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Forte Oil shareholders endorse Otedola’s plans to acquire upstream assets

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nyedika Ikegwuonu is a small-scale shoemaker in the sprawling city of Aba, Abia State’s industrial capital. He has been seeking N10 million loan from two of Nigeria’s tier-2 banks for the past 19 months. The banks

Nigerian cost of borrowing highest in SSA

have only been willing to give him half of this money on the condition that he must return it in 12 months and pay back 23 and 25 percent interest rates, respectively. “Now, you can’t give me the money I need and you are ask-

ing me to pay you 25 percent as interest rate,” the dejected Ikegwounu said. Aba has more than 80,000 leather-makers who produce shoes, belts and trunk boxes for the entire West Africa, but these key economic players cannot

access loans from banks who consider them high risk. “Requests come to us every day, but we cannot meet up because we don’t have money to buy good machines,” said Ken Continues on page 35

DIPO OLADEHINDE

hareholders of Nigerian indigenous oil and gas company Forte Oil (FO) have given a nod to the proposal of the board of directors to restructure the business by divesting its upstream services, power-generating businesses in Nigeria and downstream business in Ghana to be acquired by Continues on page 35

Inside Nigeria’s film industry sets 19-year box office P. 34 record

L-R: Akinleye Olagbende, company secretary; Sunny Nwosu, representing Femi Otedola, chairman, Board of Directors; Akin Akinfemiwa, GMD; Julius Omodayo-Owotuga, financial director, and Christopher Adeyemi, non-executive director, all of Forte Oil plc, at the extraordinary general meeting of the company in Lagos, yesterday. Pic by David Apara

BUSINESS DAY

Friday 08 February 2019

BUSINESS DAY

Friday 08 February 2019

BUSINESS DAY

Friday 08 February 2019

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Friday 08 February 2019

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Why you need inexperienced people on your team

EIZU UWAOMA

irst of all, why does Arsene Wenger always sell good players after they rise to buy young ones? Why did Alex Ferguson sell Eric Cantona, David Beckham and even Cristiano Ronaldo in Manchester? Well, there’s a trick for all good talent managers. Never allow your star players to over stay their welcome. I believe whether evolution or religion, this is one of the reasons why the universe was designed for people to die so a new and better generation can emerge. The old was good. Their experience can be great. But that same experience can have you or God’s vision seem stagnant, become cliché and even hinder growth. I agree it is risky. The real meaning of entrepreneurship is risk taking anyway. For real entrepreneurs like us, we started this thing out of fun and passion. We found solace in uncertainty. We constantly need that energy of uncertainty which doesn’t come from experience but curiosity. So sometimes,

whether as a coach or the rookie, learn to say, forget experience. In creating innovation and in business, forget experience. It is a fact that it’s always someone from the outside of a system that disrupts the system and creates growth by innovation. Nigeria, now more than ever needs people, even in governance, that can come in from the outside to put a stop to the excesses simply because its alien to those person. That’s the good part of inexperience. Dear rookie, as a starter or visitor to your industry, your lack of experience can be the greatest asset and gift to the innovation your industry needs. Damon Dash who wasn’t a rapper came from the dangerous streets of Harlem, New York; he brought his street smart knowledge from drug dealing into music. He teamed up with Jay-Z and they both became the most successful black people ever in Hip Hop. Saul, an outsider to Christianity became Paul and a Christian and he eventually changed the face of Christianity forever. Even though he never physically met Jesus who was the centre of the New Testament, he came late into that system but ended up as the most innovative and influential human figure of the gospel. He ended up writing 13 of the 27 books of the New Testament bible. Just one man who wasn’t even born a Christian, he was even against it. Now, that is called social disruption. Like the Chinese Mythology of the universe, we all need Yings to our Yangs.

And either of the Ying or the Yang, one must come from somewhere external of the system to form the universal harmony of Ying Yang. Experience is good. It’s true that experience validates that you know and what you are doing. But the bad news is that people with experience, who claim to know what they are doing, they have formed boundaries already, they know the rules as to what is possible and impossible already; but you do not, already. And sometimes should not. This is the only way innovation can be born. I was reading a Peter Drucker book on management and it hit me that there is a proven fact with track records that for any system to experience social disruption of an industry that leads to innovation and then growth, the spark to that innovation can only come from someone external of a system. This is where consulting and we as consultants most times come in. We are not in your system, that why we work effectively. At Hexavia, we once set up a meeting between a pilot and a doctor. Why is that? Now, what is the relationship? Well, a client of mine who owns a hospital was battling with an issue of safety in medicine, we needed to upgrade their SOP (Standard Operating Procedures) to that effect. I told her, we didn’t need a medical doctor, if you’re talking safety, let’s have a chat with an aviation expert, maybe a pilot. First they thought I was mad. But it worked. What I knew is that

‘

In creating innovation and in business, forget experience. It is a fact that it’s always someone from the outside of a system that disrupts the system and creates growth by innovation

they know so much about safety plus the two industries share similar six sigma schools of thoughts on error rate (the most delicate frequency/ impact ratio). As business men, we need to shake things up. Experiences put us all in a box. It creates boundaries. Innovation can only come from someone external of a system. So as a starter or visitor to an industry, your lack of experience can be the greatest gift to the innovation your industry needs. My dear, what is possible and impossible are made up of people who have not tested the boundaries of the possible to go above them like you can. So, if you don’t know that it’s impossible to do, it’s easier to do. Screw experience, well sometimes. A client from a meeting at Sheraton, Mr Adewale, the MD of Aeroland once said to me. “Sometimes you have to let your past pass away or you’ll pass away with your past”. Screw experience! For the first time, you can do it! I once shared a speaking platform with one of the founders of Iroko TV and I heard him say something very profound on innovation and results. He said, “If a man will begin in certainties he shall end in doubts, but if he will be content to begin in doubt he shall end in certainties.”. You don’t have to know it all to start. Start and the tools you need will be found on the way. Part of that tool should be us. Uwaoma is a start-up, corporate restructuring and strategy consultant. He writes via contacteizu@gmail.com

Project 100: Nigeria’s path to industrialisation and socio-economic viability Adewole Ojo

t is easy to dismiss, with a wave of the left hand, government’s policy enunciation and vision of a better tomorrow for Nigerians and the country. Successive governments have been long on promises and abysmally short on delivery. And in this season of politicking, envisioning a grand vision is even easier to dismiss as what it could possibly be, husting. In a political season, politicians can say and do anything to win elections. However, Project 100, which is expected to industrialise Nigeria modelled after the South Korean economic development template, shows early signs that perhaps, this time around, a grand vision of development will be implemented. This is principally because of the agency which is driving the project, the Nigerian Content Development and Monitoring Board (NCDMB). Selected companies are expected to benefit from government’s special interventions: capacity building, access to finance and markets, among others. As these companies grow, they will create wealth, lots of jobs and consequently lead to Nigeria’s socio-economic growth and development. The companies are all indigenous. It is an exciting prospect. This is more or less the South Korean economic development model. One of the major factors why Project 100 holds a lot of promise is its foundation. The

selection process, which was conducted by KPMG, was rigorous and transparent. Companies that made the shortlist were selected from NOGIC JQS, NCDMB’s portal for companies operating in the oil and gas sector. At the end of the process, only 60 companies qualified. What this means is that briefcase companies did not make it; influence peddling was completely removed from the process. The companies that made the list did so on their own steam. Second is the government agency anchoring the project, the NCDMB. In the last couple of years, the agency has shown an uncommon fervour in deepening local content in the oil and gas sector. The results of its efforts are manifest in the ever growing contribution of Nigerians in oil and gas, an industry they had perennially played a marginal role – oil and gas contribute more than 90% of the country’s income yet is less than 10% of its GDP. NCDMB has shown over the last few years what dedicated leadership can achieve going by the strategic role Nigerians and indigenous companies are playing in oil and gas. The height of this was the 70% contribution of Nigerians – in man-hours, production and fabrication – to building Egina, the biggest floating production storage and offloading platform in Africa. In previous era, Nigeria’s participation would have been almost zero. The agency is zealous in ensuring that any job Nigerians can do must not be given to non-Nigerians and any service Nigerians can offer cannot be given to non-indigenous companies. With its records as precedents, the agency will most certainly deliver Project 100. Third, beneficiary companies are some

of the best run in the oil and gas industry. Only companies with good corporate governance ensure they fulfill all regulatory requirements, pay their taxes and other dues on time even when they are not being compelled to so do and continue to invest and reinvest in their enterprises while seeking opportunities for growth. When these companies are given opportunities, they will be better placed to optimise such opportunities. When they have less cumbersome access to finance, their promoters will not divert monies to fund indulgences. The third factor is perhaps the most important, for not just the growth and survival of these organisations, but contributing to achieving the grand objectives of Project 100. Nigerians have in time past been given huge opportunities such as import licences, preferential treatment by the government, among many others that availed advantages over their foreign competitors. Only a few, like Aliko Dangote and Mike Adenuga, have used such preferential treatment well: the former is building possibly the biggest petrochemical plant in the world and the latter a telecoms company with close to 50million subscribers. If 10 of the 100 companies in Project 100 utilise the opportunities the way Dangote and Adenuga did theirs, then Nigeria will truly be on its way to replicating the South Korean model. Beyond the aforementioned is the importance of having a vision and matching it with the ability to bring the vision to life. Project 100 is the vision of Ibe Kachikwu, Minister of state for petroleum resources who has long seen the riches in the oil and

gas sector but pained by the peripheral role Nigerians hitherto played. He is of the view that Nigeria’s oil and gas resources can serve as a fulcrum for development, and not funding consumption of luxury goods and services. Although the industry is not anywhere close to achieving its potential, the minister cannot be accused of not trying. He has matched his words with actions. The greatest asset he brings to the industry is envisioning a better future, for without such visions, the country and its people will forever be bogged down with the mundane. Since his appointment, particularly in the last one and a half years, processes in the industry are no longer as laborious as they used to be and agencies have become more supportive of companies. When you get the little things right, bigger targets come into focus. When Project 100 is placed on the canvas of some policies of the current government, the future of beneficiary companies is bright and the chances of replicating the South Korean model, high. Executive orders three and five, which mandate ministries and agencies to give preferential treatment to Nigerians in employment as well as procurement of goods and services, will engender an environment conducive for indigenous companies to thrive. If half of MDAs’ procurement budget is chanelled to indigenous companies, Innosson Motors, for instance, will likely be catapulted to the top of automobile companies in Africa. So also many other indigenous companies will be elevated on the strength of the Nigerian economy. Ojo is with Four Points Communications Ltd.

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Financial industry: Can your infrastructure support your innovation journey?

Ejiro Obodo

ranch networks in premier business districts, traditionally believed to measure the stature of financial providers are being replaced with internet banking, payment apps and short-code banking. Technology has enabled non-traditional financial players upend branch networks typically dominated by large financial providers; with newer, nimbler entrants such as Interswitch and Paystack processing more online transactions than Nigeria’s biggest banks. A report by the Nigerian Interbank Settlement System (NIBBS) indicates that Nigeria’s ePaymentservices recorded N38.5 trillion transactions in the first half of 2018, a 38.4 percent increase from N27.8 trillion in the corresponding period of 2017. NIBSS Instant Pay, PoS and Mobile transactions led the pack with the highest growth in value and transaction volume. With the banking regulator now giving mobile network operators a leg

up by granting them payment banking licenses, this will enable them to gain unprecedented advantages with the promise of branchless banking, delivered on smartphones and feature phones. Financial institutions, especially Nigerian banks will then have no choice but to respond better to disruption by reassessing strategies, operating models and risk frameworks. Non-traditional banking operators enter the industry by leveraging technology to innovate in the banking services sector. Disruptive start-ups are taking a slice from the financial services action and mopping up unbanked, low income earners by providing them financial services. With their lean structures, low cost of operations and lack of branch overhead, fintech players are trumping the traditional operators. In an era of fast online and mobile payments, traditional banks still adopt a three-day wait policy for third-party cheques. eCommerce sites now have wallets for customer’s, which further whittles the hold of banks of customer pockets as technology companies and retailers look to build a presence in the banking sector by tapping into a prodigious appetite for new and innovative banking services. The industry dynamic has changed with banking now depending more on good infrastructure than how many branches you have. As such, banking operators must stay competitive by re-inventing processes on a lean, asset-light business model.

To emerge leaner and more agile, outsourcing specific technology or business process functions has proven effective in reducing both capital and operating costs. This enables banks to transfer significant capital expenditure in technology infrastructure, to lower cost services so they can adapt quickly to fast-paced changes in the marketplace while increasing profits, adding scale, flexibility, and advanced technology capabilities to their businesses. For too long, financial providers have been held back on their digital transformation journey by legacy technology and processes. In the bid for direct management of their mission-critical IT assets, banks have continued to invest and own data centres to host critical applications. But running a data centre adds minimal value to today’s core banking activities where customers would rather do business online rather than go into bank branches. So, when banking institutions experience failures or system outages that result in downtime, the impact is truly widespread with heavy financial loss and sometimes reputational damage with customers in far flung locations. How can Nigerian banks improve IT performance and reliability while balancing risk management and cost considerations? They need to focus on providing robust customer experiences by removing the distractions of physical infrastructure operations. This will

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To emerge leaner and more agile, outsourcing specific technology or business process functions has proven effective in reducing both capital and operating costs

enable a refocusing of their technology efforts on optimizing software and applications to deliver better customer experiences, rather than worrying over diesel generators and cooling in server rooms. These banks have the opportunity to embrace outsourcing their primary and secondary data centre environments to established service providers focused on maintaining infrastructure uptime and committing to rigorous SLA requirements. These colocation environments also provide the banks with a multiplicity of connectivity options to enable reach to a wider range of customers which would have been inherently unavailable in their own environments. There is need for Chief Information Officers, Chief Technology Officers and other C-suite executives to aim to achieve the right balance between the technologies they want to keep in house and the ones that can be outsourced. Outsourced data centres as an example provide banks with the ability to focus on the application layer running in outsourced data centreswhich enable them routinely implement critical applications without the downtime capable of affecting their customers.

Note: The rest of this article continues in the online edition of Business Day @https://businessday.ng Ejiro leads the Research and Media Strategy Unit of Caritas Communications

Is Buhari’s fight against corruption mythical or real?

Mohammed Dahiru Aminu

uhammadu Buhari was voted into office as president of Nigeria in 2015 under the supposition that he had a character that was allergic to corruption. He had maintained the resolve as being intolerant to corruption since he ventured into partisan politics in 2002. But upon becoming president after four attempts to run for the office, Buhari’s leadership skills, and the rhetoric on corruption has been evidently more mythical than real. Perhaps, it can be charitably put that the president’s perception of the fight against corruption is but a mere pigment of his imagination. However, what is more interesting amidst this rhetoric on corruption, is that both Buhari and the small band of cheerleaders around him have succeeded in creating some sort of illusionary (as opposed to a realistic) truth effect. Judging from the performance of power under Buhari, one easily remembers Hitler’s top propagandist, Joseph Goebbels, who was attributed with the words: A lie told once remains a lie, but a lie told a thousand times becomes the truth. It is interesting that despite glaring examples that argue for the president’s disinterest in fighting corruption, many Nigerians are still convinced otherwise. It can be said that most of these people are within the demographic of the young, who may not have recollections of how the country fared under Buhari’s military regime. While that

regime came about through unanimous support of his military colleagues at the time who later led a coup that ousted him, this time as a democratic president, Buhari came to power by a popular vote helped to bear by elite consensus from Nigeria’s major power blocs. But here comes the first irony. A man who claims to be intolerant of corruption had to ride on the back of supposedly illicit funds to power. For example, no questions have been asked on the source of campaign funds that brought Buhari to power, despite allegations that some of the financiers may have used public funds through the offices they occupied in backing their principal’s political ambition. But that is not all of it. A foremost senator from Kaduna State, Shehu Sani, described Buhari’s fight against corruption as selective. He noted that when the president’s men are caught within the webs of graft, the presidential instrument used is a deodorant; however, when the president’s men are not involved in graft, insecticides are used on such people. The Babachir David Lawal case is one of the most disturbing cases of corruption which greatly affects the integrity of the president andsuggests whether his attitude toward taming corruption is genuine or not. Lawal, who was the former secretary to the federal government was alleged to have been involved in multiple corruption instances, including illicitly enriching himself with funds meant for the rehabilitation of people who were internally displaced by the Boko Haram insurgency. Despite being indicted by the senate committee and later by a presidential committee headed by the Vice President (Yemi Osinbajo), Lawal, has gotten away scot-free, and he is in fact one of the henchmen working for the president’s reelection bid. It is interesting to note that it even took the president too long a time to be convinced by Lawal’s corruption and to relieve him of his position in government. Another example of the manifestation of corruption under the Buhari administration can be found in the Abdulaziz

Maina case. Maina, who was the head of a task force on pension schemes was indicted of corruption and declared a wanted man by the country’s anti-corruption agency. Nonetheless, Maina, who went into hiding abroad was brought back into the country by the Buhari administration and was reinstated into the nation’s federal civil service and promoted to the rank of Director. It took a lot of pressure from the people of Nigeria for the government to go back on their resolve for Maina. It is strange that a government which came to power with the intention of fighting corruption is now unable to take decisive actions against those who are involved in corruption—such that the government assisted a known fugitive back into the country and then promoted him. Even though Maina is nowhere to be found now, his case, it seems, has been swept under the carpet, never to be heard again. But not to relent, as the 2019 elections approach, a new trend has since emerged. Opposition politicians who have corruption cases against them are trooping to the ruling party (the All Progressives Congress) for them to be forgiven of all the crimes they have committed. The former minister of state for defense, Musiliu Obanikoro, had his corruption charges dropped immediately he assumed membership of the ruling party. The former governor of Abia State, Orji Uzor Kalu, who had been declared wanted by the Economic and Financial Crimes Commission, was seen on stage a couple of weeks ago in solicitation of the president’s reelection by the voting public. Still as the electioneering campaigns proceed, it is embarrassing to the note that the president uses every attempt to endorse politicians for re-election without reminiscing over such politician’s integrity with regards to the handling of public trust. Governor Abdullahi Umar Ganduje,of Kano State, is a case in point. Ganduje was caught on videotape receiving kickbacks in cash from contractors who handled various projects within his state. But despite these

overwhelming evidences that gives Ganduje away as unfit to continue executing public office, the president recently went to Kano to publicly endorse the governor’s continuity in that office. Perhaps President Obasanjo was right when he noted, recently, that Buhari’s supposed integrity is better put as a sanctimonious veneer of bogus integrity. And to further lend credence to the bogus integrity that Buhari and his cheerleaders claim in describing the man, others who knew him too well through close working relationships have been coming out to demystify that integrity. Buba Galadima, a Buhari insider from the very beginning, is constantly on the news showing us where the bodies were all buried. In newspaper interviews,Dr. Junaid Mohammed, the elder statesman and veteran politician from Kano State, had given stunning revelations on the Buhari character; of defending known thieves and loyalists as well as his penchant for nepotism in government. Former Governor of Sokoto State, Attahiru Bafarawa, recently narrated how he rigged the 2003 party primaries in favor of Buhari, with the latter’s full participation. Bafarawa also claimed that he gave Buhari money for campaigns in the aftermath of the primary elections ‘victory.’ Dr. Aliyu Tilde is another pioneer Buhari insider who has recently been hitting hard on the president, albeit in a politer language than other critics. As Vanderbilt University professor, Moses Ochonu, puts it, the claims of these insiders correlate with Buhari’s actions as president: approving, participating in, and accepting the political and financial proceeds of theft while maintaining deniability. Professor Ochonu claims that Buhari is arguably the most successful political scam of the twentieth and twenty-first centuries, as most things about him are fiction, including his personal integrity and his fight against corruption. Aminu wrote from Abuja, Nigeria

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The extortion bazaar in the Southeast

report released by the International Society for Civil Liberties & the Rule of Law last month revealed that Nigerian security and law enforcement agencies pocketed as much as N100 billion in roadside bribery and extortion in the South-eastern part of the country alone over the last three years. The report, titled: “Welcome to Southeast Region: Nigeria’s Headquarters of Official Highway Robbery,” was conducted in all the Southeast states and some parts of Delta State. It revealed what many watchers of events in Nigeria and particularly in the Southeast have always knownthat the security agencies, particularly the police engage in barefaced extortion in the Southeast and all roads leading to the Southeast, particularly in the yuletide season. Unsurprisingly, the group’s spokesperson revealed that the report was released to coincide with the Yuletide, a season bribery and extortion by security agencies are said to be at their peak as millions of people embark on holiday trips to the Southeast. So brazen is the extortion that the police and security

agencies have now designed specific levies for different categories of motorists across the region with strict enforcement, sometimes ending with police killing motorists and road users for failure to comply. “For every shuttle or Mitsubishi L300 bus loaded with passengers (only) in Anambra state, it is N50 at every police roadblock, and extra N200 is paid if loaded with goods and passengers” the report found.. “For every commercial motorcycle or tricycle or Datsun or medium range truck loaded with goods, it is N200 at every police roadblock, and for every private vehicle owner accused of “incomplete” vehicle particulars, the least demanded sum is N4,000 or more, which must be paid randomly or on the spot to avoid being dragged to police station and have his or her vehicle impounded and indented as ‘stolen vehicle.” Of course, those who failed to pay the illegal levy are detained and bailed with illegal bail fees, sometimes upwards of N10, 000. The report stated that there were 250 police roadblocks in Anambra state between August 2015 and August 2016, and each made an estimated N40, 000 per day. These personnel manning these roadblocks illicitly collected N10

million per day, which translated to N300 million per month and N3.6 billion per year. Although bribes and extortions are higher in Anambra, the same thing applies to all the Southeast states. A breakdown of extortion among security agencies shows that the police, as usual, were the lead takers. It was accused of pocketing N78.02 billion. It was followed closely other paramilitary agencies (Customs, Road Safety, NAFDAC, and NDLEA) who collectively were said to pocket N16 billion. The military (Army, Navy and Air force) apparently new boys in the game of road-side extortion, managed only N6 billion. The report aside, we have always wondered about the sheer number of roadblocks and checkpoints in the Southeast and roads leading to the Southeast. During some periods, these roadblocks could be one kilometre apart and dot every nook and cranny of the region. If so many thousand security personnel are detailed to man these checkpoints, one then begins to wonder how many police and security personnel are left to provide security for people in the cities, towns and villages. Is it any wonder then why despite virtually all Inspectors General of Police since 1999 have issued

directives for the dismantling of roadblocks, those directives were never obeyed or obeyed only briefly. This has become a permanent feature on the roads in and leading to the southeast. It is no wonder virtually all significant study and survey done have demonstrated that the Nigerian security agencies, particularly the police, are the most corrupt institutions in the country. One of such is the report of a survey done by the Nigerian Bureau of Statistics (NBS) in collaboration with the United Nations Office on Drugs and Crime and the European Union, in 2017, which shows that the Nigerian police is the most corrupt public institution in Nigeria. The government and all who wish the country well must be concerned with these damning reports on its security agencies. Security agents that are employed to protect the people cannot turn pry, extorting and harassing the same people while the government keeps quiet, pretending it does not know what is happening. Sadly, police and security agencies’ extortions are now about the most significant presence of the government a large section of the country feel. Are we surprised then that many Nigerians do not have patriotic feelings towards the country?

