BusinessDay 08 Apr 2020

We must stay the course on lockdown to contain coronavirus FG, state governments must design better palliatives to ensure it works itizens have struggled as madu Buhari ordered in Lagos everyone, citizen and gov- possibility and desirability of FRONT PAGE comment urge we march steadily into and Ogun States as well as the ernment alike, to stay the course an extension of the period of

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the second week of the lockdown President Muham-

FCT. State governors locked down several states across the

country. It has been tough, but Nigerians are tougher, and we

for the envisaged benefit.

We make this call given the

the lockdown. We may just be Continues on page 31

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Biggest Gainer Zenithbank N11

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Foreign Reserve - $35.71bn Cross Rates GBP-$:1.21 YUANY - 51.88 Commodities Cocoa US$2,255.00

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news you can trust I ** wednesDAY 08 april 2020 I vol. 19, no 537 OLUFIKAYO OWOEYE & SEGUN ADAMS

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here are mounting concerns that the federal and other subnational (states and local) governments may find it difficult to meet their various statutory obligations due to a sharp drop in the oil revenue, their biggest income source, which is expected to fall by more than 50 percent in the coming months.

In recent months, the Federation Accounts Allocation Committee (FAAC) monthly disbursements have declined to N716.3 billion in January and N647.4 billion in February 2020.

Federal and state governments need monthly average FAAC receipts of at least N650 billion to meet their various obligations.

Data compiled by BusinessDay on full-year 2019 FAAC and Continues on page 31

Inside Shell paid Nigerian government N1.7trn in taxes, royalties, fees in 2019 P. 30 Covid-19 and the Nigerian nation An overview of the ongoing pandemic, the local response, and prospects for the future P. 16-17

₦2,941,981.66 +4.17

N300

Sell

$-N 405.00 417.00 £-N 483.00 502.00 €-N 408.00 417.00

Crude Oil $ 26.31

I

Buy

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www.

Market

Spot ($/N)

3M 0.00 2.12

I&E FX Window CBN Official Rate

383.83 361.00

Currency Futures

NGUS mar 31 2021 391.20

($/N)

g

fgn bonds

Treasury bills

6M 0.00 3.25

-0.22

10 Y -0.20

30 Y -0.19

11.48

12.26

12.75

5Y

NGUS mar 29 2023 400.24

NGUS mar 26 2025 410.49

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Fragile states face fiscal storms as FAAC party ends Bayelsa, Kebbi, Yobe worst hit

Femi Gbajabiamila (m), speaker, House of Representatives; Muhammad Monguno (2nd r), chief whip; Peter Akpatason (r), deputy leader; Osagie Ehanire (2nd l), minister of health, and Olorunnimbe Mamora (l), minister of state for health, during a meeting between the leadership of the House of Reps and the ministers on the in-coming 18 Chinese medical personnel, at the National Assembly.

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Globalisation and the Economics of Covid 19

PLUGGING THE GAP - INVESTMENT OPPORTUNITIES IN THE HEALTHCARE SECTOR The corona virus pandemic has taken a huge toll on various sectors of the economy, whilst placing huge pressure on the healthcare sector, exposing shortcomings in healthcare capabilities locally and across the global. These shortcomimgs he world turned hethe need world , thus espousing for more investmenteconomic in the sector. activities,

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only time “as will tell. But for now, China “as it it were” were” on its With the Covid-19 healthcare head within the various head pandemic withinstretching appears to be COVID-19 free, systems around the world capacity, there renewed activities have spate of just spate of beyond just ONE and are economic conversations the adequacy and still effectiveness of healthcare MONTH we MONTH onand and we are resumed across the country. systems in many countries, the importance an optimal watching and gasping at un- of creating watching and gasping Clearly, the Chinese economy balance between public and private healthcare services as well folding folding events. events. As As the the global (in a foretaste of what other as the financing required to revamp or restructure the healthcare economy economy reels reels like like aa drunken economies across the globe sector in these nations. sailor, sailor, there there are are huge huge economare now witnessing, suffered ic indus-spending ic implications implications across significant in the According to Deloitte , across global healthcare is expecteddevastation to rise at and a Compound Annual Rate of 5% in 2019 2023, tries sectors and of course tries and sectors andGrowth first twoto months of 2020 and thus presentingthere severalare opportunities for the sector. as losers as always, always, there are losers and the general feeling is that the Healthcare African countries suffered from winners.

Now de- have winners. systems Nowin officially officially nightmare is far from over. In underfunding severe neglect over time. this Of the myriad of clared Pandemic of global clared as as aaand Pandemic period, retail sales fell by challenges projections African healthcare systems, inadequate human impact, of impact, of projections of poten20.5% year on year, industrial resources, poor leadership and management, and inadequate tial tial global global infections infections range output was down 13.5% and budgetary allocation have been identified as the key challenges. between fixed asset investment by 25%. between 500m 500m at at its most With an estimated population of over 200 million people, the spending. It is expected that thetravel harrowing effect the of theglobe Covid people across conservative Leading sectors like its aviation conservative and and over over half of Nigerian healthcare system is largely affected by these issues -19 pandemic on the global wouldand further attract more for economy economic leisure acthe world’s and motor vehicle industries themore. world’s population population (close and investments in the healthcare sector. tivities. to which are collapsed during this to four four billion billion human human beings) Significant private sectorled investment is also required in As the coronavirus crisis rages at seemin to period. at its its highest. highest.

There Seeking to harness There the resources both the public and the bridging the huge financing in the Nigerian healthcare system. on,gapmedical facilities in the be doubt anyone’s mind be no nohealthcare doubt in in anyone’s private sectors in Nigeria, the country developed in The good news is that the nation’s healthcare growth potential most advanced nations are that is most drastic fate Partnerships 2005, a National Public-Private (PPPs) economies Other major likesellingoverwhelmed. remains a major point and the following segments of the that this this is the thePolicy moston drastic Leaders and for health, withthe the world National in Healththe Policy.

According Nigerian healthcare sector require key investments to unlock that has befallen United States of Amerithat has aligned befallen the citizens alike have been comto the Nigerian Investment Promotion Commission, a myriad of their growth potentials: the last century to date. ca, the United Kingdom and the last century to date. pletely blindsided. Nigeria’s investment opportunities exists across the healthcare valuehave chain not fared much Europe stock market in Nigeria and investors interested in taking advantage of these Healthcare Services and Facilities shed NGN2.2Trn As better, with these markets still As at at the the last last count, count, global global casmonths and the bloodopportunities will benefit from taking a long-term view of the The Nigerian secondaryin andtwo tertiary healthcare services segment es counting their losses as the es were were 402,054 402,054 with with 17,507 is farinvestors. from over. market and keeping in consideration the dynamics of healthcare remain very viable forletting prospective In 2016 alone, deaths, Coronavirus pandemic condeaths, with with all all 195 195 countries Nigeria has now recorded investment in developing nations. about 30,000 Nigerians spent a total of $1.3 billion (a sum higher of tinues to cause massive human of the the world world affected. affected. The cases of COVID19 than the Nigerian 2020over health 40 budget) on medical tourism. It is Topline healthcare statsare Nigeria top countries China, and economic losses in these top 33 hit hit countries are including also estimated that Nigerian consumers of healthcare services very senior public •Italy Population in 2019 200 million nations. On the back ofleast these Italy and and the the United United States of spend at $1 billionofficers every year for treatment overseas, this and personalities.

Our •America Average lifewith expectancy is 52 years developments, the InternaAmerica with 81,171, 81,171, 63,927 is due to a strong distrust in the Nigerian system. A economy has healthcare also witnessed • Patient-to-doctor ratio 2500:1 and tional Monetary2016 Fund (IMF) and 46,168 46,168 infections infections and survey

by PwC found thatdrastic 90% of Nigerians that other adversebelieve impact • Non-Communicable Disease (NCDs) are estimated to account 3,277, has in a statement issued on inin 3,277, 6077 6077 and and 582 582 deaths deaths readvanced healthcare Nigeria of low quality. in the the isshortest timeInvestors with crude for 29% of all deaths healthcare services segment would have to effectively spectively.

Monday 23 March forecasting spectively. In In Africa, Africa, the worst oil prices crashing fromaddress over • Spending on healthcare to reach ₦5,762 billion by 2021 change the preconceptions of poor service quality to attract hit South Africa, Egypt medical that tourism COVID -19andwill trigger are South Africa, USD60to below USD30 and •hit US$are 1 billion spent annually on outbound the target medical tourists. Now is the perfect and Algeria. a global recession that market, could Nigerian Algeria. predicted •and <90% of population living without health insurance to fall to USD20 time make this as travel restrictions from the pandemic the toglobal fi-move,whilst _____________________________________________be worse than the yield on FGN 6.75% must have served as a wake-up call to the “target market” on the China, where the pandemic China, where the Care pandemic Deloitte, “2020 Global Health Outlook: Laying nancial a Foundation crisis for the of 2008-2009, Eurobond issued at a yield of significance of a thriving local healthcare system.

Future” <www2.deloitte.com/global/en/pages/life-sciences-and-healthcare/ first out but with a hope of recovery in first broke broke out has has today today been 7%, has spiked to 12.8%. In articles/global-health-care-sector-outlook.html>, 2020. declared declared wholly wholly free free of CO-April 2,2021. theMedics Central Bank of Private companies suchresponse, as De Flight Ltd, St. Nicholas _____________________________________________ VID19 VID19 bringing bringing both both a ray Nigeria, CBN has now marked Hospital Ltd, Lagoon Hospitals Group, Lakeshore Cancer Clinic Health expenditure to abe report Once

by Fitch again, Solutions, the world’s of that virus of hope hope that the the- According virus can down exchange of the Ltd, Me econoCure Industries Ltd the (which were all rate featured and healthcaretoexpenditure in Nigeria is predicted to witnessing reach mies are the underfought without fought to aa halt halt (not (not USDStock for NGN NGN360 recognized in the London Exchangefrom list amongst the ₦5,762.061 billion by 2021 growing at a CAGR of 8.35% Y.O.Y. belly of globalization. significant significant loss loss of of lives) lives) and a to NGN376 to and NGN380 companies Hand to inspire Africa, 2019) can thrive last longer to in This is up from an estimated ₦5,318.061 billion in 2020. in hand with the opportunities specter specter of of the the huge huge costs costs of the healthcare sector with better investments USD1.

With thein resources fall in (such deBy 2021, healthcare spending is estimated to make up 2.94% such as access toas both global Manpower, Medical mand Equipment, Devices & Hospital Supplies attack attack of of the the virus virus to to a Nation. from China and Saudi/ of the country’s GDP. While the government is expected to ) that will keep them atRussia edge withprice other developed countries. is and global markets If will long If there there will be be long lasting war, Nigeria spend ₦1,477.77 billion by lasting 2021, theefprivatefunding sector will spend forfrom domestic come technology, fects and quanreportedlyequipment fects of of the the nature and facing and challenges ₦4,284.469 billionnature in the same period.

This is up ₦1,190.71companies, Medical devices, hospital vulnerability to borderless critum of antiseptics sprayed in 2019. moving its crude at an accepttum and of₦3,709.120 antiseptics billion billion respectively supplies manufacturers sis such as “imported” finanliberally, able liberally, drugs drugs administered administered This is an area in need of price. investment in the health sector, cial crisis borderlessin medical We appear to and nearhealthcare Globally, private investment shaping systemsand as now back to to the the victims victims and of of isthe via investments companies headed which supply medical investors remain attracted the sector’s rising demand and transported recession products and equipment.

These medical should be diseases easily as total down of with companies half of the prototal shut shut down of todomestic

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deploy artificial intelligence in revolutionizing healthcare data gathering and diagnostics. Telehealth which involves the use of telecommunications and virtual technology to deliver health care outside of traditional health-care facilities. Termed by WHO as the most basic element of eHealth, telehealth can revolutionize the primary healthcare system in Nigeria.

Both foreign and local investments are required to bridge the huge financing deficit in the Nigerian healthcare sector.

International healthcare services providers can directly invest in empowered to provide the latest medical technology products the Nigerian healthcare sector by setting up specialist hospitals. across the whole spectrum of medical equipment, hospital Asides traditional FDIs, investments can also be attracted supplies, products and services, including specialist applications. through financial foreign direct investments (FFDIs), where the In recent times, technological disruptions have become the order investors are financial and risk intermediaries like private equity shopping.

As we all change down of capital supplies of drugs, drugs, shopping.

As we down of supplies of the day and the healthcare sector is also experiencing these fundall andchange venture capital funds. Local can beofsourced can our mode of work, work, schoolby and manufacturing tools, schemes promode of school and tools, prodisruptions. Startups focused on bridging theour gap in the health be attracted issuing manufacturing bonds and collective investment play, the Technology, Technology, Online duction equipment equipment etc. etc. from from play, the duction sector are beginning to attract major global investment and solely forOnline healthcare investments.

Education, Online Games andof increasing China isisthe huge lessonbudgetary on the the Online and China aa huge lesson on more should be expected in the wake of theEducation, current Covid-19 TheGames importance government’s imperative ofalsobackward backward inteDigital Technology andtoNetfNetfimperative inteTechnology and pandemic. In our opinion, there will be a highDigital rise in healthcare allocation the healthcare sector canof not be overstated. gration and having control of lixwill could be winners. related technological innovations and this trend persistbe long and having control of lix could winners.

According to WHO, nogration country has made significant progress enough, affording investors the opportunity to invest such new supply lines.

With government towards universal health coverage without increasing the extent supply lines.

With government innovations. An example is 54gene, a startup which has attracted Lessons to which its health system relies on public sources. backing, localrevenue manufacturers Investment Lessons backing, local manufacturers Investment huge global investments. The genomics company is focused in Government revitalize the primary healthcare system should explore opportunities It is is essential essential inThe investing tomust should explore opportunities It investing to on African DNA, and has raised $4.5 million recognize in a seed round by providing accessible clinical healthcare services this is to redesign redesign their models. models. recognize the, impact impact of boom boom to their the of the largest by a Nigerian health tech startup; Heliumluxuries health, necessary change As the current hospital-centric and attract As governments governments finally under(when luxuries like cars,toperperfinally under(when like cars, an electronic medical record startup also raised $2 million in private holidays, sector-led investment secondary and especially tertiary standin the the critical critical importance fumes, fashion fashion items, items, stand importance fumes, holidays, September 2017; and LifeBank, a startup focused on sourcing healthcare. As deduced from the experiences of various nations of the the entire entire health health sector sector resorts and and cruises cruises thrive) and and of resorts thrive) and delivering life-saving medical products, including blood and during this pandemic, strong public health systems are important value chain chain particularly particularly pharpharburst markets markets when when only only essenessen- value burst plasma, raised $200,000. Tele-medicine and digital healthcare to withstand the effects of massive health threats that require maceuticals, medical medical investigainvestigatials are are required. required. This This means means maceuticals, tials models and technology are also expected to be on the rise collective and coordinated responses. tions, equipment equipment production production your diversification decisions tions, diversification decisions for reasons of convenience, cost reduction your and portability of Quantitative Easing (“QE”) could be considered to increase and primary healthcare.

The and primary healthcare.

The must go inbeyond beyond geographimust go geographimedical records, as well as the significant role it is playing the government spending in the health sector.

The extraordinary jeopardy, jected oil revenue in jeopardy, Nigerian government which Nigerian which cal, asset asset class class (equity (equity versus cal, COVID-19 battle. monetary versus policy was adopted by the government US and has been declared reserves debt) and foreign exchange reserves has traditionally invested very traditionally invested debt) and and sectoral sectoral issues to to the the a issues success for bringinghas the largest economy in the worldvery back Medical medical services managed care theand nature under insurance, intense pressure if the little infinancial health andQEeducation education little in health and nature of of the the products products of the the from the of brink, after the 2008 crises. proves that The NigerianGovernment health insurance industry that is ripe contin-is a space Federal continis clearly facing the implicais clearly companies whose whose securities companies securities with proper balance, money printing facing can work the in the implicashort term for private the sector-led Health insurance ues more to defend Naira. investment. you tionsPerpetual of such suchhealthcare choices now. now.

The tions of choices you invest invest in.

This way you enen-economy. to way stimulate the bonds The with in.

This you provides financial protection from healthcare services cost, it is Everyone seems to be countcountCentral Bank of Nigeria Nigeria has zero-coupon rate can be issued and the Central Bank of Nigeria Central Bank of has sure that your entire entire portfolio sure that your portfolio a key factor in achieving universal healthcare and is important activi- is ing losses as economic activipurchases the bonds with printed money. signaled changing approach approach signaled aa changing is not not losing at at the the same time. time. losing same in making a shift from out-of-pocket payments for healthcare businesses The ties grind to a halt, businesses with its recent decision, decision, (aspart part recent The global global erosion of value of with value services. According to the National Health Insurance Schemeerosion Other of segments rising its significance are mental(ashealth, inface reduced activities and inof its and NGN3Trn COVID19 its NGN3Trn COVID19 on account apreventive major disasdisasaccount major (NHIS), the scheme covers less than 5% of on Nigerians.

Also, of aof a medicine, of health fitness, medical supplies, operational ter comes yet higher operational economic package) and workworkeconomic package) terthat likeonly this does nutrition not erase erase the education. like this does not survey by the Lagos Bureau of Statistics shows 11% and the health These areas are and crying for not governcosts to meet new ing with with the Bankers’ Bankers’ Commiting the underlying intrinsic value of underlying intrinsic value of of the state’s inhabitants havegoverntheir healthcare services costs just public spending, but for favorable legislationCommitand policy (e.g ment-imposed standards (e.g tee, to support the country’s country’s support the covered by any form of health insurance. These figures the stocks stocksshow of well-run well-run compaframework to incentivizetee, moreto private sector investments.

Policies the of compafor Public Transporters, banks, banks, leading pharmaceutical comclearly that here is a large targetable market nies for several leading pharmaceutical cominclude tax incentives for investors, conditional scholarships nies withHealth viable may products and with viable products and they’re shopkeepers) where(HMOs) they’re Management Organisations to capture. panies to import import andduty produce for medical students topanies deter brain drain, import waivers to and produce established demand demand over time. time. established over down. not completely shut down. and preferential accessneeded to foreign drugs, exchange (recently announced needed drugs, through through FX fafaFX So depressed depressed prices prices offer an an offer Pharmaceuticals and related segments So

by Central Bankin for pharmaceutical companies).

Government will Play- opportunity Restaurants, Clubs, Playcilities. As As initiatives like this this cilities. initiatives like opportunity to to invest invest again in again ____________________________________________ also need fundato review thecontinue, remunerationit conditions of con- companies grounds and businesses concontinue, itandisisworking expected that, expected that, companies with with strong strong fundaQuartz Africa https://qz.com/africa/1660709/nigeria-health-startups-54genepublic sector medical personnel in order to compete to effectively shut sidered non-essentials are onshut this space space expected to open open this isis expected mental. mdaas-global-raise-big-funding/ accessed April 7, 2020 mental. with international opportunities increasingly open to qualified to The down. Others like banks are to up immediately. immediately. ____________________________________________ The current current crisis crisis is likely likely to to up is medical personnel. maintain operations. operations.

This segmentskeletal focuses on developing, manufacturing, andwake bring in in its its wake an an acceleraccelerbring are marketing drugs or pharmaceuticals which are licensed Conclusion The medical operators are ated shiftforin inthethe the way way we we work, work, Conclusion ated shift Conclusion use as medication.

Key listed pharmaceutical includes battle companies As the theworld worldcontinues continuesto tobattle battle open but struggling to battle As learn and and do business. business.

Asinwe we learn do As Investments healthcare had prior to now been constrained due but not limited to GLAXO SMITHKLINE CONSUMER NIG. PLC the huge huge humanitarian humanitarian impact impact inadequate the theis scourge with inadequate learn how how effectively we can learn effectively can to lack ofwe priority accorded by our governments with lower annual incorporated closed in Q4 to 2019 with a total PAT of COVID19 pandemic, the ecoto pandemic, ecoresources since and 1971 at great risk work and and learn learn budget remotely, theto theCOVID19 work remotely, the allocation sector. However, the COVID-19the pandemic over assets of over ₦17billion, FIDSON nomic implications cannot also goods also life. ₦600million, Demand recording for luxury goods potentials of of certain certain technolpotentials technolhas changed, probablynomic forever,implications global attitude cannot to healthcare.

HEALTHCARE PLC incorporated since 1995 recorded total profit be overlooked.

In managing be overlooked.

In managing groom- ogy and fashion items and groomogy products products become become evident. evident.

Significant opportunities exist to fill healthcare investment gaps for the year 2019 at over 300million with its total asset standing the pandemic adverseparticularly fallouts,in markets markets the adverse fallouts, as This ing has naturally dropped as This could could be be aa exposed good time time to by theto COVID-19 Africa and good at over ₦ 20billion for that year and NEIMETH INTERNATIONAL and value investors mustforcritically critically and investors must people tackle existential issues Nigeria.

The entire healthcare chain is crying investment invest more in VPN, online edinvest more in VPN, online edPHARMACEUTICALS PLC incorporated since 1957 and recording examine the opportunities for examine opportunities andintelligence increasingly attractive due to the higher demand as wellfor as ucation, artificial intelligence ucation, profit of over ₦200million and assets of over ₦2 billion artificial as at realignment ofa investment investment prifavourable governmentrealignment disposition andof policy environment priAre there any Winners at at and and digital digital technology. technology.

Q3 2019. expected to improve orities, significantly across the globe. and Nigerian orities, asset asset allocations and of allocations of all?

Forward looking looking companies Forward companies investors and can take of these opportunities to increase government budget spending. spending. government budget industry, may The pharmaceutical industry, may look look at at harnessing harnessing re- advantage and reeHealth capital gains and to The provide diversificationAfrica for many private The Emerging Emerging Africa Capital Capital equiptaining the efficiency efficiency gains of of laboratories, medical The Nigerian healthcare sector isequipalso rife with opportunities in taining the gains and institutional investment portfolios have been rather Group leading African isis aawhich leading African food, eHealth.

WHO, eHealth is the use remote of information remote andand flexible working by

by Group ment, According home todelivery food, and flexible working “healthcare assetlight over the years.of provider of Capital Capital Raising, Raising, communications technologies in healthcare.

The global health and reducing reducing office space, space, physical physical provider food marts, supermarkets and office Wealth Management, Trusts The Emerging Africa Capital GroupManagement, is a leading African Trusts provider Wealth technology sectortoilet-ware is expected is expected at a CAGR of power stores to grow consumables, power and utiliutilidrugs and stores consumables, and of Capital Raising, Wealth Management, Trusts and SerAsset and Asset Asset Management Ser15.9% 2016 to reach huge $280.25 billion 2021. Technology and Management ties. are from experiencing de- byties. deManagement Services. vices. giants like Apple, Alphabet and Philips have taken steps to vices.

binge mand. Due to panic and binge

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The huge huge impact impact of of the the shutshutThe

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cityfile Abuja residents decry fake hand sanitisers

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ome residents of Abuja have complained over fake hand sanitisers and the adverse effects after using them.

In separate interviews, the residents of Jikowoyi lamented that the hand sanitisers they bought from different shops were fake.

Richard Ike, a civil servant said that he bought two sanitizers from a particular shop but could not use them because they were peeling his palms.

“I bought two sanitisers in a particular shop costly but I just discovered that the first one I opened no peeling my hands.

“I decided to use the second one, it was also peeling my hands, I threw them in my waste bin,” he said.

James Odia, a trader also in Jikwoyi said that he experienced the same after using the sanitisers.

“I don’t know why Nigerians don’t have human feelings. They are now producing fake hand sanitiser to sell to people not minding the health implications.”

Another resident, Juliana Olamide, a school teacher complained that

the sanitiser and alcohol she bought to sanitise her house were all fake.

“A friend told me that when you boil water and mixed it with alcohol, it can help to protect the environment.

“So I decided to buy the sanitiser and a bottle of gin, not knowing that what I bought was another sickness.

“Since I used the sanitiser my hands have been scratching. I also discovered that the gin is mixed with water.

“Imagine how I used my money to buy disease and sickness all in the name of fighting coronavirus,” she lamented.

Joseph Effiong, an environmentalist warned Nigerians to be wary where they buy sanitisers and face masks.

“Avoid buying things from roadside traders because when you buy fake things from them, you cannot see them to return such items,” Effiong warned.

He urged the government to provide sanitisers to residents as this would reduce the danger of buying fake from roadside traders.

Lockdown: Police caution officers against extortion, abuse in Ondo

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he police in Ondo have cautioned its officers against extortion and abuse of power during the lockdown order by the state government to contain spread of Coronavirus disease.

Theo Lee-Ikoro, spokesman of the command, speaking on Monday, said that the command would deal decisively with any officer caught in the web of bribe or abuse of power on residents who flout the order.

He urged the residents of the state to report to the command’s headquarters in Akure any officer involved in such offence.

“The Commissioner of Police (CP), Undie Adie has warned our officers not to indulge in extortion or abuse of power on residents.

“I am sure you are aware of what happened to those police officers caught in Lagos, so any officer caught in the web of such act, will be dealt with accordingly.

“The public should please report any officer caught in such act to the Command’s headquarters immediately and prompt action will be taken,” LeeIkoro said.

He, however, urged residents in the state to be law abiding and ensure total compliance to the state government order that was for their safety and well-being.

The Ondo State government last week ordered the closure of all its land borders to neighbouring states of Edo, Ekiti and Ogun and also ordered the stay at home for residents to contain the Coronavirus pandemic. www.businessday.ng

Enforcing hygiene in Lagos tough: In push for better hygiene habits amid coronavirus outbreak, Lagos butchers still struggle to abide by earlier state directive on conveying products.

Pic by Olawale Amoo

Covid-19: Lawyers want Kaduna to release inmates with minor offences

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ome Kaduna-based lawyers on have urged the state government to consider releasing some inmates in order to decongest the Correctional Service formations (prisons) in the state.

The lawyers said this was necessary because people in detention were particularly vulnerable to the Covid-19 outbreak.

Linda Joseph, a lawyer, said the transmission of diseases in overcrowded facilities is rife, thereby placing the lives of both prisoners and staff at risk.

Joseph said prisoners live in confined conditions with others for prolonged periods and their hygiene and healthcare are therefore difficult to assess in detention, especially during a pandemic.

“There are inmates with minor offences and there are others who cannot afford the bail conditions. So, the state

government should consider such inmates and release them.

“These proposed measures are not new. For several years, countries have been encouraged to reduce prison populations and now with COVID-19 spreading fast, these measures need to be considered,” she said.

Joseph urged governments to take urgent steps to reduce prison populations, protect people in places of detention, and prevent uncontrollable outbreaks.

Another lawyer, Mukhtar Babanyaro, said releasing inmates with minor offences or those whose release dates are near would be a good step by the state government.

He said this would help to decongest correctional centres and avoid the spread of COVID-19.

Babanyaro said correctional centres were particularly vulnerable to the spread

of infectious diseases like COVID-19 as inmates live in close quarters with lean resources for proper hygiene.

He stated that some countries have started recording some Covid-19 cases in their correctional facilities.

“A place like Louisiana in the U.S. had three incarcerated people who have already died from Covid-19 and at least 30 people, including staff, have tested positive,’’ the lawyer said.

Babanyaro noted that, with this development, some countries have gradually started to take action to decongest their prisons.

He added that countries like Ethiopia had pardoned more than 4,000 prisoners whose release dates were near or had been given sentences of less than three years for minor crimes.

“Iran also released over 85,000 prisoners, while

France’s Ministry of Justice is asking for short-term prison sentences to be delayed, reducing the number of new prison admissions from 200 a day to 30.

“And, Ghana recently granted amnesty to over 800 prisoners, most of whom are first-time offenders.’’

Babanyaro further urged state governments to review cases of people in detention and release those held in pretrial detention, particularly those detained for minor or low-risk offences.

He noted that individuals sentenced for minor low risk offences, particularly those who have 18 months or less remaining of their sentence to serve, should be freed.

Also speaking, another lawyer, Linda Ejiofor, said correctional services needed to ensure that the human rights of those in their custody were respected.

Edo to fumigate markets in Benin Idris Umar Momoh, Benin

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do Government says said it will commence the relocation of all markets to primary schools and proceed with the fumigation of all major markets to curb the spread of coronavirus.

The deputy governor of the state, Philip Shaibu, disclosed this in a meeting with market leaders, police and public work volunteers (PUWOV) at Government House on Monday.

According to Shaibu, the relocation of the mar-

kets has become necessary in view of the fact that traders are finding it difficult observing the social distancing directive.

“We need to resolve these issues we are having in market places. We observed that while churches and mosques had obeyed the directive of government, we are having major problem at the market places.

“We are not maintaining social distance and its becoming very embarrassing to the government. It’s giving us so much worry; this virus can spread easily in crowded places.

“We want to make sure

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that markets are opened and at the same time achieve the social distance among us,” he said.

The deputy governor said the government also wants to fumigate the markets, and for to be achieved, there is the need to lock all the markets.

“We don’t want to shut down the markets completely, because we want our people to have easy access to buying of foodstuffs”, he said.

Reacting to the absence of Governor Godwin Obaseki, the deputy said that he was observing the normal 14-day isolation, @Businessdayng

adding “the governor is hail and healthy.”

Leader of Edo Market Women Association, Blacky Ogiamen, commended the government for the steps being taken to contain the spread of the coronavirus in the state.

She urged the government to increase its awareness campaign on the relocation and fumigation of the markets.

Ogiamen also called on security agencies in the state to take steps in ensuring that the commercial drivers obey rules and regulations put in place by government to fight the Covid-19 pandemic.

