as their kinsman and did not need the Ohaneze’s coercion to do the right thing.

lost in two states in the Southwest and won in the zone with just over 250, 000 votes. Sensing that the president and his party had lost support in the state and despite the attempts at vote buying, the master strategist had to resort to blackmail to sell his candidate to the people. At a meeting with representatives of the Igbo residents in Lagos ahead of the presidential election, Tinubu warned the Igbos to either vote for the APC or face unsavoury consequences. Despite the threat, his party thugs had to employ violence, ballot box snatching and destruction, and strategic voter disenfranchisement to deliver the state to the president, albeit with a razor-thin margin. Not a few people feel the Jagaban had to do the dirty job of delivering the state to the president regardless of his performance in office so as to pave way for his own presidential bid in 2023, an ambition many within his party are determined to scuttle. Following the Senate president’s loss in Kwara and the eclipse of his family’s control of the state’s politics, there’s a similar demand for freedom from Tinubu’s control in Lagos. The governorship election on March 9 will therefore be interesting to watch. Will Tinubu’s empire finally crumble in the state? Will the president ensure security forces act impartially by protecting all citizens to prevent voter suppression and disenfranchisement? To be sure, Tinubu will be desperate to ensure his candidate, Babajide Sanwo-Olu, wins. This is the only way he can maintain his firm grip on Lagos and ensure his presidential ambition remains on course. One thing is clear however; his firm grip on Lagos is loosening and it will only be a matter of time before his carefully constructed empire crumbles.

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

Nwakanma is active in the Igbo movement. He knows that the Ohaneze works through the town unions. So, he should be aware of the threats issued at such meetings. These include the threat that those who didn’t comply will have to shoulder the burden of taking the corpses of their late relatives’ home and that their shops in markets controlled by Igbo leaders would be shut. There is no doubt that this hiring of Ohaneze by the PDP posed strategic difficulties to the APC in Lagos State. The party’s precursor, Alliance for Democracy began as a coalition of ethno-geographical forces and civil liberty associations against the annulment of June 12, 1993 election. At various times, several Igbo groups including Aka Ikenga and Amaka have allied with the party to sustain a positive environment for the promotion of the economic interests of the Ndigbo. But this ruptured during the Jonathan for President Campaign when traditional allies of the party among the Ndigbo switched camp and made a deal with the PDP which upset the existing power relations and expectations. The party diagnosed this development as the result of inadequate integration of the Ndigbo and other non-Yoruba elements and adjusted appropriately by opening opportunities for “inclusivity” in the party structures and elective offices. Continues online at www.businessday.ng

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

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