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CITYFile Angry TRACAS’ partners threaten pull-out

Members of the National Association of Kaduna State Student (NAKASS), during the 2019 peace rally on violence free election in Kaduna on Wednesday. NAN

Two suspected female kidnappers nabbed in Enugu REGIS ANUKWUOJI, Enugu

wo suspected female kidnappers said to specialise in kidnapping nursery and primary school children in Enugu and its environs have been arrested by the police. The suspects- Nkeiruka Odo, from Imilike Agu, in Udenu local government area of Enugu State, and Precious Chukwuemeka Chinyere, from Aguleri Anambra State, were rounded up while attempting to kidnap a child returning from a certain nursery/primary school located at Imilike Ani in Udenu local government of Enugu State.

Spokesperson of the police in Enugu State, Ebere Amaraizu, who confirmed the incident, said the suspects arrested by the police following intelligence information gathered about the syndicate. According to him, further investigation revealed how the suspects had carried out abduction of a four-year-old school boy identified as Ugwu Levi Chiagozie from another nusery/primary school also located at Imilike Ani in Udenu whom they handed over to a nurse in Anambra State for sale. Items recovered from the suspects include children’s wears, biscuits, chinchin, candies and other items that could

be used to entice little children. The suspects, according to Amaraizu, are already helping the police in their investigations. Meanwhile, the police have advised members of the public, especially parents/guardians to be vigilant and security conscious about their children/wards to avoid “falling into the antics of mischief makers” who are now enticing children from churches and schools. He also urged the general public to promptly report any suspicious movement around their environment to the state police command through the distress call numbers of the state command08032003702,08075390883,08086671202.

‘Discontinuation of criminal cases no longer automatic in Ekiti’ AKINREMI FEYISIPO

kiti State attorney general and commissioner for justice, Olawale Fapohunda has said that discontinuation of prosecution of criminal cases at the request of crime victims would no more be automatic in the state as all cases will be diligently prosecuted in the interest of the public good. Fapohunda, in a statement, expressed concern over increase in the number of applications by victims of crimes, their relatives and other interested persons requesting him to discontinue prosecution of suspects facing trial over criminal

offences. He said it was it was worrisome that several applications were seeking to stop further prosecution of accused persons facing trial over crimes like murder, armed robbery, kidnapping, cultism, rape and child-defilement. Fapohunda stressed the need for caution in exercising the discretionary power of the attorney general to discontinue prosecution in public interest adding that all applications shall be subjected to proper review and determined by merit on case-by-case basis. He emphasised that applications found to lack merit, unjust, abusive of court process and against government‘s

policy on crime prevention shall be denied. According to him, victims of crime, their relations and other interested parties must cooperate with the state as witnesses or in any other capacity as may be required if their application for discontinuation of prosecution was denied. He further stressed that they may otherwise be indicted for compounding felony. He, however, assured that applications found meritorious may be granted unconditionally or conditionally in line with the state’s policy on restitution, compensation and plea-bargaining in criminal matters.

ggrieved vehicle owners in the fleet of Transport Company of Anambra State (TRACAS) have threatened to withdraw their vehicles from the fleet over perceived unfair treatment meted to them by the management of the company. The protesting vehicle owners marched from Nnamdi Azikiwe University, Awka (UNIZIK) temporary site through major streets before terminating at Government House, Awka on Wednesday. Some of the protesters carried placards with varying inscriptions including, “We are tired of poor management in TRACAS”, “Governor Willie Obiano help before bad management will collapse TRACAS” and “TRACAS was formed to alleviate poverty and not to increase poverty”. They said they could barely make two trips in one month because some top management of the company displaced them from loading with a fleet of vehicles they introduced. Kingsley Uche, spokesman for the protesting group demanded the sack of the company’s general manager, Ifeoma Madukasi, whom, he said, was bent on supplanting their operations with vehicles she had vested interest in. Uche also accused the management of compelling all the drivers to pay N29, 000 for installation of speed limiting devices which, according to him, was not installed in any vehicle since two years till date. “Recently, the managing director said she was bringing about 70 vehicles and we told her that already, we are finding it difficult to make two trips in a month and that adding more vehicles will put us out of job. “Eventually, she brought some vehicles and gave them preference that they load every day and those of us who have been sustaining the company no longer have the chance to load. Because of this inhuman treatment, some of our members are having problems in their families because they can no longer provide for them. We cannot put food on our tables again, yet they expect us to meet the terms of our agreement with them,” he said.

Kebbi: 2 arrested with N.3m fake currency notes

wo suspects have been arrested by the Kebbi State command of the Nigeria Security and Civil Defense Corps (NSCDC) with N500 and N1000 fake currency notes totalling N300,000. The suspects, Abubakar Shagari from Sokoto State and Shehu Atiku Barama from Gwandu local government of Kebbi State were nabbed along the Sani Abacha Bye-pass, Birnin-Kebbi on Wednesday with the fake notes. Parading them, the state commandant of NSCDC, Sammani Ringim, said some corps intelligence officers acting on information from the public, arrested the suspects in their hideouts along the bye-pass. According to him, the suspects specialised in printing and spending counterfeit naira notes in the state. He said that the suspects would be charge to court after the completion of their investigation. Addressing officers of the command during a sensitisation workshop ahead of the general election, Ringim urged them to be professional and responsible in their duties before, during and after the elections. NAN

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MoneyInsight Telcos getting PSBs license is not disruption – GTBank boss FRANK ELEANYA

egun Agbaje, chief executive officer of Guarantee Trust Bank (GTBank) said that jostle by telecoms companies to secure Payment Service Banks (PSBs) license from the Central Bank of Nigeria (CBN) does not represent disruption. It will only be disruption if the service did not already exist, he says. Telecoms companies such as MTN, Airtel and Globacom are known to be preparing for a future in mobile banking services following the CBN’s announcement in 2018 that it will be issuing licenses to Payment Service Banks. The PSB license is seen as the final hurdle for the telecoms companies to play in the space and which will also boost efforts to provide financial services to millions of Nigerians who are excluded for one reason or the other. But since the CBN made the announcement, different experts have suggested that the coming of big non-banking companies into the space will bring about a disruption of banking services the range of which fintech companies have been unable to achieve. Nigerian banks have been quick to respond to the supposed fintech companies’ threat to their business. Today, banks have more fintech products and services that are reaching more people compared to startups in the fintech, many of have to collaborate with banks to survive.

Agbaje alluded to this during his presentation on the second day of the ongoing Social Media Week Lagos 2019. “We have disrupted those who felt they were coming to disrupt us.” Telecoms companies are projected to shake things up by marching banks’ dominance of digital banking by leveraging their appreciable customer base and financial ability. However, the GTBank boss who in a recent report released by the bank described the telecoms companies as a “more compelling threat,” suggested that their coming is likely to distract from an opportunity to ‘disrupt’ Nigeria’s internet data industry. “We need the telcos to bring the price of data down,” says Agbaje. “Getting a PSB license isn’t disruption because that is already being done. What is disruption is for a telco to be bold enough to reduce cost of data.” About 111 million Nigerians are on the internet everyday according to data from the Nigerian Communications Commission (NCC) however people still pay very high to have access to internet data in Nigeria. A report released by Ecobank in 2018 showed that Africa has the most expensive mobile data in the world, both in real and incomerelative terms. Fortunately, Nigeria was classified as one of the countries on the continent with the cheapest mobile data with $2.76 per 1 giga-

byte. But it is still high compared to peers like Ethiopia, Tanzania, Burundi, Kenya and Rwanda which has an average $1 per gigabyte. Nigeria also lags behind in terms of speed of internet. Speedtest global index statistics for May 2018, ranked Nigeria as low as 108th in the world on mobile internet speed at a download speed of 10.04 and upload speed of 9.35 megabytes per second (Mbps). The global average down-

load speed is at 23.57 Mbps. Tunisia, Morocco, Egypt and Kenya were ranked 71st, 72nd, 85th, and 87th respectively with download speeds of 19.21, 18.52, 15.89 and 15.39 Mbps. Telecoms companies always point to challenges such as Nigerian government’s inability to effectively address Right of Way policy which impacts their cost of operation as responsible for the quality of internet

service they deliver. “I don’t think Right of Way is enough excuse for the high cost of internet data in Nigeria,” Agbaje said. He believes telecoms companies should look within and disrupt themselves just as the banking industry is doing. “People need banking and not banks and financial institutions that operate in the traditional mode, will not last for too long,” he said.

CCI France Nigeria highlights risks facing businesses in an election year ISAAC ANYAOGU

section of the business community who gathered in Lagos on Tuesday February 5, at the breakfast meeting organised by the Franco-Nigerian Chamber of Commerce and Industry (CCI France Nigeria) are concerned that growth this year will slow as the general elections slated for this month leave investors concerned. This worry stems from Nigeria’s slow recovery from recession since 2017, rising debt which will cost more to service than the budgeted capital expenditure this year and a national budget, many in the business community consider unrealistic, due in part to ambitious oil revenue assumptions that may be difficult to realise. “The 2019 budget did not factor in the implication of the minimum wage increase, in our view it is unrealistic,” said Toyin Sanni, the CEO of Emerging Africa Capital Group who was part of a panel discussing Nigeria’s social political environment in an election year. Sanni counselled businesses not to get carried away with the optimistic budget assumption of 2.3million barrels per day and oil price benchmark of $60, as the anticipated gross revenue of N2trillion may not materialise.

Laurent Polonceaux, consul general, Frnace Consulate Nigeria giving the opening address

She said projected GDP growth of 3 percent is unlikely forecasting that 2% growth was more practical. The World Bank’s forecast for Nigeria’s economic growth this year is also at 2%. She recommended that businesses review these projections and make adjust-

ments accordingly. Another business risk highlighted at the breakfast meeting is Nigeria’s rising debt which would be serviced by 60% of revenue generated in 2019. The challenge is not that Nigeria is in debt but what it is using these funds

for and the value of the dollar debt, the business executives said. Rising dollar debt will encourage devaluation of the naira and will hurt businesses. Koye Edu, managing partner, Jackson Etti & Edu in his submission contends that the current government has shown restraint in spending hence the economic uncertainty is not as huge as feared. He said the choice before Nigerians is between a government touting social inclusion and one that is pro-business. Edu said that irrespective of what government comes in place, it is important that Nigeria increases its tax revenue to cushion the effect of rising debt. Tolu Aina, senior manager KPMG Advisory Services said the AMCON debt which is often ignored in conversations about Nigeria’s debt is important because it is on the balance sheet of the Central Bank of Nigeria. When AMCON’s 5trillion debt is added to Nigeria’s total debt, the debt stock rises to over N16trillion. Aina said heavy government borrowing is crowding out the private sector and could quicken corporate mortality. It is also threatening manufacturing and business as investors will rather invest in risk-free govern-

ment assets rather than productive sectors of the economy. A high return on treasury bills also keeps interest rates high. Regardless of which party comes to power, businesses were cautioned to moderate their growth expectations. The current government will continue to pursue socialist policies and continue its programmes but the economy will manage to survive till 2023. But if another government takes over, growth will still not materialise this year as more time will be spent forming a cabinet and getting set. Olisa Agbakoba, human rights activist and maritime lawyer said Nigeria is technically insolvent and that the new minimum wage will make it difficult to balance government books. He said Nigeria’s insistence on the two big political parties without looking at smaller parties will ensure the status quo continues. Agbakoba represents a collection of different smaller political parties. Laurent Polonceaux, consul general, Frnace Consulate Nigeria, in his welcome remarks said 2019 is a strategic year for Nigeria to sustain reforms made in ensuring GDP growth and ease of doing business, emphasising the a peaceful election was important to make economic progress.

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Afrinvest proposes three ways to attract badly needed oil sector investments

Pg. 17

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

CONSUMER GOODS

Multichoice sees return to profitability ahead of February listing OLUFIKAYO OWOEYE

head of its planned unbundling by Na sp e rs a nd eventual listing on the Johannesburg Stock Exchange (JSE) later this month, PayT V operator, Multichoice, says it expects its rest-of-Africa operations to return to profitability in a few years’ time. In its pre-listing statement in compliance with the JSE’s listings requirements, the company expects an annual reduction in trading losses from the rest of Africa, with the unit returning to profitability “in the medium term.” Acc o rd i ng to Mu lt i choice, its non-South Africa unit has been steadily adding subscribers and growing revenues but remains unprofitable. In the 2018 financial year, the operation recorded a trading loss of R4.6bn, from R4.9bn the year before. While the South African business

recorded a trading profit of R10.4bn in the financial year 2018, from R9.8bn previously. In the face of new competition from global s t re a m i ng g i a nt s su c h as Netflix, and IrokoTV, Multi-Choice is banking on local content giving it an edge. The company note d in its presentation that its production costs were ab o u t 4 0 % l ow e r t ha n those of its international rivals and that it was spending R2.5bn a year on local productions, excluding sport. The operator, which has 13.9million subscribers in 50 African states, said Africa’s “addressable” pay-TV market would be 46-million households in 2022. About 15-million of those were in SA, where the company currently has 7.2million subscribers. While MultiChoice Group is largely expected to rema in in t he J SE’s top 40 index when it is unbundled, predictions of the company’s valuation are wide-ranging. Most valuations rang e

from R50bn to R90bn. US bank JPMorgan values Naspers’s share of MultiChoice at $5.5bn (R74bn), or just under R200 a share. The company also plans to pay a R2.5bn dividend to share-

holders in 2020. The new company will be named MultiChoice Group and will include MultiChoice South Africa, MultiChoice Africa, Showmax Africa, and Irdeto. It would be recalled

that Nasp ers last year announced plans to list its Video Entertainment business separately on the Johannesburg Stock Exchange (JSE) and also simultaneously look to unbundle the shares in

this business to its shareholders. MultiChoice is a South African company that operates the DStv Satellite Television service, a major satellite TV service in SubSaharan Africa.

DEALS

With eyes on growth, Unilever acquires UK snack brand SEGUN ADAMS

nglo-Dutch consumer goods giant, Unilever, has acquired the holding company of Graze, UK’s leading snacking brand, as Alan Jope, Unilever’s Chief Executive Officer (CEO), moves to fast-track growth. The company made this disclosure on Wednesday stating that the acquisition is expected to improve the value of the Unilever brand. Fending off competition from the likes of Kellogg’s and PepsiCo, Unilever reportedly

secured the deal for about £150 million, although the initial tag set by Carlyle- the erstwhile owners- was twice the price finally agreed upon, according to sources. “Accelerating our presence in healthy foods and out of home this is an excellent strategic fit for the Unilever Food & Refreshment business, and a wonderful addition to our stable of purpose-driven brands,‘’ the notice stated. Late 2018, Unilever replaced CEO Paul Polman with Alan Jope-a digital savvy, after Polman announced his retirement. The

decision to elect Jope was informed by the brand’s strategy to improve sales through digital marketing especially for products targeted at the younger customers. “We look forward to working with the Graze team to grow the business, leveraging their tech and e-commerce expertise for our wider portfolio, and offering more consumers the opportunity to snack in a healthier way,’’ Unilever stated in the notice. Graze which was launched in 2008 grew into one of the leading Food and Beverages player in the UK by leveraging on technol-

ogy. For instance, the former Carlyle owned firm utilizes an algorithm called ‘’Decision Algorithm Rating What Ingredients’ Next ‘’ or DARWIN which allows for the customization of customers snack boxes based on preferences subscribers indicate on the site. Concerning the acquisition, Anthony Fletcher, Graze CEO expressed optimism on the impact of the change of ownership on Graze. “Graze has an incredibly exciting future ahead as part of Unilever and we look forward to working closely with the team

to keep on inventing new healthy snacks, as well as continuing to work to understand the role technology can play in improving the food industry.” Following the disclosure, shares of Unilever rose by 3 percent on the London Stock Exchange, Tuesday, although it declined by 1.22 percent Wednesday. Unilever PLC operates in the fast-moving consumer goods industry worldwide. It operates through Personal Care, Home Care, Foods, and Refreshment segments. The Personal Care segment offers skin care and hair care

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

products, deodorants, and oral care products. The Home Care segment provides home care products, including powders, liquids and capsules, soap bars, and various cleaning products. The Foods segment offers soups, bouillons, sauces, snacks, mayonnaise, salad dressings, and margarines and spreads. The Refreshment segment provides ice creams and tea-based beverages. The company was founded in 1885 and is headquartered in London, the United Kingdom with subsidiaries in different countries including Nigeria.

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COMPANIES & MARKETS MANUFACTURING

Grief Plc shuts Nigeria operations amid harsh operating environment OLUFIKAYO OWOEYE & SEGUN ADAMS

teel Drum m a k e r, G r e i f Nigeria Plc has decided to suspend operations in the country. The firm’s Chairman, Adebayo Olowoniyi, made this disclosure in its 2018 full year financial reports for the period ended 31 Octob e r 2 0 1 8 re l e a s e d o n Wednesday this week. According to Olowoniyi, the company has been operating below operating cost even b elow dire ct mater ial costs noting that the company had tr ied to stay afloat through price increases and embarked on cost reduction initiatives. Halfway through its financial year, the company lost a key customer and had to reduce price s t o re t a i n v o l u m e s, l e a d i n g t o a n u n d e rrecovery of costs. “ Therefore we have decided to stop operat i o n s w i t h i m m e d i at e effect. In the coming

months, we will investigate on if and/or how we can continue with Grief Nigeria,” he said. Results for the twelve months ended October 2018 show revenue fell by 62% from N1.4 billion in 2017 to N534 million i n 2 0 1 8 . T h e f i r m re corded a loss before tax of N245 million in 2018, as against a profit before tax of N77.5 million in 2017. The 2018 financial year was a very challenging year for Gr ief Plc as its factories in Kaduna and Delta states remain non-profitable, while the Kaduna plant contributed just a tenth of its total revenue for Q1 2018 and the Delta plant virtually dormant. The Board of the company in May 2018, announced the closure of factor y plants in both Koko, D elta State and Kaduna, Kaduna State with the commencement of complete evacuation of all machines and equipment. Greif Nigeria Plc was incorporated as a limit-

L-R: Timothy Adesiyan, patron, Noble Shareholders Solidarity Association (NSSA); Seye Kosoko, company secretary, FBNHoldings; Mathew Akinlade, president, (NSSA); Tolu Oluwole, head, investor relations, FBNHoldings, and Oyinade Kuku, head, human resources, FBNHoldings, after a shareholders meeting organized by Noble Shareholders Solidarity Association (NSSA) in Lagos recently.

ed liability company on January 20, 1940, with the name, Metal Containers of West Africa Limited. The name was subsequently changed to Van Leer Containers

( Ni g e r i a ) L i m i t e d o n July 4, 1969, and then, Va n L e e r C o n t a i n e r s (Nigeria) Plc. The Company’s name eventually became “Greif Nigeria Plc” by

a special resolution on May 12, 2004. Greif International Holdi ng s B .V. Ne t h e r l a n d s holds 51% of the issued share capital amounting to 21million shares,

the Van Leer Nigerian Educational Trust has 9 . 6 m i l l i o n a m ou nt i ng to 23% shares, other Nigerian investors hold 11.2million ordinar y shares.

BANKING

Stanbic IBTC sets digitization agenda at social media week JUMOKE AKIYODE-LAWANSON

ith the rising popularity of Fintech companies who are somewhat regarded as competitors to banks, the optimization of digital services in traditional banks has become inherent. Stanbic IBTC during its meet up session at the ongoing Social Media Week Lagos 2019 reiterated the need for all banking services to leverage technology to deliver optimum service to customers. Wale Ojo, man-

ager, process improvement, Stanbic IBTC, who spoke at the session themed; ‘Positioning the Digitization Agenda’, said that the bank has deployed artificial intelligence (AI) with the use of chatbots to improve service delivery to its customers and is also deploying internet of things (IoT) which ensures that people, process and systems are connected. “We have developed robotic solutions that make our financial process more seamless, and this helps to reduce the number of human interactions

that occur within the system. “We have an all-inone app that allows customers to navigate across various accounts from a single user interface. The same app could be used to access different sites instead of having different apps for different bank accounts in different bank websites,” Ojo said. The bank has also developed chatbots that can log on to systems, using the username and password to visit different sites and download information and save such information in a particular location

that could be accessible to all. According to Ojo, the ‘SAMI’ chatbot developed by the bank can interact and help its customers perform basic transactions such as account opening, checking of account balance and other customer care related issues. The back-end robotics are used to carry out cheque confirmation, verification and clearance as fast as possible. “They act as robot advisory that help customers to identify investment types that best suit their financial strength. The chatbots advice

customers on different bank offerings based on the customer’s spending pattern. With our robotics, we are able to deal with back-end operations by speeding up our back-end operations such that customers do not experience long turn-around time and delays in the banking operations,” Ojo said. Jane Nwosu, senior process analyst, Stanbic IBTC, spoke on the bank’s innovation lab. The lab she says was developed to properly engage customers, know exactly what they want and provide impeccable services that suit the

customer’s needs. “Our investments in robotics and people are important to us as a bank, as we will continue to invest in young people that have brilliant ideas. We will continue to invest in robots and in people to prove a point that the use of technology in banking operations will not eliminate jobs of people. It is all about workforce optimization. We see millennials taking up key banking operations in the future, and that is the reason why we invest in people even as we invest in chatbots,” Ojo said.

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Oil and Gas

Afrinvest proposes three ways to attract badly needed oil sector investments ISAAC ANYAOGU

frinvest, a Lagos-based investment banking firm says reviewing Nigeria’s dated petroleum sector laws, restoring joint venture production to previous profitable levels through improved funding from mergers of local p l ay e r s a n d d e v e l o p i n g competitive fiscal terms are principal ways to attract investments into the sector. In t h e i r Ni g e r i a n O i l and Gas Upstream Investment report released recently, the investment firm stressed that despite the implementation of 70.0% local content by contract value on upstream projects in 2010, there remains a strong dependence on the International Oil Companies (IOCs), particularly for deep water projects. Niger ia has been un able to achieve technology transfer in deep water fields and worse still fiscal terms do not even favour the country. Nigeria’s Production Sharing Contracts (PSCs) is the only oil fiscal term in the world where the government gets nothing in royalty for drilling in deep offshore fields with depths of over 1,000km.

Many of these PS Cs were signed in the 1990s when knowledge of deep offshore production was limited. They will expire over the next 5-10 years presenting an opportunity to review them. H o w e v e r, t o b e n e f i t , “investors need clarity soon before committing to major new deepwater investments,” says the report. Adeoluwa Eweje, Afrinvest analyst who prepared the report suggested that Nigeria should undertake a h o l i s t i c re v i e w o f t h e Petroleum Industr y Bills and pass it into law quickly to provide the competitive advantage required to attract FDI into the sector. The report also said t h e re i s a l s o a n e e d f o r i n c rea s e d c o l lab o rat i o n (mergers) among indig enous players operating on marginal fields so as to effectively use the oil resources available to them i n c re a s e f u n d i n g f o r J V venture operations. T h i s i s b e c a u s e g o ve r n m e n t ’s p a r t n e re d J V projects have experienced setbacks due to lack of funding espe cially from the government. A merger between local players will take advantage of waning pipeline sabotage as they have a proven ability to better manage host com-

munities than the International Oil Companies (IOCs). The report also said that to “attract investment in the gas sector, the development of comprehensive gas-friendly fiscals remain critical; hence, an increase in taxation for a sector requiring increased investment is not perceived as c o m m e rc ia l ly att ra c t i ve for investors.” According to Afrinvest, pricing regimes which ought to be economic and market driven across the gas to power value chain have remained far below c o m m e rc ia l ly att ra c t i ve and sustainable levels for a long time. W h i l e t h e p rov i s i o n s in the current draft of the proposed Nigerian Petroleum Industry Bill, (PIB) seeks to attract a significant level of infrastructure investment in the gas sector, an increase in tax and royalty on gas production will hinder the development new gas fields, the report said. Analysts have at several times called on the government to think about foregoing short-term benefit of higher revenue to enact competitive fiscal terms that will drive investments into the sector from which it can earn big revenues in the long-term.