10

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The fair side of COVID 19: Good thinking (not necessity) is the mother of invention Small Business handbook

Emeka Osuji

T

oo much has been said and written about the current health emergency plaguing the world, in the name of Coronavirus. I did not want to join the team of wailers and lamentation crew to analyse the political-social and economic consequences that will naturally follow the sad event – the many lives to be lost to the crisis and all of that. Still, there are very few people who have the time to focus on hard economic information right now, except the many economists, real and pseudo, dishing out data all over the place, especially on social media – nothing wrong in their efforts. What one is more likely to find though is that most people, even in the information overload to which the social media has subjected them, do not want to read hard stuff right now. So, I decided to do something that will not appear too unmindful of the situation at hand, but at the same time, not wailing loud as many are. I settled on looking at the other side of the global scourge.

We already know the future will be gloom after COCID 19. We also know that companies will go burst; people will lose their sources of livelihood (they have already started) and even nations will be in arrears of their obligations, to put it mildly. What else could

we expect? Could any of the events subsequent to the scourge be good for human consumption? I believe so but that is only if we agree that invention, like any creature, had two parents – necessity and good thinking; and that necessity has died following advances in Technology. Invention now has only one parent – Good Thinking.

In my recent book, “Entrepreneurship and Small Business Development”, published last year (2019), there is a section, which literally bore the title of this article. It reads “Good thinking is the mother of invention”. In that piece, I tried to reminisce over the efforts we made in the Ministry of Finance, in the early 1990s, to set up a mortgage refinance institution for Nigeria. That effort followed our federal government sponsored understudy tour of certain key institutions in the agricultural and housing sector in Malaysia and Indonesia. We had recommended the establishment of this institution, following our visit to KAGAMAS, the Malaysian government-owned mortgage refinance corporation, which helped to drive the exponential growth in the housing stock of that country in the late 80s and early 90s.

That effort failed, probably because we did not think deeply and properly about the dangers of the rising homelessness in the country even as we write this stuff. Of course, there is serious problem of homelessness in Nigeria.

This problem has been masked, like many s, by the ever-present brother’s keeper spirit of Nigerians, embedded in our extended family system. Many people in this country would have been under the bridge, and many are, though, if not for the extended family system.

The idea of a mortgage refinance institution that would work with the

primary mortgage institutions and the Federal mortgage bank, to act as an exhaust system or off-taker of mortgages, and thereby allow the creation of more housing loans, came at the same time the reforms that brought the primary mortgage firms into being came. But it took over a quarter of a century to be understood and materialize, when the federal government, under the leadership President Goodluck Jonathan (the one you called clueless), and Ngozi Okonjo-Iweala, made the commendable decision to finally establish the Nigeria Mortgage Refinance Corporation. I had long since commended them on that. I contended in that piece in my book, and still do, that most inventions of this day and age, do not appear to have come out of necessity.

Rather, they seem to have come mostly from the superior thinking of men who, while others either slept or kept awake to format ways to cheat their country, burnt the midnight oil in “laboratories”.

The current COVID 19 pandemic seems to be all about sickness and death and the potential of a global economic crisis of gargantuan proportions, which appear already signed and sealed ready to be delivered to mankind. Can anything to the contrary happen, for which humanity would rejoice? I think so. And this is the time to begin to think, not outside any damned box, but away from any form of box whatsoever.

A Biblical story about Jesus helped me to set the tone of this discourse.

“And Nathanael said to him, “Can anything good come out of Nazareth?”

Philip said to him, “Come and see.”

Some of us may recognise this quote from the Bible. It relates to the conversation between Phillip and Nathaniel when the former told the later that they had seen the one of whom Moses and

‘

Certainly, too many good things have long since come out of Nazareth, beginning with Jesus. But can we say the same thing of COVID 19? This is where the issue of good thinking and not necessity being the mother of invention comes in

Dr Osuji is head of the department of Economics at Pan Atlantic University Lagos. eosuji@ pau.edu.ng @Emekaosujii

When change comes

Y

ou’ll need to forgive me as I’m one of those annoying people who by nature and by training, seldom likes to willy nilly conform to the accepted norm.

I’ve always believed that if one allows one’s mind to operate outside boundaries set by convention, better solutions can be found.

Even within my own larger family, I often find that when everybody decides to move in one direction, my initial reaction is usually one of hesitancy. As everyone’s looking to the right, my focus, almost in slow motion, turns to the left.

It’s not because I think I’m smarter than everyone else or even any of them for that matter, but because I’ve always been pushed from within me, to seek out an alternate route to arrive at the same place and if I’m lucky, somewhere better.

Don’t call me a rebel because that’s something I know I’m not. I just have an inclination to question the norm and to find my own way.

At times, I will still end up at the very same spot everyone else has gone, but within me, I will feel satisfied that I found my own way there. There are times when I’ll arrive at a totally different destination, driven by my own convictions. John Dewey once said that the purpose of education should not be to merely learn what is already known but to develop a mind robust enough not just to question, examine and ultimately challenge convention, but is also dynamic enough to offer a new and better way.

Without this, how would we as a race, expect to make any progress?

I was taking a walk with my wife the other day, during this current lockdown period and for what seemed like several minutes, the two of us couldn’t agree on what day of the week it was.

You know how it is when one day just blends into another, with no particular activity like going to work, doing school runs or going to church, to differentiate one day from the other. After re-

luctantly agreeing with her on which day it was, especially when I remembered that I would want to eat when we got back home, something just popped into my head. I turned round to her and said, man made things can always be changed.

Yes, it may cause a disruption for a day or two but people will quickly whip into line and just move on. I said, all the world leaders could wake up on a Wednesday morning and decide that the world has lost far too many days, too many working hours, due to the pandemic induced stay at home, so instead of the next day being a Thursday, as we all expect it to be, it will now be made a Monday, so the world can have a full working week to start catching up. And this change will not completely alter our lives.

Certainly not in a way that we won’t be able to recover from. It will not stop the sun from rising or setting when it should. It will not suddenly lead to better or worse service provision by our electricity providers. My daughter who hates anything coconut will continue doing so and my home address will remain the same. What am trying to say? Though it may cause some disruptions; admittedly to some more than others, the heavens will not fall.

It’s quite obvious to me that post the current coronavirus pandemic, life will longer be exactly as we knew it pre the pandemic. Many things will change worldwide. Just as 9/11 changed forever the way we travel and all the various airport protocols, so will this pandemic compel nations to alter many airport protocols, and it won’t end there either. The taking of the Coronavirus vaccination may become a precondition for any country to allow travellers in, just as it may even be required to enter certain places within one’s nation’s borders too. But like we human beings have always done, come what may, we will adapt and just move on. Many businesses, have by now adopted several creative survival strategies. In

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the process, they might have stumbled on ways in which to do things more efficiently; so much so that even when the lockdown is finally lifted and the road becomes clear, they may not see any sense in returning to the old way. Never has the saying about necessity being the mother of invention sounded truer. For many organisations, online meetings may have come to stay; seeing no added value in always congregating their top management, with the attendant costs and dislocations, before a one-hour meeting can hold.

A welcome change would have come to stay.

No, I don’t believe the end of the world has come quite yet. We’ve only been reminded of our mortality, our limitations and the impotency of nations we’ve come to perceive as almost invincible, when faced with something that’s beyond them. We should, if we’re smart, come to the realisation that wisdom is revealed to be manifestly absent when we forget just how little we actually know. Like Pharaoh, will we as a race (human beings) continue to hold tightly to increasingly ungodly principles and values, refusing to let them go, even when faced with a “plague” such as this? Or will we wake up to the fact that our ways need sanitising, more than our hands?

I know it may sound cliché but I won’t allow that to stop me from saying it anyway. No matter how awful something or a situation might appear to be, it nearly always harbours a hidden treasure.

Positives do emerge from negatives. Sometimes it requires the right attitude to discern this but many a time, it actually emerges in spite of our attitude. In Nigeria, as well as globally, the lockdown has provided an excellent opportunity for families who until this moment hardly ever spent more than five minutes together, due to heavy work schedules and other daily activities, to bond and spend quality time together.

Family members and even couples are getting to know each all over again. It has given

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the prophets had spoken – Jesus. Certainly, too many good things have long since come out of Nazareth, beginning with Jesus. But can we say the same thing of COVID 19? This is where the issue of good thinking and not necessity being the mother of invention comes in. I believe it is possible to turn this patently bad situation to a good one by looking at the other side of the scourge.

An old and well-acknowledged adage has it that necessity is the mother of invention. We are not going to be able to change the finer fibres of that adage. It was ascribed to Plato and it has served the world well. However, if necessity is the mother of invention, how come Africa has not invented its way out of poverty as did China and the Asian Tigers? Necessity may have helped North Korea to become self-sufficient but they are not the only ones going through rejection or things of the sort. Some other countries could have continued to look for the easy way out and to enjoy the good life, instead. Have we been able to reduce our taste for foreign luxuries in order to diversify our economy?

Even as the exchange rate moves violently against our national currency, we are in a hurry to buy the last edition of all kinds of foreign goods rather than say: enough is enough, lets damn these foreign goods and support our own.

Not even the leaders, whose duty it is to diversify the economy, want to miss one foreign goodie to change the destiny of their future generations. Necessity may be the mother of some inventions made mostly in the ages past. Today, good thinking is the fertile bride. Necessity has gone barren.

Character Matters with Daps

Dapo Akande children the opportunity to discover that their parents aren’t irrational beings who like to fly off the handle about every little thing, but are perfectly rational human beings who can’t stand to watch their children make poor choices in life, especially when it appears as if history may be repeating itself. It gives parents too the chance to realise their children are unique individuals who have what it takes to toe their own path successfully. So instead of trying to live your life vicariously through them, use your experiences wisely to guide, correct and most of all, support them. As for me, it has exposed me to ridicule and serious yabis as my children repeatedly beat me in the popular board game, Monopoly. That’s after all the mouth I had before we played the first game! Will I learn not to foolishly brag about such things next time? I doubt it.

Permit me at this point to offer my heartfelt condolences to those who have lost a loved one to this invincible enemy of mankind. May the souls of the departed rest in perfect peace.

Changing the nation...one mind at a time.

Akande is a Surrey University graduate with a Masters in Professional Ethics. An alumnus of the institute for National Transformation and author of two books; The Last Flight and Shifting Anchors. Contact: dapsakande25@ gmail.com

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Eurobonds are not the answer Why the Germans and Dutch are right to resist this way of sharing coronavirus costs Gideon Rachman

T

here is just one question: Are we together or are we not? So said Bruno Le Maire, France’s finance minister, as he pleaded with other EU nations, above all Germany, to demonstrate solidarity in the face of the coronavirus pandemic.

For many in southern Europe, solidarity means one thing above all: eurobonds. France, Italy, Spain and six other EU countries have thrown their weight behind the creation of joint financial instruments by the EU, as the best possible response to the pandemic.

The arguments they make are both political and economic. Eurobonds are meant to prevent some of the worst-affected countries, such as Italy and Spain, being sunk by new debts. They are also intended to show Europeans that “we are all in this together” — banishing the early disastrous images of China delivering medical aid to Italy, while the EU sat on its hands. Some Italian and Spanish politicians warn that if the EU does not act, their countries could lose faith in the European project forever.

The urge to demonstrate European solidarity and alleviate suffering is right. But eurobonds are the wrong solution. Rather than saving the EU, they could end up killing it.

Advocates of eurobonds stress the potentially disastrous effects on public opinion in southern Europe if ­northern Europeans fail to respond while the Italians and Spanish live through a tragedy. But northern Europe also has to consider politics and public opinion.

The mutualisation of debt within the EU has always been the reddest of red lines for the Germans, the Dutch, the Austrians, the Finns and others. If it is pushed through now — in an atmosphere of crisis — it could set a time-bomb under the EU. The danger that southern Europeans will feel abandoned by the north has to be set against the risk that northern Europeans will, at some later date, feel exploited by the south. The Italians and the Spanish rightly resent being caricatured as lazy, spendthrift southerners. But the opposite caricature of the rich, egotistical, arrogant northerners is also unfair — particularly when it is larded with references to Nazism and accusations of immorality.

Voters in the Netherlands and Germany also feel squeezed by long years of austerity. And both countries have also been badly hit by coronavirus. Hospitals in the Netherlands are on the brink of running out of critical care beds.

The longer-term fears of the northern Europeans are also legitimate. As one Dutch friend put it to me with pardonable exaggeration: “We know that the savings are in the north and the debts are in the south.”

The northerners are alert to any sign that they are being sucked into permanent, large transfers of cash to heavily indebted EU partners.

They are justifiably concerned that the current anguish is being used to push forward ideas that they have already rejected, many times over.

When I pointed out to one particularly passionate supporter of eurobonds that the Germans and Dutch had always been assured by their leaders that the creation of the euro would not lead to a transfer union, he responded, with a mixture of exasperation and amusement: “That was always bullshit.”

But if political leaders renege on longstanding promises because they were “always bullshit”, they should not be particularly surprised if voters then turn to populist, antiEuropean parties. In Britain’s Brexit debate, two of the most potent arguments made by the Leavers were “we never signed up for this”, and “Brussels is draining us of money”. It would be naive to believe that those arguments can never work in continental Europe. Anti-EU parties have already made strong gains across northern Europe in recent years.

The mistake made by the advocates of eurobonds is to argue that they are the only way — or even the best way — of sharing the financial burden of the pandemic. In reality, setting up the legal structures for eurobonds would probably take several years. By contrast, there is already a European Stability Mecha-

‘

When I pointed out to one particularly passionate supporter of eurobonds that the Germans and Dutch had always been assured by their leaders that the creation of the euro would not lead to a transfer union, he responded, with a mixture of exasperation and amusement

FT

Retirement: Entrepreneurs’ nightmare

A

great number of entrepreneurs and small business owners across Nigeria do not have a sustainable retirement plan for themselves and this portends a great concern. With managing and growing a small business, a retirement plan may seem like an unnecessary distraction to them. Even though retirement plan can help ensure that a business owner will have enough money to live on in their later years. Surprisingly as important as a retirement plan is, only a few determined business owners consider it imperative early enough to it set up.

Many entrepreneurs are so busy growing their businesses that they put off planning for retirement. Context observation around Lagos State with a follow-up survey carried out in the popular Computer Village in Ikeja area of the State with few respondents indicate that entrepreneurs of small businesses especially micro-businesses are only willing to grow and expand their businesses at the expense of a retirement planning. Few mentioned that the only motivating factor to increase their confidence about retirement is if their business succeeds.

The survey further indicates that the majority of the SMEs especially the self-employed do not have retirement savings plans, and 40 percent of business owners in the survey are not confident that they will be able to retire before the age of 65. Nevertheless, the good news is that those small business owners have more options available to them than traditional 9am to 5pm office employees.

One of these options is the flexibility of the date of retirement. Retirement can either be

considered early or choose not to retire at all.

It’s up to entrepreneurs to determine exactly when to stop working.

Indeed, according to the survey, 70 percent of the self-employed and entrepreneurs in Computer Village do not save regularly for retirement. The reason adjudge to this phenomenon is that they do not receive a steady salary pack, so many of these hardworking individuals forgo retirement plan. The survey further highlights that some of the small business owners have the mind of selling their businesses to fund their retirement and relocate to village when the time arises. However, the risk of this option is that entrepreneurs and small business owners can overestimate the value of their businesses and eventually run at lost. Counting entirely on the sale of the business to fully fund a long retirement is highly risky due to unforeseen circumstances.

The survey also found that many business owners would appreciate guidance when it comes to retirement because they lack knowledge of it. It is important to note that before death, especially under normal conditions in life, there is a phase called old age; a period where entrepreneurs have almost exhausted intellectual values and strength. Consequently, there is a need to prepare for such phase of life with adequate retirement planning.

Retiring is a real-life changing phase with far-reaching implications, dreadful stories most entrepreneurs would not want to hear or discuss this reality but unfortunately, there is nothing one can do about it; it is bound to come one day. Business owners cited cost and lack of resources to administer the plan

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nism up and running that can lend to crisis-hit countries.

The Italians and the Spanish reject the ESM because it makes loans that would add to their debt burdens, and that come with conditions attached.

They fear that the anguish of a pandemic could now be supplemented by the horrors of a Greek-style austerity programme. But this is a natural disaster so the ESM could attach very light conditions to the loans, simply specifying that all the money has to be spent on dealing with the direct consequences of Covid-19. The Dutch have also proposed disaster aid — grants not loans — and that, too, should be considered.

Once the pandemic is over, Europe can return to the debate over eurobonds. I have my doubts whether they will ever be politically sustainable. But, if they are tried, they should be backed by giving the European Commission a larger budget, underpinned by a dedicated EU tax. Armed with more capital and its own resources, the commission could then borrow from the markets.

That kind of major step should only be taken once national politicians have made and won the argument with their voters. The alternative method — using a crisis to force through a controversial and irreversible change — is often praised in Brussels. But, for its own future, the EU has to do better than that.

Timi Olubiyi as the leading reasons why they do not have a retirement plan in place.

Please note if you are a small business owner reading this, you are likely busy running your business and have not had the time to research the best retirement option.

While retirement may not be on your mind currently as an entrepreneur, the sooner you start planning for this all-important aspect of your business the better. Here are simple steps entrepreneurs and small business owners can take right now to prepare for retirement.

A good start is by implementing the 10 percent rule which is a lot easier than you can comprehend. The good start is simply by setting up an auto-transfer system with your bank, automatically transferring 10 percent of all your earnings out of your business account into your savings account every month. Then you can place the accumulated fund into a low-risk investment at intervals and allow compounding interest to grow your fund.

This applies whether you are an entrepreneur or not. It’s a simple trick to grow your wealth and be financially independent at retirement.

Another approach is to develop an Exit Strategy, that is, have it in mind right now what will happen to your business when you retire and when you intend to eventually quit and start working towards it accordingly.

One other important factor to consider is what will happen to your business when you retire. Will you pass it on to family or sell the company to another business or owner? Will you have someone currently working for you take over and buy out your interests? A simple retirement model can give you a simple lee-

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way, but you have to plan for it and stick to it.

Because retirement age varies so drastically, small business owners need to evaluate their lifestyle, savings and the company’s overall performance to determine an ideal retirement option.

In conclusion, with a bit of research, adequate planning and goal setting, preparing for retirement can become less puzzling and much more achievable. Information on what type of financial wellness programs that may be the most impactful for your business, useful tips on retirement planning and solutions that can help your business meet fiduciary obligations, and to develop better retirement savings habits can be shared with you. Therefore, if you need help with creating a retirement plan that is smart and effective for your retirement, business, for example, implementing easy-to-use technology, investment management services to aid retirement planning, you need to get across. A professional can help you streamline your business and help with the necessary details required to have a comfortable retirement. Good Luck!

Dr Olubiyi holds a PhD in Entrepreneurship and Small Business Management. He is a prolific investment coach, Chartered member of the Chartered Institute for Securities & Investment (CISI) and a financial literacy specialist. He can be reached via email drtimiolubiyi@gmail.com and twitter handle @drtimiolubiyi

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Wednesday 08 April 2020

BUSINESS DAY

Editorial Publisher/Editor-in-chief

Frank Aigbogun

Coronavirus a challenge to Nigerian pharmacy and manufacturing Collaborations, R&D are essential to unlock opportunities amid Covid-19

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

V

itamin A is an essential micronutrient in drug manufacturing and for human and animal nutrition. China and India are main sources for the Nigerian market. Since January, India stopped the export of vitamins of all types from their market.

Their government restricted it to their home market. The prices of vitamins have since gone through the roof.

Generally, drug prices have risen more than 60 percent since the beginning of the year. The rapid increase did not strike most people until citizens began stocking up for the lockdowns.

It exposed the failure as well as the threat of the Nigerian situation. Nigeria depends wholly on imports for pharmaceutical raw materials as well as finished products. It is a national security threat.

Nigeria must see this Threat as an Opportunity following

SWOT and PEST analysis of our situation. Our strength remains a huge market for all manner of products and services. It means that local manufacturing of these pharmaceutical and other products has a high probability of success.

Indeed, Nigeria is known as the land of double returns.

The Weakness is the absence of enablers in policy, infrastructure, research and the ecosystem that supports manufacturing and local production. Rather than improve, Nigeria has deteriorated over the years. Many firms voted with their feet against our strength because the weaknesses became an existential threat.

The political, economic, social and technological areas of our life point to opportunities and threats.

As in the other, optimists and realists alike see more opportunities than threats. We should interrogate them, explore and exploit for national competitiveness.

We should create and deploy various enablers. One of the re-

markable and encouraging ones is the policy of the Central Bank of Nigeria offering financial incentives to pharmaceutical manufacturing firms.

We commend specially the intervention of the Central Bank and the Bankers Committee for the financial support promised pharmaceutical companies. They pledged to grant funding in Naira and Forex to pharmaceutical companies to enable the procurement of raw materials and equipment. Beneficiary companies include Emzor Pharmaceuticals, Fidson Drugs, GSK, May & Baker, Unique Pharma, Swiss Pharma, Neimeth, Sagar, Orange Drugs, and Dana Pharma.

The bureaucrats who drafted the objectives of the Presidential Task Force on Covid19 put into it to “lay a foundation for scientific and medical research to address all emerging infectious diseases”.

Audacious, but only if it is not audio as young people nowadays describe empty proclamations full of sound and fury signifying nothing. What

can they do in six months? Or what can they not do in six months? We urge PTFCovid19 to show commitment and zeal to push research into pharmaceutical raw materials and its production in our country. It is a critical national imperative.

To give life to this fine objective, we recommend that PTFCovid19 should make it SMART. They should commence by appointing a subcommittee to drill down the ramifications of this objective.

They should be interacting with our universities and research institutes.

With the enablement of the Central Bank, our pharmaceutical companies should now also be thinking robust Research and Development (R&D) engagements. Where it is tough to go it alone, groups of companies should commission and invest in specific research efforts.

Nigeria and its firms must take advantage of the opportunities that Covid-19 and the threats of country responses to the situation poses to our drug manufacturing.

Bashir Ibrahim Hassan

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

EDITORIAL ADVISORY BOARD Imo Itsueli Mohammed Hayatudeen Afolabi Oladele Vincent Maduka Opeyemi Agbaje Amina Oyagbola Bolanle Onagoruwa Fola Laoye Chuka Mordi Mezuo Nwuneli Charles Anudu Tunji Adegbesan Eyo Ekpo Wiebe Boer Paul Arinze Boye Olusanya Ayo Gbeleyi Haruna Jalo-Waziri Clement Isong

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BUSINESS DAY

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COVID 19: A national lockdown is imperative!

Franklin Ngwu

W

ith the increasing spread of COVID 19 across different states in Nigeria, the selective lockdown of mainly Lagos, Abuja and Ogun should be urgently reviewed. In just over one month with a single index case in Lagos on 27th February, we now have over 232 COVID 19 cases and 5 deaths spread across thirteen states and Abuja. As we have limited testing centers, the number of infected persons will certainly be higher when the unknown and untested but positive cases are added. Without claiming to be an infectious disease expert, the exponential spread of the virus suggests that the selective lockdown might be counterproductive. Our states, towns and villages are too interconnected for disjointed lockdowns.

This is even more so given the permeability of our state borders, our lamentable health sector and the unserious disposition of our state governors in handling the crisis. Using selective lockdown might inadvertently enhance the spread of the virus. For instance, as Lagos is under lockdown and Oyo is not, there is an inherent incentive for people to move from Lagos to Oyo at least to move around and possibly make money particularly for Oyo indigenes resident

in Lagos.

Imagine an unknowingly positive and asymptomatic Lagosian that travels to Oyo. Expectedly, he/she will spread the virus to his/her Oyo contacts. In the same vein, the Lagosian can contact the virus in Oyo and spread it in Lagos upon his/her return at the expiration of Lagos lockdown.

But, in a total and national lockdown, the incentive to move from one state to another will be significantly reduced due to the inactivity across the country.

As it is proven that lockdown and social distancing are part of the effective measures to curtail the virus, we should do it properly. Anything worth doing should be done appropriately.

The lockdown should be total and national for a specified period! It does not matter whether the virus has reached for instance Abia and Adamawa or not for them to be included. This approach will help in the quick identification, isolation and proper treatment of positive cases across Nigeria and as such significantly reduce the spread of the virus.

Given our weak health sector, it is important that we quickly learn from the mistakes of other countries in order to avoid worse heart-wrenching mortalities being experienced across the world.

What we need now is a responsible leadership that is very proactive and effective and not a reactive one. There is no doubt that a total national lockdown will come with its wide socio-economic consequences.

However, it seems to be best option if we want to achieve the least deleterious outcome or scenario which is limited spread of the virus and short duration of negative socio- economic impacts.

Without a proactive approach such as a total national lockdown, we might

‘

Given our weak health sector, it is important that we quickly learn from the mistakes of other countries in order to avoid worse heart-wrenching mortalities being experienced across the world

knowingly or unknowingly be preparing for two possible worse outcomes. While the first is a widespread infection and a long term negative socio-economic impacts, the second is a limited spread of the virus with a prolonged management of the negative socio-economic impacts.

Given our already challenging socioeconomic situation before COVID 19, neither of the two worse scenarios should be our aim. As we are already in the second quarter of the year, a national lockdown of about three weeks will give us the opportunity of possible recovery from May which if effectively pursued will see business and GDP resume growth likely from the third quarter of 2020.

In my interactions with CEOs on implications of COVID 19 on business and economy, while some have already mandated their Human Resources managers to prepare a list of employees to be sacked from May if the crisis continues, some employees have been asked to proceed on unpaid break. This is just one of the possible consequences that might worsen if the crisis is not proactively and effectively managed. No doubt, a national lockdown will come with its negative consequences but as they say, no pain, no gain. What is required is an effective national strategy to mitigate the pains of a national lockdown.

This is an area that requires our governors to wake up from their slumber and provide effective and responsible leadership. In this crisis period, they need to show patriotism and lead from the front in ensuring first, effective compliance to the lockdown across states and towns in Nigeria. Second, the provision of genuine and meaningful palliatives to the vulnerable and poor of every state.

5g: The conspiracy theories and the facts

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ost technological breakthroughs in mobile telephony have always been accompanied by fear that has little or no proof in any scientific theory. The introduction of 5G (fifth generation) wireless communications technology and its wide adoption, has drawn the attention of health professionals globally to its possible health risk, and there has been immense call for its immediate suspension from some quarters. Just as it was with 4G and older generations of mobile communication, there has been many conspiracy theories around 5G. Let us look at the facts.

The Electromagnetic Spectrum (ES) is a range of frequencies of electromagnetic radiations (waves of alternating electric and magnetic fields), their respective wavelengths and photon energies. Higher up the spectrum are the ionizing radiations which include xrays, gamma-rays and the high ultraviolet rays from the sun, with wavelengths ranging from 10-8m to 10-12m. The relationship between wavelength and frequency is inverse. As such, one reduces as the other increases. What is common to all spectral bands is the speed at which they travel; the speed of light, 3*108m/s.

Conspiracy theorists believe the 5G network is packed with radiations of higher energy that can deliver damaging effects on human health, such as premature ageing and disruption of the DNA (Deoxyribonucleic Acid) structure, leading to cancer. Simply put, this is a hoax!

While radiofrequency radiations (RFR) are inherently not dangerous, it is important we understand the circumstances they might be.

All radio waves, FM waves, Wi-Fi, infra-red, visible light as well as 5G radiations, are in the non-ionizing category and are incapable of

causing any major damage to our bodies. For over two decades that the word ‘radiation’ has been instilling fear in people (partly because it sounds like radioactivity, an entirely different phenomenon), there has not been a clearcut scientific study that explains any known method by which a non-ionizing radiation can cause an effect that is biological, such as being ferried baselessly around that, 5G radiations birthed the novel COVID-19. Only those in the ionizing portion of the electromagnetic spectrum, such as ultra-violet rays, x-rays and gamma-rays can heat up our body tissue, causing DNA mutation, cancer and other health challenges.

Recently, the National Toxicology Program in the United States, released the report of a research performed on cell phone RFRs. In that research, rats were exposed to a high amount of 3G RFR every day for two years. At the end of that study, mild cases of brain and heart tumours were found in the male rats.

This however, is not enough to draw conclusion because the tumours did not develop in female rats and were so small, they could have happened by chance. Interestingly too, the control rats (those not exposed to the RFRs) died earlier than those exposed.

Except you deliberately immerse yourself in the way of RFR and very close to its source for years, will you get cancer. A human will normally not be exposed to that much radiation in a lifetime. It is important to state that RFRs travel in a specified Line of Sight (LOS); they do not propagate haphazardly unless a contact is made with an obstacle. A major criterion for radiofrequency link deployment is that no obstacle exists from point to point. It is therefore safe to say there is nothing to be afraid of.

5G utilises a range of frequencies (3.5GHz

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and up to a few tens of GHz) in the non-ionizing portion of the electromagnetic spectrum with wavelength extending into the millimetre range. In very basic terms, this means that the amount of data accessible on a 5G network is in multiples of tens to hundreds of those available on a 4G network. Very large images, videos and documents are downloadable at very fast rate of about 10 to 20Gbps due to the increased amount of data now accessible per time. Video game streaming, watching videos online without buffering are a few of the benefits 5G offers.

What might be of worry about this, is the utilisation of a denser cluster of cell sites than already exist.