L-R: Adeyemi Obalanlege, Olota of Ota town; Bukola Smith, executive director, business development, First City Monument Bank (FCMB); Fidelis Ojeblenu, head, clinical services, Federal Medical Centre (FMC), Abeokuta; Adedotun Gbadebo, Alake of Egbaland; Ade Abolurin, former commandant-general of Nigerian Security and Civil Defence Corps; Titilayo Musa, wife of the chief medical director, FMC, and Felicia Obozuwa, divisional head, corporate services, FCMB, during the commissioning ceremony of the new FCMB Cash Centre at FMC, Abeokuta, Ogun State.

L-R: Samuel Oluyemi, head, vertical markets, Nigeria Interbank Settlement System (NIBSS); Aminu Gwadabe, president, Association of Bureaux De Change Operators of Nigeria (ABCON); Adebola Ayedun, assistant director, trade & exchange department, Central Bank of Nigeria (CBN), and Adamgbe Williams, senior detective superintendent, Nigeria Financial Intelligence Unit (NFIU), at the launching of the ABCON’s Automation Portal in Lagos

Energy

NoMAP integrates five PAYGO solar companies into SWIFTA’s agency network KELECHI EWUZIE

igerian Off-Grid Market Programme (NoMAP) as part of efforts to remove bottlenecks hindering energy access to households in communities have successfully integrated five leading Solar Home Systems companies: Azuri Technologies, A Solar, Oolu Solar, Smarter Grid International (SGI) and Sosai Renewable Energy Company into SWIFTA’s 20,000 strong cash collection agent network. The recent integration follows a rigorous User Acceptance Test (UAT) initiated and financed by Nigerian Off-Grid Market Programme which would ease subscription collection from unbanked Pay As You Go (PAYGO) customers of the companies. The six-week integration was financed and project-

managed by The Nigeria Offgrid Market Acceleration Programme (NoMAP), a market building programme jointly supported by the Shell Foundation and USAID that aims to, amongst other things, address the current difficulties faced by Solar Home Systems (SHS) companies in collecting payment from unbanked customers. Adedotun Eyinade, Programme manager, NoMAP while announcing this partnership in Lagos observed that customers who are unbanked and living off the grid often face the arduous task of not being able to access Pay As You Go Solar since there are limited options to pay for their monthly subscriptions Eyinade said that with the integration into Swifta agent’s network, PAYGO customers can now seamlessly pay for their monthly subscription through cash collection agents According to him, “No-

MAP views the pilot as a workaround to address the challenges associated with Nigeria’s low mobile money uptake which makes it difficult for unbanked customers to pay for Solar unlike their peers in East Africa”. Adedotun further said it is hoped that these five companies that we have partnered on the integration will be able to expand into new off-grid communities since collection risk will be addressed by this integration. “NoMAP will collect and report evidence of improvement in sales, churn, default rate, customer experience and energy access to the unserved”, he said. The system is designed such that, a PAYGO customer from any of the five companies with a subscription plan can renew its subscription through SWIFTA’s mobile or static agents leveraging on the company’s proprietary OMNIBRANCH platform.

L-R: Maikanti Baru, GMD, NNPC; Ibe Kachikwu, minister of state, petroleum resources; and Huub Stokman, CEO, OVH Energy, during the ministerial visit to the OVH Energy stand at the Nigerian International Petroleum Summit in Abuja

L-R:Ernest Audu, founder and principal consultant, Peaceville Entertainment Group; Bright Okpocha (Basketmouth), A-list comedian and actor; Ayeni Adekunle, founder/CEO BlackHouse Media group, and Solafunmi Oyeneye MTV Base Africa (ROA) senior channel manager, VIMN Africa, at a panel session hosted by Viacom International Media Networks Africa (VIMN Africa) at Social Media Week in Lagos.

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ManagementDigest

The Big Idea: accounting for time Ashley Whillans

he research is unambiguous: People who value time more than money are happier and more productive . But actually shifting to a time-first mindset is really hard. Partly, it’s because of how our brains are wired. Partly, it’s because we don’t know how to measure what time is worth. A $10,000 raise is easy to understand; calculating the value of an extra 30 minutes isn’t so simple. But it’s getting easier. Some of our research on time and happiness has been devoted to assigning tangible value to time and the happiness it produces. The hope is that when people are faced with a time-or-money decision, they’ll more easily see that giving up the money isn’t a loss. Our primary metric is the dollar equivalent of happiness. In other words, a positive use of time produces a happiness boost equivalent to what we would expect from a rise in annual household income. The process for assigning cash to time and happiness isn’t all that straightforward. First, you must round up a representative sample of working adults living in the U.S. and ask them questions about how much money they make, how happy they are and how they spend their time. Then you must take their answers and run statistical analyses to compare how income affects their happiness and how their time-use decisions do. The process isn’t exact, either. Our data is accurate, but it’s not needlessly precise. Saying some activity is worth $1,139, for example, is a little too specific, so we’ve rounded numbers. We’ve also focused on averages, so these numbers won’t apply to all people in all circumstances.

Finally, the happiness boost will vary based on income. Surprisingly, buying time is most effective when you have less money. For a person who makes up to $50,000 per year, the value of buying time can reach the equivalent of $40,000 in additional annual income. For someone who makes more than $125,000, it’s $16,000 — still substantial. The lesson is that everyone who wants a big gain in happiness should spend money to buy back time. Here are some early examples of time-value calculations we’ve made.

decisions around meals — what to eat, where to eat, with whom — and spending more time enjoying a meal with others will gain you the happiness equivalent of a $3,600 bump.

SHIFTING YOUR MINDSET to value time over money brings a happiness boost equivalent to gaining $2,200 of annual income. This boost is from simply changing how you think, even if you do nothing else differently. The effect is likely due to the reduced stress that comes from not obsessing so much over money or worrying about how to get more of it. SAVORING MEALS induces happiness. Americans spend much more time choosing what to eat than other cultures, and they don’t enjoy mealtime as much or spend as long eating. Decreasing the time spent on

OUTSOURCING DISLIKED CHORES seems like an expensive extravagance, but in fact the investment can be worth it. In terms of happiness, the decision is worth an annual income boost of about $18,000. Let’s play this out. Say you make $48,000 per year and could hire someone to buy and put away your groceries — something you hate doing — for $100 per week. That’s $5,200 per year, 11% of your salary. It seems unreasonable at first, but once you know the life-satisfaction boost, it suddenly seems very reasonable. Before investing in outsourcing

SPENDING TIME TOGETHER IN RELATIONSHIPS helps in ways material items can’t. Couples tend to give each other stuff to express their devotion. They’d be better off giving the gift of time by spending money on timesaving things like a housecleaning service. Our calculation puts the happiness increase for such gifts at $4,000.

chores, it’s important to identify the specific ones you dislike. Some people may enjoy cooking but hate the prep work. In that case, a meal kit service is a good investment. Others enjoy the feeling they get from cleaning the house, so outsourcing that task wouldn’t make sense. A Roomba is not the path to happiness for everyone. CHASING DEALS usually isn’t worth the time it takes. Think of driving out of your way to save a few pennies per gallon on gas, or comparison shopping between stores for an item you may save only a few dollars on. Or consider this scenario: You want to work from a coffee shop a few days a week, and there are two equally close to your house. At one, you will be left alone, and you’ll spend $20 per week on coffee and pastries. At the other, you’ll know the staff and chat with friends, but you’ll spend $60 per week. Which do you choose? The first one seems like the better option, because you’ll get more done and spend far less money. But being more productive doesn’t mean you’ll be happier. You may get less done at the second shop, but the happiness increase is worth about $5,800! Even if you accomplish

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

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only half as much work at the friendly coffee shop, you’ll be much happier. VACATION is the most egregious misuse of time. In our survey of working adults in the U.S., 75% of employees who got eight vacation days a year did not take them all, 40% used fewer than eight days and 31% took fewer than four days. If someone put stacks of money on a table and said we could take it, we wouldn’t walk away. By not using our vacation time, that’s effectively what we’re doing. In our sample, the mean number of vacation days used was nine. According to our analysis, taking eight more days a year is equivalent to a $4,400 increase in annual income. For many people, these days are available! All they have to do is use them. FAMILY AND FRIENDS are worth a lot in terms of happiness. Shifting from working all the time and never seeing friends and family to spending time daily with them would be worth a $108,000 boost in annual household income. This example is theoretical, of course. But the calculation should give you an idea of just how much value your time can have. If you spend most of your time working in the hopes of getting a $20,000 raise, you may well get the raise. But your happiness increase won’t be nearly what it would have been by spending that time with friends and family. It can be hard to get your mind around this concept. But budgeting time carefully — as carefully as you would money — could pay off big for your, and your loved ones’, happiness.

Ashley Whillans is an assistant professor at Harvard Business School, where Hanne Collins is a research associate.

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mPedigree, over and over again, leads the fight against drug counterfeiting ...Founder becomes Braddock Scholar and board member of APHRC KEMI AJUMOBI

ounterfeit drugs sold are disastrous to human existence and a threat to global public health. Hence in 2007, Ghanaian tech entrepreneur Bright Simons, passionate about eradicating this aberration, created a means to swiftly validate the authenticity of a medication, through his organisation, mPedigree. mPedigree is a global leader in the use of mobile and web technologies in securing products against counterfeiting and diversion. mPedigree renders service to the world’s leading pharmaceutical and consumable companies with the shared goal of protecting consumers, enriching their lives and transforming their communities through a cleaner, better, supply chain. This fight against counterfeiting through mPedigree has received awards from near and far due to the positive results generated from the authentication process Simons pioneered. Lives have been saved. Simons, aside being the President, mPedigree Network, is also Founder, Koldchain (Africa Leadership Initiative – West Africa) and he was recently announced among those selected as 2019 Braddock Scholars. The Braddock Scholars Program is built on the belief that entrepreneurs are

Bright Simons

great at starting businesses, but the skills needed to effectively scale these innovations are very different. The program serves to bridge the “scaling gap” by channelling the expertise of mentors, all of whom are Aspen Institute Trustees, towards the specific challenge or opportunity the Scholars face. According to Bright, “As you know, the Aspen Institute, through the Braddock Scholarship, brings together innovators working on emerging concepts with potential for massive scale

and established global leaders who can help innovators navigate the risks of such breakthrough innovation. I am very pleased about the Fellowship for precisely this reason. Over the last decade, parts of our mPedigree solution have greatly matured, but our biggest impact is yet to come. That impact would be driven by cutting-edge work in machine learning and organo-sensors we are doing right now, and we need all the support we can get to navigate the complexity of

Create more cancer awareness to break ignorance in Nigeria, experts tell FG ANTHONIA OBOKOH

xperts in the healthcare sector in Nigeria have called on the government and the private sector to create more cancer awareness to change the deplorable health challenge posed by the incidence of cancer to Nigerians. The calling is coming at a time the world is celebrating World Cancer Day 2019 with the theme ‘I am and I will’all about your story and your commitment. This calls for personal commitment to help reduce the global burden of cancer, Nigeria inclusive explores. Ifeoma Okoye a radiologist at University of Nigeria Teaching Hospital (UNTH) and founder of Breast Without Spot, said that late presentation of breast, cervical, and other cancers will continue to increase in Nigeria, unless the country do something more proactive than it has been doing in the past. “The major drivers for the high morbidity are fear, reluctance to accept fee for screening and the unaffordable medical bills associated with late presentation,” she said. “We urge the public to be cancer aware, know the causes and risk factors so that appropriate precautions can be taken to modify or avoid them. In addition to preventing and reducing the

risk of cancer, individuals should refrain from smoking and drinking alcohol, be physically active, and have a balanced diet,” Okoye said. She stated that fear fuels the wrong perception about cancer and can only be buried when the country can change the narrative through improving early detection, increasing opportunities for free screening, and assisting indigent patients to cope with their medical bills. These interventions, according to her will improve survival statistics. According to the World Health Organization (WHO), globally, an estimated 9.5 million people worldwide were predicted to die from cancer in 2018, accounting for about 26, 000 cancer deaths a day and that number is predicted to grow. The international health organisation also estimated that over 100,000 Nigerians are diagnosed with cancer yearly, while about 80,000 die from the disease. This brings the consequences of the cancer epidemic to 240 Nigerians every day or 10 Nigerians every hour, dying from cancer. It noted that the country’s cancer death ratio of 4 in 5 affected persons is one of the worst in the whole world. Experts say that the

steady rise in cancer cases in Nigerian is an indication of inadequate or ineffective control measures to curtail the disease. They stated that there must be an urgent need for the government to include cancer treatment under the country’s National Health Insurance Scheme (NHIS), so that more people can afford the treatment and go for early screening. The experts added that government needs to encourage activities through non-governmental agency to promote advocacy, national policy on training of personnel for clinical and self-breast examination, and nationwide screening program (mammography) in order to enhance early detection, control the upward trends to reduce the mortality rate of cancer. Cancer is the uncontrolled growth and spread of cells. It can affect almost any part of the body. The growths often invade surrounding tissue and can metastasize to distant sites. Many cancers can be prevented by avoiding exposure to common risk factors, such as tobacco smoke. In addition, a significant proportion of cancers can be cured, by surgery, radiotherapy or chemotherapy, especially if they are detected early.

global deployment.” Adding to the feather on his cap, The African Population and Health Research Center (APHRC) has included Bright among the three dynamic and visionary African and global leaders in the field of data management, evidence generation, and technology to their Board of Directors as they approach the mid-point of their 2017-2021 strategic plan. “We are incredibly excited to welcome these exceptionally talented and visionary leaders in their own right, to our Board. They bring rich experiences from different sectors across the globe and we look forward to their support and guidance in shaping the Centre’s future as Africa’s premier research institution for population health and wellbeing,” said Catherine Kyobutungi, executive director. Bright has always viewed the work that the Africa Population Health Research Centre does as pushing the very frontier of how rigorous research can be directly applied to the work of practical innovation in the healthcare domain. In his words, “Mere imagination and enthusiasm are not enough when breaking new ground, quality, solid, research and data are just as important. That’s why, as practicing innovator, I am so delighted at the opportunity to serve on the Board of the APHRC. He further adds that “My role here is to become the voice of practitioners,

and a bridge between the amazing, world-class, scientists at the Centre and the grassroots change agents working all over the continent in pursuit of clear goals in health improvement. We need to bring power and prestige closer to passion and action. I think that’s why I was invited, and I am delighted to serve.” Bright is a George Mallinckrodt Fellow at the John F. Kennedy School of Government at Harvard University and an Adrian Cheng Fellow at SICIHarvard. Bright serves for more than a decade as the president of mPedigree: a social enterprise ranked number 34 among world-changing companies by Fortune Magazine in 2016 and among the world’s most creative companies by Fast Company magazine. mPedigree works on three continents in partnership with governments, several Fortune 500 companies, and grassroots organisations to spread innovative, including patent-pending, technologies that secure communities from the harmful effects of counterfeiting. Bright’s current research and innovation focus at the Harvard Innovation Lab explores the power of new technologies that combine data analytics and thermo-sensitive polymers for temperature control and accountability management in sensitive health cold chains for vaccines and biotech products.

Stakeholders call for innovative approach to curb spread of HIV/AIDS JOSEPHINE OKOJIE

takeholders in the health sector have called on government at all levels as well as the private sector to harness innovative ways in curbing the spread of HIV and AIDS in the country. The stakeholders who spoke at the just concluded free testing and counselling initiative held during the Access Bank Marathon held in Lagos noted that the applications of new solutions will help tackle the spread of HIV and AIDS in Nigeria. The programme which was organised by the Nigeria Business Coalition against AIDS (NIBUCAA) and HACEY Health Initiative tested over 2,500 athletes and participants of the sporting event as well as residents. Gbenga Alabi, executive secretary, NiBUCCA, said the programme should serve as a case study for government and the private sector to end the spread of HIV/AIDS in Nigeria. Alabi also noted that the yearly marathon exercise seeks to promote HIV prevention for over 1million Nigerians through digital and social media platforms. “We still have miles to go, as the latest UNAIDS report shows, and that includes reaching people living with HIV who do not know their status and ensuring that they are linked to quality care and prevention services,” he said. He explained that significant progress has been made in the AIDS response since 1988, as three in four people living with HIV know their status. Alabi urged government and

members of the private sector to tie HIV/AIDS awareness into their programmes. In the same vein, Isaiah Owolabi, project director, HACEY Health Initiative, noted that the growing epidemic of HIV and AIDS in Nigeria calls for more investments to curb the disease. “The UNAIDS recommend that HIV prevention efforts must be reinvigorated if the world is to stay on the Fast-Track to ending the AIDS epidemic by 2030,” Owolabi said. “The UNAIDS prevention gap report shows that worldwide an estimated 1.9 million adults have become infected with HIV every year for at least the past five years and that the number of new HIV infections is rising in some regions,” he added. Also, Omobolanle VictorLaniyan, head of sustainability, Access Bank Plc, said “HIV testing is essential for expanding treatment and ensuring that all people living with HIV can lead healthy and productive lives.” She noted that continuous

testing is crucial to achieving the 90–90–90 targets and empowering people to make choices about HIV prevention to protect themselves and their loved ones. Victor-Laniyan, however urged members of the society to desist all forms of stigmatisation against HIV and AIDS patients. “Unfortunately, many barriers to HIV testing remain stigma and discrimination still deters people from taking an HIV test,” she said. She urged other stakeholders to also provide access to confidential HIV testing to members of the society. Similarly, Mary Adeoye, programme officer, HACEY Health Initiative, said the free testing programme was one of many ways the organisation contributes its quota in curbing the spread of HIV and AIDS. She urged tested persons to ensure continuous testing and inform other persons. “Spread the news and not the virus. HIV testing doesn’t kill, it is to know your status,” Adeoye said.

Owolabi Isaiah, project director, HACEY Health Initiative; Ikpeama Mercy, health worker & lab scientist; Ogbonne Mecha, program officer, NiBUCCA and Gbenga Alabi, executive secretary, Nigerian Coalition Against AIDS (NiBUCCA), during a free HIV testing for participants at Access Bank Marathon held in Lagos recently.

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Dengue and Rabies

Executive Travel Health

Ade Alakija

Dengue Fever: fter Malaria, Dengue is the most common and serious mosquitoborne infection affecting travellers and may become severe and life threatening. It is an Arbovirus (any virus transmitted by arthropod vectors) transmitted by the mosquito Aedes Aegypti (The same mosquito that transmits Yellow Fever, Zika and Chikungunya diseases). Dengue is endemic in SouthEast Asia, the Indian sub-continent, the Pacific region as far as Queensland in Australia, the Caribbean Islands, north and eastern parts of Central and South America, to a lesser extent the Middle East and sporadically in Africa. Outbreaks could be common especially after the rainy seasons when mosquitoes breed more actively. Global warming is spreading the mosquito vector to more temperate regions and higher altitudes and epidemics are widespread in Central and South Americaand also Asia. There has been a 30 fold increase in incidence globally over the last 50 years. It is estimated that 3.9 billion people in 128 countries are at risk. Many cases are underreported but it is estimated that 390million infections occur annually of which 96 million are symptomatic. The mosquito bites predominantly during the day so protective measures should apply to daytime and nighttimes. Tourists staying for longer periods especially living in rural areas with poorly screened accommodation are at high risk. (Though most infections occur in urban and semi-

urban areas)The Dengue viruses (DENV), a flavivirus is the cause of infection. The incubation period is 4 to 10 days after which a sudden onset of fever (>38.5®C), headache, myalgia and arthralgia (Muscle pain & Joint pain) may occur and a fine maculopapular rash may develop shortly after (3-5 days). Nausea, vomiting, diarrhoea, meningism and enlarged lymph nodes may occur. The illness usually resolves within a few days and serious complications are uncommon. Most infections are asymptomatic or present with a mild febrile illness (3 to 7 days) and resolve in phase 1. In the critical phase, Dengue Haemorrhagic Fever, more common in children is a haemorrhagic form that can present with shock and can be fatal. Persistent vomiting, increasing abdominal pain, tender liver, mucosal bleeding lethargy and restlessness are signs to look for. Incidence is around 2% with around 1-2% of those cases being fatal in some studies. Treatment is symptomatic and supportive, but hospital care is indicated in severe cases which may include blood transfusions. Severe fatigue may last for months. Avoiding mosquito bites is essential using appropriate clothing, repellents and adequate mosquito nets. Air-conditioned environments help also. There is no known treatment or cure for the virus, but a vaccine is available. The vaccine is still on trial in some countries, but Mexico, Costa Rica, Brazil and the Philippines are the first countries to authorise the use of Dengvaxia. In the UK, Dengue is the second most common cause of febrile illness in returning travellers and the number of cases in travellers continues to increase. Of interest to note is that DENV has 4 distinct serotypes (DENV 1 to 4) infection with one of the serotypes induces lifelong protective immunity to

that infecting serotype and immunity to other serotypes, but this is short lived for on average 2 years. If you are infected with a different serotype after this cross-protecting immunity has waned, you are at increased risk of developing a severe form of dengue. Rabies: Rabies is deadly disease which causes most certain death froman acute encephalitis caused by the rabies virus. Only one case report of recovery from clinical rabies exists in the world literature and it is believed that the person received some form of Post-exposure Prophylaxis (PEP) before the onset of illness. Other stories you may have heard that survived (about 4 in all) hadsome previous (not complete) vaccinations against the virus and all had some neurologic serious sequelae. My advice is that, if you or any family member is at risk for Rabies locally or travelling, take your complete preventive 3 dose shots and know you have taken some form of “life insurance” (Children are more vulnerable than adults because they cannotcomprehend the risk of animals, are less able to defend themselves from an animal attack and may not report a potential exposure). It is virtual 100% preventable if proper vaccination and care is taken. Rabies can affect many animals, but the dog, fox, cat and vampire bat are those most likely to come in contact with humans? Be careful of bites, scratches, tiny nibbles andlicks/saliva (especially if you have an exposed wound) of animals. All rabies treatment should be initiated as soon as possible. Cases of rabies have been reported as much as six years following a rabid animal bite, so management must be done even beyond six years as if the bite has just occurred. In

Ekiti State government restores hope of cataract patients AKINREMI FEYISIPO

ver two hundred patients suffering from eye cataract in Ekiti state will benefit from Free Eye Cataract Surgery organised by the State government in conjunction with the Federal Ministry of Health. Kayode Ajite, a medical consultant at the ongoing free eye surgery taking place in Ado-Ekiti, the Ekiti State capital, said the aim of the Buhari administration was to completely eradicate cataract in Nigeria. He expressed the readiness of the medical team to carry out the surgery

HBL Team

on the already harvested patients of cataract during the last Free Health Mission organised by Ekiti State Government. Segun Ayeni and Agnes Ajayi among the beneficiaries of the Free Eye Surgery appreciated the “Buhari Restores Vision” Medical Team for organ-

ising the free surgery, confirming that the exercise has restored their hope of seeing clearly again. The three designated centres in the State where the Free Eye Surgery has been scheduled to take place simultaneously are the State specialist hospital, Ikere-Ekiti, Ekiti State Teaching Hospital, Ado-Ekiti and the Federal Teaching Hospital, Ido-Ekiti. The Ekiti State Governor, Kayode Fayemi will officially flag-off the programme this Wednesday at the Eye Care Centre, Ekiti state Teaching Hospital, Ado Ekiti

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My advice is that, if you or any family member is at risk for Rabies locally or travelling, take your complete preventive 3 dose shots and know you have taken some form of “life insurance”

the immediate care of bites, saliva should be thoroughly washed off with soap and water and the wound irrigated with Iodine solution or alcohol. This is very effective in removing the virus from the bite site. Do not suture the wound. If you have not been immunised before the bite, you must seek medical attention within 24hrs. Immunoglobulin (gives immediate protection) is given immediately and a full course of 5 doses of modern day vaccine (which is not immunoglobulin) should be given over 28days. It is advisable to immunise yourself and family, especially if you think you are at risk locally or when travelling. 3 doses of vaccine are given over a period of 3 -4 weeks, and if at any time you are bitten by a suspected rabid animal, seek medical advice and you will most likely need to take only 2 more booster doses at the maximum for a total of 5 doses, immunoglobulin should not be necessary. Immunoglobulin is often not available or difficult to obtain in many developing countries so preventive vaccination may be advised. In a WHO study in 2004, the annual death from rabies is estimated to be 55,000 mainly in rural areas of Asia and Africa. It is spread mainly by bats in South and North America. Those at high risk include cave explorers, cyclists/runners, zoologists, botanists, volunteers in animal sanctuaries and veterinary surgeons. Every year, more than 15 million people worldwide receive a postbite vaccination. This is estimated to prevent hundreds of thousands of rabies deaths annually.

Alakija, medical director Q-Life Family Clinic, Victoria Island, Lagos.

World Cancer Day: LAPO sensitizes 46,070,635 million persons on diseases IDRIS UMAR MOMOH, Benin

s part of efforts to prevent and mitigate cancer- related deaths in Nigeria, Lift Above Poverty Organization (LAPO) said it has sensitized 1,200,229 million community members against cancer between November 2017 and October 2018. Sabina Idowu-Osehobo, the executive director of LAPO, gave the hint at a media forum to commemorate the celebration of the 2019 World Cancer Day in Benin-City. Osehobo said the sensitization was carried out under its Community Campaign for Cancer Control (LAPO-CA) project. She also disclosed that

46,070,635 million people benefitted from the project between November 2017 and October 2018, 16,139 screened, 10,237 persons were referred for further screening while 141 persons with health conditions were referred to government approved health facilities for treatment. The executive director also added that 44,843,889 million beneficiaries were reached through the mass media and information, education and enlightenment materials in targeted states. She explained that the project was designed to assist community members detect cancer ailments early for uptake of preventive treatment. Sabina who expressed

concern that almost 102,000 new cases of cancer occur annually in Nigeria with over 60 percent in women due to breast and cervical cancer, added that the LAPO-CA project was aimed at preventing and mitigating cancer related deaths in the country. She however traced the main barriers to cancer control in Nigeria to poor access to screening services and inadequate awareness and that with early detection, over 80 percent of cancer cases are preventable while 40 percent of the disease can be eradicated by lifestyle changes. She also advised women to ascertain their health status regularly as breast and cervical cancer posed a serious threat to their lives.

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

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AgriBusinessInsight Market Insights

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‘Milling companies are the obstacle to cheaper local rice’ Despite the rhetoric on increasing rice production, the price of local rice remains considerably high, even when found in the markets. However, the cost of paddy, which is essentially the raw material, has been on the decline for about three years now. Siddik Abdullahi, chairman, Rice Farmers Association of Nigeria (RIFAN), Kwara state chapter, in a chat with Caleb Ojewale while on a tour of some farming communities, talked about the desire of farmers to expand their productivity given the right investment climate. He also expressed reservations about the appetite for ‘high profit margins’ by rice milling companies that has kept local rice expensive despite paddy becoming cheaper. Siddik also spoke about the potentials of dry season farming in delivering better returns for farmers. Excerpts:

hat was the specific r e a s o n farmers were not engaging in dry season farming before? It was not due to lack of equipment because the cost of water pumping machine is relatively cheap; ironically, farmers consider it as something that they cannot do. But when they saw the Anchor Borrowers’ Programme as a loan that could enable them acquire pumping machines, they said to themselves “let us try this”. Now that they have started it, farmers are now becoming aware that if dry season farming is well managed, it is far better in yield than wet season farming. Reasons for this include wet season farming is a carrier of so many diseases while in dry season farming; we do not face similar challenges unless a farm is not well managed. Again, for the wet season, there are some stages where rice does not need so much water, and a farmer cannot have total control

Siddik Abdullahi

of water on his farm during the wet season. However, for the dry season, it is whenever you need water that you irrigate or pump water into the farm. With that, we discovered that rice always performs better in dry season compared to wet season, if

it is well managed. Local rice is considered expensive and some millers have told me the price of paddy needs to come down even further in order for

market prices to really change. What are you doing to lower costs? I want to confirm to you that the millers are our problem because their profit margin is too high. They are not satisfied with little profit that will come out. For instance, in 2016 a 70-75kg bag of paddy rice was sold at about N12,000 but the price has fallen now and sells for N7,500. Yet the price of local rice has not come down. Our millers are the problem. A few months ago, we held a meeting with the honourable minister for agriculture, where millers were telling him that about 50 percent of rice that they buy goes with the bran, but this is a lie. They are our problem in Nigeria because they are always after their pockets, their selfish interests, and they do not want to help this country. In a situation where they are committed to helping the country, the price of our local rice will be cheaper. What needs to be done for farmers to be able to sell paddy for as low as even

Fixing tomato value chain could reverse N72bn losses (2) CALEB OJEWALE Twiiter: @calebtinolu

n Sunday December 3, 2017 an APMT Reefer arrived in Lagos from Dutsen Wai in Kaduna state, with 933 crates of tomatoes, each weighing 20kg, a cumulative of 18,660 kg or 18.6 metric tonnes. The shipment was a first of its kind, moving tomatoes in large volume through cold chain storage as a way of reducing and possibly eliminating losses. Sadly, it has not been consistent despite its numerous prospects. In 2017 the Nigeria Agribusiness Group (NABG) says about 45 percent of fresh tomatoes produced were lost. The postharvest losses can be attributed to poor supply chain management such as inefficient storage facilities and poor transportation systems. As a result, in 2016 and 2017, Nigeria imported

tomato paste estimated at USD360m annually. In 2016, the country experienced a major pest attack, the tuta absoluta outbreak, resulting in 80 percent tomato loss. This resulted in shortage of tomatoes for the processing industry, a significant hike in the market prices and increas ed impor ts. The problems in the tomato production can be mostly linked to a faulty, inefficient value chain. When agriculture is considered extremely risky, particularly by financial institutions, tomato is often one that stands out in making the sector appear overtly risk prone. “What stops us from having tomato farmers and tomato processors so that tomato as a raw material is moved into processing as paste,” said George Uwakwe, chief risk officer, Guaranty

Trust Bank. According to him, bankers have always advocated that value chains across agriculture need to be fixed. He explained that, it is one thing to provide funds to the farmers, but when they produce, most of the time substantial portion of the produce get spoilt before getting to the market. “If the producers cannot sell, the truth is that you will not be paid back (as a bank). That is the issue,” he said. However, fixing the value chain needs to run end-end, that is, from inputs carefully developed to deliver desired yields, through well-managed production processes, and final delivery to consumers. Currently, fresh tomatoes are often packed in raffia baskets instead of Crates, increasing the tendency for spoilage. There is also a dearth of temperature Controlled Storage, and in the end, all of

these still require funding to be achieved. As Bolarin Omonona, an agricultural economist at the University of Ibadan explained, “finding the value in the value chain involves heavy investments in the agricultural value chains”. Agricultural finance is crucial to support the growth of the agricultural sector because of its importance for food security, job creation and overall economic development. The tomato value chain n e e d s t o b e f i xe d , a n d potentially retain up to N72 billion in crops that may have been lost. At the same time, funding is required in order for this to be achieved. The banks, as it appears, would need to have more trust and commit funds so that the risks they fear can be gradually eliminated when the value chain is fixed.

N5,000 per bag? The agrochemicals we are using, the prices are too high and it is one of the factors affecting farmers. Also, farmers lack mechanisation and manpower is always time consuming and if you employ labourers, they charge high. However, in a situation where we are fully mechanised, where ten people will work in a day, if you bring a tractor or some other machine, it can be done within one or two hours, and invariably, the price of everything will come down. These are some areas, which if addressed, will make it possible for the farmers to sell their paddy at lower prices, and everything will be okay. Final words We are pleading with those who God has blessed with wealth that they should come and invest here. We have a very good business environment here, we have virgin land for rice farming and we have enough paddy rice here that we can to supply any mill that is situated here.

NAQS issues ‘High Alert’ over outbreak of Foot and Mouth Disease in S/Africa

he Nigeria Agricultural QuarantineService(NAQS) hasissuedanalertinrespect oftheoutbreakofFootandMouth Disease (FMD) in Vhembe and Capricorn Districts in Limpopo, South Africa, which the agency says should be prevented from getting into the country. NAQS in a statement said following this incident, its officers at all ports of entry are on the lookout for live cloven-hooved animals and associated raw products that may be imported from South Africa and contiguous countries. They are on high alert to minimize the risk of the entry of infected animals or contaminated items of animal origin from the Southern Africa axis. They are under instruction to quarantine any animal that could reasonably be deemed to be a suspect carrier. Food and mouth disease is an infectious and sometimes fatal viral disease that affects

sheep, goat, pig, cattle and other bovids. The clinical symptoms of the disease are high fever which may last between two and six days; blisters inside the mouth which may lead to excessive secretion of stringy and foamy saliva and to drooling; and blisters on the feet which may eventually rupture and cripple the animal. The disease, NAQS says takes a huge economic toll on animal farming. Because it is highly infectious, the disease can devastate herds and cause serious losses to livestock farmers. It can spread by infected animals through contaminated feed, farming equipment, vehicles, wild and domesticated predators. The agency further advised the public to report any case related to the above symptoms to the quarantine post in their locality or the agriculture department in their local government council.

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Jumia debunks the alleged arrest and Areas to address in order for Nigeria to attract Fdi T detention of Jumia Food Md

ade Internet E-Services Nigeria Ltd (owner of Jumia Food) has denied a report that Jumia Food Managing Director, Guy Futi, was arrested. The company stated that the story making rounds that the MD of Jumia Food (Guy Futi) was arrested and detained at Zone II Command of the Nigerian Police on the basis of an allegation of fraud and conversion of company’s fund for personal use was false and fabricated. Mr Seyi Oni (Jumia’s Chief Legal Officer) stated that “The current Country Manager of Jumia Food Nigeria, Mr. Guy Futi neither misappropriated the company’s funds nor converted them for personal use. If this had happened, Jumia would have taken a legal action against him, and probably involved the press. He was never involved in any fraudulent act. Mr. Futi was invited for questioning by the Nigerian Police

Force on Thursday January 31st, 2019 in relation to an ongoing case of fraud filed by Jumia Food against one of its vendors.” On the issue of detention, he stated that “Mr. Futi was never detained by the police. He was invited for questioning, and left the station after the interrogation same day. At the time the incident for which Jumia took a legal action against the vendor

occured, Mr. Futi had not joined the company.” “The allegation of fraud is thus a malicious attempt to distract Jumia Food from carrying out a legal action against the vendor.” “We condemn in strong terms the libellous intent of the article published by the newspaper because the allegations are completely untrue, and appear to be a cheap effort to malign Jumia.”

Why do countries enter into investment agreements?

his subhead will be examining the essence of investment agreements i.e. why do countries enter into these agreements? What purposes do these agreements serve? First, International Investment Agreements protect foreign investors in a way that they become more confident to invest in the host country. Second, there is a level of protection for investments under investment agreements. Some investment agreements do contain provisions with regards to the fact that compensation will be paid to investors should the government of the host country come up with policies hostile to the investor’s interest like taking over an investment. Third, some investment agreements do have provisions with regards to the right of the foreign investor to bring into the country managers to manage the investment. Also, some investment agreements do have provision with regards to no restriction on the nationality of senior management staff. Fourth, most investment agreements usually contain provisions with regards to dispute settlement. Thereby making room for situations where the relationship between the members goes sour. This provision also increases the confidence of investors as it sometimes provides for settlement of disputes

he drop in the level of foreign direct investments that the country is attracting is a source of worry for the entire nation. This basically means that foreign investors do not find Nigeria attractive as a destination to invest their money. To change this situation, certain things or steps needs to be taken to address those areas that will naturally discourage an investor. Examples of things to work on are1. One of the major areas that need attention is the curbing of corruption. It has eaten deep into the system in Nigeria. The genesis of most problems can be traced to corruption e.g. the slow process of registration or granting of license to investors, embezzlement of funds meant for infrastructural facilities etc. The former Economic and Financial Crimes Commission once stated that- “The extent of aggrandizement and gluttonous accumulation of wealth that I have observed suggests to me that some people are mentally and psychologically unsuitable for public office. We have observed people amassing public wealth to a point suggesting madness or some form of obsessive compulsive psychiatric disorder”. 2. There is need for the promotion of a transparent business environment in order to boost investor’s confidence in the country they want to invest in. This can be achieved through the promotion of rule of law and policies that ensure healthy competition and protection of intellectual property. 3. There is also need to develop the infrastructural facilities in Nigeria as there absence naturally implies that business will be difficult to conduct e.g.

when there is no proper communication system, poor roads and erratic power supply. 4. As earlier identified, there is an extremely high level of illiteracy in Africa and the implication of this is that the workforce is generally unskilled. No investor Will be willing to invest in a place where they will not have good hands to recruit and train. Therefore, there is need for the government to put policies in place which will mandate parents to put their children and wards in school for them to at least acquire basic education. 5. There is need for strong institutions to enforce government policies. It is not enough to put policies in black and white without putting in place institutions that will be well equipped to enforce them. For example, if there is a policy against child labour and nobody is prosecuting parents and organizations using children for this purpose then the policy is as good as not in existence. 6. It is essential that investment laws be streamlined in order to make the process of starting a business more straightforward for investors. Also, unnecessary bureaucratic bottlenecks need to be put aside. Furthermore, the one stop investment centres need to have a turnaround time for registration of businesses and granting of permits to investors. There is need to fix the maximum time an officer can use on getting his job done. This will make them effective and time conscious. 7. The process of acquisition and registration of properties need to be simplified for foreign investors. This will further encourage investors. Laws and enforcement of intellectual property rights should also be tightened.

Locus Classicus Derry vs. Peek 1889 14 APP CAS 337

I by negotiation or arbitration in a neutral place and conducted by neutral people applying neutral laws agreed by the parties (the governing law is usually investment friendly). Fifth, another provision that investment agreements do contain which further makes it attractive is the provisions that limits the possibility of the host country taking over the investment of the investor possibly due to nationalization policy of the government. This will give the investor a sense of security

against possible investment hostile policies of the government of the host country. Lastly, some investment provisions in Preferential Trade and Investment Agreements provide for cross-border funds transfer. This is in place to ensure that an investor reaps the benefit of his investment in a foreign economy. Capital repatriation is one of the incentives some countries use in attracting investors and such provisions are usually included in investment agreements.

n this case, a company was statutorily incorporated by the British Parliament to construct tramways by means of animal power (horses). However, if the consent of the Board of Trade was obtained, they could make use of steam power. The directors of the company believed that the Board of Trade would approve their request since in the earlier processes to be followed, they didn’t meet any objections. They represented this to the plaintiff, which induced him to purchase shares in the company. Subsequently, the Board of Trade didn’t give its assent and thus the company had to be closed down. The plaintiff thus sued for fraudulent misrepresentation. The court held that it would not be applicable in this

case because the representor honestly believed in what they represented. It could also not be negligent because by following the due process and meeting no objection, they had tried their best to ascertain the veracity of their assertions. The defendants were thus held not liable for misrepresentation.

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Friday 08 February 2019

FEATURES

UBA’s Leo: One year of redefining digital banking in Africa TEMITAYO AYETOTO

n Thursday, January 11, 2018, United Bank for Africa (UBA) Plc brought together its customers and financial journalists at The Backyard Bar & Grill on Musa Yar’Adua Street, Victoria Island, Lagos for the launch of Leo, a Chat Banking personality that enables the bank’s customers to make use of their social media accounts to carry out key banking transactions. For everyone gathered at the event that day, it came as no surprise that Africa’s global bank would come up with yet another solution that, in the words of Kennedy Uzoka, Group Managing Director/CEO, UBA Plc, “is from the customer’s standpoint which is easy to use by anyone regardless of your career”. For a bank that has scored many firsts in the industry and is ranked among the top three banks in effective use of social media in Nigeria in a social media report by Alder Consulting; a bank that has invested heavily in building a robust and secure e-banking platform that supports its e-banking operations globally through strategic partnerships with various local and international organizations, nothing less was expected. “The formulation of this product is consistent with the bank’s customer-first philosophy, where we are doing things not the way we like but exactly what the customers want, where they want it, and in the exact platform they want,” Uzoka said at the official launch of Leo in Lagos. The launch of Leo, an intelligent personality that has since inception given customers instant feedback as they transact their business on the platform, is in tandem with UBA’s commitment to continuously innovate and develop strategies aimed at making banking seamless and effortless for millions of its existing and potential customers, while also ensuring utmost safety of their transactions. This is also why UBA is active on Twitter, Facebook, Youtube, Instagram, Google Plus, and also runs a corporate blog. Designed to work within the platforms people are already familiar with, Leo first took off on Facebook Messenger, while Uzoka promised that in future, the app would show up on other platforms. Highlighting some of the advantages of using the app, Uzoka said the chat language is elementary, and Leo can even help one remember what he or she needs to do at every particular point in time. On security of the platform, he said that Chat Banking with Leo

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

does not elevate the risk already available. “You do not need to learn to use it because it has always been part of your life. It is solution from customers’ point of view. Its greatest asset is its simplicity. Leo is an artificial intelligence. He will address all banking concerns. He should help pay for everything but you need to have an account with UBA to transact with Leo,” Uzoka said. “This is the first time that a financial institution in Africa has come up with this manner of solution to simplify the way customers transact, something that has become necessary in today’s fast-paced world with demands for quick-time transactions and response,” he said. He expressed belief that with the huge number of customers the bank has as well as its growing customer base in all the 19 countries of operation, customers would be served using modern and forwardlooking technology. Today, roughly one year after, the testimonies are unending. With Leo, customers have been able to open new accounts, receive instant transaction notifications, check their balances on the go, carry out money transfers and airtime top-up, pay for Uber, as well as perform other transactions like payment of bills, data top-up, mini-statements, loan applications, cheque confirmation, account freezing, among others right on their mobile phones. Just this week, UBA kicked off the first session of the week-long Social Media Week Lagos 2019 with the announcement that its chatbot Leo now covers 17 African countries and has one million subscribers.

Described as an “alpha version” by digital enthusiasts, UBA said Leo has surpassed one million users on the bank’s mobile app in just 12 months because of its numerous benefits and acceptability, a feat its close rivals have not been able to attain. According to some UBA customers who use the Chat Banker regularly, UBA’s Leo automatically extracts your account details without hassle and is a lot easier to use than the others. It is more personable, more human, and it feels like you’re talking to an experienced customer representative. In accordance with the UBA GMD/CEO’s promise at the launch in Lagos, Leo has now shown up on WhatsApp and, in the nearest future, it is expected to show up on other social media platforms. In recognition of its investment in cutting-edge technology, one of which gave birth to Leo, the chat banker that has disrupted banking across Africa, UBA Plc was named Africa’s best bank in the Digital category at the prestigious Euromoney Awards in London last year, lending further credence to its dominance in the digital banking space. The Euromoney Awards cover more than 20 global product categories, best-in-class awards and the best banks in over 100 countries around the world, recognising institutions that have demonstrated leadership, innovation, and momentum in the markets in which they operate. “Despite fierce competition, one bank stood out in the last year for the inventiveness of its efforts in digital banking: United Bank for Africa,” said Clive Horwood, Euromoney Magazine’s editor, at

the award ceremony in London. “One of its signature launches in Nigeria was Leo, an e-chat service using artificial intelligence to help customers execute transactions on Facebook. Recently, Mark Zuckerberg gave a nod to the service during a talk at a recent developers’ conference – a sign of its recognition at the highest levels of digital technology,” Horwood said. Horwood mentioned UBA’s addition of retina and fingerprint recognition and technology to reduce business travel greenhouse emissions, adding that if the bank fulfils its ambitious plans to partner with fintech companies, it could continue to lead African banks in the area of digitisation. For Uzoka, who received the Euromoney Award in London on behalf of UBA Plc, the award only goes to show that the bank is taking seriously its resolve to continue to deploy innovative solutions that place customers first, using cutting-edge technology for their collective satisfaction and excellent banking experience. “This recognition will further spur us to do more in meeting the needs of our customers with unrivalled services. For us at UBA, the award is quite an accomplishment, considering Mark Zuckerberg, CEO of Facebook, and President Emmanuel Macron of France’s recent endorsement, both of which centred around highlighting the distinguishing value of UBA’s leading digital opportunities,” Uzoka said. “Also, our recent launch of Leo in 15 African countries is evidence that UBA has on its agenda the objective of digital creativity, especially in service for our trusted customer base across the African continent. This award reminds us

as an institution not to relent in our pursuit of excellence and to continue to lead the new digital age in Africa, within the financial services industry,” he said. After a successful take-off in Nigeria in 2018, UBA Plc launched its flagship Chat Banking personality, Leo, across its key African markets – Cameroon, Zambia, Cote d’Ivoire, Senegal, Congo DRC, Tanzania, Kenya, Uganda, Sierra Leone, Gabon, Chad, Congo Brazzaville, Benin, Mozambique, Zambia, Guinea, and Burkina Faso – giving its customers in those markets the leeway to transact banking business from the comfort of their devices including mobile phones, laptops, tablets, palmtops and the likes. Leo entered these markets with some new and additional features. For instance, users can derive vital information from the chatbot as Leo can provide the names of global personalities around key markets. Also, when asked, Leo can provide the current time in any city and the weather conditions, making it easy for customers and non-customers who seek to navigate between cities to do so with ease. UBA Plc also won the Finnacle Client Innovation Awards, Best Bank in Africa in 2017, and five of its subsidiaries across the continent won the Best Bank Awards by The Bankers Magazine. Furthermore, the bank won the ‘Most innovative Digital Bank’ at International Finance Awards by the International Finance Magazine, a premium financial and business analysis magazine published by UK’s International Finance Publications Ltd. By this, UBA Plc once again consolidated its position “ahead of its peers in the digital banking space”. As e-banking continues to reshape the way bank customers carry out their financial transactions by providing 24-hour services and saving customers the stress of joining long queues in banking halls, UBA Plc is, no doubt, leaving no stone unturned in its bid to not just keep up with technology but to always stay ahead of the game. With eyes on the future, and conversant with the new trend in customer behaviour, the bank is constantly innovating, taking strategic steps to integrate more people into the digital financial services net, drive down cost of service, and build consumer confidence in digital platforms. Leo comes as one of these innovative solutions and, as Austine Abolusoro, group head, Online Banking, UBA Plc, said at the launch of Leo in Lagos, “Leo is ready and waiting to help with most transactions and to deliver any form of banking services.”