A millimetre wavelength, expectedly, should travel a far distance, and indeed the 5G RFR will travel far, but in a vacuum where everything is ideal. This is not achievable in a natural human environment; hence the radiation gets easily attenuated travelling in a foliage or a humid atmosphere. An estimate of one cell site is placed between two to ten houses, allowing transmitters to be configured at low decibels. This is an advantage, as the radiations transmitted are not powerful enough to penetrate the human skin; another confirmation that there is indeed nothing to fear.

According to the chairman of the International Commission on Non-Ionizing Radiation Protection (ICNIRP), Eric Van Rogen, after a thorough review of all relevant scientific literatures, scientific workshops and an extensive public consultation process, the body has concluded that there are no specific undue health risks posed by 5G communication technology.

But there are standards recommended which include the addition of restriction for exposure to the whole body; the addition of a restriction

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At the moment, the palliates being provided and the way they are being provided is poor and shameful. In Lagos for instance, it seems that the scheme has been hijacked for selfish interests and even helping to spread the virus.

Outside Lagos, the unpreparedness and unserious disposition of most our governors is lamentable. With no isolation centers in many states, even provision of basic equipment such as facemasks and protective wears for government owned hospital is lacking.

A reliable source informed me that some governors are more interested and waiting for huge private sector donations as received by Lagos before they will act. I hope it is not true! With the huge private sector contributions and support, what is required from our governors is to rise to the demands of the moment and provide focused and patriotic leadership to complement the efforts of the Federal Government and save Nigeria from the emerging crisis.

In a recent report, the United Nations states that ‘’From preliminary macro and micro social-economic analysis, the COVID 19 Pandemic is expected to place immense pressure on Nigeria’s healthcare system and will result in a serious economic and fiscal pressure with a risk of negative social impact if proactive measures are not taken to prevent, prepare, respond and cushion the economic impact of the Pandemic’. One of such proactive measures is an immediate national lockdown.

Dr. Ngwu is a Senior Lecturer in Strategy, Finance and Risk Management, Lagos Business School and a Member, Expert Network, World Economic Forum.

E-mail- fngwu@lbs.edu.ng

Segun Akande for brief (less than six minutes) exposures to small regions of the body; and the reduction of the maximum exposure permitted over a small region of the body.

These standards are simply for the sake of it as exposure to RFR is a function of location of the users and their usage. Although, the World Health Organization (WHO) has placed RFRs in the low-risk category of carcinogens, this classification is flawed because it appears the body was focused on hazards and not realworld risk. “A loaded pistol is a hazard because theoretically, it can cause damage. But if you lock it in a safe, the risk is negligible” explains Dr Steve Novella, the editor of Science-based Medicine and an associate professor of neurology at Yale University.

In conclusion, the world should understand that ICNIRP must have put the real-world health risk in consideration before coming up with those guidelines stated earlier, and being the regulatory body on non-ionizing radiations, we can run to town with their conclusion that 5G poses no major health risk.

Manufacturers and users of this technology only need adhere to recommended guidelines for its deployment and use respectively. We should immediately stop the spread of those conspiracy theories going on around the world concerning 5G. This is a time when we should be harnessing its benefits specially to strengthen e-health, remote surveillance and tele-surgery in this COVID-19 era of social distancing. Should humanity rather not be brazing for 6G? Segun Akande writes via segunolaakande@gmail.com

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14

Wednesday 08 April 2020

BUSINESS DAY

COMPANIES & MARKETS

COMPANY NEWS ANALYSIS INSIGHT

FINANCIAL SERVICES

KPMG forecasts top 10 risks facing businesses in 2020/2021 HOPE MOSES-ASHIKE

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PMG, one of the leading big four Professional Services Firms, has released its biennial Risk Management survey report titled “Top 10 Business Risks in Nigeria for 2020/202.”

The top 10 r isks for 2020/2021 as published

by KPMG include regulatory risk, fiscal and monetary policy risk, foreign exchange volatility risk, Cyber-security risk, and political risk.

Other risks are technology infrastructure risk, customer attrition risk, talent shortage/attrition risk, business continuity risk, and governance risk.

The report is based on aggregate perspectives of 108 executives including managing directors, chief financial officers, chief risk officers, chief audit executives and chief compliance officers cut across various sectors of the economy.

The report offers a holistic look at key risks that Executives believe will impact organisations in Nigeria,

in the coming year and highlights the impact of the corona virus pandemic on the country’s macroeconomic outlook and risks prioritised by the survey respondents.

Tomi Adepoju, risk consulting partner, said in her

statement,“31 risks were assessed by C-Suite Officers; 5 of which were rated high, 25 as medium and 1 as low.

The risk assessment had an aggregate score of 3.17, which depicts a “Medium Risk” environment for Nigerian Businesses in 2020,

based on our rating methodology. This represents an upward shift in respondents’ aggregate risk score from our 2018/19 report.”

She continued, “Prior to COVID-19, the highest concerns for Nigerian Executives across industries

were the regulatory, fiscal & monetary policy, and foreign exchange volatility risks, which maintain their place at top 3 from our 2018 ranking. However, one cannot help but acknowledge the COVID-19 and its impact on Nigerian

L-R: Dapo Olanrewaju, assistant manager, JNSD Category; Amit Aneja, head JNSD category; Deepanjan Roy, managing director, CHI Limited; Toyin Nnodi, marketing director, CHI Limited, and Ademola Mafikuyomi, brand manager, JNSD Category, during the launch of Chivita Ice Tea and Chi Exotic in new cool Cans.

BANKING

corporates and the global business climate at large.”

In 2020/2021, the outlook of the Nigerian economy will rely on possible eventualities surrounding several global issues such as the COVID-19, the ongoing crude oil price war, the balance of demand and supply conditions, the US presidential elections, and BREXIT. Olumide Olayinka, par tner and head, r isk consulting services, KPMG Nigeria, stated that “Considering recent happenings, we urge businesses to develop and implement a robust enterprise risk management framework that covers business continuity and disaster recovery planning, and businesses that have a framework in place should seek periodic independent assurance on its effectiveness.”

All organisations are encourag e d to refer to KPMG’s weekly business impact series on COVID-19 for more information on topical issues arising from the pandemic and suggestions on how to manage them.

TECHNOLOGY

Stanbic IBTC Bank offers customer relief initiatives MasterCard deepens customers’ engagement in response to coronavirus pandemic with free online STEM lessons MICHAEL ANI

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tanbic IBTC Bank PLC, a subsidiary o f S t a n b i c I BT C Holdings PLC, has introduced various customer relief initiatives aimed at reducing the unease felt by its customers as a result of the Covid-19 global pandemic.

These measures which started on April 1 2020, include full waiver of Merchant Settlement Charge (MSC) for two weeks for all merchants who accept payments using Stanbic IBTC Bank Point of Sale (POS) terminal for two weeks; full waiver of Current Account Maintenance (CAM) fees and interbank transfer charges for one month for customer who reactivate their Dormant or inactive accounts.

Similarly, waiver of

transfer charges on the first five Interbank transfers they effect within the month of April 2020 for other customers with active accounts.

The bank also announced the closure of some of its branches, to safeguard the lives of its customers and employees, since movements of individuals had to be curtailed to discourage physical contact between people as a way of containing the spread of the virus.

The lender however encouraged its customers to make use of its digital banking platforms for transactions during this period. Branches that are operational can be found o n t h e b a n k ’s w e b s i t e www.stanbicibtc.com.

Speaking on the customer relief initiative, Yinka Sanni, Chief Executive,

Stanbic IBTC Holdings PLC said the measure was aimed at ameliorating the pains of the customers while also preventing the spread of Covid-19.

He said: “As a responsible financial institution, we are not unaware of the effect of Covid-19, especially on our staff and customers.

The decision by the bank to set aside the Merchant Settlement Charge for two weeks for those who use Stanbic IBTC POS terminals, waive current account maintenance fees and free interbank transfers for inactive/ dormant account holders and zero interbank transfer charges for the first five transactions for all other customers within the month of April; is our way of easing the pains and discomfort they are going through during this period.”

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KELECHI EWUZIE

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asterCard, a global technology company in the payments industry as part of its drive to help parents and teachers engage and inspire children from ages 8-12 have extended access to its signature STEM curriculum, Girls4Tech through a suite of new online, creative educational resources.

The company observes the unexpected closure of schools across the country as a result of the Coronavirus has altered the academic programmes of students, teachers and indeed parents.

“We know that these are challenging times for parents and teachers on many fronts and hope that these learning resources are a fun way to engage and inspire kids about STEM while at home,” says Susan Warner, vice president of Community Engagement

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at Mastercard, and founder of Girls4Tech.

“The easy access to the website enhances what we’ve done in so many workshops.

We look forward to building on both efforts when it’s once again safe to gather in person.”

Warner observes that through the newly launched website Girls4Tech Connect, as well as through activities made in collaboration with education partner Scholastic, teachers and parents can download lessons to help students learn about STEM topics, from the comfort of their homes or anywhere around the world.

These activities are built on global science and math standards and incorporate MasterCard’s deep expertise in payments technology and innovation to enable children to discover a range of STEM careers, such as Fraud Detective, Data Scientist and Software Engineer.

Now in its sixth year, Girl@Businessdayng

s4Tech has engaged more than 800,000 students across the globe through inquirybased activities and real-world challenges, all with the goal of inspiring more girls to pursue STEM careers and reduce the gender gap in these fields.

The company announced that each week, new activities will be posted on a weekly basis at the Girls4Tech website, Facebook page and Twitter handle. Lessons are currently available in English, with additional Spanish and Chinese language content to follow in the coming weeks.

While all lessons are designed for students to work independently, materials are also available for teachers to guide online sessions.

As technology skills evolve, a new curriculum was launched in 2019 to give students deeper exposure to the growing fields of cybersecurity and AI – Girls4Tech Cybersecurity & AI.

Wednesday 08 April 2020

BUSINESS DAY

COMPANIES&MARKETS

15

INTERVIEW

Our digital technology drive will create more income streams and boost value for shareholders - Idiong In this interview with BusinessDay journalist Segun Adams, Obong Idiong, managing director/CEO, Africa Prudential shares insights on how the company is evolving from its Registrar business to becoming a first-class digital technology solutions provider.

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glance at the company’s financial performance report for 2019 revealed that professional fee income i.e revenue from contracts with customers grew by 6 percent to N1.502bn in 2019 compared to N1.416bn in 2018, what accounted for this?

In 2017, we took a deliberate position in line with our strategy to diversify from our dependence on investment income which makes up the chunk of our revenue at 56% in 2019. We saw the need to introduce and strengthen other income lines which would enable the business become more sustainable, especially given the current yield environment.

Looking at our financial reports for 2019, our digital technology business contributed 4% to our professional fee revenue which was almost nonexistent in 2018. This gives us the assurance that our digital transformation strategy is on the right path to create new values.

Despite the growth in professional fee income, the company reported a 13 percent decline in gross earnings and profitability also declined by 0.22 percent compared to 2018, can you explain why?

Last year we had a profit decline of 0.22% due to the yield environment and this affected our investment income revenue. In March, 2019, there was a reduction of the Monetary Policy Rate (MPR) by 50 basis points to 13.5% which affected that income line.

There was also a subsequent crash in the financial market rates in the aftermath of the Central Bank of Nigeria’s suspension of non-banking domestic corporates and individual investors from the OMO market.

Despite this, we were able to mitigate the impact of this decrease in investment income by reducing our finance cost by 88% based on our decision to pay down on our loans.

Why was there a significant increase in the company’s operating expense for the year and what you are doing to reduce the cost?

In 2019, we recorded some milestone achievements in our business diversification drive with the go-live of our Digital Technology Innovation Lab. This necessitated the increased expense to finance the recruitment of competent personnel and other resources like technology to drive the new business to success.

We also upgraded our Help Desk to a well-equipped Customer Experience Center to provide application support, telemarketing and Business Process Outsourcing Services.

We see a lot of upsides from our investments and expect the gen-

Obong Idiong eration of more revenue to boost our profitability and offer increased return to stakeholders.

In 2017, the then Africa Prudential Registrars Plc changed its name to Africa Prudential Plc. What has changed?

In today’s business climate, the need to constantly innovate and respond quickly to change is a core ingredient for growth.

One of the things we saw was the decline in fees in the capital market due to very few activities in that space coupled with the constant decline in investment yield.

These prompted us to look inwards and carve out measurable diversification strategies by leveraging on our competencies.

Today, through our Innovation Lab, we develop business solutions and software for public and private institutions within and outside the capital market. We also cater to our numerous subscribers on our various technology platforms.

We have moved from being just a registrar business to a provider of technology solutions and applications which has further enhanced our registrar business. www.businessday.ng

With this change in our business model, we believe that our commitment to grow and protect our over 260,000 shareholders’ wealth is intact as we are ensuring that our business is viable and sustainable.

Despite the decline in profitability during the period, the company’s Board of Directors recommended a 40 percent increase in dividend payout to shareholders of 70 Kobo per share compared to 50 Kobo in 2018, resulting in a gross dividend payout of N1.4 billion. Why? Since listing on the Nigerian Stock Exchange in 2013, Africa Prudential Plc has consistently rewarded its investors with impressive dividend payout with a six years average dividend yield of 14.07%.

Despite this impressive dividend payment history, we have also grown our retained earnings to N6.6bn representing 80% of the total shareholders’ fund. Therefore, business expansion and growth considerations re taken into cognizance whilst upholding our commitment to delighting our investors.

The macro-economic landscape has changed due to the out-

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break of the Coronavirus and the low yield environment that dominated 2019 is expected to persist in 2020. What are you doing to sustain the impressive performance and dividend payout in 2020?

The COVID-19 pandemic has affected the world in unprecedented ways. Our immediate consideration is to ensure the safety of our staff and clients by providing measures to curtail the spread of the virus at our various locations. We had to postpone our earlier scheduled Annual General Meeting in putting the safety of our shareholders and staff first.

We have also out in place, a sound Business Continuity Plan to enable us render services to our clients, even in the event of a lock down. While the pandemic will affect growth projections for the year due to its widespread impact on investment spending globally, we will continue to offer services through our various cloud based digital platforms, sustain ongoing technological projects and adequately position for postcrisis continuity.

As earlier mentioned, the company stepped up its drive to diversify into the digital technology space in 2019, what are the prospects for the business in 2020?

We have built significant capacity in the digital technology space and have commenced some transformative both with our businesses and for third-party clients.

Our work in this space is about bringing impact, improving customer experiences and creating value to our creations; we see a lot of upsides.

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The COVID-19 pandemic has affected the world in unprecedented ways. Our immediate consideration is to ensure the safety of our staff and clients by providing measures to curtail the spread of the virus at our various locations @Businessdayng

In terms of revenue, we are hope to see a substantial portion coming from digital technology in the near future. We also see our technology ability scaling and providing a lot of value for our core registrar business and the capital market in general.

Tell us about Africa Prudential’s transition into the technology space. What are the challenges encountered and how they were addressed?

The transformational journey has not been very smooth but by adopting an agile management approach, we have been able to learn fast, fail smart and scale along our business transformation process.

We have built an innovation friendly environment and launched our i-Academy (innovation-Academy) where we upskill and reskill ourselves to get everyone onboard the transformation process. One of the skills we have acquired is the appreciation of data so we can predict and personalize services for exceptional customer experience. Of course, issues around cyber security and data privacy are one of the things that keep me awake.

Our business model has largely changed as we have introduced new ways of creating, delivering and capturing value.

Putting all of this together, we have been able to progress tremendously from where we were; a year ago, six months ago, or even a month ago in terms of bringing in best practices, scaling and creating an enabling environment for innovation and change to thrive.

You also play in the cooperative space. Tell us about the value you are bringing to the cooperative sector?

Cooperative societies in Nigeria are creating a lot of value and enhancing the socio-economic development of their members.

Unfortunately, there is paucity of data within the sector to accurately record their contributions to growth and development.

One of the ways we are trying impact the sector is by introducing change through the adoption of technology as an enabler.

Our EasyCoop Cooperative Management Solution is an enterprise resources planning tool developed by our Innovation Lab to automate the processes of cooperative societies. Some of the features include loan requests, withdrawals, inventory management, payroll, accounting, market place via the discounted EasyMall e-commerce platform, chat and other value-added features. We currently have over 500,000 subscribers on the platform.

16

Wednesday 08 April 2020

BUSINESS DAY

Wednesday 08 April 2020

BUSINESS DAY

17

INSIGHT Day 3

Covid-19 and the Nigerian nation

An overview of the ongoing pandemic, the local response, and prospects for the future Whichever way it goes, the process must be led by the Science.

Femi Olugbile

HOW BAD IS IT GOING TO GET – BEFORE IT GETS BETTER? nternational experts have been predicting for several weeks now that there will be a ‘Third Wave’ of COVID-19 infections targeting African nations, and that the scale of death and suffering will dwarf what was experienced in the first wave in Asia, or the second wave in Europe and America. It is still the received wisdom in international ‘Aid’ and ‘Donor’ circles, and no less a figure than Bill Gates has expressed foreboding on account of Africa’s weak health systems.

Some international experts are still scratching their heads for explanation as to why the Nigerian figures of cases and deaths are not – yet! – going through the ceiling. At a conversation of local and international experts on Sunday 30th March on Arise Television network, one expert opined that Nigeria was doing well because of the experience Lagos State in particular had acquired dealing with Ebola.

Dr Yele Aluko – a US based interventional cardiologist now Chief Medical Officer, Americas Advisory Health Sector, Ernst & Young LLP, had seen the ‘models’ predicting what should be happening about now in Nigeria, how the curve should be rising steeply, and how everybody should be having their work cut out in a desperate effort to ‘flatten’ it. He suspected the actual infection figures were higher than what was being reported because not a lot of testing was being done. Still it had to be acknowledged that even within the confirmed cases, the mortality was low, and pattern of the illness was not extremely aggressive as in Italy or Spain. Could that be because the median age of the Nigeria population was 18.4 years and not 45.5 years as in Italy, with younger, fitter people being affected, and their immune systems responding better to infection? Or was there some other reason, yet to be identified?

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SAFE, RATHER THAN SORRY It is obviously better to be ‘safe, rather than sorry’. It is safer, in planning terms, to expect a surge as the predictive ‘models’

have said, and lay down the infrastructure, resources, and most crucially, THE THINKING to deal with the worst case scenario, rather than assume that the current mild pattern and low numbers will continue.

One of the greatest dangers to public health, as to social health in Nigeria, is the extreme indiscipline of its elite, especially the political elite. ‘Legislators’ have been known to come in through the borders and refuse to be screened. ‘Billionaire’ businessmen, surrounded by unctuous uniformed policemen, would come in from foreign parts, and refuse to be quarantined. In that climate, there is a danger that there has already been a Nigerian version, or several Nigerian versions, of the South Korean ‘Patient 31’ – infected persons who have escaped scrutiny to wreak havoc in the hinterland and whose ravages are yet to be discovered. It is always good to operate on a worst-case scenario basis. Every evolving scenario then becomes a gain.

BEYOND THE LOCKDOWN Midway through the lockdown, it is appropriate to ask – What Next?

It is doubtful that the local population in the affected areas have the resilience for a protracted lockdown. The wellintentioned ‘social intervention’ measures by government

agencies at state and federal levels are not likely to give the large number of Nigerians who live on incomes earned from day to day sufficient sustenance to endure a protracted stay at home. The top-driven ‘Abuja’ initiative is particularly suspect in this regard. How involved are the locals – the CDAs, the local formal and informal community groups, the local governments – all of whom must own the process and the responsibility? Is it focused on the lock-down states, is it a ‘Northern’ largesse, or is it a general freebie? Like Primary Health Care, Social Welfare is local. And, incidentally, the containment of Ebola – which still stands as the high point of Nigeria’s public health achievement, was essentially funded from Lagos resources – even if some of it was ‘refunded’ later by the federal government.

Will the graph of the ‘Nigerian Model’ as it grapples with CoVID-19 come up with a mild bump, or a sky-high surge?

The President could have maximized the utility value of the inconvenience of total lockdown if he had imposed the lockdown on the whole nation, instead of three locations. The virus would then have been forced to show its face wherever it was lurking, with a good chance of case identification and definitive contact tracing. A reconsideration of the issue may still be in order!

Beyond the lockdown, for the foreseeable future, social distancing, perhaps with a compulsory wearing of face masks in public spaces, is likely to be the next step. Gradually offices may open under new public health rules, and some commerce may resume incrementally. Even in the best possible scenario, it should be another month or two before schools resume, depending on where the evidence goes.

Of course, if there is a massive, overwhelming surge, all calculations are off.

WHERE IS THE SCIENCE? There is a general acknowledgement that more testing needs to be done than the one thousand or so that have been done across the nation, and the process needs to be decentralized and made more accessible. According to Francis Faduyile, President of the Nigerian Medical Association, he, in a recent meeting with the Minister for Health, pointed out the need for massively more testing, noting that the logic of testing based on recent contact with a case and the presence of symptoms would miss out asymptomatic carriers, especially those who were able to evade quarantine.

The next question is – Test? What Test?

Testing divides into two lots – testing for presence of illness and testing for evidence that a person has had the illness and may have developed immunity to it (antibody test). The 3.5 million test kits Boris Johnson’s government recently procured to test the British public are mostly antibody tests, just like the testing proposed by Angela Merkel’s government for the mooted issuing ‘Immunity Passports’ that could enable people to get back to work.

Nigeria requires an intensification of existing testing targeted at identifying ‘cases’, but it will also need at some point soon to know what is really happening inside the community by testing for antibodies.

To Pamela Ajayi, CEO of Synlab/ Pathcare, the problem with test kits, especially the ones from China, is that the science is still evolving, and many of them are not yet very reliable.

A powerful argument. But not a rea-

son not to move that way. Work is ongoing in the world’s research laboratories as we speak. In Wuhan, in Seoul, in Munich, in Oxford, at Imperial College, London.

People are struggling with solution-points to the real-time problems of COVID-19 – faster, more reliable tests, treatment that works, vaccination. Nigeria should be part of that work and not just be waiting to consume the product. Nigeria did a first earlier on this journey by sequencing the genome of COVID 19 virus, using material from the Index Case. But Nigeria cannot stop there.

The nation cannot continue to freewill on the product of other people’s work. Not everything can simply be bought, in the manner in which we are used to buying private jets or secondhand MRI machines with padded contracts. In a crisis, nobody sells what they need for themselves. The classic example was at the height of COVID 19 when India, the ultimate salesman of generic drugs, refused a request to sell some drugs to China because it needed the drugs for its own citizens.

order to maintain its competitive edge, and that Pfizer International’s budget for R&D in 2019 was $8.65 billion, he agrees that a part of every forward looking company’s retained earnings should be devoted to R&D, even though government still needs to come in with strategic support.

He is not aware of what has developed concerning the Innoson offer to produce ventilators, or the recent statement from Bayero University on the same matter, but he believes someone should be following up on these things.

Personal Protective Equipment for medical staff? There is a firm producing PPEs in Aba even as we speak, he affirms. Perhaps some of the donated funds may be used to scale this? It is a question, and not a statement.

Nobody is sure who is doing ‘the Strategy thing’ in Nigeria.

MENTAL HEALTH Being quarantined for suspected COVID-19 infection, being diagnosed ill with COVID-19, having a relation ill with COVID-19, having a relation die with COVID-19 and being unable to be with them in their last hours for safety reasons - all of these scenarios carry mental health implications that will not go away just because they are unrecognized and unacknowledged. The existence of a preexisting mental health condition such as Depression or Anxiety may affect the outcome for a person ill with the virus.

There is as yet no ‘received wisdom’ about how to design a system that identifies who is likely to need help, and to input the help in a safe and impactful way. It is a novel virus, and every affected society is just trying to find its way around it. But it is necessary that people with the requisite

A BRAVE NEW WORLD BEYOND COVID-19, OR MORE OF THE SAME? Someday, hopefully soon, the scourge of COVID-19 will be well and truly over. There may be sporadic incidents here and there, but most people will be immune, whether through vaccination or Angela Merkel’s much disputed 70% positive antibody based ‘herd immunity’. Will this bizarre pandemic have changed social, economic and even political relationships for good, or will it be back to business as usual?

Will America remain at the top of the economic heap, or will China have taken over? Or is there still some imponderable lurking around the corner, like some erratic power-hungry despot firing off a nuclear missile in a moment when he thinks the world powers are too weak to respond?

Perhaps Africa, and specifically Nigeria, will have taken the opportunity to come of age, shaking off the ‘modelling’ of adversity and deprivation foisted on it by ‘experts’, and carving a new can-do, dynamic ‘Nigerian model’ for itself? Perhaps!

skills are challenged to commence discussion, design and appropriate professional input straight off.

TRADITIONAL MEDICINE TO THE RESCUE? It is a staple of Psychology that when confronted with desperate circumstances, people reach for ‘remedies’ that have no proven value. Anyone who has had the experience of working in a hospital and interacting with people suffering from terminal cancer will have noted that where ‘logical’ interventions offer no promise of relief, the mind begins to think magically and is ready to

do even the most absurd things and pay through the nose in the faint hope that this recourse may bring salvation.

That being as it may, it is also true that Science advances by Serendipity, which means that laboratory researchers are familiar with the experience that when they are conducting experiments searching for ‘a’, they sometimes stumble on ‘b’, which turns out to be a far more important ‘discovery’ than they could ever have hoped for. They then spend the rest of their lives expanding and developing ‘b’ and its knockon products. They get lionized.

Sometimes they win the Nobel Prize.

There is a lot of accumulated ‘knowledge’ hidden in the wide array of plants and herbs that grow wild or are cultivated in our environment. This ‘knowledge’, sadly, is not documented, not backed with evidence, and is often advertised by hearsay. There has been a lot of effort over the past several years, led by people such as Dr Bunmi Omoseindemi in Lagos, to document and codify this ‘knowledge’ and remove the inverted commas from it so that it may cross over into the mainstream of Science. There is a potential treasure trove hidden there – cures or palliation for old illnesses, perhaps even remedies for ‘new’ afflictions such as COVID-19. The Ooni of Ife has become a passionate advocate for the value and relevance of this ‘hidden wealth’. Perhaps this is

the right time for the ‘Herbalists’ to interface with the Pharmacologists and search for active ingredients in old remedies of roots and herbs and verify and quantify their efficacy. Finding anything that works will not only help the CoVID-19 response of Nigeria, potentially, it could also make Nigeria extremely wealthy.

But it will not ‘travel’ by mere word of mouth.

CONVERSATIONS, OPPORTUNITIES AND TAKEAWAYS Is there any opportunity to be gained from this adversity? Can the CoVID- 19 challenge make Nigeria a more resilient, more innovative nation?

Stella Okoli, MON, CEO of EMZOR Pharmaceuticals is elbow-deep in the effort to respond. She’s facing a challenge cranking up the products she wants to deploy. Packaging is the issue, she says. Packaging, you ask? Yes, packaging. Sometimes the bottleneck is not the thing itself but the one you cannot see from outside. She intends to face it down.

To Mazi Sam Ohuabunwa, President of the Pharmaceutical Association of Nigeria, the solution is that government must increase funding for medical innovation through National Institute of Medical Research.

When it is pointed out to him that the private sector itself carries a big responsibility to innovate in

Femi Olugbile, a well respected doctor and health administrator, is also a prolific essayist. He pioneered the renaissance of the Lagos State Teaching Hospital where he was chief medical director for years and also served as permanent secretary for Lagos State Ministry of Health.

Concluded

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Wednesday 08 April 2020

BUSINESS DAY

insurance today

E-mail: insurancetoday@businessdayonline.com

Nigeria insurers confirm reinsurance backing on COVID-19 maturing risks

Linkage Assurance activates online platforms to serve customers

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…say claims on pandemic will be honoured Modestus Anaesoronye

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he Nigerian Insurers Association (NIA) says its member companies will honour claims arising from COVID-19, even as it confirms full reinsurance backing.

The umbrella body of insurers also said that though the COVID-19 is a strange sickness that was never before, anyone who had taken a life insurance and suffers loss as a result of this sickness will be compensated adequately.

The Association also said also that their reinsurance partners will have no reason to reject claims arising from the COVID-19 pandemic, either death or permanent disability.

“The cover provides for life benefit, so any incident by this cause will be honoured, Tope Smart, chairman of the NIA said.

This is a situation like no other one ever, no statistics, so I do not see any reinsurance company rejecting claims from COVID-19, Moruf Apampa, executive director, Operations, FBN Insurance said.

Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself from the risk of a major claims event. With reinsurance, the company passes on some part of its own insurance

Tope Smart

liabilities to the other insurance company.

According to analysts, the capital buffers of some of the largest reinsurance companies have been significantly shrunken by the financial market declines seen in the last few weeks because of the Covid-19 coronavirus outbreak, potentially reducing their ability to weather any

major catastrophe events that occur.

And with stock markets around the globe generally down 20 percent or more over the last two or three weeks and other asset classes also significantly impaired in terms of value, fears are that the capital buffers of reinsurance companies have become smaller as a result.

But a Willis Re report shows that while COVID-19 dramatically disrupted the financial markets, reinsurers took a measured approach to the April renewals - which saw significant rate increases on loss-affected accounts and more modest rises on loss-free business.

According to the report, the global reinsurance sector moved smoothly to the new working-from-home model following the COVID-19 outbreak and was able to provide uninterrupted service.

“Having demonstrated its ability to manage the operational challenges of COVID-19 so far, the global reinsurance industry is well placed to demonstrate its ability to manage the longerterm financial challenge and continue with its mission of providing support to primary insurance companies and their policyholders.” said Willis Re global CEO, James Kent.

He also said that the timing of the COVID-19 disruption fortunately coincided with the global reinsurance market being in a very strong financial position supported by strict regulation.