Friday 08 February 2019

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BUSINESS DAY

Hotels Radisson Hotel Group adds 16 hotels to its African portfolio

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Four Point Hotels (Oniru Chiefatancy Estate,Lekki)

OBINNA EMELIKE

adisson Hospitality AB, publicly listed on Nasdaq Stockholm, Sweden and part of Radisson Hotel Group, has signed 16 new hotel deals across Africa during the last 12 months, doubling their original 2018 target set for the first year of Destination 2022, the company’s five-year strategy. The Group today, has 96 hotels and 20,000 rooms in operation and under development across 31 countries in Africa and is firmly on track to reach 130 hotels and 23,000+ rooms by 2022. To support and drive the rapid growth of its African portfolio, Radisson Hotel Group has reinforced its development team with the introduction of senior development professional Ramsay Rankoussi, Vice President, Development, Middle East, Turkey & French Speaking Africa. Ramsay has been with Radisson Hotel Group for over five years, initially overseeing the growth of the company in the Middle East & Turkey and now leading the development activities across French Speaking Africa. He is supported by Erwan Garnier, director, Development French & Portuguese Speaking Africa. Together, they seek to accelerate the introduction of all Radisson brands in the region with a focus on key capital and economic cities. Also joining the Group’s African development team is Caryn Venter, coordinator, Development, Sub-Sahara Africa. The new organisational structure follows the recent appointment of Frederic Feijs who leads operations as Regional Director Africa - French Speaking

Transcorp Hilton Abuja 1 Aguiyi Ironsi Street Maitama, Abuja Tel: +234-708-060-3000

The Wheatbaker #4 Onitolo(Lawrence Road), Ikoyi, Lagos. Tel: 01 277 3560

Countries for Radisson Hotel Group and William McIntyre, the Group’s Regional Director, Africa, overseeing the remaining Anglophone markets in Sub-Sahara Africa. Both will play a significant role in strengthening the group’s network in their regions and will increase operational synergies, for the greater benefit of owners. Ramsay Rankoussi, Vice President, Development, Middle East, Turkey & French Speaking Africa said, “I am thrilled to be expanding my geographical focus, to include French-speaking Africa. We have ambitious plans for this important market and it is imperative that we have the right resources in place to support our growth. This means communicating effectively with owners and investors, as well as providing first class levels of expertise as we establish long-term relationships with our business partners in this market. We are proud that each of our development team members fits this criterion for success.” “We will continue to execute our five-year strategy with our expanded team, creating scaled hotel growth in key cities and resort locations across Africa during

2019,” said Andrew Mclachlan, Senior Vice President, Development, sub-Saharan Africa, Radisson Hotel Group. “With a focus on scaled growth in key locations across Africa, we can offer guests multiple hotels across different brands and market segments, at various price points and improved local hotel performance with strong local procurement and cluster select services in the same city.” Mclachlan continued, “Cape Town, Johannesburg and Lagos are our three gateway cities in sub-Saharan Africa where we aim to have scaled growth and an ambition of up to ten hotels within the same city. Dakar, Abidjan, Douala, Luanda, Nairobi, Dar es Salaam and Addis Ababa are proactive cities, where we aim to have between three and five hotels due to size of economy, market, long-term fundamentals and supply and demand opportunities. We expect our future growth to arise from existing hotel take-overs and new build hotels.” “With economic headwinds in some African markets, we have identified opportunities to exploit our vast knowledge and experi-

ence in converting unbranded, underperforming hotels or under-performing office or apartment buildings and reposition them to the right brand and market segment within the Radisson Hotel Group brand portfolio. In addition, we are not ignoring the smaller cities and larger towns across Africa where we’ve identified potential to penetrate the market with either our mid-scale Park Inn by Radisson brand or upscale Radisson.” Radisson Hotel Group plans to open a further five hotels across Africa in 2019, pushing the African portfolio to more than 50 hotels in operation before year-end. These openings include the first Radisson Blu Hotel in Casablanca, which is the Group’s second hotel in Morocco, scheduled to open within the next six months, as well as, their first hotel, and the countries first internationally branded hotel in Niger, with the opening of Radisson Blu Hotel Niamey in Q2 this year. “Our strategy will most certainly reinforce our presence in key markets across Africa as we continue to focus on delivering on our expanding pipeline,” concluded Mclachlan.

Hawthorn Suites by Wyndham Abuja 1 Uke St, Garki, Abuja. Tel: +234 9 4603900, +234 805 7522500

Lagos Continental Hotel Plot 52, Kofo Abayomi St, Lagos Tel: 01 236 6666

Radisson Blu Hotel Ikeja #38/40 Isaac John St, Ikeja GRA100271, Ikeja Tel: +234-908-780 5555

Best Western Hotel Hotels 12, Allen Avenue C/O Funmi (Front Office Manager)

Radisson Lagos Ikeja #42-44 Isaac John Street, GRA Ikeja, Lagos

Dubai Food Festival to thrill guests

ood enthusiasts from across the world will converge on the United Arab Emirates (UAE) for the sixth edition of the Dubai Food Festival (DFF) as from February 21, 2019. The DFF, which will run until March 9, 2019 is a citywide culinary celebration that showcases the Emirate’s emergence as the gastronomy capital of the Middle East through a packed 17-day programme of food-related events, activities, promotions and appearances by food

celebrities. This sixth edition, set to be the biggest yet, will see Dubai come together to give residents and visitors the opportunity to experience its diverse and vibrant dining options. Food enthusiasts will discover Dubai through its food by indulging in an impressive three-course meal, enjoying coveted seats to an exclusive epicurean journey, seeking out authentic ethnic dishes hidden in the city’s bustling streets, and trying out the newest food concepts to hit the block.

This year’s event will feature festival favourites including swyp Beach Canteen at Sunset Beach behind Sunset Mall, featuring new food concepts, entertainment and a dedicated family area; Hidden Gems and Dubai Restaurant Week. New elements including Foodie Experiences, Limited Coffee Edition, DFF retail offers and mall events will also be on offer. Speaking on the experiences awaiting guests, including Nigerians, Ahmed Al Khaja, CEO, Dubai Festivals and Retail Establishment, said: “Dubai Food Festival

has become a final part of Dubai’s culinary calendar and annual retail calendar, building the city’s reputation as a gastronomy destination within the region and across the world. Over the past five years, we had strengthened local partnerships and widened our reach, and this year we are all set to take the DFF experience to a whole new level with added layers to celebrate every facet of food. We look forward to welcoming people of all nationalities, cultures and tastes to take part in this city-wide celebration.”

Radisson Lagos Ikeja #42-44 Isaac John Street, GRA Ikeja, Lagos

Radisson Blu Anchorage Hotel 1A,Ozumba Mbadiwe,Victoria Island.

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Friday 08 February 2019

Technology set to power music industry’s growth in Africa …as uduX; music streaming platform berths OBINNA EMELIKE

n a recent interview he granted to some Nigerian news dailies, Chidi Okeke, an entrepreneur in the entertainment industry, pointed out some of the challenges posed by the lack of structure and infrastructure in the entertainment industry, particularly the music sector. The engineer turned music entrepreneur with experience spanning 20 years in the music industry is leveraging on technology to proffer solutions to some of the challenges. First, he established Mcomm Solutions and Services, a technology driven company, which he uses to offer a wide range of content, mobile technology and music based solutions and services across the African continent. His company has also worked with many African music artistes, offering them the needed structure and platform to soar. He thinks technology is

the way to go, especially as smart phone penetrations continue to rise and cost of data continues to dip. With the development, an artiste- even from remotest part of the country- can create music content, upload on the available streaming platforms in the territory and if the audience likes it, he or she can generate significant revenues. With the many streaming platforms out there, Okeke thinks that now the onus lies on artistes to create good content. To further his solution proffering in the industry, Okeke is coming up with another technology-driven platform and this time for as many musicians who are looking to leverage on such opportunities to impact the music industry from any part of the country, Africa and the world at large. Once again, the music promoter, tech innovator and business mogul, has created uduX, a technologydriven streaming platform. Created under the stable of Groove Platforms Limited, which Okeke founded and

Chidi Okeke

runs as the CEO, uduX, which is now berthing after over three years of hardwork, is one platform that is going to give competitors such as Boomplay, Music

Remi Aluko serenades Akure residents ...As Goldberg lager hosts Unlimited Faaji in Ondo

oldberg Lager Beer, Niger ia’s golden premium q u a l i t y l a g e r, thrilled the city of Akure, showing fans and brand loyalists that despite the end of the yuletide season the celebration continues. The Unlimited Faaji event, which was a spectacle of culture, arts and music held at Democracy Park Akure on January 25, 2018. Along with consumers

and music lovers, the brand provided an unforgettable experience, filled with energy, excitement and entertainment. The event which was anchored by Nollywood actor and Goldberg ambassador Odunlade Adekola, featured artists such as Leye Williams, Tope Ajani and Remi Aluko who were on ground to thrill the audience. Excited music fans and brand loyalists turned up enmasse to enjoy a cool night of

music, arts and culture. Speaking on the event, Olufunmilayo Ogunbodede, brand manager, Goldberg, said,“Goldberg Lager in the month of December had various activities centered on aiding consumers and brand loyalists celebrate the yuletide season. We at Nigerian Breweries are quite relentless with our efforts and as such, we have put together this Unlimited Faaji event for residents of Akure. Delivering highly engaging and memorable moments to our consumers is something we take immense pride in and I know the audience all round have had a good time.” Goldberg Lager in 2018 hosted audiences in Ota and Benin on December 24 and 31, 2018, respectively to premium gatherings, filled with music lovers and brand loyalists during the season of yuletide.

Plus, Cloud9, iTunes, Spotify and even YouTube, a run for their money. Speaking recently on the new platform, Okeke who doubles as the founder

and CEO of Groove Platforms Limited, the owners of uduX, noted that the platform is primarily for local content, though with foreign as well. Furthering on the focus on local content, Okeke said people would be able to discover the rhythm of African music like never before on uduX no matter the genre. From Afrobeats, jazz, classical, to hip pop, uduX promises to indulge the senses in the beauty that is African music with thousands of tracks and weekly playlists. “With uduX, there is always the right music for every mood, every season, every occasion and every moment straight out of the beautiful continent of Africa.” As well, uduX brings onboard over 20,000 artistes and also effective music reach that will enable music lovers all over the world to hear and connect with the artistes’ music. The platform is coming with lots of enhancements over existing ones. According to Okeke, with the platform, artistes can easily get discovered, build their fan-

base, connect with current fans and future fans through uduX’s connect feature and in-app curation. Besides, unlike others, it offers real-time analytics, which enables an artiste or the management company to monitor and track music performances not just locally but internationally. Looking at content, distribution and curation, which are majors, Okeke assured that uduX believe in partnerships at both local and international levels, as well as, thrives on team work all aimed at ensuring sustainability of quality content delivery to guests, fortune to artistes and content owners and sustainability of business for the streaming platform. When all these happen as expected, Okeke said the revenue generated in the music industry would rise, more investors would be attracted and industry would get bigger. He also urged music lovers, artistes and music promoters to look out for uduX platform, which is ready to hit the scene very soon.

Queen Varsity Afrika reality T.V show debuts in Nigeria …to empower girl child

he Queen Varsity Afrika reality T.V show, a project that is geared towards empowering and equipping young Nigerians/African female undergraduates and fresh graduates for the future will be launched on Monday, 11th February, 2019 in Nigeria. The show which is also aimed at addressing several societal issues affecting the youths spanning from health, safety, Self-esteem, culture, tourism, information technology, to entrepreneurial skills. Seeking to make a mark in not just the entertainment space, there is a need to provide young people with necessary skills and enabling factors in order to face the real world outside of school. Hence, the reason why a more educational approach has been taken to this particular project.

Th e ma i d e n e d i t i o n tagged ‘the search for Beauty plus Brains, will feature a total of 17 female fresh graduates and undergraduates as contestants. These contestants, also known as Princesses, are delegates from various African higher institutions within and outside Nigeria. Pre-selected through a contest on social media, contestants were chosen as a result of popularity on social media and availability to attend the boot camp. Speaking at a press conference with journalists, Jasmine Ofoegbu, Executive Producer Queen Varsity Afrika Reality Tv show said that “Queen Varsity Afrika is an empowerment programme that will avail the contestants the opportunity for self-realization, self-actualization, as well as boost their self-esteem. This show promises to attract millions

of viewership who would be showing support for the delegates of their school and alumni.” The contestants, while in the boot camp in the Federal University Of Agriculture Abeokuta, were tutored and mentored by notable and respectable Nigerians in various fields of endeavours, including Olusegun Obasanjo, the former President, making it the first ever reality TV show to feature a former two time President. Calling on organisations to support the cause, Ofoegbu noted that, “Queen Varsity Afrika reality TV 2019, whose aim is to groom and empower the next generation of Nigerian women today, as whoever empowers a woman empowers a nation. It is a 13 episode family program that promises to entertain, educate and tutor both the contestants and the viewers at home”.

Friday 08 February 2019

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BUSINESS DAY

Ready set Go! Business etiquette

Janet Adetu

t’s time to reflect, two weeks have gone by in the new year already how prepared are you? Sounds like an easy question that requires an easy answer. Are you prepared simply “Yes” or “No.” There is no room for “Sort of “answers as this requires having a positive mental attitude moving forward. A lot has gone on in the past year, for some people businesses went very well, for many business did not go so well as they hoped, and for others things possibly went downhill. Once again through it all it still calls for being thankful and grateful. I ask are you prepared just to give you some perspective into how to approach the New Year with some confidence, inspiration, ideas, a sense of calmness other than confusion. It is so easy to go back to work or business and continue as usual and follow the same routine with no change or no foresight into the future. This is not a leader’s attitude to life and the consequences are big, it can surely set you back. For progress, the next level and self-fulfillment it requires planning, thinking out of the box, doing normal things differently and walking into the next phase with the right frame of mind. As the new Year is now here I am once again wishing all our esteem readers a prosperous 2019 ahead, a better brighter and bigger future. My thoughts on paper have now been reflected into a pack of note cards where I have some of my inspirational

quotes. I use them to reflect on each day as I embark on challenging myself each day. Take a look at some of my personal strategies to prepare for the New Year. SETTING for 2019 Declutter Before you do anything now is the time to sit down take a break with a pen and notepad and a cup of tea or coffee. First make a list of those things you want to declutter in your life. Declutter all those excesses in your home that are creating extra baggage, extra rubbish, extra unwanted load. By this I mean your living space, your bedroom, your wardrobe, your kitchen and other areas at home you think could do with cleaning out, tidying up and revamping. It may even be something you might have set your mind on for a while, but have not created that time. STOP the procrastination, intentionally set out to do a complete clean out. Declutter

in January to kick start the New Year I encourage you to start our monthly challenge exercise, get our 4P’s journal to track your progress, make your goals life goals all about your future progress and the way forward. Are you ready for the community as we take hold of the future? For more detailed information contact: janet.adetu@jsketiquetteconsurtium.com Resolution Set Do you have any resolutions for the New Year, those that you sure you will follow through. A bit like setting goals for yourself but it may also mean you are identifying those things you don’t want to continue any more or those things you will purposely accomplish in the New Year regardless of how long. I will point out though that this time promise yourself to take it longer than the first quarter of the year. Do not be side tracked or discouraged, keep it alive by being

does not stop at home; declutter your office, your personal desk, your official cupboard, drawers. Don’t forget your car and all your personal effects start the New Year on a clean slate.

positive about your attitude and actions. New Year resolutions are common but have the tendency to be abandoned along the way. Try not to have many just a few that you will accomplish.

Goal Set This cannot be over emphasized, as you are thinking about them start writing them down, that is your personal goals. Join me

To Do List This to do list should be a practice that if you are doing keep doing, if you have not started your day with it begin this New Year. Start

your year with a few to do items that are general and very important and kick start your month week by week, day by day, with you simple committed to-do list. Make life simple, just put your top five (5) actions for the day to start your list, place a star on the top three (3) then get set to go. Don’t forget to tick off as you accomplish those daily tasks. Reward yourself as you reflect at the end of the day. You may review and reminisce your to do list as you are able to cope with your time management per day. Learn, Unlearn, Re-learn To feel satisfied that you are truly prepared for 2019 take a little time out to boost you knowledge base, educating yourself is the best way to keep up with the constantly changing times. The digital space is here to stay so tap into it right away. You don’t need to go too far to learn new things, just look at everything around you, books, magazines, newspaper, online courses, webinars, coaching calls and lots more. It is more important to drop all the bad habits you have picked up in life. This requires you to unlearn things you know are not right but have taking to be the norm. Correct your poor manners, re-correct your attitude, take that paradigm shift to be refined and transformed. Cut out rudeness, inconsideration and unkindness. Go back and relearn everything that is good that can make that big difference in your life. Take a break re-learn interpersonal skills that will open the doors of success for you. Let me say that you should take advantage our free lunch and learn corporate sessions for you and your employees to make that required difference. We continue to promote peak performance in people. Contact us @janetadetu, @jsketiquetteconsortium.com Look forward to accomplishing your goals for the New Year. Compliments of the season!

Movie Review - A LIGHT IN THE DARK

Linda Ochugbua

f you haven’t seen “A light in the Dark” till now I wonder you are waiting for, because this is coming highly recommend from me, I had to drop other reviews for this brand new movie, that is making waves in the cinema, although their marketing budget wasn’t a lot and not a lot of people have heard of it, they are beginning to gain little traction through word of mouth referral. I was kind of certain that the movie will be beautiful considering my lovely Rita Dominic was featuring it, as her greatest fan I just had to go check it out quickly. I must say that this movie was awesome and they surpassed my expectations for a drama kind of movie. I sincerely feel that the trailer, poster and advert were in no way close to explaining what to expect from this lovely movie. Take it from me when I say they had an amazing storyline.

The movie was written by Babatunde Ojo and directed by Ekene Som Mekwunye the movie featured award winning actress Rita Dominic who featured in “Bound” of 2018 and “The meeting” of a few years back, if you know Rita you know that she doesn’t put her seal on a wrong movie. Rita has grown to becoming an icon and a personality to reckon with and I always love her style of bringing her specified movie character to live. The movie featured Kalu Ikeagu, Joke Silva, Kiki Omeilie and other A list actors. In this lovely movie “Rita Dominic” played the role of a young Yoruba girl called Jumoke who was married to an Igbo guy called Emeka whose mother never wanted him to marry from another tribe, even Jumoke’s mother believed she was too pretty to marry an Igbo guy, when there were numerous fine guys from her tribe, against all odds they went on to get married and leaves a very happy marriage for over 19 years with their only daughter, until suddenly one faithful night the worst happened. Some robbers came over to the house robbed them but also violated Jumoke, that took a great strain on their marriage, she felt that her husband didn’t do enough to protect her, she just couldn’t forgive him and let go, causing her to detest him so much. Just when I taught it was over weeks after the incidence and a total test, she finds out that she was pregnant and this what was she was searching for ever since she had Ada and the fight from his family. You will need to

watch this beautiful movie to see how they managed the crisis. Cast: Joke Silver, Kiki Omeilie, Rita Dominic, Kalu Ikeagu, Ngozi Nwozu, Saidi Balogun Director: Ekene Som Mekwunye Written by: Babatunde Ojo Casting: 1hr 45mins Genre: Drama Ratings: 12

For a few days I have being thinking of this movie and I can’t just get over it, they kept me speechless and thrilled all through, if was a very deep and touching story that brought loads of ideas and lessons also. I totally enjoyed every bit of this movie from the top notch cast to the production; the editing, script and storyline were all perfect. It was really difficult to predict the end of this movie, remember the Nigerian Slang that day “ I never expected it” that was how I felt about this movie and just at the point when I thought it was over we found another secret that almost left me breathless, for crying out loud “How wicked can humans be?” I really couldn’t contend my joy and excitement for this movie hence my scoring it a beautiful 9/10 because they deserve it , please make sure you wait for the end, at that point you will understand all that transpired in the entire movie, the last scenes explained it all. What a real light in the dark, and it was a delight to see that we still have patient and faithful men. Lessons learnt make sure you are careful of whom you share your problems with; most times the enemies are always very close. Feel free to review any movie of your choice in not more than 200 words, please send us a mail to linda@businessdayonline. com and stand a chance to win a free movie ticket. Linda Ochugbua @lindaochugbua

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Friday 08 February 2019

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Pace Sports names date for 2019 HiFL season Stories by Anthony Nlebem

ollowing the success of the 2018 Higher Institutions Football League (HiFL) season, PACE Sports and Entertainment Marketing, has announced that all is now set for a bigger, better and more exciting 2019 HiFL season. Speaking at the international press conference to announce the commencement of the league, Director, PACE Sports and Entertainment Marketing, Mr. Sola Fijabi enthused in his opening remarks that all is now set for a bigger, better and more exciting 2019 HiFL season, building on the successes recorded in the first season. “The 2019 season promises so much excitement. We are accommodating more schools and expanding engagements across board. We have concluded plans to take the Nigerian team made up of the best players from the 2018 season to Naples, Italy for the World University Games (FISU). We are proud of the role the league is playing in enhancing youth develop-

Charity Ilevbare-Adeniji, group brand development and activation manager (Personal Care), PZ Cussons; Sola Fijabi, director, PACE Sports and Entertainment Marketing and Stephen Hamafyelto, president, Nigerian University Games Association (NUGA), at the International Press Conference to announce the commencement of the 2019 Higher Institutions Football League (HiFL) in Lagos… Wednesday.

ment in Nigeria. Already, two of the outstanding talents from the 2018 season are on the books of professional football teams in Nigeria. We thank Stanbic IBTC and PZ Cussons

for their support of this noble initiative, while we look forward to other sponsors. Our objective is to place collegiate sports in Nigeria on the same pedestal as their counterparts

in other countries and build a strong ecosystem of young, home-grown football talents that may become invaluable for future national engagement” Mr. Fijabi further remarked.

In his speech, President of the Nigerian University Games Association (NUGA), Prof. Stephen Hamafyelto assured all stakeholders that the association is very committed to ensuring that the HiFL® 2019 season is a success. “2019 is loaded with lot of sporting activities for NUGA. The NUGA games is holding at the University of Lagos. The World University Games is taking place later this year in Italy. HiFL is also starting soon with more universities to be engaged. There is a new commitment among all parties to ensure a stellar outing in the competition. We are glad that the league has not only given a voice to the abundant football talents across the country, but also an instrument for socio-economic development,” Hamafyelto said. It would be recalled that UAM Tillers from the University of Agriculture, Makurdi won the maiden edition of the league after defeating the UNICAL Malabites from the University of Calabar 5-4 on penalties at the finals played at the Agege Stadium in Lagos. It is indeed better times for collegiate sports and football in particular.

2022 World Cup: Amnesty International warns Qatar over labour abuse

atar is running out of time to stamp out widespread serious labour abuse for tens of thousands of migrant workers before hosting the 2022 World Cup, Amnesty International warned. The rights watchdog said that despite well-publicised “nascent reforms” Qatar risked breaking its promises to deliver meaningful change before the Middle East hosts football’s biggest tournament for the first time. “Time is running out if the Qatari authorities want to deliver a legacy we can all cheer, namely a labour system that ends the abuse and misery inflicted upon so many migrant workers every day,” said Amnesty’s Stephen Cockburn. Although the “Reality Check” report focuses on conditions for all

of the two million migrant workers in Qatar, not just the 30,000 on direct World Cup projects, Amnesty said FIFA had an “ongoing responsibility” to prevent abuse. In response, football’s governing body said it welcomed Qatari labour reforms in recent months and its continued work with “stakeholders”. “We share the view of Amnesty International that additional progress is needed for the full implementation of the commitments for comprehensive labour reform,” a FIFA spokesperson told AFP. The Amnesty report stated that despite reforms, conditions “for many migrant workers in Qatar remain harsh”. Amnesty called on Qatar to strengthen and properly enforce current labour laws, tackle worker

debt by increasing the minimum wage, stop passports being held by bosses and, crucially, to fundamentally overhaul the “kafala”, or sponsorship, system. This practice, which ties workers to their employers, restricts their ability to change jobs or leave the country, remains firmly in place, said Amnesty, despite Doha’s pledge to end the system. Amnesty also called for much better protection for some 175,000 domestic workers, who remain “out of sight and out of mind”. “Holes in the reforms to date mean many workers are still stuck in harsh conditions, vulnerable to exploitation and abuse, while those who return home do so empty handed, with no compensation and no justice,” added Cockburn. The report could temper the current jubilatory mood in Qatar, where there has been widespread celebration since the national team won its first ever Asian Cup at the weekend. The gas-rich state has initiated a series of labour reforms in recent years following intense international pressure and at a time of deep political tension within the Gulf, which has seen Qatar isolated by former neighbouring allies. Qatar has introduced a monthly minimum wage of 750 riyals ($206), a system to ensure workers are paid electronically, and partially scrapped the exit visa system which meant workers had to seek employers’ permission before leaving the country. It also agreed in 2017 to work closely with the International Labour Organization (ILO), which now has a Doha office, to improve workers’ conditions.