COVID-19 lock down: AIICO Insurance pays N350m claims Modestus Anaesoronye

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IICO Insurance Plc has paid its customers the sum of N350 million within the first 48 hours of COVID-19 lockdown, in fulfillment of its avowed commitment to prompt settlements.

“We have been responding non-stop to our customers for payment of claims, policy loans, partial & full maturity benefits, etc. since the lockdown took effect. At AIICO, we are customer-centric; we put them first, and that differentiates us” says, Sola Ajayi, executive director, Retail Business.

According to Babatunde Fajemirokun,

managing director /CEO “We value the investment of trust by our customers in our ability to protect them against risks, even in tough times. We have invested substantially in building capacity and developing capabilities for business continuity, irrespective of the challenging situations we will experience. Our robust Business Continuity Plan has enabled us to continue operations without hitches.”

The Company is also leveraging its technology platforms and digital channels for optimum service delivery. Fajemirokun stated further, “The customer traffic on our digital platforms has increased tremendously in recent times and so far, it has been a delightful expe-

rience.” The Company has been actively running business operations by working remotely despite the COVID-19 disruption and has remained reachable to its customers. The Company advises everyone to keep safe during this period and assures its customers that AIICO will always be there to support them throughout these times.

AIICO Insurance is a leading composite insurer in Nigeria with a track record of serving our clients that dates back over 50 years. Founded in 1963, AIICO provides life and health insurance, general insurance, investment management and pension management services as a means to create and protect wealth for individuals, families and corporate customers.

Law Union & Rock gets NAICOM approval for 2019 accounts ...posts N12.2bn total assets Modestus Anaesoronye

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nderwriting firm, Law Union & Rock Insurance Plc has received approval for its 2019 audited financial statement, recording a total assets of N12.15 billion as against N11.21 billion in 2018, indicating an 8.39 percent increase, while shareholders fund also appreciated from N6.37 billion in 2018 to N7.16 billion in 2019.

The Company at the end of December 31, 2019 recorded a gross written premium of N4.83 billion, as against N4.54 billion in 2018, showing a 6.39 percent increase.

Its profit after tax during the same period was 802.8 million, a percent increase from

N263.59 million in the review year indicating a 205 percent, which may have resulted from quality underwriting and investment income recorded in the period under review.

Law Union and Rock saw underwriting profit growing to N982.9 million, as against N638.16 million in 2018 financial year, indicating a 54 percent rise. While during the same period, the company paid out claims amounting to N1.2 8 billion to its numerous clients who suffered one form of loss or the other.

Mayowa Adeduro, managing director/CEO of the Company who was excited at early approval of the company’s accounts by the National Insurance Commission (NAICOM), said it’s a sign of hard work, assuring the firm will continue to comply with regulatory requirewww.businessday.ng

ments while offering its customers quality service as always.

NAICOM in the approval letter to Law Union & Rock Insurance Plc on its audited financial statements for the year ended December 31, 2019, and addressed to the managing director/CEO with the title ““Approval for Publication of Year 2029 Audited Financial Statements.” dated March 27, 2020.

The letter signed by Barineka Thompson, director, Inspectorate, on behalf of the Acting Commissioner for Insurance, Sunday Thomas read reads: “I am pleased to inform you that the Commission has no objection to the publication of your audited financial statement for the year ended December 31, 2029 as submitted.

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IICO Insurance Plc has paid its customers the sum of N350 million within the first 48 hours of COVID-19 lockdown, in fulfillment of its avowed commitment to prompt settlements.

“We have been responding non-stop to our customers for payment of claims, policy loans, partial & full maturity benefits, etc. since the lockdown took effect. At AIICO, we are customer-centric; we put them first, and that differentiates us” says, Sola Ajayi, executive director, Retail Business.

According to Babatunde Fajemirokun, managing director /CEO “We value the investment of trust by our customers in our ability to protect them against risks, even in tough times. We have invested substantially in building capacity and developing capabilities for business continuity, irrespective of the challenging situations we will experience. Our robust Business Continuity Plan has enabled us to continue operations without hitches.”

The Company is also leveraging its technology platforms and digital channels for optimum service delivery. Fajemirokun stated further, “The customer traffic on our digital platforms has increased tremendously in recent times and so far, it has been a delightful experience.”

The Company has been actively running business operations by working remotely despite the COVID-19 disruption and has remained reachable to its customers. The Company advises everyone to keep safe during this period and assures its customers that AIICO will always be there to support them throughout these times.

AIICO Insurance is a leading composite insurer in Nigeria with a track record of serving our clients that dates back over 50 years.

Founded in 1963, AIICO provides life and health insurance, general insurance, investment management and pension management services as a means to create and protect wealth for individuals, families and corporate customers.

GNI opens alternative business channels over COVID-19

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reat Nigeria Insurance Plc has implemented the company’s business continuity strategy as the whole world grapple with the exponential rise in the number of COVID-19 infected individuals.

The company’s business continuity strategy is hinged on safeguarding the health, wellbeing and safety of the lives of its esteemed customers and workforce while ensuring the continuity of operations during the lockdown period.

The President of the Federal Republic of Nigeria, Muhammadu Buhari had in his special address on Sunday March 29, 2020, directed the cessation of movements in Lagos, Abuja and Ogun states. The 14 days lockdown is to serve as a measure to disrupt the widespread of the coronavirus disease (COVID-19). This implied that all offices (excluding those that provide essential services) must shut down on Monday, March 30, 2020.

While commenting on the development, Cecilia O. Osipitan, managing director/CEO of Great Nigeria Insurance Plc said “In a bid to stay true to our commitment of delivering quality service to our valued customers, alternative service channels have been made available for seamless access to all insurance products and services available under the stable of GNI Plc. On your mobile please explore our USSD Platform by dialing *5076# for self-service, easy premium remittance, policy renewal and prompt claims settlement”.

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insurance today E-mail: insurancetoday@businessdayonline.com

Insurers ride on NAICOM palliatives NSIA Insurance backs industry efforts on fight against COVID-19 as COVID-19 disrupt processes Modestus Anaesoronye

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n s u ra n c e c ompanies are riding on the National Insurance Commission (NAICOM) regulatory forbearance, called palliatives, which lowered approval processes in some of the key business transitions to continue their operations in this period of lock down over COVID -19.

The commissions’ decision to lower approval principles was to facilitate insurance transaction during the period of movement restriction over COVID-19.

The regulator forbearance will affect reinsurance arrangements, local content regulations and other related transaction requiring approval in principle before placements.

NAICOM said this is part of the Commission’s business continuity measures, to as much as possible; ensure availability of insurance services and protections of insurance policyholders during the COVID-19 Movement Restriction.

This is contained in a circular issued by NAICOM last week to insurance and reinsurance companies, and signed by Pius Agbola, direc-

Sunday Thomas

tor, Policy and Regulation on behalf of the Acting Commission for Insurance.

The circular reads “Where Approval-In-Principle for the preceding insurance period had been granted, all renewals or extensions of the foreign reinsurance proportions that become due during COVID-19 movement restriction are permitted for renewal on existing basis”.

It also stated that where Approval-In-Principle for the foreign proportion of a new insurance placement is required during the COVID-19 movement restriction, it shall be treated on the basis of “Use and File” subject to prior exhaustion

of in-country capacity.

According to the commission, for the avoidance of doubt, after utilizing available local capacity, the lead insurer is permitted to reinsure the excess of the risk offshore and submit relevant documentations to the Commission thereafter.

“All Post Placement Reports, Reinsurance Treaties and other related special risk foreign reinsurance documentations due for submission during the pendency of theCOVID-19 restrictions are to be submitted when movement restrictions are lifted.”

The circular further stated “Please note that all insurance/reinsurance placements shall be done in accordance with other relevant extant insurance laws, regulations and guidelines while all submissions to the Commission including hardcopies sequel to the above forbearance shall be done not later seven (7) days from the end of COVID-19 Movement Restrictions.”

NAICOM therefore call on all insurance and reinsurance companies to be diligent, circumspect and supportive of Government in its efforts to tame the COVID-19 Pandemic.

Modestus Anaesoronye

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SIA Insurance has joined the teeming Private Sector and Individuals in the fight against the Coronavirus pandemic ravaging the world.

Following the increasing spread and unfolding effects of the COVID-19 pandemic on Nigeria, the umbrella body of Insurance companies in Nigeria, NIA, set up “The Nigerian Insurers Association (NIA) COVID19 Support Fund” to raise funds to combat the pandemic.

The association which seeks to contribute to legislation and decisions made by the Government in the best interest of the economy, has also volunteered to acquire testing kits and protective gears to help further mitigate the spread of the virus.

The NIA also announced a donation of N1m free life insurance cover to health workers and allied professionals catering to the needs of COVID-19 patients, which has been made possible through the collective contri-

Ebelechukwu Nwachukwu

butions of Insurance companies in Nigeria.

As an organization that cares, NSIA Insurance salutes this laudable gesture and has made a financial commitment in support of the decision of the Nigeria Insurers Association.

According to Ebelechukwu Nwachukwu, managing director/CEO of NSIA Insurance “We urge the general public to comply with local authorities and stay indoors while following the World Health Organization’s guidelines for staying safe during this period. Our hearts go out to those fami-

Leadway Assurance commits N135m to support fight against COVID -19 …offers N5 billion health cover, with other insurers Modestus Anaesoronye

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eadway Assurance Company Limited has announced its donation of Personal Protection Equipment (PPE) materials, test-kits and Foodstuff to the tune of N135 million as part of its efforts to support optimal testing and treatment of Covid-19 cases as well as access to nutrition in the country during the quarantine period.

The underwriting firm also partnered other insurance companies to provide life insurance cover to the tune of N5 billion for all frontline healthcare workers battling to save the lives of those infected by the virus.

The company had, before this, made a sizeable donation as part of funds being raised by the Nigeria Insur-

ers Association (NIA) in its NIA COVID-19 Support Fund.

The donations align with the company’s value of service and customer focus. The donations would aid the Government in combating the spread of the pandemic in the country.

Commenting on the company’s gesture, Tunde Hassan-Odukale, managing director/CEO of Leadway said “We understand the magnitude of the risk taken by health workers who have elected to support the government to take care of Nigerians in the wake of a pandemic that is ravaging worldwide.”

“We salute their tenacity, resilience and professionalism as they battle COVID-19, putting their lives on the line to ensure that Nigerians are adequately cared for during this period. We understand the weight of their duties and hope that this support reaswww.businessday.ng

sures them and indeed all Nigerians, that we are in this together,” Hassan-Odukale said.

Prior to the donations, Leadway Assurance had been in the forefront of sharing critical information on the pandemic, partnering with “Doctors on Air” on radio to bring the Honorable Commissioner of Health, Akin Abayomi, in a special edition to discuss the Corona Virus Pandemic. Leadway was also one of the first companies to initiate its #WorkFromHome policy before the State pronouncement, ensuring seamless remote service via its several alternative channels while disseminating COVID-19 prevention tips in major languages within its areas of operations in addition to English, French and Pidgin, highlighting the NCDC’s COVID-19 help lines on radio and all its social media channels.

lies who have lost dear ones in the course of this pandemic and pray that they would have the strength to pull through the pain”.

Ebelechukwu Nwachukwu added, “Our staff members are currently working remotely, though our offices are closed, which means that we are still very much available to do business. We have an array of life products that we encourage customers to take at this time. We also would want people to take householder insurance policies now since everyone is home and may need it for possible eventualities. Insurance at a time like this should be taken seriously.”

NSIA Insurance Limited is a first-class composite insurance company driven

by Integrity, Care, Innovation and Professionalism.

It has its Head Office in Lagos, with a strong regional presence in Abuja and an extensive network in strategic States across the Country. NSIA Insurance offers a wide range of insurance services at competitive rates to meet the changing financial, investment, and lifestyle needs of its corporate, commercial, and individual customers.

NSIA Insurance Limited (Nigeria) is part of NSIA Participations, which is currently present in 12 African countries; Benin, Cameroon, Congo, Côte d’Ivoire, Gabon, Ghana, Guinea, Guinea Bissau, Mali, Nigeria, Senegal and Togo.

Unitrust activates online platforms, alternative communication channels to serve customers Modestus Anaesoronye

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nderwriting firm, Unitrust Insurance Company Limited, in other to serve its customers better at this time when many states in the country are on lockdown and partial lockdown over Coronavirus (COVID-19), has provided alternative communication lines for business continuity, aside from its selfservice website.

The company said in statement that in view of the escalating health concerns relating to Covid-19 outbreak of and the restriction of movements by

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government, it has activated these channels and we will continue to closely monitor developments, especially as it concerns its

John Ijerheime @Businessdayng

spread to and in Nigeria.

“We are conscious of the complexities and challenges the pandemic virus poses.”

John Ijerheime, managing director/CEO of Unitrust said, while government continues to put in measures to further prevent the spread of this pandemic, as well as other agencies the company will proactively doing all it can to protect clients, employees and our families.

He noted that the company remains accessible through its E-portals for Motor Third; Travels insurance while purchase or renewed of policy will remain seamless.

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Wednesday 08 April 2020

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Corporate governance

Leadership: Through the Covid-19 Pandemic Olayimika Phillips

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central theme of governance is leadership and the true test of leadership is in crisis. Whilst the Covid-19 pandemic has continued to wreck economies, industries and governments across the globe prepare for interventions beyond the 20082009 scale, it has also revealed enormous but peculiar cracks in leadership strategies which have before now been insulated by organisational systems.

We will be examining the role of leadership in crisis.

The impact of a pandemic, beyond the immediate effect on the healthcare system is felt on available resources on individual and organisational scale. This means an effective understanding of needs, prioritisation, and resource deployment is crucial to survival.

Effective leadership in crisis thus requires acute deftness in distinguishing between the real and cosmetic needs of the business and being able to allocate resources whilst taking into account the long-term vision.

To be able to undertake this, the leadership must be self-reflective. This will aid in identifying and forestalling decisions based on anxieties, fears and pressure-induced analysis, rather than reasoned facts. Decisions should be made only when it has been settled on reasoned facts instead of clouded judgment occasioned by market triggered fears and anxieties. In circumstances such as the ongoing pandemic, the leadership of the organisation must see beyond self-preservationthat is, steps to be taken after the storm. A good number of organisations will fail, not because of the pandemic, but for failure of leadership to plan for what happens after the pandemic. Like the biblical virgins, they will be caught sleeping without oil in their lamps when the bridegroom returns.

A key piece of leadership strategy is people management and at no time is this more fundamental than in crisis. Though having tunnel vision may be useful in some situations, it is a disastrous approach in human relations-leadership must be nuanced in dealing with

people, understanding different perspectives, presented by people on the same issue which unquestionably is informed by their distinctively peculiar situations. Without building meaningful relationship with people, understanding these peculiarities becomes factually impossible and decisions made without taking into account the “people-impact” is bound to have enduring scar on the trust foundation of leadership.

Leadership in crisis indubitably entails making tough decisions, which will not only affect the business but also people’s lives on an individual basis. Such decisions range from reduction of work hours, remuneration and benefits and ultimately retention decisions. Leadership must be concerned to ensure that decisions are taken on wellreasoned fact-grounded basis.

The leadership must consider if it is able to keep its people but at significant cost to shareholders or whether the interest of shareholders should trump that of employees; it must consider also the ease or difficulty of hiring after the crisis if the decision is made to lay off staff; the non-core aspects of the business which may be downsized without significantly impacting operations and importantly the market reputation of the organisation especially where layoffs is not industry-wide. Different approaches may be adopted depending on the peculiar situation of the business-for businesses where a sizeable proportion of the workforce www.businessday.ng

are commission based, a percentile reduction in commission may be better than outright termination; same goes for all other employees with a rateable reduction of salaries or downsizing of senior management position; elimination of director fees and bonuses for senior management. This not only builds trust but also signals to the staff that they are valued and the owners/ management of the business are bearing the pains as much, if not more than everyone.

Decision-making is perhaps the most difficult aspect of leading, business or politi-

‘

Leadership in crisis indubitably entails making tough decisions, which will not only affect the business but also people’s lives on an individual basis. Such decisions range from reduction of work hours, remuneration and benefits and ultimately retention decisions

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cal. Good decisions are made when sufficient information is available and alternatives are proffered based on information. Knowledge therefore is crucial to leading-without it, leadership will be sub-optimal. An effective leader must know what she knows and, more importantly, what she doesn’t know but must consistently bridge such knowledge gaps. To be able to achieve this, especially in crisis, effective communication is pivotal- the CEO and the board must communicate as often as possible, not just amongst themselves but also with the cogs in the organisational wheel-the staff. To be effective, the board must have open and honest communication with staff, encourage them to respond, proffering suggestions without shutting them down.

Central to effective communication is candour, even where decisions are to be made which will negatively impact the employees. Importantly, the board must make decisions which require balancing business needs against other considerations because what might be good for the business may considered inhumane and vice versa both in the long and short terms. In this regard, it is vital that the CEO’s advisory team is constituted by people whose values and judgement are sound and unimpeachable. Such team must not be an echo-chamber of the CEO, not people telling her/him what they know the CEO will like to hear. Rather, it must be those who will @Businessdayng

question default thinking with reasoned alternatives, stresstesting the CEO/board’s reasoning and confident enough to admit lack of knowledge.

For Communication to be meaningful, there must be a perceptible thread of transparency in governance, because transparency is the currency of empathy. Where the CEO and the board are transparent about the general situation of the business, the financial position including declines and upticks in revenue, expenses etc, the staff becomes empathetic and demonstrates deep understanding of management decisions, communicating openly and promoting the collective interest of the business over individual considerations.

Quite apart from the foregoing, leading in crisis will be less meaningful with a non-engaging staff. For a meaningful and effective crisis response, the staff must be able and willing to proffer sound options, asking good questions that are thought provoking which will help to direct leaders. The objective is not to be able answer all questions but to be prepared for eventualities which others may not have anticipated.

This is because in management, just as in life, decisions are never made with complete information. Sound leadership will nonetheless employ every available tool to minimise the informational asymmetry in decision-making.

Olayimika is a Partner in the law firm of Olaniwun Ajayi LP and has over 34 years of professional experience. She specializes in corporate governance, providing pragmatic solutions to the diverse challenges which confront corporates at different growth stages and serves on the board of several companies (listed and privately held).”

Wednesday 08 April 2020

BUSINESS DAY

21

BANKING Covid-19: Lockdown offers opportunity for innovation in banking sector ...As CIBN elects Bayo Olugbemi as 21st president after virtual AGM Stories by HOPE MOSES-ASHIKE

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lthough the impact of lockdown occasioned by the persistent spread of the coronavirus is so worrisome, it has created room for more innovation in the banking and financial sector.

A number of banks have introduced different digital products during this period.

Access Bank Plc for instance introduced a Dual Transaction Service (DTS) - an enhanced debit card service that provides access to credit at the same time.

Also, the Chartered Institute of Bankers of Nigeria (CIBN) held its annual general meeting virtually for the first time.

The CIBN on Saturday April 4th, 2020 held its 2020 Annual General Meeting virtual (online) during which Bayo Williams Olugbemi was elected as the 21st President/ Chairman of Council of the Institute.

He would be succeeding Uche Messiah Olowu, whose two- year tenure will be ending on May 15th, 2020. The Institute also elected other

new officers and reviewed the 2019 financial and operational reports.

Other elected officers are Kenneth Onyewuchi Opara, as the 1st Vice President; Pius Oladeji Olanrewaju, as the 2nd Vice President and Oladele Adebiyi Alabi, as the National Treasurer while other elected positions in the Governing Council are Rafiat Oluwatoyin Onitiri, Olayinka Alade Odutola, Rahman Olabode Ajayi, and Godwin Ununotovo Adolor, to serve the tenure (2020-2022).

The Current president, Uche Messiah Olowu, chaired

the meeting with a large online attendance by members of the Institute across the globe.

Deji Pius Olanrewaju, National Treasurer of the Institute, gave the financial highlights of the Institute in 2019 and listed some of the following key developments; 7.1 percent increase in Net Operating Surplus of the Institute from N539million (2018) to N577million(2019), 5.8 percent increase in total income from 1.47 billion (2018) to N1.55 billion (2019) and 6.9 percent increase in IGR from N1.16 billion (2018)

Access Bank leads fight against COVID-19

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ccess Bank PLC, is at the forefront of the interventions deployed to fight the COVID-19 pandemic by big players in the private sector. The Bank played a major role in the formation of The Coalition against COVID-19 (CACOVID), a task force instituted to ensure the minimisation of the impact of Coronavirus pandemic in Nigeria.

With a guiding strategy of making impactful social investments, and giving back to the society, this new joint effort with other members of CACOVID has seen the Bank donate 1bn Naira to facilitate the building of 1000-bed isolation centers across the 6 geopolitical zones of the country.

The building of the test and isolation centers will be in phases. The first phase of the project is the construction of additional testing and isolation centers, in Lagos (Yaba and Gbagada), Enugu, Kano, Port Harcourt, Borno, and Abuja.The next phase of the project will see the construction of additional centers in

more states of the federation to enable early detection and testing of suspected COVID -19 cases as well as treatment of confirmed cases.

Speaking on the bank’s activities, Herbert Wigwe, group managing director, Access Bank Plc, said, “In our characteristic manner of offering ‘more than banking,’ Access Bank is at the forefront of the fight against COVID-19.

Through our various projects, we are looking to support the government and the National Centre for Disease Control

Herbert Wigwe, MD, Access Bank www.businessday.ng

(NCDC) by providing facilities that can serve as both testing and isolation centers.

“Despite the strides being made, we implore all Nigerians to adhere to stipulated social distancing guidelines, and practice regular hand washing as directed by the World Health Organization. We are positive that we can beat the spread of the virus, if we all comply with the safety measures as advised by the NCDC and WHO ” he added.

Wigwe further stated that, Researchers have identified early detection and isolation as important parts of ending the spread of the virus and that making testing and isolation centers more accessible, will help save more lives.

As reported cases increase on the spread of the virus across the country on a daily basis, Nigerians have been implored to follow the government’s instructions as these measures are being enforced to reduce the high risk of the virus spreading through the large population.

to N1.24billion(2019).

Also, Mark Ariemuduigho of Baker Tilly International Nigeria, the external auditors of the Institute gave report for 2019 financials and stated that the financial position of the CIBN was in agreement with the book of account. The Chairman of the CIBN Audit Committee, Babatunde Oduwaye affirmed that the accounting and reporting policies of the institute were in accordance with legal requirements and ethical practices.

Speaking on the 2019 operations Olowu informed the members that the institute had made noteworthy improvement as a reference point in the country and across the globe in the banking profession.

Olowu shared that all the CIBN subsidiaries from the Centre for Financial Studies to the Press are maintaining winning ways and will continue to experience improved performances.

In the area of capacity building, he said the Institute has reviewed the syllabus of flagship ACIB qualification in conjunction with a top consulting firm (PwC) in a bid to keep the ACIB qualification relevant and ensure that the

contents meet with global standard. He also stressed that the electronic library which consists of electronic books, journals and other resources provides round-theclock information and had been acquired by the CIBN Library for easy access to the doorstep of its users.

The CIBN, according to him will continue to maintain and play a frontline role at the Global Education Standards Board (GBEStB) and Alliance of African Institute of Bankers (AAIOB) where the past president of the Institute, Olusegun Aina, had been re-elected as a Chairman of the global body and the registrar/chief executive, Seye Awojobi, currently serve as the chairman of the regional body since 2018 respectively.

He also expressed that the newly acquired property by the Institute in Abuja will house the permanent secretariat of the alliance as part of the initiatives of the Institute towards providing leadership, mentoring and safety net at the regional level.

Speaking further he said the Institute has also expanded its examination centres to Liberia which brings the number of foreign examination outpost to a total of five

and one in Nigeria in Kastina State.

In the area of collaborations, Olowu noted that the Bankers’ Committee through its Sub-Committee on competency and industry standards has approved an industry wide annual renewable mandatory ethics compliance certification programme for all employees of banks from manager cadre downwards and currently 87,430 bank staff had registered on the elearning platform and a sizeable number had completed the certification programme.

The CIBN according to him has continued to engage the Presidency, National Assembly, State Governments, Central Bank of Nigeria and the National Deposit Insurance Corporation to play its advocacy role in line with its mandate as the conscience of the Industry.

Seye Awojobi, registrar/ CEO of the Institute also made known in his report that in the year under review a total of 902 student members completed the Associateship Chartered Bankers (ACIB) examinations and were duly inducted as associates of the Institute. He also noted that it was a fifteen year record high for the Institute.

Sterling Bank commits N25m to COVID-19 fund for health workers

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terling Bank Plc, Nigeria’s leading commercial bank has launched a N1 billion Health Workers’ Fund to support frontline healthcare professionals who are taking care of persons infected with the Coronavirus disease (Covid-19) in the country.

To kick-start the fund, the bank donated N25 million while some public-spirited individuals have also donated N2 million, bringing the amount raised so far to N27 million.

Abubakar Suleiman, chief executive officer of the bank, who disclosed this over the weekend while addressing a virtual press conference

hosted by the bank, enjoined well-meaning and public spirited Nigerians to contribute to the fund through the website of Giving.ng, a crowdfunding platform.

Citing the unusually high rate of cases of healthcare workers infected by the virus in the course of treating patients in countries like Spain and Italy, Suleiman said it is imperative that tangible efforts are made to protect the healthcare personnel at the frontline of fighting the infection, especially given their low number in the country.

“There was a particular point in Spain when 14 percent of those infected were health-

care workers, and we felt that if we were to have that level of infection among the limited number of healthcare workers in the country, the effect would be far-reaching and disastrous.

So, we decided to intervene.”

According to Suleiman, the bank understands that getting the money with which to pay healthcare workers on the frontline and acquire protection equipment for them is critical. Consequently, the bank would be working with people who are experts in public health or connected with the healthcare system to identify the healthcare workers who are deserving of this intervention, he said.

COVID-19: Ecobank embarks on ‘StaySafeNigeria’ media campaign

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cobank Nigeria has launched a ‘StaySafeNigeria’ media campaign being part of its corporate actions to support measures to check the rising spread of Coronavirus in Nigeria. The integrated media campaign is a call to action, creating awareness and edu-

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cating the populace on safety measures to adopt against the dreaded Coronavirus disease (COVID -19).

Flagging off the campaign in Lagos, Patrick Akinwuntan, managing director, Ecobank Nigeria, said the “StaySafeNigeria” campaign is designed to mobilise the entire citizenry @Businessdayng

to adopt safe conduct and healthy habits to help contain the spread of Coronavirus in Nigeria. He emphasised that with a population of about 200 million, prevention is better than cure and indeed in the case of COVID-19, prevention is much better than “no cure”.

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Wednesday 08 April 2020

BUSINESS DAY

TRANSPORTation Motoring

RailBusiness

ModernTravel

Roads

Peugeot 508 GT takes competition to cleaners

FRSC shuts down of Driving school portal on Covid-19

MIKE OCHONMA Transport Editor

MIKE OCHONMA

his year’s Motor Rally tied to the Argungu Festival may have come and gone, yet the memories that the event would linger until the next edition is held.

Argungu Motor Rally, a key segment of this year’s event which held amidst pomp and pageantry was unique and novel in a number of ways.

The Motor Rally held up a major promise for vitality and creativity in the annals of competitive local culture and tradition.

The festival held from March 11- 13, 2020, coming after 15 years when the last event held was most remarkable as it featured major auto brands in the Nigerian auto-market. These include GAC Motors with the GA3S, GS4, GS3 and GA4 variants; JMC pick-up and Dongfeng trucks from Elizade while Kojo Motors joined with its Yutong range of buses.

Globe Motors took part with the Hyundai brand even as PAN Nigeria showed presence with its legendary Peugeot brand alongside its new Pan-Higer H5C entrant.

Specifically, the rally which was intended for products assembled in Nigeria had PAN Nigeria feature the Peugeot 301 Allure and the 508 GT Line alongside the HigerH5C, a 16-seater bus also with a 19-seater variant. All the variants, including the new Peugeot PickUp 4x4, were seen on display both at the Show and Tell event held to flag-off the Rally in Abuja as well as at the pavilion display at the flagdown centre in Argungu.

At the heart of consideration for the contest was that participating auto brands should feature vehicles assembled in Nigeria. The vehicles were to run the race under normal road conditions with natural road obstacles, observing speed limits of 120KM/hr.

To ensure that speed limits were well measured, GPRS kits were fitted on each vehicle. Also considered in the course of the contest were vehicles with engine capacity not exceeding 2.0 liter,

oboye Oyeyemi, corps marshal, Federal Roads Safety Corps has ordered the immediate shutdown of the Driving School Standardisation Programme’s (DSSP) portal in order to induce compliance on the suspension of driving school operation in Nigeria and further discourage generation of driving school certificates for traineedrivers by proxy.

The directive is part of the Corps’ efforts to compliment all measures already put in place by both the federal and state governments to contain the rise of COVID-19 in the country and also ascertain that no driving school is presently undergoing any form of training for trainee-drivers across the country.

Oyeyemi said the Corps is engaging a holistic approach in its attempt to ensure that the spread of the pandemic is completely halted against undue escalation, that is why it refused to stop at the suspension of the operations of driving schools nationwide alone, but went further to order the immediate shutdown of the DSSP portal to induce overall compliance. This and many other measures are directed at encouraging compliance on the stay at home and social distance directives of the Federal and State Governments.

While reiterating the Corps’ resolve to play its assigned roles in curtailing the global health issue, Bisi Kazeem, Corp Public Education Officer however noted that the FRSC regrets any inconveniences the suspension of the operations of driving schools and the shutdown of the DSSP portal could have on intending trainee drivers and the operators alike.

The corp marshal urged everyone affected to remain calm and bear with the prevailing situation as the contemporary directives issued are targeted at preventing them from contracting or spreading the virus.

…As Argungu Motor Rally returns 15 years after

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The winning driver of the 2020 Argungu Motor Rally, Shima Shimbe, who won driving the Peugeot 508 GT, sharing his moment with renowned designer of General Motors’ Chevy Volt and current DirectorGeneral, NADDC, Jelani Aliyu MFR in Argungu, Kebbi State

amongst others.

Other considerations include vehicle design, general aesthetics and performance. In all stated rally prerequisite, the Peugeot 508 GT ticked all boxes and gallantly stood far out from the pack.

The rally which held across the Federal Capital Territory, Abuja, to Nasarawa, Kaduna, Sokoto, Zamfara and Kebbi States was Peugeot’s moment of glory as the rally brought out more poignantly, the brand’s value, essence and promise before the Nigerian auto consumers.

PAN Nigeria indeed made a very categorical statement with its outstanding win as the overall best winner of the Motor Rally. The winning driver of the 2020 Argungu Motor Rally was Shima Shimbe, who drove the Peugeot 508 GT. Commenting on the company’s feat, Ibrahim Tanko managing director and chief executive of PAN, who was visibly elated over his company’s performance during the event said, “PAN Peugeot 508 was adjudged the overall best winner because it met all the criteria stipulated by the organizers

of the rally’’.

He stated that the original motive to participate in the contest by the car company was the desire to share and demonstrate support for the aspiration of the National Automotive Design and Development Council (NADDC) in proving the importance of the nation’s auto-policy as well as create opportunities for the sector to make formal presentation of all locally manufactured vehicles to the executive and the legislature at an elaborate “Show and Tell” media ceremony. The PAN boss commended the organizers for a job well done.

In a similar vein, Joseph Adesanya, PAN’s head of marketing disclosed that PAN featured in the Motor Rally in order to showcase its capabilities as a foremost manufacturer and car assembler in Nigeria.

On the implication of being the over-all best winner, Adesanya said the brand is customer-centric as all the vehicles presented excelled in the contest.

Peugeot’s unique selling points Adesanya noted lies in its perfor-

mance, comfort, fuel economy, adaptability and safety, adding that all of these are the things that worked in favour and enabled the clear win by the Peugeot 508 GT. Besides, he stated that the its major attractions to the users are ruggedness and durability in addition to the selling points earlier mentioned.

The auto assembler, which has remained a milestone in Nigeria’s automobile industry, was conceived in 1969 under the leadership of the Yakubu Gowon, Nigeria’s former head of state.

Decades after the launch into the market, Peugeot still commands a reverent top of the mind awareness amongst Nigerian auto brands patrons as it retains its maximum awareness level amongst Nigerians, being the first and still the best.

From the launch of its first automobile to the creation of its latest concept car, Peugeot has remained the legendary Nigerian car that shares in the euphoria of the nation’s independence and also reveled in the opulence of post-independent nation.

Hyundai’s Genesis reveals striking new G80 …To rival Mercedes E-Class, BMW 5-Series MIKE OCHONMA

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yundai’s Genesis brand has pulled the covers off its thirdgeneration G80 executive sedan, and this one looks to be a more compelling rival to the E-Class and 5 Series.

For starters, it’s somewhat more interesting to look at, than its relatively conservative prdeces-

sors, thanks to a low-slung, fastback body as well as striking new design features like the doubledecker headlights and taillights, and a large ‘shield’ grille. The new saloon is also 125kg lighter than its predecessor, thanks to more extensive use of aluminium for the body panels.

Genesis has announced three engines, although what’s available Continues on page 23 www.businessday.ng

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Wednesday 08 April 2020

BUSINESS DAY

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TRANSPORTation Motoring

RailBusiness

ModernTravel

Roads

Global auto sector faces biggest crisis in 13 years MIKE OCHONMA

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Covid-19: Toyota gifts Hiace ambulances worth N78m …Michael Ade.Ojo challenges Nigerians to fight pandemic MIKE OCHONMA

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oyota Nigeria Limited (TNL) abnd Elizade Nigeria Limited (ENL), franchisees and frontline dealers of the Toyota brand in the country respectively has donated three units of ambulances to the Lagos state government to support the government in the fight against coronavirus pandemic in the state. According to checks, one unit of the well-equipped Toyota Hiace standard roof model depending on the specification is valued at between N26million and N30million.

According to Michael

Ade.Ojo, chairman of Toyota Nigeria Limited and Founder ENL, Chief “Covid-19 is a vicious virus that is presently ravaging people all over the world. Everything humanly possible must be done to quickly contain the pandemic. Government at both the federal and state levels need the support of all well-meaning Nigerians and corporate organizations to fight the evil scourge and all hands must be on deck”.

He said Toyota Nigeria Limited and Elizade Nigeria Limited will continue to support the government in any endeavour that will positively impact humanity.

On his part, Kunle AdeOjo, managing director of Toyota Nigeria Limited said;

“the gesture is in recognition and commendation of the continuous effort of the Governor Babajide SanwoOlu and his indefatigable team to contain the spread of the virus” He encouraged all Nigerians to abide by the guidelines provided by the World Health Organization (WHO) and the Nigeria Centre for Disease Control (NCDC) advising Nigerians on how to avoid contracting the virus and shun information from unauthorized sources.

He advised every citizen to obey government directive to stay home and keep safe.

While receiving the three ambulances from Bukky Ogunnusi, public relations team lead of Toyota Nigeria

Limited, Ibijoke Sanwo-Olu; the wife of the Lagos state governor accompanied by Tayo Ayinde, the chief of staff of the state governor and other senior government officials expressed appreciation for the timely gesture.

The Lagos state first lady encouraged other socially responsive and responsible corporate organizations to emulate this laudable gesture, adding that such support will make significant impact in helping to stop the pandemic from spreading further.

She promised that the ambulances will be put to good use for the purpose they were donated and for the benefit of all Lagosians and residents in the state.

JLR deploy global fleet on emergency response partners for COVID-19 MIKE OCHONMA

Hyundai’s Genesis reveals striking new G80 Continued from page 22

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aguar and Land Rover have deployed more than 160 vehicles globally to support emergency response organisations during the coronavirus crisis.

A total of 57 vehicles including 27 new Defenders have been issued to the British Red Cross to deliver medicine and food to vulnerable people across the UK who now need additional support due to social distancing rules.

Jaguar and Land Rover teams in Spain, France, South Africa and Australia have also loaned vehicles to their Red Cross societies and more markets are offering help to their local teams. This service is being provided with fleets of vehicles now available due to the postponement of launch events.

Meanwhile the JLR team is working closely with the UK government and has offered its research and engineering expertise. Pro-

he automotive sector is facing its biggest challenge since the 2007-2009 financial crisis with 97 percent of light vehicle (LV) manufacturing plants in Europe and North America temporarily shut down.

Already, key players in the sector are negotiating financial life line and joint venture transactions with firms in other sectors after the rapid spread of the coronavirus (COVID-19) caught the industry on the back foot.

Reviewing the development recently, Mike Vousden, Automotive Analyst at GlobalData, a leading data and analytics company, said: “With potential customers suddenly stuck in lock down all around the world, some original equipment manufacturers (OEMs) may see months without meaningful sales volume and suffer a subsequent hit to revenue and

tective equipment is being donated to the NHS including wraparound safety glasses to the Royal Bolton Hospital, St James’s Hospital in Leeds and Birmingham Children’s Hospital.

Finbar McFall, Jaguar Land Rover Customer Experience Director, said: “The health and safety of our employees, customers and their families remains our priority. Jaguar and Land Rover will do everything

we can to support people in need around the world’’.

He said that JLR’s partnership with the Red Cross goes back 65 years and we will work hand in hand with them to do all we can during this global health emergency. We will also provide help to those closer to home in our local communities. We can all play a part in helping the vulnerable during this global pandemic”.

Simon Lewis, Head of

Crisis Response, British Red Cross said: “This unprecedented global health emergency requires us all to pull together. As part of the British Red Cross response to coronavirus, we’re delving deep into the heart of communities across the UK to help strengthen support for the most vulnerable people through delivering essential food parcels and medicines to those unable to get out’’.

profitability“.

According to him, automakers including Toyota, Mercedes, Ford, GM, Nissan and many others are bearing the financial burden of supporting furloughed workforce and, in some cases, re-purposing factories and supply chains to provide much needed ventilators and medical equipment.

“These extreme circumstances have pushed some automakers to access sizeable credit facilities to shore up their financial positions’’.

Most recently, Japanese giant Toyota announced it was seeking a JPY1 trillion ($9 billion) line of credit from Sumitomo Mitsui Banking Corp. and MUFG Bank.

Of all the major Japanese OEMs, Toyota is the largest and has the best credit rating. Moody’s Investors Service previously held it at an A1 grade but, with the virus placing incredible pressure on the auto industry’s earnings, it has since dropped Toyota’s grade to Aa3.

will depend on the market in question. The petrolpowered line-up includes a 223kW/421Nm 2.5-litre fourcylinder turbopetrol as well as a 3.5-litre V6 turbopetrol with 279kW and 520Nm. There’s also a diesel option in the form of a 2.2-litre unit with 154kW and 441Nm. To ensure the cushy ride that one expects in this neck of the automotive woods, the G80 has an electronically controlled suspension system that uses a front camera to predict the road surface ahead and adjust the settings accordingly.

The cabin follows the modern dual-screen trend with a 31.2cm digital instrument cluster and 36.8cm central screen, and there’s also a head-up display.

Av a i l a b l e h i g h - e n d features include an auto parking system that can also be controlled remotely from outside the vehicle, a Quantum Logic surround sound system that promises

the “vivid sound effects of a concert”, rear-seat dual touchscreens as well as Carto-Home / Home-to-Car functionality that integrates with ‘smart home’ features and apps.

There’s also a glut of driver assist gadgets, including the smart cruise control with machine learning, highway driving assist II, which can now assist the driver in a wider variety of situations including lane changing, and a blind spot monitor with active steering assist.

Talking safety, the Genesis G80 comes with 10 airbags, including one between the front seats.

“The core of our brand lies within the G80. This segment represents where we started and we’re pleased that our newest offering achieves a perfect balance of discerning luxury and inspiring performance for our customers.” said Genesis brand head William Lee. At this stage there are no plans to introduce the Genesis brand to Nigeria.

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Wednesday 08 April 2020

BUSINESS DAY

tax issues Is the Attorney General of the Federation Nigeria’s new taxman? (2) Basirat Mutairu

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the FIRS was created as a body corporate under the Companies Income Tax Act with powers to administer tax laws. At best, the intention of section 148 of CFRN above is to administer government departments without functional mechanisms- a situation that is not applicable in this instance. b. Multiplicity of audits/investigation- Without conceding that the AGF does have the powers to carry out this exercise, the elephant in the room remains that target companies would suffer many times in a bid to remain compliant with demands of government agencies.

Statutorily, the FIRS is empowered to conduct tax audit/investigations and this it does, diligently. The NCS also conducts investigations to ensure appropriate duties on relevant items have been paid. In fact, the NCS typically carries out further inspections in the form of a re-assessments if it finds that duties on imported goods have been under-assessed. The result of such inspections is the issue of a debit note which must be settled before such importer is cleared of its liabilities.

Given the effectiveness of these agencies in carrying out their duties, it is difficult to see the necessity of the AGF’s “intervention.”

Especially as it appears to frustrate the FGN’s efforts at ease of doing business in Nigeria and creates uncertainties in business operations. If this becomes a precedent, numerous agencies of government will spring up with outrageous www.businessday.ng

claims for further audits. An issue that is already prevalent with investigations being conducted by the House of Representatives, Revenue Mobilization Allocation and Fiscal Commission (RAMFAC) and many others should not be allowed to further escalate. c. Erosion of targeted companies’ Goodwill- These investigations typically result in lesser

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Where a person or public authority claims to have acted pursuant to a power granted by a statute, such person, body or authority must justify the act, if challenged, by showing that the statute applied in the circumstances and that he or it was empowered to act under it

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he FIRS may also conduct a tax investigation if it considers that an offence has been committed in respect of the Tax Act. Furthermore, section 34 prescribes that “where any amount is owed in respect of the above taxes, such amount shall constitute a debt and may be recovered by a civil action brought by the FIRS.” On prosecution, section 47 provides that the FIRS shall have powers to prosecute any offences under the Act subject to the powers of the Attorney-General of the Federation.

For import duties, Section 4 of the Customs and Excise duties Management Act (CEMA) specifies that the duty of controlling, managing, collecting and accounting for the revenue of customs and excise lies on the Board of Customs and Excise established by the Nigerian Customs Service Board Act. As with the FIRSEA, the CEMA recognizes the powers of the AGF to institute or continue any proceedings in respect of an offence arising under its provisions.

Issues Arising a. Legality of Exercise- From the foregoing, a premise may be drawn that the AGF overstepped in his powers by conducting this exercise. In Psychiatric Hospital Management Board Vs Ejitagha2, the apex court succinctly captured this view by holding that “it is settled law that a public body or authority vested with statutory powers must act within the law and take care not to exceed or abuse its powers. It must keep within the limits of the authority given to it. It must act in good faith and reasonably.

Where a person or public authority claims to have acted pursuant to a power granted by a statute, such person, body or authority must justify the act, if challenged, by showing that the statute applied in the circumstances and that he or it was empowered to act under it.” While the AGF’s constitutional powers cannot be described as statutory, he is notwithstanding, a public authority and the decision herein is very instructive in the circumstance. The AGF’s exercise cannot be entirely reliant on the blanket provisions of the constitution without providing justification for his action. Additionally,

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investor confidence especially for those who may not want to be associated with the publicity that such inquiries may garner. If it becomes public, customers and the public alike may be influenced negatively, and this may unfairly prejudice such companies.

Concluding remarks Presently in Nigeria, tax audits, investigations and prosecution are sufficiently covered under relevant legislative provisions with responsibilities for each facet clearly defined. There is no justifiable reason for the AGF to intervene in the manner in which it has in this case. Had the FIRS investigated and found a taxpayer criminally culpable, then it may have solicited the assistance of the AGF in bringing the taxpayer to justice and collecting the tax due. In the absence of such interagency cooperation, it would appear that the AGF may have overstretched his powers to launch an investigation he did not have the statutory power to undertake.

On 10th January 2020, MTN Nigeria released a publication informing the public that the AGF had withdrawn its demands and has “decided to refer the matter to the FIRS and NCS with a view to resolving contentious issues.”

This is a laudable development that however came a little too late.

The AGF may not have considered the implications of a perceived Federal investigation by the Chief Law Officer of the Federation on the reputation of the affected com@Businessdayng

panies. MTN’s stocks for instance plummeted on the Johannesburg Stock Exchange in the weeks following the investigation. This is in addition to other administrative cost that must have been incurred in addressing the dispute. To later arrive at a “peaceful” conclusion is clear evidence that the dispute could have been better managed from the onset. Unsurprisingly, the AGF did not offer any compensation to MTN for any economic loss suffered by it. If it did, that information was not made publicly available. How then can MTN and other affected companies get relief for its depleted resources in responding to and defending this issue? What is the guarantee that the AGF or other institutions alike will not abuse their office in the future? What relief is available to abused taxpayers and what impact does this have on doing business in Nigeria?

The most glaring solution is the Judiciary and affected companies should freely challenge the Office of the AGF where its powers are exercised beyond its purview. The Judiciary may then decide punitive awards adequate to redress the losses suffered as a result of the exercise. These punitive awards may potentially serve as a deterrence against such impulsive investigations from government agencies/authorities in the future.

Basirat Mutairu, Deal Advisory, Mergers & Acquisitions - Tax KPMG Advisory Services

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FT

Wednesday 08 April 2020

BUSINESS DAY

FINANCIAL TIMES

World Business Newspaper

Loss of working hours to equal 195m full-time jobs, UN agency Almost 7% of working hours worldwide set to be wiped out in second quarter, says ILO Delphine Strauss

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he coronavirus crisis will cut working hours by almost 7 per cent worldwide in the second quarter of 2020, a “catastrophic” effect that is equivalent to the loss of 195m full-time workers, the International Labour Organization said on Tuesday.

The UN agency warned that 1.25bn workers — almost twofifths of the 3.3bn-strong global workforce — are employed in sectors suffering drastic falls in output, from retail and real estate to manufacturing, accommodation and food services. More than fourfifths of the global workforce live in countries where full or partial lockdown measures are in place.

“Workers and businesses are facing catastrophe, in both developed and developing economies,” said Guy Ryder, ILO director-general. “It will hit the most vulnerable the hardest.”

The scale and speed of job losses across the developed world has taken policymakers by surprise.

Almost 10m people in the US filed initial jobless claims in the last two weeks of March, and many economists expect the US unemployment rate to rise rapidly above 10 per cent. A similar scale of job losses has hit Europe, although many workers can access government wage subsidy schemes designed to limit long-term unemployment.

People wait in line to collect unemployment insurance in Santiago, Chile © AP

The ILO’s warning came just three weeks after it published analysis suggesting the pandemic would lead to 25m job losses in 2020, more than were lost after the 2008 financial crisis.

Mr Ryder said it now seemed likely that more than 30m jobs were lost in the first quarter alone, and the ILO now expected a much more severe short-term impact, using more timely data from business surveys and Google search trends to illustrate what it called “the dire reality of the current labour market situation”.

It predicted that the number of

hours worked globally would decline by 6.7 per cent in the second quarter of 2020 compared with the previous three months, reflecting both lay-offs and other temporary reductions in working time. This would be equivalent to the loss of 195m full-time jobs, based on a 40-hour working week.

The ILO made its estimate by using the historical relationship between working hours and purchasing managers’ surveys of business conditions that are published on a monthly basis in some countries.

The ILO assumed that other countries taking the same measures

to control the spread of the virus would face a similar hit to the effect in the surveyed countries.

The surveys may not be a reliable guide — they show that an overwhelming proportion of businesses expect conditions to worsen, but say nothing about how severe the downturn might be or how long it is likely to last. However, they are the most timely data available internationally; only a couple of countries publish up-to-date administrative data on claims for benefits and wage subsidies. Official data elsewhere lags behind events on the ground by several

months.

Coronavirus business update How is coronavirus taking its toll on markets, business, and our everyday lives and workplaces?

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Sign up here The sectors most exposed to big falls in output are labour-intensive and employ millions of often lowpaid, low-skilled workers who will feel the effects especially badly, the ILO said. They account for the highest proportion of employment in the Americas, Europe and central Asia.

But the ILO also warned that the virus was now spreading to countries where a high proportion of the workforce had no access to social protection; excluding agriculture, more than 70 per cent of workers are in the informal sector in Africa and 90 per cent in India.

The ILO did not make a full-year forecast, as it said that the overall increase in global unemployment during 2020 would depend on the policies countries adopt to boost labour demand once the economy begins to recover. It underlined the need for new measures such as cash payments and transfers of basic goods to support those hardest-hit in countries with high levels of labour market informality.

“We are going to be tested ever more strongly as the pandemic extends its reach into the developing world,” Mr Ryder said.

Income of 73% in US hit by outbreak — FT-Peterson poll Survey shows high and lower earners have felt financial impact of lockdowns

Lauren Fedor and Christine Zhang

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early three-quarters of Americans say the coronavirus pandemic has reduced their family’s income, with nearly half saying they would be without any income at all if they were unable to work because of illness, according to a new poll for the Financial Times.

The survey of likely voters for the FT and the Peter G Peterson Foundation found 73 per cent of Americans said the outbreak had reduced their family’s income, with 24 per cent saying their household income had been cut “very significantly”. Some 48 per cent said they would lose pay if they fell ill and were unable to work.

In a sign of how widespread the pandemic’s economic impact has become, almost as many families making more than $100,000 a year reported a hit to their income (71 per cent), as those making less

than $50,000 (74 per cent). Similarly, 53 per cent of those making less than $50,000 said they would lose their pay if illness forced them to stop work, while 47 per cent of those making more than $100,000 were in the same boat.

A record 10m Americans filed a new claim for unemployment benefits in the two weeks ending March 28, as millions of businesses across the country laid off workers and many more reduced employees’ hours or pay.

Ioana Marinescu, a labour economist at the University of Pennsylvania, said the poll suggests the pandemic was rippling broadly through the US economy, not only forcing the closures of main street businesses such as restaurants and bars, but also hitting professional services and marketing companies that rely on business customers, or those that rely on consumer spending.

The FT-Peterson poll, which was conducted between March 24 and March 29, found Americans had changed their behaviour www.businessday.ng

drastically over the past month as a result of the pandemic.

In February, the poll showed only 13 per cent said the outbreak had affected their personal or business activities, such as travel or investments. The new March poll showed that figure had jumped to 71 per cent, with 62 per cent saying they were avoiding public places, 48 per cent changing or cancelling travel plans, and 35 putting off a large purchase.

The findings are part of the monthly FT-Peterson US Economic Monitor, which tracks voter sentiment towards the US economy ahead of November’s presidential election.

The new survey showed a sharp increase in alarm over the state of the global economy. Nearly one-third of respondents cited a worldwide slowdown as the single biggest threat to the US economy, compared with just 12 per cent the month before. The cost of healthcare, which had been the biggest concern, is now the second

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most-cited worry, with 20 per cent of respondents saying it was the largest cloud hanging over the US economy.

Only 10 per cent Americans said they or someone they know had contracted the virus, but nearly all — 97 per cent — of respondents said the federal government should guarantee free testing for Covid-19. Ninety-one per cent said health insurers should reimburse coronavirus patients for any treatment costs related to the virus.

71% Percentage of Americans who say the outbreak has affected their personal or business decisions Although US President Donald Trump and some of his Republican allies have publicly questioned whether the lockdown’s hit to the economy was worth the public health benefit, the FTPeterson poll found two-thirds of Americans were more concerned about the virus’s impact on public health than on the economy.

Mr Trump has in recent days @Businessdayng

reversed track, extending federal guidelines recommending social distancing through the end of April. But the survey showed Republicans were more likely to be concerned about the economic impact of the pandemic than either Democrats or independents.

Forty-five per cent of Republicans said they were more concerned about the outbreak’s impact on the economy than its public health effects, while just 22 per cent of Democrats and 33 per cent of independents put the economy as a bigger concern.

The most recent FT-Peterson Poll was conducted online by Global Strategy Group, a Democratic polling company, and North Star Opinion Research, a Republican group, between March 24 and March 29. It reflects the opinions of 1,005 likely voters nationwide, and has a margin of error of plus or minus 3 percentage points.

The Peterson Foundation is a non-partisan, non-profit organisation focused on America’s fiscal challenges.

Wednesday 08 April 2020

BUSINESS DAY

26

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Emerging market stocks drop to record discount to US Valuation gaps tempt some fund managers to ‘aggressively’ snap up EM equities Steve Johnson

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tocks across emerging markets have dropped to a record valuation discount to US equities, according to the Institute of International Finance (IIF), as investors ditch assets deemed risky due to the coronavirus crisis.

Stocks across the developing world now trade at an average 7.8 times profits, on a cyclically adjusted price-to-earnings basis — a 65 per cent discount to the CAPE ratio of 22.6 for the US stock market.

The 23 per cent slide in the MSCI Emerging Markets index this year has taken its CAPE ratio below the levels witnessed during the global financial crisis. In contrast, US equities, as measured by the S&P 500 index, are still comfortably above their 2009 low of 13.7 times.

The CAPE measure, which is based on inflation-adjusted average earnings over the previous 10 years, is seen by some analysts as the best single measure of valuations as it smooths out booms and busts by looking across the economic cycle.

In doing so, it avoids the standard problem of shares looking expensive when profits collapse in a recession, and cheap when profits are at their peak.

Sonja Gibbs, managing director for global initiatives at

Brazil-based brewer Ambev has been among the targets of Invesco, which has been buying EM equities © REUTERS

the IIF, said the resilience of the US market reflected an expected boost from fiscal and monetary stimulus, while emerging market equities were being hurt by their exposure to the commodity and tourism sectors.

She added that investors were also spooked by “tangible [foreign exchange] liquidity risks” for heavily leveraged companies in emerging markets, as debt burdens became harder to service when currencies dropped against the dollar.

“With both retail and institutional investors hoarding cash at an exceptional pace,

lack of visibility on corporate earnings and anticipated job losses is undermining investor appetite for risk assets,” said Ms Gibbs.

Richard Titherington, chief investment officer for emerging market equities at JPMorgan Asset Management in London, argued that the widening valuation gulf was a sign of US stocks being overvalued, despite a 17.5 per cent slide this year, rather than emerging market stocks being cheap.

He said that on his preferred measure, price-to-book value, EM stocks were now trading at 1.38 times, still comfortably

above the lows of 1.17 times in the global financial crisis and 0.9 times in 1998, amid the Asian financial crisis.

“I don’t think 1.38 is particularly attractive,” he said Mr Titherington. “Anywhere around about 1.2 is a reasonable place to be buying.”

However, Justin Leverenz, chief investment officer of developing market equities at Invesco, said he had “not been this excited for more than a decade” about emerging market stocks.

“One has to be quite selective, but prices are really spectacular now in a handful of

places,” he said, citing Russia, India and Brazil.

Mr Leverenz said he had been “aggressively” buying stocks in Brazil, which he said had the added appeal of a cheap currency. About $1bn of purchases within the past month included stakes in PagSeguro, a digital payments company, brewer Ambev and Itaú Unibanco.

The US Federal Reserve has attempted to stabilise struggling emerging economies, with a $60bn repurchase agreement signed on Tuesday with Indonesia, building on the dollar swap lines it had already set up with many developed and emerging countries.

Ms Gibbs agreed that valuations of emerging market stocks looked “compelling”.

But she added that concerns over growth and commodity prices, coupled with the effects of the virus on “under-developed” healthcare systems, “will weigh on risk appetite”.

She noted that the positive correlation between emerging market stocks and commodity prices was close to all-time highs.

The IIF is a global association of financial institutions that was created 37 years ago by dozens of banks in developed markets in the wake of the international debt crisis of the early 1980s.

Exxon slashes capital investment by $10bn US energy group to preserve cash for dividend as oil demand collapses in face of coronavirus Derek Brower

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xxonMobil is slashing this year’s capital spending plans by $10bn and will cut cash operating expenses by 15 per cent as it seeks to preserve its dividend in the face of the crude price collapse sparked by coronavirus.

Capital investment this year will be $23bn, down from the previously announced $33bn.

The biggest cuts will be in the Permian Basin, the heart of the US shale boom, where Exxon’s drilling will slow — the second time in two months that the company has lowered its output projections for the area.

“We haven’t seen anything like what we are experiencing today,” said chief executive Darren Woods on Tuesday. He added that Exxon was anticipating a 20-30 per cent short-term drop in global oil demand.

A pump jack in the Permian Basin, where the company’s biggest spending cuts will fall © Bloomberg

Exxon said it could also reduce its planned spending next year as it navigated the downturn.

“We have the capacity to do more if we need to,” said Mr Woods. “Our objective is to continue investing in industryadvantaged projects to create value, preserve cash for the dividend and make appropriate and prudent use of our balance www.businessday.ng

sheet.”

Mr Woods, who on Friday attended a meeting of oil industry chief executives with President Donald Trump at the White House, did not endorse calls from some producers to impose tariffs on Russia and Saudi Arabia to compel them to end their price war.

“Our position has always

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been that free markets for our industry work best,” he said. “It allows the free flow of product, it also ensures that the most efficient producers continue to produce.”

The Financial Times reported on Saturday that US and Canadian officials had held discussions about imposing tariffs on foreign oil supplies to North America.

Production from Per mian shale this year would fall by about 15,000 barrels of oil equivalent a day, said Mr Woods. Previously, Exxon said output would come in at about 360,000 b/d. In 2021 output is projected to be 100,000 to 150,000 b/d lower than the target of 600,000 b/d.

“The reductions we are making in the Permian will not compromise the scale or functional excellence” of the company’s operations there, said Mr Woods. @Businessdayng

He added that, as storage facilities and pipelines filled globally, producers would be forced to shut down more production, potentially adding to output losses beyond those associated with the reduction in planned capex.

Exxon said development of deepwater discoveries off the coast of Guyana remained “integral” to its long-term growth plans. Start-up of the 220,000 b/d second phase of the Liza project remained on course for 2022. The Payara development, expected to produce a similar amount, could be delayed by up to 12 months after its planned 2023 start-up.

Mr Woods said the company had also postponed a decision on whether to proceed with a large liquefied natural gas project in Mozambique and delayed some chemical and refining expansions.

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ANALYSIS

Texas: how the home of US oil and gas fell in love with solar power A boom in projects across the Permian Basin comes amid coronavirus fears and a global oil price war Gregory Meyer

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solar farm the size of a small city will open in the Texas shale heartland this month, adding more competition to a US oil and gas industry that is already flat on its back.

The blue rows of panels at the Oberon photovoltaic project will generate 150 megawatts of power when they plug into the grid south of Notrees, an appropriately named town in the Permian Basin. Oberon’s developers want to eventually expand the project to 1,380MW — enough to serve 230,000 homes.

A boom in solar projects is under way across Texas, the US oil and gas capital. The state will build a quarter of the record new industrial-scale solar capacity being installed across the US this year, according to the Energy Information Administration, part of the department of energy.

Much of that solar investment is taking place in the Permian Basin, the centre of a US shale oil industry that is now reeling from the impact of the coronavirus crisis and the price war between Saudi Arabia and Russia.