Gianni Infantino

Infantino set for second term as FIFA president

IFA president Gianni Infantino is set to serve a second term after world football’s governing body said he would be the only candidate for June’s vote. The 48-year-old has been in charge of FIFA since February 2016, after succeeding Sepp Blatter following the corruption scandal that rocked the organisation. The election will take place on June 5 in Paris ahead of the women’s World Cup. Former Tottenham defender Ramon Vega had announced his intention to stand against Infantino, but failed to garner the required support of five of FIFA’s 211 member federations.

Infantino has introduced plans to increase the World Cup from 32 teams to 48 from 2026, with the possibility to bring forward the expansion to the 2022 edition in Qatar. A decision is expected to be taken next March after a study into the feasibility of holding an extended tournament in the Gulf state. Michel Platini’s former righthand man at UEFA is also hoping for an enlarged, 24-team Club World Cup from 2021. UEFA president Aleksander Ceferin of Slovenia, who will be re-elected on Thursday also as the sole candidate, is opposed to the idea.

Friday 08 February 2019

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LeadingWoman

Munirat Antoinette Lecky, Bold, Brainy and Beautiful celling, launching businesses and being leaders. But social media is a very small representation of what is real. Women still have to do so much to prove themselves.

Kemi Ajumobi

M Biography

edia Personality and Brand Ambassador, Munirat Antoinette Lecky, popularly known as “Anto”, born 12th of December, 1989, was a housemate on the 2018 season of Big Brother Naija. Born and raised in New Jersey, USA to Nigerian parents, before entering the Big Brother Naija house, she was the Head of Operations for the Continental Basketball League, a private basketball league headquartered in Lagos, Nigeria. She graduated from the #5 best public University in the US, the University of North Carolina-Chapel Hill, with a Bachelors of Arts in Exercise and Sport Science, Sport Administration track. She then went on to the University of Central Florida’s DeVos Sport Business Management program, SportBusiness International’s #1 best sport Masters program in the world, to graduate with both a Master of Business Administration and Master of Sport Business Management. In 2016, she was awarded a Nigerian Meritorious Award for Excellence in Sport. Since her experience on the Big Brother Naija show, she has received the 2018 BTDT Hub Education Advocacy Award. In 2018, she was conferred with an Honorary Doctorate in Business Administration from ISCOM University, Benin Republic. Her professional expertise is in management, marketing, operations, and sponsorship. Her passions include natural and healthy lifestyle, sports, education, and the girl child and women’s affairs. Her current work includes acting, modelling, television and event hosting, and brand influencing. She is also an entrepreneur, having recently launched a hair care line, Anto Lecky X Taries Hair Builder luxury hair care line.

What drives you? While in grad school, I was called the poster child of diversity, a Muslim Nigerian (American) woman who grew up in the hood. I represent things that many people see as negative. So I strive so hard to prove anyone with a misconception about me and the people I represent wrong. What is currently in your front burner? Traveling! It may seem odd that I didn’t say launching another business or more acting and modelling, but traveling truly helps to relax the mind and expose one to new things. When I travel, I always find things that help me come up with new projects. But business wise, there are a few projects I put on the back burner while trying to figure my “new” life out, that I will be revisiting. Stay tuned! Hair care line My hair care line is my baby. Something I always dreamed on being able to produce. Luckily, thanks to Big Brother, I was able to meet a business partner. It’s been a learning process. Not as easy as I thought it would be based on my “celebrity” status, so I’ve learned when it comes to business, much more than celeb status but better business practice is necessary to be successful Passion for sports First, when studying Sports, it was because I was a fan and sports in the US is big business meaning big money. But as I have grown in the industry, my passion for sports is because it’s one of the few things on earth that can connect people of various backgrounds. Both a CEO of a big company and a wheelbarrow pusher can be fans of the same Arsenal and connect on that level, where they probably don’t connect on anything else. People’s love for Sports is what we need in all factors of life.

Early years and influence till date I grew up in the United States by Muslim Nigerian parents. My parents basically raised us as if we were living in Nigeria but with the amenities of US living. This made it “easy” for me to assimilate to Nigerian lifestyle once I moved here. But, I always remember my life experiences in the US, which reminded me that Nigeria can be much better than it currently is. Being Head of Operations for the Continental Basketball League I came to Nigeria in 2016 to chase my dreams of creating a viable sports industry in Nigeria and Africa. I would be lying if I said it was easy. One, sports isn’t regarded as business in Nigeria. Two, I was a young lady dealing with the big boys. I would say though that it was an amazing experience because I was thrown into a terrain where I didn’t have much experience. I had no experience running a league, working for a league, yes, but being involved in the development of a brand new league, it was new for me. Very challenging but worthwhile. Passionate about involvement in governance I tend to say I’m not passionate about politics but about government work. I have no intentions of running for any office (not saying that I never will though), but would prefer to be appointed. Running for office is money. I can’t imagine asking people again to donate to a cause where I might not win (Big Brother taught me all about that). Not saying that I don’t have the qualifications to win, but politics is a game and it is not sure. Moreover, I would prefer an appointment because I have specific causes I wish to champion (youth and sports in particular) and an appointment will allow me to focus on that. Women in politics in general and Nigeria specifically All over the world, women always have to fight

Who is Anto? What does she stand for? In the words of Cardi B “A regular degular girl”. But really, I can be simple, yet I can be dynamic, I am multifaceted. I do what is best for me and the people that I love. I don’t like to be put into any box. harder to gain respect in any position. It’s tiring honestly. More women should seek political roles and should do well in them. This will help to change the conversation. Unfortunately in Nigeria, some of our female politicians are seen in a worse light than the males due to some actions while in office. I want in the next 10 years for this question to no longer be asked. Women and Men should be seen as equals in politics. The only consideration as with any job is pregnancy, but I’m sure any woman seeking a political post will know how best to handle her family needs and country duties. What changed for you after Big Brother and how have you used it positively to better yourself? Any pressure? I became a public figure. People began to call me their role model. I’ve been able to accomplish some of my childhood dreams (modelling, acting, owning a hair care business). Yes there is pressure. I’m now under public watch. I have to watch my words, or be prepared for backlash if people do not agree. But with it all, I’ve been able to push a message of positivity and living one’s best life.

Educational system in Nigeria ASUU is currently on strike. The government needs to meet the demands of its Professors and provide for the students. The educational system needs a complete overhaul. Half of Nigerian children are not in school (the most children out of school in the world). But if these children were in school, there are not enough schools or teachers to attend to them. First and foremost, education needs to be seen as paramount for a human to excel in life. If something is not important to you, of course you won’t enrol in school. More conducive learning environments with better trained teachers is what we need in Nigeria. Pet Project My pet project is called The Live Wire Project; it’s my effort to touch as many lives as I can. I have sponsored one student to training at a leading culinary school in Nigeria which she has used to launch a catering business. Women do extra to be heard It’s quite obvious that despite all the strides of women before us, women are still seen as second citizens. Social media shows women ex-

What is your take on this year’s Big Brother Nigeria? What advice do you have for participants? BB doesn’t just stand for Big Brother but Big Business. Make sure you take advantage of the platform but don’t sell your soul. Personal and professional challenges My professional challenges includes wanting to do everything. I have so many goals and dreams, and things keep popping up in my head every day On personal challenges, I still have a hard time balancing American and Nigerian culture. Yes when in Rome behave like the Romans. But some things are just not right. What was your core reason for going on BB? Would you say you achieved it? I was ready for the next step, a launching pad, a platform to expose myself to new audiences.. I over-achieved it, and I still have more to show the world! Final words Be yourself! Whatever you do, do it with your heart. I believe all humans are in a fight to win. Even those born with a silver spoon, want a platinum spoon. Keep at it!

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Friday 08 February 2019

‘In politics, loyalty gives you opportunity but not define what you do in office’ KUNLE AKINLADE is a gubernatorial candidate in Ogun State whose emergence under the ruling All Progressives Congress (APC) sparked controversy, leading to his defection to a new political party, the APM, where he hopes to realise his ambition to be the next governor of the state. In this interview with select journalists in Abeokuta, the state capital, he explains the circumstances that led to his emergence and his vision/strategies for growing Ogun economy. He also speaks on APC as a party, godfatherism and mentorship in Ogun, and party loyalty among others, CHUKA UROKO was there. Excerpts You contested the primaries of the APC and later went to your new party, APM under controversial circumstances; what really were the undercurrents that led to your decision? ost people in politics must have seen what the challenges were prior to my leaving the APC. Where I come from in Ogun, we had about 10 of us who the party decided, about three years ago, that because of the way Ogun is structured that Ogun Central and Ogun East have produced the governors of this state and that it would be fair for someone from Ogun West to be given the opportunity. Twenty-five elders came together to work on that so that the zone would put one foot forward rather than allow the whole 10 of us to go into the primaries in APC. It was only one person from Ogun East, Gbenga Ashiru, who was then aspiring to be in the race. The Dapo Abiodun story had not even come to the picture. At that time, the Ogun leaders then sat down and it was within that period of six or seven months that I emerged as the consensus candidate of Ogun West. Prior to that time, I met the National chairman of the APC, Adams Oshiomhole in his private residence in Abuja. My colleague took me to him and having succeeded in a smooth transition in Edo State, I felt he was in a better position to speak to my boss, Governor Ibikunle Amosun. Felix Shuaibu, who is the current deputy governor of Edo State, was actually my colleague. That is just a background to show you that I did not just wake up one morning and was imposed on the people. It was a process. So, I eventually emerged and was presented to the party, APC. At that point, Oshiomhole started asking, this boy, are they sure he can win and Amosun told him that if you want a yes person, do not choose Akinlade, but if you want somebody that has the capacity to do the job, this guy is the person. He told him that I

more sense to me to grab any opportunity to make more people come and work in Ogun State than in Lagos. A man who is doing that, I should be able to say thank you to him. That is what I went to Mr. President to do.

Kunle Akinlade

had what it takes to do it. I think that is why he started considering me. Oshiomhole came out openly and announced to the party that I was the one and that the Ogun West people had picked me and I was to run. The Remo people kicked against it and said they would not agree on consensus candidate and that they wanted direct primaries. Then we went out for the primaries and worked. Remember that I was Amosun’s Senior Special Assistant on Tax and Revenue between 2011 and 2015; I was in the House of Representatives too. I served in (Ogun Revenue Service (OGRS) and was familiar with various unions and organisations in the state –artisans and everybody. This reflected in the votes which I won on October 2. A day after that, they said it was the state executive that announced my victory and that they were not going to accept it. The issues started and for two months, we thought it was a joke and we went to the president and everywhere. At a point in time, we realised that they were not going to shift their position and we decided to come back to our people. How do you feel that two candidates, even though of different parties from the same state, you and Dapo Abiodun were presented to President Buhari. Again,

don’t you think that there may be a bandwagon effect in favour of the APC in the event of Buhari winning the election? There would not be any confusion with regards to the election. I don’t have any problem with Dapo Abiodun going to see Mr. President with Segun Osoba because he is a member of their party. For me, I do not recognise Abiodun as the APC candidate in Ogun State considering the way he emerged. The confusion should be with them and not with us. As a party, we adopted Mr. President, his policies and programmes and we have absolute confidence in him as a leader. What I want to do is to wish him a happy New Year and we assure Mr. President that he does not need the APC candidate to win his presidential election in Ogun State. We will deliver Ogun State to Mr. President. We need to reassure him and there is no ambiguity in the readiness of our party, APM to deliver Ogun State. Buhari is the president of the country and our party has adopted him and I think I reserve the right to meet him and reassure him that we believe in him and what he is doing. I must thank him for the railways that have come to Ogun State and in terms of industry and young people that it would attract to Ogun State to work. It makes

Do you have any plan to go back to the APC if you win this governorship election? Let me tell you, I never knew prior to this challenge how important the people are in politics. You see these people follow us to run around and shout. I used to think that once you are able to mobilise people, they come and you are okay. It was after my mandate was stolen and I saw how people stood by us, took a position including market women, that I knew the importance of people in politics; many were using their money to do aprons, T-shirts and all that in solidarity. You said that the mandate was stolen, but that mandate was recognised by the APC National Working Committee. Is that not enough for you, as a matter of principle, to decide to distance yourself from the party? There is nothing wrong with APC as a party. I believe in the party. It is the leadership of the party that I have issues with. If it were something that happened in Ogun State alone, then I would have been concerned. I am a member of the House of Representatives. More than 80 of my colleagues went through the same experience. That means there is something wrong with the leadership of that party. APC has wonderful policies and I have no problem with the party. You have a large following from the youth in this state. When you become governor, how are you going to service this IOU? Secondly, your endorsement by the sitting governor comes with some challenges because he has some internal battles to fight. How are you going to manage all these? You see, in one of the IOUs, you cannot owe somebody who is giving you something. If what happened did not happen, I would

have owed so much because it would require enormous resources to sell me to the people. I came into government in 2011 and joined politics in 2014- attending politics meetings and all that. Now, everybody knows me all over the state. People are now taking positions by themselves. I want to say that the crisis we went through has save me a lot of what would have translated to IOUs. Talking about my boss and mentor, the sitting governor, I want to say that in life, everybody fights his own battles. In politics, it is all about loyalty. When you are loyal, you can get anything and go anywhere, regardless of who your father is or where you come from. That is what I am enjoying from Amosu. So, I don’t think I will inherit my principal’s issues, if there is any. You have just talked about loyalty and, most times, loyalty conflicts with public interest. How are you going to balance that because the godfather has his interest different from public interest? Let me put it this way. Loyalty should be defined appropriately. In Ogun State, we do not have godfatherism. What we have here is mentorship. Godfatherism plays out when you go to the motor park and pick someone who lacks competence and capacity and put him in leadership. You have to feed him with ideas because he cannot do it on his own. But when it is mentorship, it is a different ballgame. I did not meet Amosu until when I was 41 years old and that was 2011. At that time, I had gone to school and married and so I had a clear idea of what I was going to do with my life. So, in politics, loyalty is different. In Ogun, we are too intelligent, enlightened and knowledgeable for what happens in other states to happen here. So for me, I don’t see the possibility of confusing godfatherism with mentorship or my loyalty to Amosu turning into being a stooge. I want to say it again that in politics, loyalty is very vital. It gives you opportunity but does not define what you are going to do.

Friday 08 February 2019

NATIONAL DISCOURSE

TEMITAYO AYETOTO

he proponents spreading the lesser-evil syndrome have been with Nigeria for long and indeed too long, to the extent that the country finds breathing difficult under them. They have their tents in the elite political class and usually have a working formula for selling inept and vision-starved candidates who don’t see Nigeria beyond

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Time to develop antidote to Nigeria’s lesser-evil syndrome its problems. Talk of the economy, health, education, security and what have you, these candidates don’t appear weak or clueless as to what the country needs to move from a point of trouble to a destination of stability, before getting to power. In distinguished ways, they have it all mapped out and impressive but like a derailed train, they get paralysed on assumption of power. When elections beckon, they romance our psyche with things like “is he not better than Dr. Lagabja who has all the education but could not manage the proceeds of oil at high level, allowed thieves to feast on N1.8 billion worth of oil daily and manhandled a handsome foreign reserve?” One would also hear things like “what we need is someone

who has the heart and integrity to sanctify the system of governance. Never mind the container (even when he can’t find his West Africa Examination Certificate), mind the content.” So their advocates admit voting any of these candidates is a settlement for evil. Only that surviving the tenure of one evil could be less excruciating than the other. But who should be blamed, the evils themselves or the sellers? They sold to people in 2007 and were consistent until 2015. They are back again in 2019 to tell that one evil is preferable, again dashing the hope of experiencing an outright good. But should we keep blaming the sellers? What happens with a buyer who fails to recognise herself as a seller when she closes her shop for some hours to join

campaign meetings where money must flow. She doesn’t care the source, but collects it along with face-cap, T-shirts, wrist-bands and begins to preach the gospel in the interest of her pocket. The bigger and unconscious sellers are the ethnic bigots who have consistently limited the country growth on the ground that their sons and daughters must be considered for no other reason than being their sons and daughters. Hence, we have a situation where the sellers of mediocrity are also the buyers. But it’s time for us to begin to generate the antidote to heal this lesser-evil conundrum in our national polity. At least, it is only good for generations to come that Nigerians today begin to think of good leaders worthy of their vote as those

who not only recognise the problem but also pour strength to fix these problems. The antidote should feature the ability of Nigerians of all classes to distinguish between an ambitious effort to hold power and a sincere will to move Nigeria forward. The 2019 election events have remarkably been different with the vigour and expertise displayed by a fresh crop of contestants. They have clearly shown us what should drive a leader and equally taught what should motivate an electorate. However, no one would liberate the Nigerian electorate from the lesser-evil syndrome but him or herself. Nor will democracy succeed unless those who express their choice are prepared to choose wisely as in the words of Franklin Roosevelt, former US president.

UNHCR and flickers of hope in conflict-ridden Lake Chad Basin MITTERAND OKORIE

early a decade since its inception, the Boko Haram conflict has continued to see a rising human cost. In the Lake Chad Basin (LCB) region and the BAY (Borno, Adamawa, Yobe) States, it has displaced over 2.4 million people within this period, with 1.9 million of the displaced coming from Nigeria alone. In addition, some 228,500 Nigerian refugees have fled to Cameroon, Chad and Niger, which also have sizeable IDP populations in the Lake Chad Basin (LCB) regions. In Nigeria, The UN Refugee Agency (UNHCR) has led international efforts in ameliorating the refugee and displacement crisis the conflict has left in its wake. Exemplifying, in no small measure, the continued relevance of a multilateral approach in solving the world’s many problems. Every so often, when the country mourns (and rightly so) the death of military person-

nel, aid workers, and citizens felled by Boko Haram, very little attention is paid to refugees whose survival of Boko Haram’s devastation marks the start of a long, turbulent life in displacement. In the last three months of 2018 and this very January for instance, 320,000 persons have been displaced anew. Among displaced communities remains the risk of sexual and gender based violence (SGBV), breakdown of family and community structures, changes in social and gender roles or responsibilities, and increased socio-economic vulnerability. How these IDPs, displaced from their homes and from their livelihoods, are able to survive and rebuild their lives is a question that rarely features in the public domain. When communities are destroyed, leaving in their wake thousands of families displaced, carrying with them the trauma and tragedy of losing their homes and means of livelihoods, whom do they turn to and how do they begin to rebuild their shattered lives?

LAKE CHAD Given the scale of the crisis, Nigeria and other national governments in LCB have shown limited capability in handling the problem. Resources and institutional capacity are sometimes lacking. Against this background, UNHCR has provided tremendous assistance to refugees, IDPs and asylum seekers, providing material and psychological support, while strengthening the institutional frameworks that allow governments in LCB region relate better with the humanitarian crisis. In fact, The Abuja Declaration, signed in June 2016 by the governments of Cameroon, Chad, Niger and Nigeria, following a Regional Protection Dialogue on the Lake Chad Basin serves as one of the most pivotal interventions of UNHCR. In Borno State, for instance, closer collaborations have been developed with the Ministry of Reconstruction, Rehabilitation and Resettlement (MRRR), as well as the High Level Task Force,

which is chaired by the deputy governor of Borno State. To facilitate freedom of movement for IDPs, the Nigerian government – National Identity Management Commission (NIMC), in partnership with UNHCR, has issued ID cards. In both 2017 and 2018, the agency launched a Refugee Response Plan (RRP), an inter-agency planning and coordination tool for large-scale refugee situations. Each of these funding appeals, although only partly successful, was no less instrumental in UNHCR’s ongoing efforts in ameliorating the predicaments of some 208,000 Nigerian refugees and 75,000 of their hosts in other LCB states Presently, challenges in providing protection in the LCB still subsist. And while military operations have brought back significant areas in North-eastern Nigeria under government control, conditions in much of the Northeast are not yet conducive for the return of Nigerian refugees and IDPs, especially in Borno state. This week, two years after the

inaugural Regional Protection Dialogue, the organisation has embarked on a Second Regional Protection Dialogue, in the hope of building—together with governments in the Lake Chad Basin, a stronger and deeper partnership. To sustain its activities in providing food, water, shelter and protection to the most vulnerable people in Nigeria and neighbouring Cameroon, Chad and Niger, it would need $135 million to ensure that aid is not only available but that it reaches those who need it most. With its recent launch of the 2019/20 Nigeria Regional Refugee Response Plan (Regional RRP), there is the expectation that this recent effort would broaden the UN Refugee Agency’s response towards a longer term approach, to support those forced to flee, the communities hosting them, ensuring that they are not displaced from life as they are from their homes. • Mitterand Okorie is a PhD candidate of Conflict Transformation and Peace Studies in UKZN, South Africa.

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Group warns on Buhari’s health, calls for medical evaluation

…Says Atiku more viable option

admittance by the Spokesman of Buhari’s Presidential campaign organisation, Festus Keyamo, was an indication that he was in no condition to stand election nor rule the country for the next four years. It recalled that late President Umar Yar’Adua suffered ill-health and death in office, which led to a constitutional crisis, only resolved through the Senate’s invocation of the Doctrine of Necessity that permitted Goodluck Jonathan to succeed him. According to the group, “Choosing a man for a second term after he spent the good part of his first term under medical treatment outside these shores is not only foolhardy but smacks of a hidden agenda by the cabal currently egging him on.

Iniobong Iwok

he Coalition of Ethnic Nationalities for the Atiku Agenda (CENTAA) has expressed misgivings about the health of President Muhammadu Buhari, and warned the North not to allow history repeat itself. In a statement to journalists signed by Adeoye Jolaosho, the national president, it urges the Senate and the Council of State to invoke the constitutional provision and set up a panel of medical doctors to evaluate the President’s health condition as a matter of national emergency. The group stated that recent memory lapses, falling spells, and

Atiku

APC guber candidate pledges government activities automation in Lagos CHUKA UROKO

he deputy governorship candidate of the All Progressives Congress (APC) in Lagos State, Obafemi Hamzat, has promised that, if elected, he and his principal, Babajide Sanwo-Olu, would automate all government activities in the state to bring more transparency into governance, especially in regard to state government budget and ease of doing business. Hamzat, who spoke at an interactive session with the media in Ikeja recently, said there was an urgent need to ramp things up in Lagos, especially as the state was ranked 36 in the World Bank’s ease of doing business index in terms of construction approvals. “But if you go deep into the details and compare Lagos to Kebbi State that does 30 in a month and Lagos does 5,000, you see that it is easier to deal with 30 than 1000; but Lagos must ramp up. We must automate all the activities of government. “If you recall we were doing the 90 days consent, meaning that

when you request for consent, in 90 days, it must come out. That was even when we started automating all the processes but today, what I can tell you is that we will go back to automation. It is revenue for us because when you get your consent, you pay money, so it is in our interest,” Hamzat stated. According to him, Sanwo-Oluled government in Lagos will improve and diversify government revenue. “We must improve the basket because as a state we do not have enough resources; so if people want to give us resources, we will be very stupid not to take it, but we must give them service,” he stated. Hamzat opined that their government will improve the face of Lagos to give a lasting experience in the mind of Lagosians, especially those that deal with government. “We will make sure that people can do interaction without coming to Alausa and when they come to Alausa, the experience they have must be good enough to make them come back – not that we are rude to them.