The solar projects are a threat to fossil fuels. Renewables have helped to force the closures of coal-fired power plants. They are now challenging the primacy of natural gas in the US electricity generation mix as the price of solar equipment keeps on falling.

The Republican legislature has declined to rein in rapid increases in wind and solar despite its historic friendliness to the oil and gas industry.

Yet clean energy has a more complicated relationship with fossil fuels in Texas, a state of 29m people proud of its independent streak. Shale oil fracking has been a big driver of electricity demand, helping to spur investment in renewables.

The relationship is visible among Oberon’s solar arrays. Cut out of the rows are empty dirt rectangles the size of parking lots. The developer, 174 Power Global — a division of South Korea’s Hanwha Group — left the spaces to enable oil drilling rigs to set up and bore wells underground, says Jason Garewal, head of business development.

“West Texas is oil and gas territory, it’s not solar territory today,” he says. “And so we were pretty proud of our ability to add to the energy mix without taking away any future oil and gas extraction.”

Solar’s gains could be hindered by the fall in oil prices as West Texas Intermediate crude trades below $30 a barrel — less than half its price in January.

The damage from coronavirus could also hit electricity consumption, sideline construction workers or disrupt the flow of financing, clouding growth for solar generation.

However, these issues might delay but will not stop the spread of solar in Texas, experts say.

Clean energy investors with time horizons of more than a decade like the stable returns of projects backed by long-term contracts.

Edward Hirs, energy fellow at the University of Houston, says: “The key thing is they have a magnificent cost advantage over gasfired power plants. The marginal cost of solar is zero.”

Texas already ranks first in the US in wind power capacity.

It is now on its way to having the second-most solar PV capacity in the country after California. But unlike California, with a goal of 100 per cent clean energy by 2045, the Lone Star state is adding sun power through the incentives of a competitive electricity market.

Operated by the Electric Reliability Council of Texas (Ercot), more than half the proposed project capacity queueing for a grid connection in that market is industrial-scale solar, records show.

“Everything’s bigger in Texas,” the saying goes. For solar developers it is an unmatched opportunity. The state consumes the most electricity in the US. Power demand has grown 5 per cent over the past five years even as it fell nationwide, according to the EIA. The sunlight is intense, particularly in the cloudless skies of the Permian Basin in the state’s far west. Peak solar power output coincides with voracious airconditioning demand on Texas’s blistering summer afternoons.

Moving renewable electricity from the vastness of the west to eastern cities such as Dallas and Houston was aided by special transmission lines the state authorised 15 years ago. Designed to handle wind power, they are now easing the flow of solar too.

A light-touch regulatory approach, popular with oil and gas executives, has also attracted the solar industry.

“It’s Texas: there’s very little in the way of planning laws or restrictions. It’s pretty streamlined from the point of view of permitting and getting connections. So you can develop an asset pretty quickly,” says Chris Archer, head of www.businessday.ng

Americas at Macquarie’s Green Investment Group, a solar and wind developer with projects in Texas.

Green energy builders have encountered pushback in states where the urgency of climate change is widely embraced. New York governor Andrew Cuomo — now in the international spotlight as he addresses the country’s largest coronavirus outbreak — aims to get 70 per cent of the state’s electricity from renewables by 2030, but upstate towns have fought to keep solar panels out of farmland, while beachfront denizens of Long Island have opposed an offshore wind project.

No such hurdles confronted Innergex Renewable Energy’s $400m, 250MW Phoebe project in Winkler county, Texas, says Michel Letellier, chief executive.

The desert soil was easy to lease and to drive piles into.

“Texas is a nice place for business,” Mr Letellier adds. “Maybe it’s because they carry guns — they are very polite.”

The grid operated by the nonprofit body Ercot is largely disconnected from the interstate transmission networks to the east and west of Texas, exempting it from federal oversight.

Its market rules are distinctive. Generators are only paid for the energy that they sell, not for having capacity at the ready.

Wholesale prices that average about $40 per megawatt-hour are allowed to climb as high as $9,000 per MWh when demand surges on the hottest afternoons, a potential windfall for generators.

Solar farms’ output crests when the sun is highest, enabling them to participate in these sales.

“The Ercot power market is designed to be the ultimate competitive market,” Mr Archer says.

The cost of solar has plummeted, with the average industrial-scale PV project just $0.80 per installed watt last year compared to $3.53/W in 2010, according to a BloombergNEF and Business Council for Sustainable Energy survey.Federal tax credits for solar are also scheduled to be reduced in the next few years, sparking a rush to start construction to reap maximum benefits, says Cormac Gilligan of IHS Markit, a consul-

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tancy.

Big corporate brands have seized on falling costs to sign long-term solar power purchase agreements that also improve their environmental image. Of the record 13,600MW of clean energy deals that companies completed in the US last year, 5,500MW was in Texas and the majority of that was solar, according to the BloombergNEF/BCSE survey.

Google, McDonald’s and Wells Fargo are among those committing to buy power from Texas solar plants to run a new data centre, fast-food outlets and bank branches.

Neha Palmer, Google’s director of operations and head of energy strategy, says its $600m data centre near Dallas will run in part on power contracted from three Texas solar projects. “[Texas] is a large, deregulated market. Users of electricity have a choice in who they buy electricity from and the type of energy that they buy,” Ms Palmer says. “I think that’s been another driver of the large uptake of renewables in the state.”

That is bad news for the oil and gas industry. The EIA projects that renewables will catch up to gas as a source of electricity nationwide in 10 years, capping its market share after years of gains fuelled by the shale drilling boom.

The penetration of solar and wind has drawn fire from the likes of the Texas Public Policy Foundation, an Austin-based think-tank funded in part by Charles Koch, the conservative billionaire whose donations with his late brother David helped shift US politics rightward.

Bill Peacock, the foundation’s vice-president of research, argues that solar and wind get an unfair break on local property taxes.

They also do not pay the cost of new transmission lines to deliver renewable electricity, which is instead shifted to ratepayers, he says.

“The only possible reason whatsoever that renewable sources make sense is if what a lot of people are saying about climate change is true,” Mr Peacock says. “I would debate what a lot of people are saying about climate change.”

About 97 per cent of climate @Businessdayng

scientists have concluded that human-caused climate change is happening, says the American Association for the Advancement of Science, a position also accepted by most big US oil and gas companies.

Last year Kelly Hancock, a conservative Republican from Fort Worth, sponsored a bill in the state senate to force the Texas utilities regulator to study ways to strip out the benefit of federal tax credits for renewable energy groups in the Ercot marketplace. The legislation passed in the senate but failed to clear the Texas house.

Yet the arguments around renewables are not so neatly split on partisan lines. When the clean energy advocacy group Conservative Texans for Energy Innovation formed last year, it commissioned a poll that showed Texas Republican and independent voters broadly backed policies to help solar and wind.

“Historically, some of those key voices in support of the development of renewables have been more from the left side of the political spectrum,” says Michael Jewell, a CTEI board member. “We feel like it’s really important for the conservative side to be involved as well.”

In Washington, the Trump administration’s positions on renewables have ranged from lukewarm to hostile. The Federal Energy Regulatory Commission in December issued a rule that undercut the competitiveness of state-subsidised green power in PJM Interconnection, the biggest grid in the US, stretching from Virginia to Illinois.

President Donald Trump has claimed that wind turbines “kill all the birds,” described solar electricity’s potential as “not powerful enough” and adopted policies meant to prop up the ailing coal industry.

Yet, market forces have delivered a different verdict.

“Trump will be the president that retires the most coal plants and installs the most solar systems, and clearly that was not what he was after. He’s the solar president,” says John Berger, chief executive of Sunnova, a Houstonbased solar company.

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Shell paid Nigerian government N1.7trn in taxes, royalties, fees in 2019 …Most payment to any government company reported ISAAC ANYAOGU

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nternational oil major, Royal Dutch Shell, and its subsidiaries paid the Federal Government of Nigeria over $5.6 billion which, at the exchange rate of N307/$1, comes to N1.7 trillion, the company disclosed in its sustainability report for 2019.

This amount, which represents about 20 percent of the 2019 budget, comprises payments for fees, royalties, production entitlements and taxes. It is also the highest payment to any government in the 28 countries Shell disclosed.

According to the disclosure, the Niger Delta Development Commission (NDDC) received $136.6 million as fees and the Nigerian National Petroleum Corporation (NNPC) received $3.9 billion as production entitlement.

Production entitlement is the host government’s share of production derived from projects operated by Shell.

“This includes the government’s share as a sovereign entity or through its participation as an equity or interest holder in projects within its sovereign jurisdiction,” the company said.

The oil company also paid $1.062 billion as taxes to the

Federal Inland Revenue Service (FIRS) and $446.3 million as royalties to the Department of Petroleum Resources (DPR), the upstream oil and gas regulator. It further paid the DPR another $239,175 as fees.

In 2019, Shell paid and collected more than $61.3 billion to governments.

“We paid $7.8 billion in income taxes and $5.9 billion in government royalties. In addition, we collected $47.6 billion in excise duties, sales taxes and similar levies on our fuel and other products on behalf of governments,” the company said in a release.

Payment to the Nigerian

government represents about 9 percent of the global payments the company made to 28 governments last year.

Shell has been active in Nigeria for over 50 years. The Shell Petroleum Development Company of Nigeria Limited (SPDC) is the largest Shell company in Nigeria and produced the country’s first commercial oil exports in 1958.

SPDC is the operator of a joint venture (the SPDC JV) between the governmentowned NNPC (55 percent share), SPDC (30 percent), Total E&P Nigeria Ltd (10 percent) and the ENI subsidiary Agip Oil Company Limited (5 percent).

Stopping community spread of Covid-19 is FG’s immediate task – SGF ...says only Buhari can decide extension of lockdown on Lagos, Abuja, Ogun Joshua Bassey

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he immediate task before the Federal Government is to prevent the spread of the Covid-19 pandemic in communities around the country, Boss Mustapha, chairman, Presidential Task Force on Covid-19 and secretary to the government of the federation (SGF), said in Lagos on Tuesday.

Mustapha was in Lagos alongside other members of the task force to inspect facilities in the state.

Community transmission of coronavirus disease appears to be on the rise, with Akin Abayomi, Lagos State commissioner for health, saying on Monday that it accounted for 45 percent of new infections in Lagos currently.

“The basic strategy of the national response is containment, to try as much as possible to reduce the spread by tracking those that have already been infected so that we minimise the case of community transmission,” Mustapha said.

After visiting facilities such as the 100-bed Onikan isolation centre, Lagos University Teaching Hospital

(LUTH) and the Gbagada General Hospital, the task force rated Lagos’ level of preparedness against the virus very high, describing some of the facilities already in place in the state as world-class.

“We’ve taken a tour of this facility (Onikan) which is very important place in anticipation that we’ll have to receive more patients here. So far, I think Lagos State is doing a great job.

From what I’ve seen here, they’re putting up a firstclass and world-class facility that will help us in the management of those that are affected,” Mustapha told journalists after inspecting the Onikan centre.

He noted that plans and processes so far put in place by both the federal and state governments were such that would help to achieve the objective of curtailing the Covid-19 spread.

“I listened to the Lagos State commissioner for health where he said there are indications that the lockdown and the processes that have been put in place are achieving the desired objective,” said Mustapha.

“And I would ask you, the

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IMF working to respond to Nigeria’s request - Managing director

Seyi Makinde (r), governor, Oyo State, and Temitope Alonge, acting chairman, Oyo State Covid-19 Taskforce, during the SEGUN ADAMS governor’s inspection of Infectious Disease Centre, Olodo, Ibadan.

BusinessDay kicks off webinar dialogue series …as participants task managers on support for employees during COVID-19 lockdown TELIAT SULE & FRANK ELEANYA

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uman resources experts on Tuesday said the stayat-home period could be an opportunity for leaders of organisations in Nigeria to provide emotional and psychological support for their employees.

This is especially important because the level of care displayed by employers to their staff during the lockdown would go a long way to determine how they show up at work when the crisis is over and the lockdown is lifted, they said.

The experts spoke during a webinar organised by BusinessDay, Nigeria’s premier source of financial and business intelligence, in conjunction with telecommunication

giant MTN Nigeria.

Tagged MTN-BusinessDay Digital Dialogue, the webinar, which is the first of a series, examined the theme ‘Layoffs, Pay cuts, Redundancy: Businesses, what are your options?’. It was moderated by Nneka Eze, partner, Dalberg Advisors.

“This is a very special time for everyone; it is new to every organisation,” Adaora Ikwuemesi, director, Kendor Consulting, said while speaking on ‘Lay-offs, Pay cuts, Redundancy: Businesses, what are your options?’

Because no organisation had foreseen the depth of impact the coronavirus pandemic would have on not just organisations’ revenue but on the global economy, addressing issues around lay-offs have to be done differently, www.businessday.ng

Ikwuemesi said.

In that regard, organisations should be transparent with their employees, she said. For instance, if members of staff are made to realise the state of the company’s income, it would aid their understanding when they are asked to take a pay cut.

Ikwuemesi also said it would help if the discussions started before the lockdown order was given.

Nigeria declared a lockdown in Lagos, Abuja and Ogun State beginning on Monday, March 30, after confirmed cases rose sharply.

Prior to the federal declaration, states like Kaduna and Kwara had already imposed curfews.

“We began discussions about lay-offs and pay cuts two weeks to the lockdown,”

Ikwuemesi said.

Although the digital dialogue programme was the maiden edition, participants were from the manufacturing, agriculture, education, retail, consulting and other sub-sectors.

According to the attendance analysis carried out by BusinessDay Research and Intelligence Unit (BRIU), 54 percent of the professionals that participated in the programme are from the consulting sub-sector; 8 percent from the manufacturing; 3 percent from retail business (restaurant); 2 percent from the agriculture and agro-allied subsector, while 32 percent indicated their sectors as “others”.

In terms of businesses

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he International Monetary Fund (IMF) is working hard to respond to the request for funds made

by Nigeria so that a proposal can be considered by the Executive Board as soon as possible.

Kristalina Georgieva, managing director of the IMF, disclosed this in a statement.

“Nigeria’s economy is being threatened by the twin shocks of the COVID-19 pandemic and the associated sharp fall in international oil prices.

President Buhari’s administration is taking a number of measures aimed at containing the spread of the virus and its impact, including by swiftly releasing contingency funds to Nigeria’s Center for Disease Control and working on an economic stimulus package that will help provide relief for households and businesses impacted @Businessdayng

by the downturn,” Georgieva said.

“To support these efforts, Nigeria’s government has requested financial assistance under the Fund’s Rapid Financing Instrument (RFI). This emerg enc y financing would allow the government to address additional and urgent balance of payments needs and support policies that would make it possible to direct funds for priority health expenditures and protect the most vulnerable people and firms. We are working hard to respond to this request so that a proposal can be considered by the IMF’s Executive Board as soon as possible,” she said.

Nigeria’s finance minister disclosed on Monday that the country would seek as much as $3.4 billion from the IMF to shore up its finances at a time the coronavirus pandemic is taking a toll on economies globally, especially oil producers.

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We must stay the course on lockdown...

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ending the first half of this game. There should be

Gridlock on Abuja-Kubwa-Zuba Expressway as motorists try to cross the blockage by law enforcement agents in spite of the total lockdown government directives to contain the spread of COVID-19 in Abuja, yesterday.

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Fragile States face fiscal storms as...

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internally generated revenues (IGR) for nine months of the year show that state governments on average generate less than 25 percent of their monthly income internally.

States such as Bayelsa, Kebbi and Yobe would have their finances hit hardest as they rely on FAAC payouts for about 98 percent of their revenues, while Katsina, Taraba and Bauchi States follow next, having exposed 96 percent of their finances to the volatility that comes from oil.

On the other hand, states such as Lagos and Ogun, the outliers, have their states’ finances exposed to volatility in FAAC payments to the tune of 49 percent and 55 percent, respectively.

The Nigerian economy is structured in such a way that the three tiers of government (federal, state and local governments) come together at the end of every month to share revenue. This revenue is majorly composed of income generated from the sale of crude oil, VAT income, as well as Petroleum Profit Tax (PPT).

Specifically, because crude oil accounts for more than 60 percent of government revenue and about 90 percent of the nation’s export earnings, earnings from crude oil deter-

mine how much is shared to the tiers of government.

The biggest expenses for most of the states are actually recurrent costs, and with the increase in minimum salaries to N30,000, it becomes a challenge asmostwouldbeunabletofund it,accordingtoOluwapelumiJoseph, head of investor relations at Africapractice.

“I see a backlog of salary payment which would lead to a contraction in economic demand and that would depend on whether the FG would be able to bail them out as we saw in the past,” Joseph said.

In 2017, the FG granted a loan bailout to states through the Central Bank of Nigeria (CBN) to enable them pay salaries and pensions after revenue slumped due to lower oil prices and FAAC disbursement.

Also, capital projects could be put on hold with negative consequences for growth.

“The FG can still find a way around the situation due to its sovereignty, as they can easily borrow from local markets due to low rates compared to the state governments,” said Moses Hammed, a research analyst at financial services firm, Investment One. “For most of the states, it would be a bad time for them as even the tourism and travel sector which should be a boost to the Internally Gener-

BusinessDay kicks off webinar dialogue...

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ownership, 35 percent of the participants indicated they are businesses owners while 65 percent are senior executives in companies across the country.

Folabi Kuti, partner at Perchstone & Graeys, said leaders in organisations have to lead from the front and make the same sacrifice they are demanding of their workers.

The issue of lay-off, pay

cuts and managing remote workforce to achieve efficiency are now at the front burner following the restrictions of movements as a result of the ravaging coronavirus.

All over the world, executives who profited from booming markets, thanks to their stock-heavy pay packages, are now faced with plunging share prices and the prospect of a painful recession that will shine a harsher spotlight on the highly paid.

In Europe, a number of www.businessday.ng

no retreat nor surrender at half-time.

Nigerians are not alone in the global reaction to the dangers posed by the coronavirus. Across Africa, notably South Africa, Rwanda, Ghana and Kenya, citizens are also staying home to stay safe. The logic of the lockdown is straightforward: the virus travels only if humans travel. It cannot, therefore, reproduce if we reduce the opportunity for such spread.

Half-measures will not work in efforts to contain the coronavirus. It is a sneaky and stealthy demon. Everywhere countries relaxed for a moment, they suffered a tremendous backlash in high numbers of cases. These are notably countries with more advanced healthcare facilities.

The Federal Ministry of Health and the Nigerian Centre for Disease Control report that Nigeria has tested 5,000 persons. It has taken six weeks to get to that number. With more facilities on the ground, the number of persons tested will increase.

The Nigerian incident load as at Tuesday, April 7, 2020 was 238, up from 190 only four days earlier. Tracking shows that the number of positive cases is growing rapidly in line with the increased tests. Recoveries are also looking good, while the number of deaths remains such as not to cause a scare.

Many recent deaths attributable to the virus have come from persons who tried to game the system.

In Lagos and Benin as well as Ilorin, patients died who hid their status from the hospitals. In the process of such unethical conduct, they exposed healthcare staff to the disease. It was unfair, illogical and illustrates the dangers of cutting corners.

Fellow Nigerians, we cannot afford to cut corners in this matter. From the work of the NCDC and experience in other countries, we envisage that Nigeria may need another two to four weeks of lockdown. The containment effort demands no less to ensure efficient tracing of the about 6,000 persons the au-

ated Revenue is affected due to the coronavirus pandemic,” Hammed said.

If recent pronouncements by the fiscal authority are anything to go by, it simply means the FACC pie is shrinking at an alarming pace.

Fearing that the monthly receipts may decline to below N400 billion over the next three to six months, and as part of plans to augment for the dwindling revenue, Finance Minister Zainab Ahmed has got the green light from President Muhammadu Buhari to withdraw $150 million from the Nigeria Sovereign Investment Authority (‘NSIA’) Stabilisation Fund to support the June 2020 FAAC disbursement.

The amount is equivalent to N57 billion ($1/N380), which may not do much to put a dent in the FAAC hole.

The Stabilisation Fund was created to act as a buffer against short-term macroeconomic instability.

Ahmed said the government is also exploring other options to augment FAAC disbursements over the course of the 2020 fiscal year.

In view of the reality in international markets, Ahmed announced a review in the benchmark oil price for the 2020 budget to $30/barrel and oil production to 1.7 mbpd, while also adjusting downwards non-oil revenue projections including various tax and

customs receipts, as well as proceeds of privatisation exercises.

To escape the impending doom, Gbolahan Ologunro, analyst at CSL Stockbrokers, suggested states cut down on their cost of governance by curtailing expenses and reducing wastage in MDAs to free some cash for salary payment.

Ologunroalsoadvisedstates to do more in attracting Foreign Direct Investments (FDI), noting that state governments have very limited options in terms of policy measures they can implement in coping with declining oil revenue.

Analysts also say the coronavirus pandemic has further exposed the gap in the country’s leadership, exposing 60 years of focusing on the wrong priorities to the detriment of health and education.

The country is in deep trouble with dwindling revenue and government officials unaware of where the bottom is. However, there is still an opportunity in the crisis as analysts told BusinessDay that Nigeria must focus on what really matters: health, education, and seize the opportunity or risk huge social disruption.

An earlier plan for NSIA to take over moribund roads and rails should include hospitals, business leaders told BusinessDay. These should be managed through a special purpose vehicle or SPV (to raise funds) and run through Joint Ventures with the private sector.

leading football clubs such as Barcelona, Juventus and Tottenham Hotspur have implemented pay cuts as much as 70 percent on their players and other employees.

In the UK, more than three dozen companies have cut their top executives’ wages so far, according to research by the Financial Times and Minerva, the investment adviser.

In the US, the salary-sacrificing announcements began with executives from the likes of Delta Air Lines and United Airlines, whose companies were among the first and hardest hit.

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media people, to continue to broadcast out there that we need to maintain social distance, we need to maintain personal hygiene and we need to report anybody within the community that has shown symptoms of the infection, so that as quickly as possible, the help that is desired can be extended to those persons,” he said.

Mustapha also said only President Muhammadu Bu-

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hari could decide whether or not the current 14-day lockdown on Lagos, Ogun and Abuja would be extended.

Buhari had on Sunday, March 29, pronounced a 14-day lockdown on Lagos, Abuja and Ogun State with effect from 11pm on Monday, March 30 – as part of measures to contain the spread of the virus. The lockdown is now in its second week.

Mustapha said part of the @Businessdayng

thorities fear did not comply with isolation procedures.

Experts fear there may be far more following the era of community infection that we have now entered.

Lagos State Governor Babajide Sanwo-Olu has hinted at the possibility of extending the lockdown. The facts of the situation bear out his concern and projection. Containment rather than treatment is the best measure for Nigeria on the coronavirus issue.

However, containment via the lockdown route is tough. It is very tough on citizens in a country with most low-income earners in the unorganised private sector. Citizens earn and live on their daily sweat.

Long shutdowns are almost impossible.

Governments at all levels must then do more and better with the palliatives to enable this lockdown work. Many of the official efforts have been puny and desultory. In Lagos, angry but poor residents scorned the efforts of the Speaker of the House and turned it into a plaything. It was a matter of two wrongs remaining wrong.

We call on the federal and state governments to engage better. They must design better palliatives that take into cognisance the structure of our society. The private sector should also be fully involved.

In most states, citizens are organised along occupational lines or by communities. Anyone intent can reach Nigerians through their occupational associations or their community associations. We can organise sustainable and effective palliative measures, including soft loans that put money in their pockets. Economic activities should be scheduled to reduce comingling, maintain social distancing while enabling people to meet their needs.

We must prepare better for the extension of the lockdown. It is a marathon that Nigerians can engage if persons in authority make it a journey to which they can look forward. The prize would be worth the price everyone pays. reason the committee visited Lagos, which is the epicentre of the coronavirus pandemic, was to assess to what extent the objective of the lockdown has been achieved.

He noted that the committee would be making recommendations to the president based on its observations in relation to the objective of the lockdown.

“At the end of our visit, we will make our recommendations and only Mr President alone will decide whether to extend the lockdown,” he said.

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More Nigerian varsities enter the fray with commitment to beat coronavirus KELECHI EWUZIE

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he outbreak of Coronavirus appears to have jolted Nigerian universities to the reality of their roles in contributing intellectually in tackling the pandemic.

In the last couple of weeks, Nigeria has seen an increase in incidences of Covid-19 spread across some parts of the country, while Lagos State, the commercial hub of Nigeria, Abuja, the political seat of power, and Ogun State, are experiencing lockdown.

Those familiar with this subject observe that as Nigeria in particular, and the world in general, faces this unprecedented global challenge, universities should proactively respond to the challenges and shoulder their responsibilities at such times to demonstrate their commitment to society.

In response to this call, University of Benin, Bayero University Kano and University of Ilorin have put in motion steps to produced

hand sanitizers, ventilators, and other health products as part of support to combat the spread of the pandemic.

The University of Benin (UNIBEN) recently commenced mass production of liquid soap and hand sanitizers in a bid to check further spread of coronavirus in the country.

The initiative is part of proactive measures by the management, led by Lilian Salami, the Vice-Chancellor, to check the Covid-l9 pandemic.

Benedicta Ehanire, public relations officer of the university in a statement, says the management has also purchased more infrared thermometers to be deployed at all gates into the university to be operated by security personnel who have been trained for the crucial assignment.

On their part, Technical Entrepreneurship Centre (TEC) at the University of Ilorin (UNILORIN) has been contracted by the Kwara State government to produce hand sanitizers to the tune of over N30 million.

Jamiu Odusote, director

of the centre, explains that under the arrangement, the centre would produce four different sizes of hand sanitizer, which are 150ml, 250ml, 500ml and 1,000ml, saying the products will be of high quality.

Odusote observes that the centre has the capacity to produce large volume of hand sanitizers within a reasonable period of time, pointing out that the management would leave no stone unturned to ensure that the goods are delivered at specification.

Meanwhile, in Bayero University Kano, a team of engineering academics are working towards the fabrication of ventilator as a contribution of the institution’s quota towards fighting off the dreaded Coronavirus.

The university’s Faculty of Engineering has set up a seven-man committee with a view to producing prototype ventilators for an emergency use in Kano hospitals and other isolation centres as part of efforts to contain the pandemic, which has been threatening the country.

In a statement signed by Salisu Dan’ Azumi, a professor and dean of the Faculty of Engineering, discloses that the committee under the chairmanship of Abdussamad Jibia, a professor from the department of Mechatronics Engineering is expected to design and fabricate a prototype ventilator which would be used as an emergency measures in our hospitals.

A ventilator is a machine that aids people who cannot breaths on their own by pumping air in and out of their lungs through tubes passed through their windpipes.

Azumi noted that has two weeks within which to present its report to the Faculty Board including the design and construction of prototype ventilator for emergency use in hospitals and homes to treat patients of COVID 19 pandemic.

According to the statement, “The Committee is charged with the responsibility of suggesting the modality for mass production of the designed and fabricated ventilators. It would also give an estimate of the cost of producing the ventilators”.

Partial lockdown: Nasarawa residents cry out as government decries challenges posed by Coronavirus Solomon Attah, Lafia

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he partial lockdown of business premises and economic activities in Nasarawa State is beginning to affect the people and government of the state in less than one week of the restrictions to curb the spread of the pandemic.

Nasarawa State, which has no record of any confirmed case of Coronavirus, in spite it proximity to the neighbouring affected states and Federal Capital Territory (FCT), Abuja of the pandemic, considers it expedient to put in place measures as part of government responsibility to halt the spread.

Of note is concern, anxiety and outcry of the people who are calling on both the Federal and State governments to provide them with palliatives to cushion their plight during the 14-day period of “stay at home” directives.

The rising situation of hunger is gradually growing into a state the people cannot bear, as most of them did not foresee this coming, to adequately prepare for the lockdown.

For the state government, Governor Abdullahi Sule has raised the alarm over the economic challenges posed by the outbreak of Covid-19, which has begun to be felt and is affecting the payment of salaries in the state.

Governor Sule has said that, from this month, April, his government will cut cost of governance by 60 percent to enable the state attain to the emerging economic chal-

lenges, and therefore appealed to workers, traditional rulers and other stakeholders in the state to understand the realities on ground the government is faced with.

“The cut in cost of governance is to enable government give attention to the impact on economy of the state as well as to respond to any case of the pandemic in the state.

“After careful study by the budget sub-committee on COVID-19, government has resolved to cut down the cost of governance by 60 percent, with effect from April, 2020,” he says.

With this development, local government workers are to be affected with the cut in salary to about 75 percent, midst protest by the workers and organised labour union.

While some of the people viewed the partial lockdown as an opportunity to curtail the spread of the coronavirus, others are of the opinion that the directive by the state government was deliberately targeted at the poor masses to subject them to sufferings and penury.

In all these, one issue that posed a major challenge to the people within the period under review is that, those who depend on their small businesses for income to survive, or go out every day to hustle for their daily bread are beginning to cry out of hunger and starvation, as most of the things in stock are been exhausted.

Since the declaration of the partial lockdown, the state government is leaving no stone unturned to impact positively on the lives of the people.

Lafarge supports national Covid-19 efforts with various donations

L Customers waiting to be screened at Access Bank Agbani Road branch as part of the efforts to prevent the spread of Coronavirus pandemic in Enugu, yesterday.

Lagos fumigates Alausa secretariat in fight against coronavirus Joshua Bassey

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agos State government has begun comprehensive fumigation of the state secretariat at Alausa, Ikeja, as part of measures to contain the spread of the Coronavirus pandemic.

Before now, specially trained personnel from the state Ministry of Environment and Lagos State Environ-

mental Protection Agency (LASEPA) had been fumigating some public places within the metropolis, including the railings of the Lekki-Ikoyi Link Bridge and Admiralty Tollgate on Eti-Osa-Lekki Expressway.

On Tuesday, officials from the Ministry of Local Government and Community Affairs were seen directing fumigation workers, as they undertook the exercise in and

around offices at the secretariat, Alausa.

Some of the offices fumigated included the Ministry of Commerce, Industry and Cooperatives, Ministry of Transportation, Ministry of Home Affairs, the Baguda Kalto Press Centre, among others.

An official told BusinessDay that the exercise would be extended to cover the entire state secretariat before the resumption of workers

from the current lockdown.

According to the official, there are also plans to ensure that all the 20 local government areas in the state and 37 local council development areas (LCDAs) are fully covered in what is meant to curb the highly infectious disease.

Lagos currently has the highest number of the killer Covid-19, accounting for 120 out of the total 238 confirmed cases in Nigeria.

Maturing OMO bills to boost banking system liquidity to N862.7bn Hope Moses-Ashike

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he banking system liquidity which stood at about N731.8 billion last week Friday is expected to further rise to about N862.7 billion following anticipated maturing Open Market Operation (OMO) bills worth N130.9 billion.

Barring any Cash Reserve

Ratio (CRR) debit and substantial OMO sales by the Central Bank of Nigeria (CBN), analysts at Afrinvest Securities Limited expect the robust system liquidity to boost demand further as investors seek to re-invest maturing funds amid limited money market investment options.

“We anticipate more bluewww.businessday.ng

chip companies would issue commercial papers due to the persistent low interest rate environment,” the analysts said.

Meanwhile, Dangote Cement is seeking to raise up to N100.0bn 5-year Fixed Rate Senior Unsecured Bonds, under its N300.0bn debt issuance programme.

The CBN conducted an

OMO auction on Thursday, offering a total of N110.0bn across the 75-, 166- and 348Day instruments. Similar to previous OMO auctions, investors interest remained lacklustre as the short and medium term bills did not receive any subscription while the long term bill was grossly undersubscribed by 0.2x.

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afarge Africa plc, Nigeria’s operator of building materials firm, LafargeHolcim, has announced donations to support Nigeria’s capacity to combat the Covid-19 pandemic.

Lafarge Africa is providing the use of three of its facilities in its host states for use as isolation centres during the pandemic.

In addition, the company is donating equipment for facilities, product donations for infrastructural support including generators, ambulances and critical personal protection equipment (PPE) for professionals at the forefront of the battle against the Coronavirus pandemic.

In addition, interventions that support water sanitation and hygiene (WASH) initiatives have been enabled for the host communities. Furthermore, the company’s host community engagements and sensitization programmes on Covid-19 have so far directly impacted thousands of people at the grassroots level.

Khaled El Dokani, CEO, Lafarge Africa, said: “Our intervention will be used to support healthcare facilities in Lagos and in our host communities.

Infrastructure and kits to protect the healthcare personnel and support staff who take care of patients are very important to ensure that our compatriots fighting to help contain CO@Businessdayng

VID-19 do the job professionally and safely.

“The personal protection equipment we are providing will also play an important role in containing the spread of COVID-19. Our communities have been standing by us over the years in making building materials for the development of Nigeria. We are committed to standing by them and with the Nigerian Government and people in defeating COVID-19.”

Lafarge Africa has built and equipped health centres across its host communities and operates a modern healthcare facility in Ashakacem, Gombe State, which is fully accessible to community members. Staff at the facility have undergone training in identifying and reporting the symptoms of COVID-19. While the COVID-19 pandemic is an unforeseen emergency, the longstanding commitment to high standards of safety and welfare of staff and stakeholders has enabled the company to quickly rise to the challenge of curtailing the spread of the virus.

El-Dokani further stated: “Beyond the strict safety measures we have put in place across our offices and plants, including adopting remote working, and the donation of personal protection equipment, we have also supported the fight against COVID-19 through public communications on preventive measures.

Wednesday 08 April 2020

BUSINESS DAY

Covid-19: Sahara Foundation, ThisDay to deliver 200-bed isolation centre to NCDC SEGUN ADAMS

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ahara Foundation, the corporate social responsibility vehicle of Sahara Group, in collaboration with ThisDay, will deliver 200bed isolation, recovery and treatment centre to support the Federal Government in containing the Covid-19 pandemic, the Foundation has said.

The facility has a potential of holding 300 beds for isolation, recovery and treatment of patients and will be situated in Abuja. The Federal Capital has the second highest number of patients with COVID-19. “ The iconic ‘ ThisDay Dome’ will house the centre which is due for completion

by April 20, 2020,” said Emeka Onwuamaegbu, chairman of the Foundation.

The Foundation in a press statement said, “The facility will be run by professional doctors and health care workers with ventilators and other appropriate medical equipment.”

Ac c o rd i n g t o Sa ha ra Charitable Foundation, the project, which will be handed over to the Nigerian Centre for Disease Control (NCDC) through the Federal Capital Development Authority, is being supported by other partners in keeping with the spirit of collaboration which

has seen the nation rise to the challenge of tackling the scourge as one indivisible and cohesive unit.

China Civil Engineering Construction Corporation (CCECC) Nigeria facilitated the civil works required to prepare the ThisDay Dome for seamless conversion into the isolation centre at no cost; extensive construction work is has begun at the Dome in order to deliver the facility on schedule.

Other partners include the Arise News, Egbin Power plc, Abuja Electricity Distribution Company (AEDC), Nigerian National Petroleum Corporation (NNPC) representing stakeholders in the oil industry, Africa Finance Corporation (AFC), and Central Bank of Nigeria (CBN).

“We are also grateful to the Presidency, the Ministry of Foreign Affairs, Ministry of Health, The Regent School, Kenol Engineering, Mama Cass Foods, Wood Factor y, Ebewele Brown Clothiers, Dr Madu (the medical coordinator) and the NCDC for their unwavering support and service,” said Onwuamaegbu.

The Foundation said the project would help save lives, accelerate the process of halting the COVID-19 menace and ultimately propel the nation’s march towards sustainable development across all sectors of the economy.

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news Covid-19: Lagos roads busy, traffic Iron Capital announces partnership build-up in Apapa amid stay-at-home order with Australian government CHUKA UROKO

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radually but steadily, the hustle and bustle that define Lagos as a ‘mega’ city is returning to the roads and bridges with relatively heavy vehicular and human traffic amid movement restriction and stay-at-home order imposed on the state by the Federal Government.

Apapa, the state’s port city, is fast returning to the old order of heavy traffic with trucks occupying over 50 percent of the Ijora-Apapa Bridge and slow movement of cars inwards the ports.

The Federal Government had, on Monday, March 30, 2020, locked down and ordered restriction of movement and stay-at-home by the residents of Lagos, Abuja and Ogun states as part of measures to contain and curtail further spread of the dreaded coronavirus pandemic.

Lagos State government had earlier banned public gatherings, closed down schools and markets except those selling food items. But things seem to have fallen apart as residents have started ‘pouring’ into the roads and going about as though there were no order in place.

“Everybody don dey vex

www.businessday.ng

and so they can’t stay for house again,” a police officer at a checkpoint on Isolo Road responded to a question from BusinessDay as to why the road was so busy. The police officer who looked so detached from the work he had at hand added that the people were hungry and nobody was attending to their needs.

Lagos is increasingly becoming a worrisome case. As at Monday, April 6, 2020, the state has 120 laboratory confirmed cases with 86 cases on admission. 31 cases had been discharged while two cases were dead.

“This is not even my main headache; the greater worry is that it is reported that about 45 percent of the cases in the state is now community transmission, meaning that unless something urgent is done, the spread in the coming days and weeks will be terrific,” said Cyril Emeh, a public health worker.

Emeh noted that both the federal and Lagos State governments were not getting their priorities right, explaining that the federal government shouldn’t have b e en shar ing mone y in states where there is no lock down, leaving the states, especially Lagos, that have been shut down for more than a week now.

https://www.facebook.com/businessdayng

BUNMI BAILEY

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ron Capital, an Africafocused corporate finance and financial advisory firm, has announced its partnership with the Australian G overnment, through its Australian Trade Commission (Austrade).

The new par tnership allows Austrade, the trade a n d i nv e s t m e nt a g e n c y of the Australian Government, leverage on the extensive network of contacts that Iron Capital has cultivated on the African continent to support Australian businesses making a foray into Africa, with a special focus on Nigeria, Ghana, Kenya and Zambia.

The refer ral par tnership will leverage on Iron Capital’s vast expertise in financial advis or y, corp o ra t e f i n a n c e, p ro j e c t finance, market penetration strategies and regulator y advisor y ser vices to help Australian comp a n i e s nav igat e ma rk e t entry with the aim of establishing a presence in the continent. Iron Capital’s selection also means that it would provide the same services to African companies interested in doing business with Aus@Businessdayng

tralian firms.

“Africa is the future of growth, and the decision of Austrade to strategically focus on Australia-Africa trade could not be coming at a better time,” said Jubril Enakele, chief executive of Iron Capital.

“From inception, Iron Capital has pursue d an Africa-wide agenda with a vision to helping its clients navigate the business terrain on the continent. This is reflected in the trust that Austrade has placed in us by appointing Iron Capital as their referral partner to Australian businesses,” Enakele said.

Kym Fullgrabe, senior trade commissioner, Africa, for the Australian Trade and Investment Commission, said, “Austrade has an extensive network of more than 70 offices in around 50 countries in the world, and we rely on our chosen re f e r ra l p a r t n e r s t o a s sist Australian companies looking to enter foreign markets.”

With this partnership, Australian entities are ensured of trusted and established support in an otherwise unfamiliar terrain – a vital service, especially in countries where Austrade does not have a physical presence.

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Wednesday 08 April 2020

BUSINESS DAY

news

Nigeria, nine others lost over $19bn in revenue to gas flare Olusola Bello

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igeria and nine other countries noted as notorious for gas flaring lost revenue to the tune of over $19 billion in 2019 for failing to monetise the gas.

The countries - Algeria, Angola, Indonesia, Iran, Iraq, Libya, Russia, the US and Venezuela - represent the key global flarers of associated natural gas because they produce over 80 percent of all the flared gas.

According to Anna Belova, senior oil and gas analyst at GlobalData, “Gas flaring is not only a pollution issue, but also represents significant forgone revenues and economic loss.

Ten countries flared over 9.5 billion cubic feet of gas per day (bcfd) in 2019, which exceeded

Germany’s demand for natural gas that year. The value of gas flared by top 10 countries exceeds $9.5 billion if priced at the US Henry Hub gas prices and adds to $19 billion if priced at the UK National Petroleum Board (NPB) prices.”

Belova states that lack of access to markets and small volumes of gas produced at individual sites typify the main reasons behind significant flaring volumes globally.

Low domestic gas prices in the US, Russia, Iran, Nigeria and Algeria further exacerbate the situation.

However, the Federal Government of Nigeria has approved the Nigerian Gas Flare Commercialisation Programme. The programme, which was launched in 2016, will offer flare gas for sale by the government through a trans-

parent and competitive bidding process.

A structure has been devised to provide project bankability for the Flare Gas Buyers. The purpose of the gas flare commercialisation programme is to reduce the flaring and venting of associated methane gas.

The Department of Petroleum Resources (DPR) recently said the Bid Submission Due Date (BSDD) of the Request for Proposal (REP) of the Nigeria Gas Flare Commercialisation Programme (NGFCP) had been extended by six weeks.

Paul Osu, head, public affairs, DPR, made the announcement in a statement, saying the extension was sequel to the Bidder’s Conference held February 17, 2020, in respect to the NGFCP. Osu said: “Accordingly, the new submission due date shall

be April 10. Consequently, qualified applicants should note that inputs, comments and observations on the draft Gas Sales Agreement (DSA) Milestone Development Agreement (MDA), Connection Agreement (CA) and Deliver or Pay Agreement (DoPA) posted on the portal were expected on or before March 5.

“Furthermore, the DPR shall provide relevant updates for data prying and leasing in the Data Room as necessary within the next one week.”

In a bid to further incentivise the programme, the minimum floor price for flared gas would be $0.25 per million standard cubic feet (mscf ) for Land Sites; Swamp and Shallow Offshore Sites would be $0.15/mscf while Deep offshore minimum floor price would be $0.10 /mscf, he said.

Covid-19: Delta sets up food bank, says no cash to citizens Mercy Enoch, Asaba

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elta State government has disclosed that it has set up a Food Bank as part of palliatives to cushion the effects of the lockdown imposed on the people, against the spread of Coronavirus.

The government also says all political appointees in the state would also forfeit their one month subvention to their offices as contribution to the funds to provide palliatives to the people of the state.

Charles Aniagwu, state commissioner for information, made the disclosure to newsmen in Asaba, Monday, after an enlarged meeting of committee on containing and managing of Covid-19 pandemic in the state, chaired by Governor Ifeanyi Okowa, though the state was yet to record any confirmed case of the virus.

The commissioner for special duties, Mode Pirah, in his contribution, said the state government was not going to give cash to the people, saying, “What every home needs now is food and we have been receiving food items and different donations from individuals and corporate organisations at our food bank in Ibusa.

“Food will get to the needy, people who cannot make purchase but we should be patient and know that the lockdown will soon come to an end.”

At the food bank, items were said to be discharged from trucks and Pirah, who received the goods on behalf of the state government, expressed gratitude to the donor, Jayta Petroleum and Commodities Nigeria Limited.

He stated that the firm, Mercyland, a church in Warri, among others, had made donations that ranged from bags of rice, tubers of yams to noodles to complement the items already procured by the state government for distribution to the people.

Emmanuel Akuba, group managing director of Jayta Petroleum and Commodities Nigeria Limited, stated that donating the food items was very important at this period of the pandemic, as it was meant to assist the state government in reaching out to the needy in the society.

Itiako Ikpokpo, chairman, Association of Local Government Chairmen (ALGON) in the state, disclosed, “We are expanding the market hours to between 8am and 2pm,” adding that same was applicable to petrol stations because of what the governor had for the welfare of Deltans.

WhatsApp reduces forwarded messages allowance to curb spread of fake news Jumoke Akiyode-Lawanson

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Shops at Dosumu Market, Lagos Island, closed down in compliance with the Federal Government directive against the spread of Coronavirus in Lagos.

Pic by Olawale Amoo

Edo shuts markets from Wednesday for fumigation ... markets to temporarily relocate to public schools

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do State government has directed the shutdown of markets in the state from Wednesday, April 8, 2020, for the commencement of fumigation of the facilities.

The deputy governor and chairman, Edo State Covid-19 Response Technical Committee, Philip Shaibu, who disclosed this in a press briefing, said fumigation of the markets would commence from the day of closure.

According to Shaibu, “All markets in Edo State are to be shut down effective from Wednesday, April 8, 2020. The state government will undertake the fumigation of the markets from the day of closure.”

He said the Edo State governor, Godwin Obaseki, would be out of isolation tomorrow and would thereafter lead the response efforts against Covid-19, saying the markets were to be relocated to designated public primary and secondary schools within the market’s vicinity.

He noted that the government had recommended the use of face masks as a government sanctioned precautionary measures against Covid-19, adding, “We have met with traditional and religious leaders to work out

modalities for the implementation of different precautionary measures against COVID-19.”

He continued, “The University of Benin Teaching Hospital (UBTH) has been designated as a holding/isolation centre. Isolation facilities are being made more comfortable for patients, as TV and Air Conditioning (AC) sets have been installed. Nigeria Centre for Disease Control (NCDC) reports that people are coming for voluntary testing.”

Secretary to Edo State government, Osarodion Ogie urged market leaders in the state to sensitise their members to ensure they maintain social distancing in the market, as coronavirus has no respect for any person.

“Coronavirus has no cure but the only cure is for us all to listen and obey government’s directives and instructions on measures to follow to check the pandemic.”

Commissioner for information and orientation, Paul Ohonbamu commended the press in the fight against the spread of Covid-19, urging the citizens to stay at home as the virus doesn’t move but people who move contract and spread the virus. www.businessday.ng

Rivers Covid-19 update: Index case exits

as one new case moves in Ignatius Chukwu

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ivers State commissioner of health, Princewill Chike, has said Rivers first case, a 19-year-old model, is twice negative and will exit later Tuesday evening. Of the 105 contacts of the model, only 15 are still under observation.

Others have exited.

New case that proved positive Monday evening, a male, has replaced her, though in the male section. The new case returned from abroad through an airline. He was under surveillance for almost two weeks and his test came down positive on Monday.

Tracking and tracing of the contacts of the second case began Tuesday morning, according to the commissioner.

The team has requested for the manifest of the flight that brought him to Port Harcourt for effective tracing. He had observed some degree of isolation upon return to the state.

Rivers State government is making efforts to procure the major testing machine from Holland, but global demand surge is causing delay, and the testing centre in Port Harcourt will soon come into view, he said.

On the question on who is building the 250-bed treatment centre at Elekahia, Port Harcourt? The Federal Government through the special assistant to the President, Yuri Ngelali, says it is the Federal Government in collaboration with the Central Bank of Nigeria (CBN).

But the Rivers health commissioner said for the governor to be supervising it, newsmen should ‘count their teeth with their tongue’.

He said it was wrong for anyone outside minister of health (federal) or commissioner of health in a state to speak on any health matter.

However, neighbourhood markets resumed in the state from 7am to 12noon on Tuesday and Wednesday only, to enable the people restock and prepare for Easter. Some persons have however asked that it should be till 6pm to avoid rush and close contacts or hike in prices. Major markets, especially at the boundaries, were not allowed to open.

It has been alleged that bribing is now a new racket at the boundary of Rivers State; for persons to pass at N500 per passenger who must cross on foot, while vehicles are turned back from crossing the boundaries.

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hatsApp, a popular mobile chat application Tuesday, announced that it would be reducing the number of “highlyforwarded” messages on chats from five down to one.

This would mean that a message forwarded by someone who is not a close contact can only be re-sent to one other contact in order to curb the spread of unverified/fake news.

In a blogpost, Whatsapp said, “Last year, we introduced users to the concept of messages that have been forwarded many times. These messages are labelled with double arrows to indicate they did not originate from a close contact. In effect, these messages are less personal compared to typical messages sent on WhatsApp. We are now introducing a limit so that these messages can only be forwarded to one chat at a time.

“As a private messaging service, we’ve taken several steps over the years to help keep conversations intimate.

For example, we previously set limits on forwarded messages to constrain virality. At the time, we saw a 25 percent decrease in total message forwards globally.”

Although not all forwarded messages are bad, as many users are indeed using the platform to forward helpful information as well as funny videos, memes, and reflections or prayers that they find meaningful, WhatsApp says it has recently seen a significant increase in the amount of forwarding which users have complained of being overwhelming and can contribute to the spread of misinforma@Businessdayng

tion.

“We believe it’s important to slow the spread of these messages down to keep WhatsApp a place for personal conversation,” the company said in its blogpost.

In addition to this change, WhatsApp says it is working directly with NGOs and governments, including the World Health Organisation (WHO) and over 20 national health ministries, to help connect people with accurate information.

“Together these trusted authorities have sent hundreds of millions of messages directly to people requesting information and advice. You can learn more about these efforts, as well as how to submit potential myths, hoaxes and rumors to fact checking organizations, on our Coronavirus Information Hub,” it said.

With billions of people unable to see their friends and family in person due to COVID-19, people are relying on WhatsApp more than ever to communicate.

WhatsApp’s over 2 billion users around the world feel secure talking to doctors, teachers, and isolated loved ones via WhatsApp during this crisis.

This is because all messages and calls on WhatsApp are endto-end encrypted by default to give users a secure place for their most personal conversations. “ We b e l i e v e t h a t n o w more than ever people need to be able to connect privately. Our teams are hard at work to keep WhatsApp running reliably during this unprecedented global crisis.

We’ll continue to listen to your feedback and improve ways for people to share with each other on WhatsApp,” the company said.

Wednesday 08 April 2020

BUSINESS DAY

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BUSINESS DAY

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Wednesday 08 April 2020

BUSINESS DAY

MARITIMEBUSINESS Shipping

Logistics

Maritime e-Commerce

Kobo360 seeks free movement for trucks lifting essential goods during lockdown amaka Anagor-Ewuzie

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obo360a techenabled digital logistics platform, has called on the Federal Government to give a clear directive that would enable drivers of essential goods to move freely with correct identification in order to keep goods and services moving across the country.

According to the firm, since the Federal Government announced restriction of movement around the countr y to contain the spread of Coronavirus, over 3,000 drivers on the Kobo360 platform have parked their trucks over the assumption that trucks and cargo would be impounded by law enforcement agencies during this lockdown.

“This is a critical time for food security and trade, we cannot afford to stop all trade or drastically disrupt and up-end the supply chain. Kobo360 is now on high alert, and foresees that agro-produce, medical and key items will run out across supermarkets and

major markets in the next few days,” said a statement signed by Towsyn Omowole, PR Account Executive of Wimbart Public Relations.

Stating that Kobo360 urgently wants government to issue a clear statement that would make drivers not to be afraid of being arrested, Omowole said that there is need for the drivers to come back onto the road to keep

the wheels of supply chain moving.

“Over the last couple of weeks, Kobo360 and Africa’s logistics industry as a whole has seen startling figures impacting trade and movement of goods. For instance, around 90 percent of vessels have delayed their arrival time by as much as 40 days; the volume of goods moved across the continent

dropped by 30 percent; agro produce has the highest drop of 50 percent followed closely by pharmaceuticals with 40 percent drop, and 25 percent drop in FMCG,” Omowole pointed out.

Comparatively, Omowole said that Kenya has the highest drop with about 40 percent in movement, Nigeria not far behind with 32 percent while Uganda

COVID-19: NIMASA hands over ventilators, two vessels, relief materials to LASG … Disinfects Apapa environs with fire fighting trucks amaka Anagor-Ewuzie

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he Nigerian Maritime Administration and Safety Agency (NIMASA), has flagged off the distribution of relief materials including fast intervention vessels, ventilators, ambulances, cash donations and personal protective equipment (PPEs) to Federal and State Governments towards the fight against the spread of Coronavirus in Nigeria.

At the first instance, the agency handed over two intervention vessels, about three ventilators, three ambulances, testing materials and other PPEs materials to the officials of Lagos State Government.

Speaking during the flagoff ceremony in Lagos on Monday, Bashir Jamoh, director general of NIMASA, said the agency had also finalised arrangement to

spread chemicals within Apapa in order to ensure that the environment is kept healthy and free from the deadly virus.

“We are here to flag off the distribution of some of the relief materials including ventilators, testing materials, PPEs and ambulances. In distributing these materials, we looked at the six geopolitical zones, apart from South-west in Lagos; we are going to give to South-east in Anambra, North-east in Maiduguri, North-west in Kaduna, North-Central in Kwari and FCT, Abuja,” he said.

According to him, NIMASA decided to give the donation of vessels to all its landlords where they operate such that in the Western zone, two vessels would be given to Lagos; one vessel given to Port Harcourt in the eastern zone; one vessel given to Warri in the Central Zone, another one vessels to www.businessday.ng

Onne as well as one other vessel in Calabar.

“We are regulatory agency and we take the issue of the coastal communities very seriously. Most of the people in the coastal communities do come to the hinterland from time to time, and in the event of any outbreak, the authorities could be able to use the fast intervention vessel on the waterway to move the patient,” he explained.

While commending the Lagos State government as well as the Nigeria Centre for Disease Control (NCDC) for the efforts put into controlling the spread of the virus in Nigeria, he stated that the relief materials were given in addition to the N50 million cash donation, which would be shared N20 million to Lagos State and N30 million to Abuja.

Jamoh, who noted that it was very difficult to deter-

mine how much the agency invested in the acquisition of those relief materials, stated that one ventilator cost as much as N15 million.

On his part, Rabiu Olowo, Lagos State Commissioner for Finance, who received the donation on behalf of the Lagos State Government, thanked NIMASA for the kind gesture.

He promised that the State Government would make judicious use of the equipment as well as the cash donation towards the fight against the pandemic in the state.

Re ca l l t hat N I M A SA pledged to give out medical equipment including 20 ventilators, 60 beds, 20-patient ICU monitors, 20 oxygen concentrator, 10 infusion pump, 10 syringe pump, 20 oxygen giving set, 10 suction machine and 100 set of PPEs to enhance the fight against the Coronavirus in Nigeria.

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has increased its export by 100 percent. “ These numbers are expected to soar over the next few weeks, impacting manufacturers who depend on raw materials. With lockdown and border closures in Kenya, Nigeria and other African countries, Kobo360 is committed to keeping trucks on the road to ensure tens of millions of people do

not go without food, sanitation goods and medical supplies,” Omowole added.

Continuing, Omowole noted that “Kobo360 is calling on African governments to continue to allow drivers with cargo to cross borders and ensure continuity of trade, so that essential goods can move freely, during these challenging times.

Omowole however assured that the firm uses preventive measures that include providing hand sanitizers to employees and drivers as well as implementing working from home order in certain jurisdictions to ensure safety.

Kobo360 also uses Global Logistics Operating System (G-LOS) which provides remote access to the supply chain by allowing for business continuity during the pandemic and facilitating a steady stream of trips.

Using G-LOS enables for operations to continue without the need of physical interaction or pitching for jobs with cargo owners.

It covers funding for trips, subsidised fuel, tyres and spare parts for maintenance.

Four commercial banks opened Apapa branches to ease cargo clearing - Bello amaka Anagor-Ewuzie

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our commercial banks including Zenith, UBA, FCMB and GTBank have agreed to open few of their branches in Apapa to ease transactions for cargo owners and their freight forwarders during the period of lockdown in Lagos State, embarked on to contain the spread of Coronavirus pandemic, said Hassan Bello, executive secretary of the Nigerian Shippers Council (NSC).

Speaking while addressing stakeholders in the Council’s office in Apapa at the weekend, Bello said Nigerian ports cannot afford to have the terminals clogged up with more uncleared cargoes.

He added that the Council is presently discussing with other banks to join in the effort to ensure that the port remain operational as directed by President Muhammadu Buhari.

“Considering the impact of port activities on the economy, we have been discussing with banks to extend their @Businessdayng

services to port operators in order to allow for payment of fees to various agencies and to facilitate clearance of cargoes from ports,” Bello stated.

According to him, seaports in the hardest hit countries have continued without hindrance, and goods have continued to move around.

Manufacturing of goods cannot be halted otherwise economies would be in bigger trouble than they are set to be as a result of the COVID-19 pandemic.

He said that many essential commodities, particularly drugs, medical equipment and consumables need to be imported by many countries including Nigeria.

“As Port Economic Regulator and trade facilitator, Nigerian Shippers’ Council has taken steps to ensure that cargo flow continues. It is against this background that the Nigerian Shippers’ Council stepped up its engagement with port operators by providing transportation to and from the ports daily for freight forwarders during the period if the lockdown,” he added.

Wednesday 08 April 2020

BUSINESS DAY

AGRIBUSINESS

39

In association with

ag@businessdayonline.com

Nigeria’s cashews languish in warehouses as coronavirus spread hurt export

…prices down 57% Josephine Okojie

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igeria’s c a s h e w e x p o r t market has suffered a major setback as coronavirus spread continues to hurt export, causing exporters and farmers to stockpile the crop in warehouses.

The demand for the crop at the international market has declined tremendously owing to the closing of borders, halting of private and public transportation systems, quarantine and lockdown administrations in major cities to curtail the spread of the novel virus.

This act by var ious governments has brought the global commodity export market to a standstill.

Locally, prices of cashew has declined from N380,000 per metric tons in February to N160,000 sold as at the time of writing, indicating a 57percent drop in price. “ The coronavirus is affecting us now because

most of our buyers are not placing orders any longer,” said Zacheaus Egbewusi, chief executive officer, AgriCommodity Inspection Limited.

“When our cashew season started in February, we were still having few orders from Asia but as the spread of the novel virus continues the orders

s t o p p e d c o m p l e t e l y ,” Egbewusi said.

“Now we are just stockpiling the crop until the pandemic is over,” he added.

Niger ia is a natural habitat for cashew and among the world’s leading grower and supplier of the crop.

The country is currently

L – R : Abiona Babarinde, general manager-marketing & corporate communications, Coscharis Group; Tokunbo Emokpae, director, Lagos State Ministry of Agriculture and Cosmas Maduka Jnr, executive director- special duties, Coscharis Group during the presentation of a lorry load of rice from Coscharis to Lagos State government in support of the state’s palliative measures on COVID –19 recently in Lagos.

Coronavirus: Olam Nigeria distributes food items, medical supplies to 11 states Josephine Okojie

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lam Nigeria, a leading player in the country’s agricultural value chain, and its group companies, Crown Flour Mills, OK Foods and Caraway, have distributed food items and medical supplies to eleven states in the country and to the Nigerian Center for Disease Control to curtail the spread of coronavirus.

Olam has joined the efforts of other leading private sector organisations to support states and Federal Government initiatives geared towards alleviating the pain and disruption to the daily lives of citizens by the COVID 19 pandemic.

The beneficiary states

rated at the sixth largest producers of the crop with 160,000MT per annum and is expected to reach 500,000MT by 2020.

Besides cocoa, cashew is another major cash crop in Nigeria that has huge export potential.

The countr y earned about $350 million in 2017, according to the National

include Lagos, Kaduna, Rivers, Ogun, Kano, Delta, Kwara, Nasarawa, Ekiti, Cross River States and the Federal Capital Territory, Abuja.