And the North must rise up and puncture whatever evil designs his promoters have in mind by backing a candidate whose health condition is not suspect,” “The real danger was the fact that a sick Buhari has become a puppet in the hands of some anonymous puppeteers, from all indications; the Vice President, Yemi Osinbajo, is not in control of affairs although statutorily he remains Number Two. But he too has been pocketed by the cabal.” The statement further stated that even the incumbent United State President, Donald Trump, was medically examined after fears were expressed over the state of his health condition.

Onnoghen: Agbakoba sues FG, urges court to declare suspension unconstitutional Iniobong Iwok

lisa Agbakoba, a human rights lawyer, has sued the Federal Government over the suspension of the Chief Justice of Nigeria, Walter Onnoghen, urging the federal High Court Lagos Division to declare as unconstitutional the procedure adopted by President Muhammadu Buhari in carrying out the act. Agbakoba, who is a Senior Advocate of Nigeria (SAN), faulted the action of the President, stressing that judicial officers had a fixed tenure in office which could only be terminated by administrative action of the National Judicial

Council or the President acting on an address supported by two-third majority of the senate. He stressed that the suspension of the CJN by President Buhari did not follow the procedures spell out by the constitution of the country. According to him, “The grounds of the claim is that Judicial Officers including the Chief Justice of Nigeria enjoy Judicial Immunity and have constitutionally guaranteed tenure of office that can only be interfered with by the administrative action of the National Judicial Council or the President acting on an address supported by two thirds majority of the Senate. “In the suspension of the Chief

Justice of Nigeria, Justice Walter Samuel Nkanu Onnoghnen, the President of Nigeria did not adopt either of the procedures”. Onnoghen is accused of not fully declaring his asset after becoming the Nigeria’s CJN, but President Muhammadu Buhari, swiftly announced his suspension from office and appointed Justice Tanko Muhammed as the nation’ new CJN, citing orders from the Code of Conduct Tribunal (CCT). The suspension have generated outcry among Nigerians, eminent lawyers, including the Nigerian Bar Association (NBA), which recently boycotted Court sitting for two days.

Atiku condoles with APC over tragic incident in Jalingo

residential candidate of the People’s Democratic Party and former Vice President of Nigeria, Atiku Abubakar has condoled with the families and friends of those who may have lost a dear one in the tragic incident at the APC presidential rally in Jalingo, Taraba State on Thursday.

A statement signed by his Media, Adviser, Paul Ibe, quoted the PDP Presidential candidate to have expressed sadness over the loss of lives. “All Nigerian lives matter whether they are of the APC, PDP or any other party”, Atiku Abubakar was quoted to have said from Katsina where he was holding a rally himself.

Atiku also expressed his deepest condolences to the APC and its presidential candidate and the government and people of Taraba State over the tragedy. The PDP Presidential candidate prays for strength and comfort for the affected families and for God to grant the deceased eternal rest.

is N20,000, it was N6, 000 when the PDP was in power. “They have not completed their four years, look at the suffering; they are not a good party. Atiku wants to solve Nigeria’s problem through restructuring; restructuring is the only way forward. There is so much power at the centre presently; we must reduce it”. She further promised that if elected president Atiku will give 30 percent of appointments in his

cabinet to women, while the youth would be given 10 percent of minister of states positions. According to her, “Atiku will provide the way forward; we would all benefit from Nigeria, he is ready to lead Nigeria out of poverty. Atiku came to help women, he was trained by his mother alone when he lost his father, so he values women and has promised to give 30percent of appointments in his cabinet to women and 10 percent to the youth.

Atiku’s wife in Lagos, urges Nigerians to vote out APC Iniobong Iwok

iti Abubakar, wife of the People’s Democratic Party (PDP) presidential candidate, Atiku Abubakar, has said that Nigerians have become poorer since the All Progressives Congress (APC) government led by Muhammadu Buhari assumed office, urging them to vote out the APC in the forthcoming general election.

Abubakar stated this Wednesday during a town hall meeting at the City Hall in Lagos State with PDP leaders and women support groups in the state. She lamented the bad shape of the economy, which has had negative effect on the cost of living and price of goods across the country, stressing that the APC has no solution to the woes bedevilling the country. She urged Nigerians to vote for

the PDP and its presidential candidate in the forthcoming elections, promising that Atiku will restructure the country and practise true federalism. According to her, “This government is not doing well; since the APC took over power in 2015, poverty is too much, suffering is too much among our people, our people are hungry; let us drive away the APC. The Minimum wage is N18, 000 but a bag of rice

Friday 08 February 2019

BUSINESS DAY

34 BUSINESS DAY NEWS

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Friday 08 February 2019

Whither the new Ashiwajus? Nigerian politics post 2019 elections L-R: Simon Aranonu, executive director, large enterprise division, Bank of Industry (BoI); Kayode Pitan, MD/CEO, BoI; Babatunde Ruwase, president, Lagos Chamber of Commerce and Industry (LCCI); Mojisola Bakare, chairperson, financial services group, LCCI, and Obinna Anyanwu, vice chairman, financial services group, during a courtesy visit by LCCI to Bank of Industry Head Office in Lagos, yesterday.

Nigeria’s film industry sets 19-year box office record ... as 3 local movies rake in over N200m each LOLADE AKINMURELE

ovie lovers are picking more interest in Nigerian movies at a time when consumer incomes are shrinking and the prices of essential items are on the ascendancy. Figures published by the Cinema Exhibitors Association of Nigeria (CEAN) show that in 2018, three of the top 10 movies in cinemas across the country were of Nigerian make and raked over N200 million in revenues, equalling a record last set in the late 1990s. The three movies include ‘King of Boys’, ‘Wedding Party’ and ‘30 Days in Atlanta’. Nigeria’s film industry has gone from when only one film grossed over N200 million in 2016 to three movies grossing more than N200 million in 2018. One of those three movies (‘King of Boys’) even eclipsed N300 million in a little under a month. ‘King of Boys’ has lasted 15 weeks, nearly four months, in the cinemas, the longest period of any movie,

according to CEAN data. In yet another sign of how much traction Nigerian movies are gaining, the top six earning movies in the cinemas during the highly competitive Christmas week were all of Nigerian make. Curiously, all this is happening when the rate of unemployment has spiralled to a decade-high of 23.1 percent as at the end of the third quarter of 2018, according to the National Bureau of Statistics (NBS), and average incomes have shrunk every year since 2015. Although the economy has exited recession in the second quarter of 2017, growth remains fragile at best. Birth rate of nearly 3 percent has outpaced GDP growth, which averaged 1.7 percent in the first three quarters of 2018. The IMF sees contracting average incomes for another four years through 2022. The price of goods and services were growing at an annual rate of 11.44 percent as at December 2018. Although it is down from as high as 18 percent in 2017, it remains above

the Central Bank of Nigeria’s preferred band of between 6 to 9 percent. That has translated to a higher cost of living and piled pressure on household income. The strain on consumer wallets in the last three years has reflected in the revenues of consumer goods companies who aregrapplingwithdecliningsales. It would appear, however, that the film industry has relatively fared better. “In keeping with the general trend of significant year-onyear growth across the Nigerian entertainment industry, 2018 proved to be a largely good year for the sector and judging by sheer numbers, the film industry was undoubtedly the darling of the sector,” Lagos-based law firm, Olaniwun-Ajayi, said in a report this week. “This bourgeoning growth has been spurred by increased capital injection from financial institutions as well as increased corporate tie-ins to content producers and some high networth individuals,” authors of the report said.

•Continues online at www.businessday.ng

Why corruption fight may not decide votes on Feb. 16 CHUKS OLUIGBO

f perception were the sole yardstick for measuring performance in office, President Muhammadu Buhari, candidate of the All Progressives Congress (APC), will perhaps easily coast to victory at the February 16 presidential poll on the back of his much-publicised anticorruption war. While Buhari is seen as an incorruptible leader capable of giving corruption a bloody nose, his main challenger, major opposition People’s Democratic Party (PDP) candidate, Atiku Abubakar, seems to carry a burden from his past

ANALYSIS as vice president. Atiku, a businessman, has promised to get the economy working again by cutting corporate taxes and, in turn, creating jobs and delivering a $900 billion economy by 2030. Yet, his pledge to privatise the largely opaque state-owned oil firm NNPC is seen in many quarters as an attempt to sell the country’s patrimony and enrich his cronies. “A win for the challenger, Atiku, would create a brief, superficial boost to the country’s image – largely because of his better health and keener intellect. But it would also pose

the risk of a return to an even more rent-seeking governing style,” said Eurasia Group, a Washington-based political risk consultancy firm, in a recent report. Many poor Nigerians believe their poverty persists because wealthy politicians and their cronies have helped themselves, unfettered, to the public till since the country’s return to civil rule in 1999. They, therefore, wish the sledgehammer of justice would descend on these wealthy individuals. But Buhari’s anti-corruption war has faltered. In his first coming as military head of state,

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ABIMBOLA AGBOLUAJE Dr. Agboluaje, managing director of WNT Capitas, a communication and investment risk advisory, completed a PhD dissertation on development aid conditionality and structural adjustment in Africa at the University of Cambridge in 2005.

week is said to be a long time in politics. Last year seems like a century ago in Nigerian politics. Hopes were high that “alternative” politicians a.k.a the “third force” would wrest power from the dominant political parties in the 2019 elections. This dream was buoyed by the signing into law of a meaningless “not-tooyoung-to-run” bill. It slowly but resolutely collapsed into farce. It is now safe to conclude that the bevy of alternative presidential candidates and their “Mickey Mouse” political parties will have zero impact in the 2019 elections. The parties may end up not getting even one federal lawmaker elected. The cardinal error, for the one or two alternative presidential candidates who didn’t enter the race principally as an exercise in personal branding, is a messianic complex which obscured realistic assessment of what was possible. Their supporters touted the victories of Donald Trump in America and Emmanuel Macron in France as evidence of what was possible in Nigeria –anti-establishment alternative politicians riding to power on the crest of

In Nigeria, ethnicity overwhelmingly remains the ideology on which political mobilisation and affiliation are structured popular disenchantment with traditional politicians. This is worse than facile. Ultimately, Macron and Trump, and indeed Britain’s Brexiteers, appealed to historically-rooted ideological divisions along which Western politics has long been structured: free trade versus protectionism, free domestic markets versus protected internal markets, global engagement versus isolationism, etc. Western alternative politicians were thus

moving the ideological needle, no matter how wildly, rather than inventing new ones. In Nigeria, ethnicity overwhelmingly remains the ideology on which political mobilisation and affiliation are structured. It is readily evident on social media that even the most educated Nigerians support candidates and parties not on account of their reform plans for the oil and gas or education sector but according to ethnoregional sentiments. The odds are high but quite surmountable. Nigerian alternative politicians and their boosters need to take a ruthless reality check. Pat Utomi failed to win even the gubernatorial primary of a major party almost a decade after first running a presidential campaign. Without doubting the seriousness of Kingsley Moghalu or the sincerity of Oby Ezekwesili, it was always very clear that they stood no chance in 2019 against the vast structural network of ethnic identity politics: local elites, institutions, loyalties, impoverished voters, party cells, etc. The majority of voters will never be convinced of the chances of a lone wolf sitting atop an unknown party; they probably would not be able

The majority of voters will never be convinced of the chances of a lone wolf sitting atop an unknown party; they probably would not be able to name one thing they have promised or that they stand for to name one thing they have promised or that they stand for. Nigeria may not survive for long as a viable state if the predatory political culture favoured by our traditional political parties is allowed to dominate the next two to three election cycles. What Nigeria desperately needs are political entrepreneurs who can undertake the hard graft of building a formidable “third party” that crafts solutions to the nation’s legion of political, economic and social problems and transforms them into effective political demands through consistent social mobilisation. Not new “ashiwajus” with dreams of riding their tiny purpose-built political vehicles into Aso Rock. Nigeria’s traditional political parties have remained dominant not because they are so well-organised or because political mobilisation on the basis of economic self-interest can never trump the ideology of

Political mobilisation on the basis of economic selfinterest can never trump the ideology of ethnicity ethnicity. (The Peoples’ Democratic Party is so disorganised it cannot even help itself by articulating a clear message on its record of relatively successful economic reforms.) Rather, Nigeria’s alternative politicians have placed the cart of winning elections before the horse of shaping and mobilising opinion as the primary goal of a political party. They have not even tried to build political parties. They owe it to their followers and to Nigeria to begin the task of alliance building and aggressively mobilising Nigerians behind policy solutions to the country’s problems immediately after the 2019 elections. They could within a year emerge as the main opposition party. In the short term, the objective should be to secure “catalyst” economic reforms such as passage of the Petroleum Industry Bills. This would almost immediately relieve Nigeria’s strained fiscal position and reduce poverty by boosting financing of health and education sectors and physical infrastructure. Eradicating Nigeria’s multiple exchange rates and preventing the reinstatement of currency controls in the event of a further decline of the oil price, thus boosting foreign investment, should also be a target. Nigeria’s business media and private sector associations have been ineffectual in preventing atrociously poor policy choices that have damaged confidence, investment and jobs. The emergence of a political platform – a third party – that daily explains to Nigerians how they are being impoverished by a mix of nonreform, such as the refusal to sign the Petroleum Industry Governance Bill, and graftenabling foreign exchange “follicy” would increase political pressure for reforms. The third party requires simple and rousing ideas to win these tactical policy campaigns and the strategic battle to build widespread following. The major idea should be “economic liberty” – liberating Nigerians from the battery of statist economic controls that have impoverished them while stupendously enriching politicians and bureaucrats. Coupled with this should be the promise of “political liberty”, localising political competition and economic development through constitutional decentralisation of government powers a.k.a restructuring.

•Continues online at www.businessday.ng

Friday 08 February 2019

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BUSINESS DAY

NEWS Liquidity crunch hits SMEs as high... Continued from page 1 Anyanwu, secretary, Association of Leather and Allied Industrialists of

Nigeria (ALAN), who produced shoes for the Nigerian Armed Forces in 2016. “The Bank of Industry has done its best by giving few people N300,000 each, but it takes 100 or 200 times that money to set up a standard shoe factory. Again, commercial banks are not interested,” he said. In the first half of 2018, average interest rate charged to Nigerian manufacturers stood at 22.9 percent, representing 0.25 percentage point higher than 22.65 percent recorded in the same half of 2017, according to the Manufacturers Association of Nigeria (MAN). Governments and the private sector are competing for funds in the banks, with federal and state governments crowding out the private sector, especially small businesses. While credit to the private sector in the third quarter of 2018 was N15.59 trillion, federal and state government claims were N13.4 trillion. Small and medium businesses (SMEs) numbering 37 million are the worst hit, with many of them seeking offshore funds and equity to pump

cash into their business. Banks, however, say many businesses lack proper documentation, structure, plan, and financial history. Nigeria’s monetary policy rate (MPR), which is a benchmark interest rate in the country, has remained 14 percent for almost two years. Deposit money banks lend as high as 25 to 35 percent, according to BusinessDay checks. The monetary policy committee (MPC) of South Africa’s Reserve Bank met in March last year and cut interest rates by 25 basis points. The current repo rate (central bank lending rate to commercial banks) in South Africa is 6.5 percent, while the prime lending rate (lending rate to customers) is 10 percent. Similarly, Kenya Central Bank’s monetary policy committee cut the determining bank rate in late July to 9 percent, from 9.5 percent. BusinessDay gathered that Kenyans now borrow at an interest of 13 percent (as against 13.5 percent earlier) in line with the interest rate capping rule that limits lending rates to 4 percentage points above the CBR. Zambia is one of the emerging countries in SSA and its central bank cut benchmark lending rate by 50

basis points to 9.75 percent in February this year, citing lower consumer inflation and weaker economic growth, according to Reuters. In October 2017, Ethiopia’s central bank raised its benchmark interest rate to 7 percent, from 5 percent. Atleastthebenchmarkinterestrates of most SSA countries have remained single digit, barring few, meaning that it is cheaper for businesses to access funds there than in Nigeria. The Central Bank of Nigeria (CBN) has held the MPR at 14 percent for the 15th consecutive time, due chiefly to high inflation rate. Inflation rate in June 2018 was 11.23 percent. Nigeria is facing a make-or-mar general election, which will see politicians spending huge sums on campaigns and vote-buying. Analysts see this as one of the main reasons why the CBN is reluctant to cut rates. Bismarck Rewane, CEO of Financial Derivatives Company, has been consistent on asking the CBN to cut rates to aid economic recovery for a country that just exited recession. “No economy will grow when businesses get interest rate at a very high rate. What we need is a singledigit interest rate as manufacturers. We believe that this is what can stimulate growth,” Frank Jacobs, former president of MAN, told BusinessDay recently.

L-R: Ellen Johnson-Sirleaf, head, Economic Community of West African States Observer Mission to Nigeria; Mahmood Yakubu, chairman, Independent National Electoral Commission (INEC), and May Agbamuche-Mbu, commissioner, INEC, during the visit of ECOWAS Observer Mission to INEC in Abuja. Pic by Tunde Adeniyi

Forte Oil shareholders endorse Otedola’s... Continued from page 1

Nigerian billionaire businessman

Femi Otedola. The approval was given by the shareholders at the Extra-ordinary General Meeting (EGM) of the firm held in Lagos. The proceeds from the divestment will be used to fund the downstream marketing business. The decisions which were arrived at by voting saw 90.9 percent of the shareholders approve that the company may enter into discussion with Femi Otedola or any other company representing him in connection with the assets to be divested although subject to an independent valuation on fair value, and enter into subsequent binding agreements on comparable arms-length/commercial terms in relation to the assets to be divested. Also, 90 percent of the shareholders agreed that the directors or management of the company are authorised to execute all documents, appoint professional parties and advisers where necessary in connection with the resolutions of the board which must comply with the directives of regulatory authorities. Over 90 percent of the shareholders also permitted the company to take all steps to give effect to these

resolutions and, where applicable, to file and/or register same with the Corporate Affairs Commission (CAC). Femi Otedola’s indirect holdings, namely, Zenon Petroleum and Gas Limited and Thames Investment Limited, are excluded from voting at the EGM in compliance with the requirements of the Nigeria Stock Exchange (NSE) Rules Relating to Board Meetings and General Meetings of Issuers. A look at directors’ interests as at December 31, 2017 shows that Femi Otedola directly holds 186,260,357 units in Forte Oil plc while indirectly he holds 838,472,441 units. At N26.55 per share as at Monday, January 7, 2019, his stake in Forte Oil plc is valued at N27.2 billion. Forte Oil plc is listed on Petroleum and Petroleum Product subsector of the NSE Oil and Gas sector. It has 1,302,481,103 outstanding shares and market capitalisation of N34.5 billion. Standard Chartered Bank, Corporate Finance & Advisory, Dubai and Olaniwun Ajayi LP served as financial and legal advisors, respectively, to Otedola; PricewaterhouseCoopers and Stanbic IBTC Capital Limited served as joint financial advisors, and Sefton Fross served

as legal advisors to Investments and Commodities Limited. Forte Oil plc downstream business recorded a turnover of N74 billion in the financial year ended December 31, 2017, representing 38 percent decrease compared to N120.1 billion recorded in 2016. In the financial year, Forte Oil plc reported 13 percent decline in revenue to N129.4 billion as against N148.6 billion in 2016 financial year. The year in review was very challenging for Forte Oil Downstream Business with reduced product supply owing to foreign exchange scarcity and volatility, the company had said. Forte Oil plc said the decision to divest from upstream services and power-generating businesses will boost its distributable earnings for the benefit of shareholders. Forte Oil plc had in December last year notified the Security and Exchange Commission (SEC), the NSE and the investing public that Otedola’s divestment from the downstream business is pursuant to his decision to explore and maximise business opportunities in refining and petrochemicals. The transaction is expected to be consummated in this first-quarter (Q1) of 2019 subject to the satisfaction of various conditions and receipt of applicable regulatory approvals.

“It is important to fast-track the recapitalisation of the Bank of Industry (BoI) to enable it to meet huge credit demands of the industrial sector,” Jacobs said. He said government now needs to open up access to various development funds created by the CBN such as the N220 billion Micro, Small and Medium Enterprises Development Fund (MSMEDF) and the N300 billion Real Sector Support Facility (RSSF) by relaxing stringent conditions denying manufacturers and businesses access to these funding windows.

Babatunde Paul Ruwase, president, Lagos Chamber of Commerce and Industry (LCCI), said the current state of the economy shows the government must prioritise stimulation of investment and growth. “The proposition is that low interest rate will stimulate investment, impact positively on growth, create more jobs, increase income, and boost output. This would ultimately have a moderating effect on inflation,” Ruwase said. Tony Elumelu, founder, Tony Elumelu Foundation, recently said that every $1 spent on SMEs generates $5.

Why corruption fight may not decide votes... Continued from page 34

Buhari had said he took over power in order to fight corruption which, he said, had “become so pervasive and intractable that a whole ministry has been created to stem it”. By the time he was ousted from office in 1985, however, corruption remained entrenched in the Nigerian system, putting a question mark on his ability to tackle the scourge headlong. When he was voted in as a democratic president in 2015, Buhari said, “If we don’t kill corruption, this corruption will kill us.” The fight against corruption was one leg of a tripod that formed the major policy thrust of his administration – the others being security and economy. To match words with action, the Buhari administration embarked on full implementation of the Treasury Single Account (TSA) test-run by the Goodluck Jonathan administration. The TSA consolidated multiple government accounts into one and helped plug financial loopholes, resulting “in greater transparency and accountability in the public financial system”, according to Grant Walton, a Fellow at the Development Policy Centre who is actively involved in the Transnational Research Institute on Corruption. The anti-corruption agencies, lukewarm until then, took a cue from Buhari’s so-called “body language” and woke from their slumber, undertaking a series of investigations resulting in arrests, prosecutions and recovered loot. Yet, not many today are enamoured of Buhari’s fight against corruption. For while the anti-corruption crusade seems to have produced positive results, it has left the citizens poorer, with money apparently circulating only among the president’s family and cronies. While the questionable subsidy payments for petroleum products have remained under Buhari, a BusinessDay report on Monday uncovered the sleaze in the Central Bank’s longstanding N306/$ exchange rate, seen as the biggest FX racket since the dark days of maximum military dictator Sani Abacha. In their desperation, many Nigerians have yearned for a return to the pre-Buhari era encapsulated in the chant “Bring Back Our Corruption”, which, in the words of Moses Ochonu, professor of African History at Vanderbilt University, Nashville, Tennessee, USA, illustrates “the primacy of economic survival and wellbeing above all else, including the fight against corruption” and a yearning for a return to an era when “corruption was rampant but life was easier, cheaper, more livable”. “Nigeria is gripped by the familiar anxieties of an economy in distress. This escalating crisis has demystified a president once thought capable of astute, if not magical, economic management. In their desperation for respite, many Nigerians are now paradoxically yearning for the corruption that they and their leaders blame for their economic woes, but theirs is not a nostalgia for corruption per se

but for a period in which, despite or because of corruption, the flow of illicit government funds created a sense of economic opportunity and prosperity,” Ochonu said in a 2016 article. Opposition politicians have alleged Buhari’s anti-corruption fight is only a tool to witch-hunt opponents. They point out that many politicians in Buhari’s party, the APC, were in the top echelon of PDP yesterday and so partook in whatever corrupt practices PDP isbeingaccusedof.Yet,nochargeshave been brought against these politicians, some of who allegedly funded Buhari’s campaign in 2015 and are today in his cabinet. And even those with corruption charges hanging on their necks walk free in the corridors of power. Even Buhari’s promises on the economy and security haven’t fully materialised. While Buhari purportedly focused on the fight against corruption, however wishy-washy, the economy slid into recession, its first in over two decades, leaving many citizens wallowing in abject poverty. Jobshavebeenlost,withunemployment figures climbing to 23.1 percent in the third quarter of 2018, from 8.2 percent when Buhari took over in 2015. The last four years have witnessed unprecedented killings across the country, partly from Boko Haram which the government claims to have decimated, but mostly from herdsmen attacks in the country’s north-central region. Poverty rates have increased, with about 87 million Nigerians in extreme poverty as at the end of May 2018, and six Nigerians sliding into extreme poverty every minute, according to a June 2018 Brookings Institution report. Peter Obi, vice presidential candidate of the PDP, last December took a swipe at Buhari’s anti-corruption war, insisting fighting corruption was not an economic policy but only a means to an end. “It is not that you cannot fight corruption but you can fight it more aggressively while addressing economic issues,” Obi said at the vice presidential debate, reeling out figures to show how Buhari’s fight against corruption without commensurate effort in economic management led to loss of jobs, decline in FDI and bearish trends at the stock market. “You’re just fighting corruption, you are not creating jobs. You cannot shut down your shop and be chasing criminals,” Obi said. As the clock ticks on the presidential poll, Buhari and his acolytes continue to croon the vibes of anticorruption and promise to jail more looters. On the other hand, Atiku, readily accepted within the business community because of his pro-business disposition, says he will institutionalise anti-corruption by introducing technology to eliminate interface. International research agencies see a tight race between the duo, predicting a narrow-margin win for Atiku. But if Buhari wins on February 16, it will not be because he has wrestled corruption to a standstill in the last four years.