Mukul Mathur, country head, Olam Nigeria, stated that this is an unprecedented crisis necessitating urgent attention hence the distribution of relief materials across several states of the federation, especially targeting the most vulnerable in the society, during the shutdown of activities.

“We realize the effect this will have on Nigerians, especially the vulnerable in the society, many of whom earn daily wages, and whose incomes are closely tied to ongoing economic activities, which for now have been halted,” he said.

Mathur added that the www.businessday.ng

relief items to be distributed across the various locations in Nigeria include edibles such as Mama Pride rice, Tasty Tom noodles, OK biscuits, and Crown pasta among others. “ In a d d i t i o n t o t h e food items, the company re c o g n i ze s t h e u rg e nt need to support all health workers on the frontline with medical supplies and kits which will include t h e r m o m e te rs, ma sks, hoods, goggles, medical overalls and rapid test kits that will be donated to the NCDC,” he further said.

“It is our belief that our humble contribution will support the overall effort in combating the pandemic as we continue to hope life returns to normalcy as soon as possible,” he added.

Cashew Association of Nigeria (NCAN). “ There are ver y few contractual agreement right now to supply cashew because of the coronavirus.

The Indians and the United States who are the largest consumers and not consuming much cashew now because of the outbreak and this is affecting demand seriously,” Tola Faseru, vice president, African Cashew Alliance said.

“The situation is also affecting the prices at both the local and international market,” Faseru who is also the chief executive officer of Colossus Investment Limited said.

The country’s cashew is usually harvested between February –June, though farmers stock the crop and export it all year round.

Cashew has become a top-notch cash crop in the country and it is one of the focused commodities by the Buhari led government to revamp the Nigerian economy.

Since the renewed focus on agriculture by the Federal

Government, the crop has risen in its profile, emerging as one of the top five non-oil export in 2019, data from the National Bureau of Statistics (NBS) show.

“There are no buyers cur rently and far mers are just stockpiling. The Chinese that usually come to Ogbomosho to buy are not coming now because of the coronavirus pandemic,” said Debo Thomas, chief executive officer of Hastom Farms – a firm investing in the cultivation of the crop in Ogbomosho, Oyo state.

“Even to get trucks to transport to Lagos to the seaport is getting more difficult with the sit at home and lockdown directives in the country,” Thomas said.

He stated that farmers and exporters are hoping that the pandemic which has crippled trade quickly come to an end.

Cashew can be eaten and also serves as industrial raw materials in firms producing chemicals, paints, varnishes, insecticides and conductress and several types of oil among others.

COVID-19: Pally Group donates 4 trucks of eggs to healthcare workers, patients in Lagos BUNMI BAILEY

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a l ly G rou p ha s donated four trucks of eggs to healthcare workers and patients at the Infectious Disease Centre in Lagos to support the efforts at curtailing the spread of the novel virus in the state.

Pally Group is a group of companies with a diverse portfolio of products and services including Pally Agro Products Limited, Pally Foods, Crest Pharmaceuticals and Swift Drycleaners.

Nwapali Onyeagu, chairman of Pally Group during the delivery of the first batches of eggs said that the organisation’s intent to

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make a voluntary donation of 250 crates of eggs per week to Lagos Healthcare w orkers and Covid-19 patient in its support to curtail the spread.

“This gesture is a voluntary effort and a Corporate Social Responsibility (CSR), initiative of our organisation- Pally Agro Product Ltd,” Onyeagu said.

“A total of 1000 crates for four weeks will be donated in four batches of 250 crates weekly at any preferred/ directed centre during the stay at home directive of the state government.

“As a corporate citizen, we want to use this as a s u p p o r t t o ou r f e l l ow citizens and healthcare workers in the state working @Businessdayng

to curtail the spread of the virus in this trying time.

Thank you for the privilege and honour to serve our fellow men. Kindly accept the highest assurances of our regards,” he added.

In appreciation of the gesture, on behalf of the Lagos State Government, Olugbemiga Aina, permanent secretary of the State Primary Health Care Board, stated that this kind gesture is highly appreciated. “ The Lagos Primar y Health Care Board acknowledges the receipt of your correspondence as part of your CSR, we look forward to establishing a long-standing relationship with your organisation,” Aina said.

40

Wednesday 08 April 2020

BUSINESS DAY

Harvard Business Review

ManagementDigest

What your coworkers need right now is compassion Amy Gallo

I

don’t know about you, but I’m finding it very easy to be judgmental these days. Late last week, a coworker told me on Slack that she was going to be offline for a bit while she greeted her babysitter, who was showing up any minute.

My immediate thought was, “That’s not social distancing.”

For a split second I was mad at her. How could she let another person into her house at this time? Why isn’t she doing her part to flatten the curve?

I didn’t want to be annoyed with my coworker. So why was I? I’ve heard from lots of friends that they’ve had similar moments of tension with their colleagues over the past few weeks. It makes sense: Many of us are working in new and suboptimal conditions. We’re dealing with unprecedented levels of stress and anxiety.

And the future of our jobs, our companies and the economy is uncertain.

All of this lays the groundwork for tension, says Brianna Caza, an associate professor of management in the Bryan School of Business and Economics at the University of North Carolina at Greensboro. She and her coauthors reviewed 300 studies focusing on workplace relationships, relationship transgressions and relationship repair. They found that “anytime there’s external tension it can manifest between coworkers.”

Unfortunately, in stressful situations our compassion goes out the window, according to Monica Worline, a research scientist at Stanford Center for Compassion and Altruism Research and Education. “When we’re under severe stress, we go back to coping patterns that are familiar and very hardened in us, and we have a hard time seeing that there’s any other way to do what we’re doing. We think we’re right and others are wrong,” she explains. This isn’t good for your interactions with your colleagues. “We unwittingly break our relationships with coworkers, causing more suffering.”

This is not a time to move away from kindness and caring, even if our brains nudge us in that direction. “It’s important to try to find ways to remain open to compassion, even when we’re overtaxed.”

Worline and Jane Dutton, who

co-wrote Awakening Compassion at Work, have done research that shows that compassion correlates with your own level of job satisfaction and the degree to which you find your work meaningful.

But how do you find and show empathy for coworkers when your cognitive resources are depleted?

Here’s what Caza and Worline told me.

REMEMBER THIS IS AN OPPORTUNITY FOR CONNECTION. Caza and her coauthors found in their research that “there were lots of triggers and pathways to fractures in relationships,” but there was also “the potential for stronger relationships in these stressful times. Anytime things get shaken up, there’s a potential for a positive shift,” she explains. And because this crisis is global, almost everyone is affected in some way.

ACCEPT THAT WE’RE ALL COPING DIFFERENTLY. Another coworker of mine shared an article about the strain on marriages during the crisis that shed some light on why things might feel tense in some of our working relationships. In it, relationship expert Esther Perel pointed out that people often have different coping mechanisms. Some www.businessday.ng

individuals like to take in as much information as possible, spending hours on Twitter or reading article after article.

Others like to limit the amount of news they take in. Some may be rigid about social distancing (that’s me) while someone else may take a more flexible approach. And some colleagues may throw themselves into work, finding comfort in being busy, while others struggle to keep up and stay focused.

Caza says the difference isn’t just in coping approaches, but in circumstances as well.

Colleagues aren’t being affected by the crisis in the same ways.

BE GENEROUS IN YOUR INTERPRETATIONS. Given the likely variance between you and your coworkers, both Worline and Caza say that one of the most important things you can do right now is to be generous in your interpretations of other people. If you get a curt email, don’t assume the person is annoyed or being rude. Instead, imagine that they are under time pressure and didn’t have time for their usual niceties.

This is hard to do, explains Worline. “When we are in a crisis, we change the way we interpret things going around us. Our own pain and suffering tends to loom large, and we diminish that people are going through the same strain

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or more. We are more easily overwhelmed by other’s needs and suffering and may react by thinking, ‘There’s nothing I can do about that,’ or ‘That’s their problem and not mine.’”

ACKNOWLEDGE HOW YOU’RE FEELING. You can avoid miscommunication and hurt feelings by making clear what you’re experiencing at the moment. For example, Caza suggests you explain to your coworkers that you might need some space, especially if things are moving fast. You might say, “There’s a lot of anxiety and stress right now, so let me take some time to think about it.” And communicate more than you might under normal circumstances, being more conscientious about what you say and the tone you convey.

ACCEPT THAT YOUR COWORKERS’ HOME LIVES ARE NOW RELEVANT TO YOU. Because we tend to distance ourselves from other’s suffering when we’re under stress, you may find yourself thinking that it’s not your problem that your coworker has two kids and no childcare, for example. “Their parenting situation wasn’t necessarily relevant to your work and how they did their job a few weeks ago,” says Worline. But it sure is now. “Recognize that the relevance has changed because @Businessdayng

of the situation we’re in.” Here she suggests another shift in thinking: “People are essentially good and they’re trying to do their best.” Instead of getting annoyed your coworker keeps getting interrupted by their child, put down the judgment and think about how you might adjust the patterns of how you work together. How can you be more flexible so everyone can continue to get their work done?

DON’T COMPARE SUFFERING. One of the recurring comments I’ve seen on social media when people complain about what they’re going through is something along the lines of: “At least you’re not working in healthcare right now.” Worline says that kind of comparison can be “brutally diminishing.”

“People mistakenly think they are giving some much-needed perspective. But it doesn’t alleviate the distress, it just adds a level of judgment and guilt, and exacerbates the pain.”

Worline points out that there are myriad forms of hardship and that “compassion doesn’t involve judging the relevance of another’s suffering.”

Amy Gallo is a contributing editor at Harvard Business Review and the author of “The HBR Guide to Dealing with Conflict.”

Wednesday 08 April 2020

BUSINESS DAY

41

Live @ The Exchanges Market Statistics as at Tuesday 07 April 2020

Top Gainers/Losers as at Tuesday 07 April 2020 LOSERS

GAINERS Company

Opening

Closing

Change

MTNN

N92

N94.8

2.8

WAPCO

N9.8

N10.75

0.95

CADBURY

N12.05

N12.95

0.9

FLOURMILL

N5.25

N5.75

0.5

BUACEMENT

N5

N5.45

0.45

MANSARD

ZENITHBANK CUSTODIAN

UBA

Company

ASI (Points)

Opening

Closing

Change

N13.8

N12.45

-1.35

N7

N6.3

-0.7

N21.5

N21

-0.5

VOLUME (Numbers)

N31.8

N31.5

-0.3

VALUE (N billion)

N1.75

N1.58

-0.17

ARDOVA

20,925.19

DEALS (Numbers)

4,647.00 1,442,572,439.00

MARKET CAP (N Trn)

5.569 10.905

Global market indicators FTSE 100 Index 5,704.45GBP +122.06+2.19%

Nikkei 225 18,950.18JPY +373.88+2.01%

S&P 500 Index 2,722.41USD +58.73+2.20%

Deutsche Boerse AG German Stock Index DAX 10,356.70EUR +281.53+2.79%

Generic 1st ‘DM’ Future 23,178.00USD +690.00+3.07%

Shanghai Stock Exchange Composite Index 2,820.76CNY +56.78+2.05%

MTNN lifts NSE ASI by 1.24%

NAICOM issues regulatory order on Niger Insurance

…as investors renew interests in select blue-chip stocks Stories by Iheanyi Nwachukwu

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he Nigeria stock market closed on a positive note on Tuesday April 7 as investors showed interest in a number of fundamentally sound stocks seen trading at lower bands.

Foremost among the said stocks is MTNN which occupied topmost position on the gainers list. The Telco share price increased from N92 to N94.8, adding N2.8 or 3.04percent.

“We expect sentiment for stocks to remain broadly tepid, with renewed interests anticipated on select bluechip stocks, as discerning investors continue to take advantage of the current market

valuation”, said research analysts at Lagos-based United Capital.

From a preceding day low of N10.772trillion listed stocks value in-

creased by N133billion to N10.905trillion at the close of remote trading session.

The Nigerian Stock Exchange (NSE) All Share Index (ASI) increased to 20,925.19 points from preceding trading day low of 20, 669.38points. Year-todate (ytd), the market has recorded negative return of -22.04percent, while this month of April, the market has lost 1.76percent of its value.

“With declines in the price of a number of fundamentally sound stocks, we expect some cherry picking at the beginning of the week though the performance of the index still largely depends on events around the continued spread of the Coronavirus pandemic as well as happenings in the

Lafarge Africa proposes N1 dividend per share amid N212.9bn FY’19 revenue

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afarge Africa Plc has proposed dividend of N1 per share as shown in its audited results for the full year ended December 31, 2019. The company reported net debt decline from N288.9billion to N37.1billion further to the divestment from South Africa and successful rights issue in 2019.

Lafarge’s full year revenue of N212.9billion in 2019 represents 2.21 percent decrease when compared to N217.8billion revenue in 2018. It closed the review year with operating profit decline of 9.4percent to N34.91billion from N38.52billion in 2018.

Earnings per share (EPS) rose to 0.96kobo from 0.93kobo in 2018, up 3.2percent. The share price at N9.8kobo as at Monday April 6 nears its 52 week low of N8.95.

Shareholders Fund increased to N344.914billion from N134.541billion in 2018, up by

156.36percent.

Khaled El Dokani, Country CEO of Lafarge Africa stated: “Our turnaround and costreduction strategy in FY 2019 and the divestment of the South African business, have delivered strong results.

The decrease in net debt has significantly strengthened our balance sheet and has placed us in a vantage position to face the future.”

On the outlook for 2020, the company said “As the Coronavirus (COVID-19) pandemic now impacts Nigeria;

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Lafarge Africa has taken the necessary measures to protect the health of its employees, customers, suppliers and other stakeholders.”

“The construction sector and construction sites are generally more resilient than other sectors and Lafarge Africa has a strengthened balance sheet and is well equipped to weather the storm. However, we are closely monitoring the evolving situation and the impact of the COVID-19 pandemic on the Nigerian market.

“The Nigerian cement industry growth momentum is expected to slow down in FY 2020 compared to 2019 on the back of the COVID-19 pandemic and the challenging global macroeconomic environment. We have launched an action plan “Health, Cost & Cash” and will continue to focus on the implementation of our

cost optimisation initiatives during this period to minimise the impact on the business”, Lafarge said.

Lafarge Africa Plc, a l e a d i n g S u b -S a h a ra n Africa building materials company is a subsidiary of LafargeHolcim, a world leader in building materials.

Listed on the Nigerian Stock Exchange, Lafarge Africa is actively participating in the urbanisation and economic growth of Nigeria, the largest economy in Africa.

Lafarge Africa has the widest footprint in Nigeria with cement operations in the South West (Ewekoro and Sagamu in Ogun State), North East (Ashaka, in Gombe State), South East (Mfamosing, Cross Rivers State) with Ready-Mix operations in Lagos, Abuja and Port Harcourt. Lafarge Africa has a current installed cement production capacity of 10.5Mtpa.

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Crude oil market”, equity research analysts at Vetiva said in their April 6 note to investors.

Brent Crude Oil Futures was $33.09 per barrel as at close 4pm Nigerian time on Tuesday.

Also on the gainers table include Lafarge Africa plc which rallied from N9.8 to N10.75, adding 95kobo or 9.69percent. In 4,647 deals, investors exchanged 1,442,572,439 units valued at N5.569billion. Banking stocks were actively traded –led by GTBank, Zenith, FBNH, and UBA. Ardova Plc recorded the biggest decline, from N13.8 to N12.45, shedding N1.35 or 9.78percent; while Cadbury Nigeria Plc dipped from N7 to N6.3, losing 70kobo or 10percent.

N

iger Insurance Plc has notified the Nigerian Stock Exchange (NSE) and the company’s shareholders about regulatory order issued on the Company by the industry regulator –National Insurance Commission (NAICOM).

The regulatory order was issued on the Company when its Board and Management Team met with the National Insurance Commission on March 23, 2020, according to TOLG Nominees, Company Secretary, Niger Insurance Plc. Among other discussion made, the following are the orders issued on Niger Insurance: that the Company shall not dispose any of its assets without written approval of the Commission; that the Company shall submit to the Commission monthly report of its activities together with the monthly Management account; and that the Management shall invite the Commission to attend all Board meetings of the Company as an observer.

NAHCO postpones board meeting as COVID-19 disrupts audit of financial statement

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he Nigerian Stock Exchange (NSE) and shareholders of Nigerian Aviation Handling Company Plc (NAHCO AVIANCE) have been notified that the meeting of the Board of Directors of the Company, earlier scheduled to hold on April 8, 2020, in Lagos has been postponed until further notice.

The Company said the postponement of the board meeting which was meant to consider and approve its 2019 audited financial statements and recommend the payment of dividend is because “the 2019 Audited Financial Statements has still not been completed due to disruptions of the auditing pro-

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cess by the impact of COVID-19.”

“You will be adequately notified of the date of the meeting when it is fixed in accordance with the rules of The Exchange,” NAHCO said in April 6 note signed by Bello A. Abdullahi, Dikko & Mahmoud Solicitors, Company Secretary.

Despite the postponement of the board meeting, the closed period declared by the Company from March 12, 2020 will continue until 24 hours after the 2019 audited financial statements is released to the market.

Accordingly, all insiders have been advised not to directly or indirectly deal in the shares of the Company in any manner during the closed period.

42

Wednesday 08 April 2020

BUSINESS DAY

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Wednesday 08 April 2020

BUSINESS DAY

43

FINANCIAL INCLUSION

& INNOVATION

How cashless economy could have contributed in curtailing spread of coronavirus Endurance Okafor

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igeria’s cashbased economy could be a catalyst to the spread of coronavirus as more than 70 percent of the country’s population still depend on cash for their daily transactions.

Studies suggest that paper bills can contain bacteria and viruses, and can also serve as the medium of spreading diseases.

Banks in China, the birth country of the deadly coronavirus began disinfecting cash with ultraviolet or heat treatments in February to prevent the further spread of the virus.

“If your job requires that you handle money (or any other potentially contaminated surface), it’s important to be diligent about washing your hands and not touching your face, Michael Knight, assistant professor of medicine at the George Washington School of Medicine and Health Sciences said.

According to the New York Department of Health,

between touching money and preparing food, it is a good idea to change disposable gloves, and wash the hand.

“Banknotes can carry Coronavirus. But do not be too alarmed: the risk is small.

Unless someone is using a banknote to sneeze,” Soko Directory, a Kenyan company quoted the World Health Organisation to have said.

While digital payment adoption has seen a surge in Nigeria amid lock-down and work-from-home initiative, cash remains the king of payment and transactions in the country where

almost 40 million people are unbanked.

Health experts around the world are preaching against the use of cash in this season due to its potential role of transmitting the virus.

While announcing plans to set up 50 neighbourhood food markets across Lagos State to serve as makeshift groceries for residents, Governor Babajide Sanwo-Olu said that there had been a “strange trend” recorded by the State in its response to the viral epidemic, hinting that some of the new infections showed Lagos

may be entering a phase of community transmission of the disease.

Nigeria’s Minister of Health, Osagie Ehanire said recently that the number of Coronavirus contacts being chased had risen over 6,000 adding that the number of people being infected with the virus is expected to increase.

A cashless economy fueled by a high penetration rate of mobile money like in Kenya would have been a good measure of curtailing the spread of Coronavirus in Nigeria which has reported 232 confirmed cases

as at Sunday,” a Lagos-based analyst said.

“Even in the absence of the pandemic, the payment system is rather notorious for experiencing issues, so these issues will still be experienced by those who decide to make payments online in the coming months,” Chuba Ezekwesili, co-founder and partner at Future Africa said.

A large number of Nigeria’s financially included population still have to visit the ATMs for cash as most of the shops, and informal markets are either underbanked or not digitally in-

cluded.

“I no longer allow my customers to pay through bank transfers. It’s either the transfers do not get to my account or usually bounce back after I get alert. I am usually at a loss,” a petty trader who identified herself as Iya Beji said.

The case would have been different if Iya Beji were to be in Kenya as the informal market in some of those African countries depends largely on mobile money for financial transactions.

Meanwhile, Nigeria’s cash-based economy fueled by the country’s bank-led financial inclusion model has a huge cost implication for the central bank.

According to the most recent data by the Currency Operations Department of the CBN, the financial industry regulator spent N64.04 billion to print currency in 2018, a reflection of the high dominance of cash in the economy.

Compared to the N49.52 billion used in printing the banknotes in 2017, the apex bank spent 29.31 percent or N14.52 billion more in producing naira notes.

For the poor to survive the coronavirus pandemic, keep money circulating Ijeoma Nwagwu & Tobechukwu Njideaka

T

he Covid-19 pandemic has sent shockwaves across the globe since emerging in late 2019.

Countries have responded with drastic measures to contain the virus, some of which have had a devastating impact on individual livelihoods, businesses and whole economies.

Alongside fiscal responses and social protection schemes, countries have also imposed lockdowns forcing people to stay at home and practice social (physical) distancing.

In Nigeria, what could be the first wave of such lockdowns is underway, and it is essential that we keep cash in circulation through financial service channels, particularly ATMs and agents (banking and mobile money) to serve the poor.

Financial services play an important role in this season

of uncertainty for Nigeria’s poor (about 93.7 million people), who already face hunger and malnutrition, unemployment, insecurity and ongoing public health concerns such as Malaria and Lassa Fever.

If the current lockdown is extended or even more states, particularly the more rural ones, enact lockdowns of their own, the poor may be stretched beyond their capacity to survive via the inability to earn daily income.

As the country imposes lockdowns and curfews prohibiting citizens from going out to work, Nigerians need functional access to cash.

Though the government has included financial services as essential services, what is not clear is whether this permission extends to financial service agents (for banks and mobile money). ATMs and agents are the primary financial service points in peri-urban and rural areas where access to traditional banking halls is limited or non-existent, and citizens

in these regions will look to them to meet their liquidity needs during the lockdown.

The coronavirus pandemic is in many ways a stress test for financial inclusion in Nigeria.

With experts discouraging the use of cash in this season, highlighting the potential role of cash as a vector for the coronavirus, the financially excluded

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remain at risk. Hence we cannot relent in the pursuit of financial inclusion for all.

We need to seize this moment to further drive digital and financial literacy, encouraging the adoption of digital banking. Providers and Super Agents can continue onboarding new customers into the formal financial service ecosystem at agent points, provided

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social distancing guidelines are duly followed. Eligible micro-enterprises can also be onboarded with business accounts while educating them about the opportunities for government cash interventions.

To meet up with increased cash demand, FSPs will need to strengthen agent banking in remote and rural areas, enhance availability and

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functionality of their ATM machines (keeping them stocked with cash round the clock) and encourage and educate users on mobile banking.

Helping Nigerians weather the storm of this pandemic by ensuring ready access to cash through various means will shore up their trust in banks and formal financial institutions, a key ingredient for advancing sustainable financial inclusion. It could also lead to modest gains in digital and financial literacy.

As COVID-19 rages across Nigeria, the financial service ecosystem can help mitigate the impact of the pandemic on livelihoods by ensuring citizens stay liquid. Indeed, there is also an opportunity in this crisis to deepen financial inclusion while supporting Nigerians in their quest to survive its impact.

Ijeoma Nwagwu and Tobechukwu Njideaka are members of the Sustainable and Inclusive Digital Financial Services initiative of the Lagos Business School.

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BUSINESS DAY Wednesday 08 April 2020 www.businessday.ng

CEO in focus

How Soremekun’s Rubitec Solar is helping to light up remote communities ISAAC ANYAOGU

B

olade Soremekun, CEO of Bolar Pharmaceuticals and Rubitec Solar, speaks about sustainability with a passion that is infectious. He lives it too. He will not place his coffee directly on his Formica covered desk without something to place the hot cup on top. A fan, running on solar, has the task of cooling in his office when the interview began.

His Ikeja office building lacks the pretentious sophistry common with Nigerian CEOs in a hurry to have their presence in the ‘it’ crowd announced. Furnishings were sparse but functional; it seemed even the plants bred with a purpose. There was the aura of a boss whose people knew it was futile being guarded around him, like you knew only you could earn your pay.

Soremekun has over two decades of experience, locally and internationally, from multinational organisations like Johnson and Johnson; Glaxo Smithkline, and others. He was head of the pharma division of Glaxo Smithkline up till May 1996 and went on to become a director for West Africa. A nature enthusiast, Soremekun has tried his hands on natural resources such as herbal treatments.

But that’s the problem with passion, it’s hardly contained.

Though a seasoned pharmacist, Soremekun presides over organisations like BAS Consulting Ltd, a renewable energy consulting and capacity building firm; Rubitec Solar, a renewable energy company; and Rubitec Power, a provider of gas generators for the local market in partnership with German partners, 2G-Africa and IREC-Africa, a renewable energy NGO. It almost looks like an aberration that a man of medicine will now spend most of his day selling a piece of the sun.

“Originally there was no plan to do solar because I am a pharmacist and had been a director for West Africa for GlaxoSmithkline. I left and started my own business. It was during that time I was trying to supply vaccines to the Federal Ministry of Health for a national programme on immunisation when I was asked if I could supply solar-powered refrigerators because vaccines have to be in a cold chain from manufacture to supply,” he said with fondness.

“A Nigerian businessman doesn’t say no to anything so I decided to go and look for solar powered refrigerators,” he said with a contended smile.

This was in 2005 and so began an eventful, sometimes tumultu-

Soremekun

ous affair with solar. At the time, solar was a foreign concept in Nigeria, not like it is mainstream now, but it is a leap from where it was, over ten years ago.

Soremekun searched and found solar refrigerators and installed 500 in several local government areas in Nigeria.

That’s when it struck him that he could take this stuff seriously. You heard of a man who took shoes to sell in a place where there was no shoes, well in Nigeria, not only where there no shoes, many viewed ‘shoes’ with suspicion.

“At that time, I didn’t know what I was getting into, it was very expensive and nobody was interested. After the order from the ministry, I didn’t get business for some time so I had to fire some of my staff,” he sighed with a sigh.

A lifeline soon came when the Rural Electrification agency and Energy Commission of Nigeria started doing street lights and solar pumping systems for rural areas. He got involved but Eldorado was far away.

“It was still very difficult because I was doing maybe one contract in a year. Private people

were not doing anything. Eventually, I started organising solar conferences just to increase awareness to solar, it was also difficult to get sponsorship and after three years, I stopped all together,” said the father of three.

Rubitec’s foray into solar energy Since forming Rubitec Solar in 2004, the company has been heavily involved in renewable energy projects in the country mostly through government contracts. Since solar has gain limited traction in the country, government agencies award the most contracts for solar projects.

“Today things have changed, solar is a fast growing business, between today and last year, we have more than doubled our business,” he said in an interview with BusinessDay. “We believe that a lot of people have increased their knowledge of solar. We did a lot of partnerships with the likes of GIZ, a German agency, Nigerian Energy Support Programme (NESP) programme and others and they give us a lot of increased ability, knowledge and skills which has

‘‘

Soremekun searched and found solar refrigerators and installed 500 in several local government areas in Nigeria. That’s when it struck him that he could take this stuff seriously

‘‘

Today things have changed, solar is a fast growing business, between today and last year, we have more than doubled our business yielded a lot of results including an ability to build mini grids.”

His willingness to allow his people develop their potentials regardless of whether they will remain in his employ or not, gave them opportunities to benefit from trainings both local and international. It has borne fruit, as some of these staff returned and are now responsible for driving the company’s micro grid projects.

The company’s project profile is expanding. “Right now we are in the process of installing an 85kw mini grid in a village called Gbamo Gbamo in Ogun state with a population of about 3,300 people for about 550 households.

We hope to complete installation

by October and commission it by November.”

Rubitec Solar along with Riccofortezza Steven Energy Limited secured a contract for the imple-

mentation of operation Light-Up Kwara (LUK), an innovative solarpowered streetlight project by the Kwara State Government.

The streetlights will be powered through solar power tunnels, the first of its kind in Nigeria. The project is billed to cover 74.58km of roads, cutting across 33 routes within Ilorin metropolis. Rubitec Solar said it is providing solar panels on over 850 poles with a capacity to generate about 500kW. “This project is conceived quite differently from what obtains in Lagos. Fashola used street lights, and the contracts were executed poorly fuelling a negative perception about solar. When you have poor quality materials and poor quality technicians, the result will be poor quality work. Akinwunmi Ambode came in and decided not to use solar because of the experience and turned to fossil fuel.”

But this comes at a cost to the state. “Lagos is a city that has been doing conferences talking about sustainability, climate change but has reverted to using generators to power street lights. Lagos is lighted but is using diesel, which is not a clean fuel source,” Soremekun said the Kwara State model was more effective and sustainable. “What we are doing is a public private partnership whereby we put down money and equity in the project and we sign a ten year agreement which encompasses installation, commissioning, and maintenance for the period.

“If battery or bulbs fail, we have to change it, if anything goes wrong, it is our duty to fix it, we will be given quarterly payments based on meeting agreed deliverables. We receive payments as long as the lights are on. So that is an incentive for us, it is in our hands to make sure Ilorin is lighted,” said Soremekun.

The company said it had already completed 10km of street lights and plans to complete the first phase of the project in October.

Soremekun’s face lights up when he describes the impact of the project in the communities they have been installed. He showed videos on his mobile phone that depict brightly lit street lights at night which has changed the dynamics of the communities.

“As a result of the street lights, the lives of the people have been impacted. People are happy; they are trading more as they have extended their length of stay in the markets to 8 and 9 pm rather than leaving at the first hint of darkness. It will be nice for other state governments to adopt this model,” said Soremekun.

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