BUSINESS DAY

Friday 08 February 2019

Thursday 07 February 2019

NATIONAL DISCOURSE

TELIAT SULE

here is no doubt that political gladiators and party officials are busy strategising on how to win the next general elections, as visible in their campaigns, promotional posters, jingles, flyers, as well as the traditional and electronic billboards, all of which lend credence to this. The posters don’t say much about the candidates, as the

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BUSINESS DAY

What kind of experience does electorate have after your political rallies? things we see in those posters are the names, political parties, the office the candidates are vying for, and then the associates or supporters that sponsored the posters. Some posters are so empty with no value addition to the candidates to the point that one would have wished such items were not made in the first place. For those that have manifestoes, of course, the political rallies would have been a very good avenue to know how the candidates will implement their plans. For instance, how much funding will be required for each of the candidates’ new programs? What alternative projects will be traded off to execute the new ones being proposed? What approaches did some of these candidates employ to arrive at the new projects and how are they sure they are the best for their

states, regions or constituencies? What’s more, for those seeking re-election, how much of what they promised in their first tenure are accomplished and what prevented them from fulfilling their past promises? Rather than do this, all the political parties are interested in is the number of people that attend their rallies. To them, this is the most important thing in a rally. This is really disturbing, after almost 20 years in the new political dispensation, and on a number of occasions, it has been established that tumultuous crowds at a rally do not translate to votes. First, apart from few party officials, no one can say for sure that everyone at the rally has a PVC. Second, there is no guaranty that all the people at a rally belong to the same political party. For these reasons, it will be difficult to have a positive

correlation between the crowd at a rally and the eventual votes political parties will have during the election. Another intriguing dimension is the collapse of podiums. Since the ban on political campaigns was lifted, a number of podiums had collapse leading to untimely deaths of party faithful. In Kebbi, Ekiti, and other states, party faithful who thronged out to cheer their candidates to victory came back home injured, as a result of the lackadaisical attitudes of the party committee in charge of the campaign rallies. If a party could not protect its members at a gathering of about 300,000 Nigerians, does that party have the competence to protect 180 million Nigerians? Another issue that leaves party supporters with a bitter experience is the control

of traffic before, during and immediately after campaigns. For state capitals that are not as densely populated as Kano City, Kaduna, Lagos, Ibadan, etc, this issue may not be much of a concern. But that is not the case in other states. After the campaign, the adjoining streets to the campaign venue become no man’s land. Disorderliness rules the day. As the APC presidential candidate visits the nation’s commercial capital, Lagosians cannot afford to go through the harrowing experience that comes with uncontrolled traffic and crowd. As the fifth biggest economy in Africa, traffic jam in Lagos for a day costs Lagosians billions of naira in revenue. Lagosians will not listen to excuses if orderliness is not implemented around the campaign venue come this Saturday.

Sanwo-Olu outlines 5 strategies to drive development in Lagos MICHEAL ANI

abajide Sanwo-Olu, the ruling All Progressives Congress (APC) gubernatorial candidate in Lagos State, has outlined five developmental strategies that, if elected on March 2, his administration would deploy to take Nigeria’s commercial hub to the ‘next level’. In a policy document seen by BusinessDay, the 53-year-old APC candidate presented the five strategies couched under the acronym “T.H.E.M.E.” – traffic management and transportation; health and environment; education and technology; making Lagos a 21st-century economy; and entertainment and tourism. in the area of transportation, Sanwo-Olu said his administration will focus on prioritising the attainment of a reliable multimodal transportation system by reducing travel-related stress, improving journey time reliability, particularly for business travel and the movement of goods, and improving access to and within activity centres. Lagos, Nigeria’s centre of excellence and commercial

hub, claims the number one spot when it comes to business location in Nigeria as the country boasted about $137 billion in Gross Domestic Product in 2017, almost three times the $47 billion that Nigeria’s West Africa neighbour, Ghana, recorded as its total market value for 2017. The state has consistently raked in the highest amount in terms of states’ Internally Generated Revenue (IGR), turning in N283 billion in revenue as at the third quarter of 2018. With a population of over 21 million residents, the state still battles with an inadequate transport system that could ease free movement of goods and services. In spite of the issue of poor road network, trucks have taken over every sphere of the roads with many of the drivers turning the roads into a place of abode and bathroom, even littering the environment with faeces. “To address this, my administration will improve safety whilst enabling all sectors of the society to travel to the destinations they need to reach and give priority to those means of travel that are less damaging to our natural and built environment,” Sanwo-Olu said. On health and environment,

LAGOS DEVELOPMENT he said his focus will cover around expanding the Lagos health insurance scheme with a target of 500,000 households (2.5 million enrolments) by Q4 2019 and increase health spending from 8.86 percent to 15 percent of the budget in line with the Abuja Declaration. Furthermore, Sanwo-Olu said he will create a database to capture the health needs of Lagosians by deploying a Healthcare Management System across healthcare centres; access additional funding for primary healthcare facilities through the National Basic Health Care Provision Fund (BHCPF); expand Lagos State Ambulance and Emergency Service coverage by increasing the number of ambulance points by 50 percent (from 15 to 23), and ensure minimum of three doctors, three nurses and five community health workers in all 345 Primary Health Centres (PHCs) by 2021. Lagos State is home to some 673 junior and senior secondary schools and 1,017 primary schools, catering to more than one million students and almost 30,000 teachers.

According to Sanwo-Olu, the state’s educational system is functioning sub-optimally even though the state was ranked 6th nationally in the 2018 WAEC exams. “We believe that Lagos State schools should be number one nationally and that our public schools must compete favourably with private schools,” Sanwo-Olu said. “To address this, we will Increase budgetary allocation for education from 12.07 percent to 18 percent during the tenure of the administration; collaborate with industry, Federal Government and academia to update the education curriculum to reflect current and future industry needs and expand the SupportOur-School Programme in partnership with the private sector by targeting 100 schools across all 57 LCDAs,” he said. Lagos has a rich history of economic growth and transformation and it continues to remain the commercial and financial nerve-centre of the nation. With over 60 percent of industrial and commercial activities of the nation being accounted for in Lagos alone, it, therefore, becomes imperative that Lagos continues to be posi-

tioned for sustained economic development. The competitiveness of Lagos State as an investment destination depends on a vibrant workforce, attractive business opportunities and a regulatory environment conducive for commerce and industries to thrive. “Our administration will focus on driving key initiatives for an inclusive policy for sustainable economic development,” Sanwo-Olu said. These initiatives, he said, include creating a business environment conducive to attracting investments and industries, encouraging citizen participation and inclusion in governance, and empowering the workforce and local talent to drive job and wealth creation, especially opportunities for the youth. On entertainment and tourism, Sanwo-Olu explained that his administration would seek to make Lagos the foremost entertainment and tourism destination in Africa by restoring all historic sites in Lagos at the rate of 20 cultural sites per annum. He noted also that he would rebrand to international standards and actively promote cultural events like Fanti Carnival, Eyo Festival, Boat Regatta, among others.

38 BUSINESS DAY NEWS

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For 9mobile, pressure keeps... Continued from page 1 In order to save the company

from a foreclosure together with its implications on job loss and possibly the stability of the larger telecoms industry, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) intervened to safeguard shareholders, staff and subscribers of the network. Initially, 16 firms showed interests in acquiring 9mobile, but after a long, arduous process, Teleology emerged as the preferred bidder for its technical and financial capacity to transform 9mobile. During the acquisition process, Teleology Holdings, through its Nigerian subsidiary, Teleology Nigeria Limited, was able to secure a short-term loan of $251 million from Afreximbank, with an understanding that it would raise the money through shareholders and long-term lenders, which will be paid back in full by January of this year. Unfortunately, the chapter that followed was an anti-climax, with Teleology Holding’s announcement of its intent to withdraw from further participation in the 9mobile project in early January 2019, due to what it called “increasing discomfort with

actions taken outside the agreed business plan since the November 12, 2018 formal takeover of 9mobile”. Teleology Holdings Ltd also sought to exit its shareholding in the local joint venture Teleology Nigeria Limited, which will be required to change its name. After Teleology Holdings pulled out of the 9mobile deal, Teleology Nigeria Limited renegotiated the loan repayment and got a reprieve that allowed it to pay $50 million by January. However, BusinessDay finds that the renegotiated terms have not been met. Sources close to Afreximbank have hinted that the bank will embark on an aggressive loan recovery drive in the coming weeks, despite the fact that 9mobile officials have given assurances that the firm may get a lifeline soon. BusinessDay sources familiar with the dealings have revealed that Teleology Holdings Limited may in the coming weeks institute a civil action against 9mobile. “Teleology is reportedly aggrieved over the shoddy manner its planned acquisition of 9mobile was handled following reports of document falsification and forgery by its Nigerian partners during the process leading to the acquisition,” a source said.

“It is true that Teleology Holdings Limited is thinking of going to court and they have every right to do so, but 9mobile is also looking to reach amicable ends with Adrian Wood, who is the founder of the company. It is in the interest of the industry that they look at all possible options to try and settle amicably out of court,” Olusola Teniola, president, Association of Telecommunications Companies of Nigeria (ATCON), told BusinessDay. Recall that the NCC in December 2018 gave disconnection approval to mobile network operators (MNOs) to disconnect their debtors over continued rise in interconnect debt and failure of the affected operators to pay the huge interconnection fees owed. A 21-day window was given by the NCC to the companies to make amends or risk disconnections and IHS is up in arms, seeking ways to compel the telco to pay monies owed it. Meanwhile, the effects of these troubles are beginning to come to light as employees of 9mobile have gone into panic mode and are leaving the company in droves, particularly the management staff, as there seem to be no quick resolutions to the company’s many problems. Already, five managers and one director for regional sales, Victor Nwokobia, are said to have abruptly resigned last week. While speaking on the approval

L-R: Mohammed Iyamu, vice president, trading, Cars45; Jide Adamolekun, chief financial officer, Cars45; Adeola Ajewole, GM, advert, BusinessDay Media; Etop Ikpe, CEO/co-founder, Cars45; Patrick Atuanya, editor, BusinessDay Media; Linda Ochugbua, digital sales manager, BusinessDay Media, and Bemigho Awala, public relation/brand lead, Cars45, during Cars45’s courtesy visit to BusinessDay Media Office in Lagos, yesterday. Pic by David Apara

237,000 graduates in private-guard jobs... Continued from page 1

they often have a contractual obligation to provide these actions. Latest information from the National Bureau of Statistics (NBS) on 1,110 companies in the private guards/security industry revealed that this industry provided jobs for 828,502 Nigerians as at 2018, out of which 616,000 (74 percent) are males and 212,502 (26 percent) are females. Out of the alarming 828,502 jobs which the private guards/security industry provided for Nigerians, those with post graduates degrees (PGD, Masters) are 2,004, while 234,996 are graduates with BSc, BA, and HND honours. The remaining 591,451 hold other certificates, such as ND, SSCE and others. From a low of 578,056 in 2013, there were 601,528 citizens that took the private security jobs in Nigeria as at 2014; it later rose to 722,401 in 2015, advanced to 771,478 in 2016, and in 2017 there were 791,210 of them. These post graduates in the private guards/security industry earn N65,000 per month; the graduates earn N55,000, while others (ND, SSCE and other related certificates) earn N25,000.

Nigeria’s unemployment rate increased from 18.8 percent in the third quarter (Q3) of 2017 to 23.1 percent in the third quarter (Q3) of 2018. The National Bureau of Statistics (NBS) said the economically active or working age population (15-64 years of age) increased from 111.1 million in Q3 2017 to 115.5 million in Q3 2018. The number of persons in the labour force (that is, people who are able and willing to work) increased from 75.94 million in Q3 2015 to 80.66 million in Q3 2016. The number further increased to 85.1 million in Q3 2017 and 90.5 million in Q3 2018. “Government does not have the capacity and resources needed to create the kinds of jobs needed to absorb the current 20.9 million unemployed Nigerian youths. Strong collaboration with the private sector and massive private sector investment will facilitate job creation for the teeming youths and provide opportunities for government to generate income,” NECA had said in its January 29 note to members. Timothy Olawale, director-general, Nigeria Employers’ Consultative Association (NECA), said on February 4 the late passing of the budget also

frustrates employment generation. “For some years now, the process leading to the approval and passing of budget in Nigeria has always been a victim of the proverbial fighting of two elephants. A critical component of the budget such as capital expenditure, which to a large extent plays a major role in economic development, suffers,” Olawale said. “Infrastructural reforms, which are meant to attract investments and improve the lives of the populace, are put on hold and business decisions, which could translate to expansion and employment generation, frustrated,” he added. His views come barely nine days to the 2019 presidential election when Nigeria’s incumbent President Muhammadu Buhari and candidate of the ruling All Progressives Congress (APC) will be seeking re-election for another term of four years in the presidential elections slated for February 16. His main challenger is the opposition candidate, Atiku Abubakar, of the People’s Democratic Party. Atiku, a former vice president, said Nigeria needs a pro-business and private sector-driven leadership to create jobs for its 21 million unemployed youths, adding that he will create 3 million jobs every year if he is elected as president this month.

given by NCC to MNOs to disconnect debtors, an official of the Association of Licensed Telecommunications Company (ALTON) said the matter of interconnect indebtedness amongst Nigeria’s telecoms operators was a complex one and that it would be difficult for any service provider to disconnect indebted companies. In the first place, the aggrieved parties who are making claims and counterclaims on the level of indebtedness are unwilling to come forward for the resolution of interconnect disputes among them. It was gathered that a recent meeting called by the NCC to discuss the matter was rebuffed by all parties involved. “These are certainly not good times for 9mobile as their troubles are mounting on all angles. There are so many questions that need to be answered. 9mobile stakeholders and subscribers need to know what is happening with their network,” Hannah Odusanmi, a telecoms industry

Thursday 07 February 2019

analyst, said. The question industry watchers are asking now is when 9mobile will get the expected lifeline in order to escape its current quagmire. Will there ever be respite for 9mobile so that it does not collapse under so much pressure? Sadly, if it does, the implications on the industry will be huge. For one, will other telecoms networks have the capacity to absorb the 15 million 9mobile subscribers who will suddenly find themselves without a network provider or is there a small window still open for renegotiation with Teleology Holdings? Only time will tell. BusinessDay reached out to Oluseyi Osunsedo, director, regulatory and corporate affairs, 9mobile, through a phone call and email, to find out negotiation terms between 9mobile and Teleology Holdings Limited. At the time of filing this report, however, there was no response from the company’s spokesperson.

Why US embassy drop box users now... Continued from page 2

and told to come with her valid US visa. “I have been crying every day with no one ready to tell me why my visa was revoked. I have never overstayed in the US and was there last year, without any incident,” she said. She is not alone. The number of Nigerians having such visas revoked by the US Embassy in Nigeria has risen sharply in the past months. Dozens of Nigerians with valid visas trying to obtain a new visa for a spouse, parents or a family member said the visa applications were denied, and their own visas revoked for no reason. Reacting to the development, a US State Department Official in Washington said, “The U.S. Mission to Nigeria has not cancelled the interview waiver process or drop-box”. “When we receive derogatory information that indicates potential visa ineligibility, we take immediate actions such as entering the information in U.S. government databases and revoking visas if appropriate.” With regard to revocations, the official from the Bureau of Consular Affairs told BusnessDay that Section 222(f) of the Immigration and Nationality Act (INA) prohibits the United States from discussing individual visa cases. “The Department has broad au-

thority, under Section 221(i) of the Immigration and Nationality Act, to revoke visas based on information that comes to light at any time indicating that a visa holder may be inadmissible to the United States or otherwise ineligible for a visa,” the official said. However, some immigration lawyers and security experts think the development is geared towards ensuring extra scrutiny for Nigerians considering the fact that there are cases of terrorism in the country, which the Nigerian government has not addressed. “With all the terror acts and threats, you don’t expect the US to open its doors to anybody. They are making sure visitors are not security threats to American citizens and the country at large when they visit,” said Ikile Adams, a lawyer and immigration expert. In a recent video released by Per Second News, Canadian Immigration officials said a large number of Nigerians who enter the US on tourism visas end up applying for asylum in Canada through its land border with the US. So, the double check, according to the lawyer, is in the right direction as countries have the right to decide who comes in and how to secure their territories.

“We reiterate the need to prioritise job creation beyond aggregate GDP growth as a measure of economic welfare and overall improvement in the economy. In terms of outlook, we believe a potential implementation of the N30,000 national minimum wage poses further risk to job growth in Nigeria, especially if structural issues are left unfixed,” analysts at Lagos-based United Capital Plc said in their December 20 note. NBSsaidthetotalnumberofpeople in employment (that is with jobs) increased from 68.4 million in Q3 2015 to 68.72 million in Q3 2016, to 69.09 million in Q3 2017, and 69.54 million in Q3 2018. The total number of people in full-timeemployment(atleast40hours a week) increased from 51.1 million in Q3 2017 to 51.3 million in Q3 2018. The total number of people in part-time employment (or underemployment) decreased from 13.20 million in Q3 2015 to 11.19 million in Q3 2016, but increased to 18.02 million in Q3 2017 and to 18.21 million in Q3 2018. The NBS report said the total number of people classified as unemployed, which means they did nothing at all or worked too few hours (under 20 hours a week) to be classified as employed, increased from 17.6 million in Q4 2017 to 20.9

million in Q3 2018. Of the 20.9 million persons classified as unemployed as at Q3 2018, 11.1 million did some form of work but for too few hours a week (under 20 hours) to be officially classified as employed, while 9.7 million did absolutely nothing, the NBS noted. Of the 9.7 million unemployed that did absolutely nothing as at Q3 2018, 90.1 percent of them or 8.77 million were reported to be unemployed and doing nothing because they were first-time job seekers and have never worked before. On the other hand, 9.9 million or 0.9 percent of the 9.7 million that were unemployed and doing nothing at all reported they were unemployed and did nothing at all because they were previously employed but lost their jobs at some point in the past, which is why they were unemployed. Of the 9.7 million that were unemployed and did nothing at all, 35 percent or 3.4 million have been unemployed and did nothing at all for less than a year, 17.2 percent or 1.6 million for a year, 15.7 percent or 1.5 million had been unemployed and did nothing for two years, and the remaining 32.1 percent or 3.1 million unemployed persons had been unemployed doing nothing for three years and above.

Thursday 07 February 2019

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BUSINESS DAY

CBN pledges support to revolutionise tomatoes production HOPE MOSES-ASHIKE

L-R: Benoit Claveranne, chief executive officer, AXA International and New Markets; Ngozi Ola-Israel, chief financial officer, AXA Mansard Insurance plc; Hassan El Shabrawishi, group chief innovative officer, AXA SA, and Kunle Ahmed, chief executive officer, AXA Mansard Insurance plc, during Benoit first visit to Nigeria, at the company’s head office in Lagos, yesterday

IGP orders posting, deployment of officers as Lagos, Oyo, Kwara, Anambra get new commissioners INNOCENT ODOH, Abuja

ollowing the decoration of newly promoted Assistant Inspectors General of Police and Commissioners of Police at the Force headquarters, Wednesday, the Inspector General of Police, IGP Mohammed Adamu, has ordered the posting and redeployment of the following senior police officers to zones, formations and command A statement issued on Wednesday by the Force Public Relations Officer, Frank Mba, said the officers include: AIG Wilson A. Inalegwu – AIG Zone 9, Umuahia; AIG Abdul Dahiru Danwawo - AIG Maritime; AIG Adeyemi O. Ogunjemilus – Directing Staff NIPPS, and AIG Maurice A. Yusuf – AIG Research and Planning. Others are; AIG Ibrahim Lamorde – AIG Force Intelligence Bureau; AIG Mur-

tala Mani– AIG Force CID; AIG Tijani Baba – AIG Zone 7, Abuja; AIG Dibal Yakadi– AIG Zone 5, Benin, and AIG Haruna Huzi Mshelia– AIG Zone 3, Yola. The police also deployed AIG Mohammed Mustapha – AIG Zone 10, Sokoto; AIG Musa A. Kimo - AIG Zone 6, Calabar; AIG Adeleye Olusola Oyebade - AIG Zone 11, Osogbo; AIG Basen Dapiya Gwana - AIG Zone 12, Bauchi and AIG Karma Hosea Hassan – AIG Staff College, Jos. Others include; AIG Folawiyo David, – AIG Training & Development; AIG Zana Ibrahim – Commandant POLAC, Kano; AIG Chris Ezike – AIG Zone 4, Makurdi; AIG Moses A. Jitiboh– AIG Investment, FHQ; CP Mu’azu Zubairu – CP Lagos State Command, and CP Ahmed Iliyasu – CP Ogun State Command. The police also deployed CP Mohammed Wakili – CP

Kano State Command; CP Austin Iwero Agbonlahor – CP Cross River Command; CP Damian Chukwu – CP Borno Command;CP Sumonu Abdulmalik – CP Yobe Command; CP Asuquo Amba – CP Ekiti Command ;CP Abiodun Ige – CP Osun Command; CP Ibrahim Sabo – CP Niger Command and CP Alkasim Sanusi – CP Taraba State. Others are: CP Garba M. Mukaddas – CP Adamawa Command;CP Omololu Bishi – CP Benue Command; CP Bola Longe – CP Nasarawa Command; CP Isaac Akinmoyede – CP Plateau Command; CP Aminu I. Saleh – CP Bayelsa Command; CP Adeleke Yinka – CP Delta Command and CP Bashir Makama – CP AkwaIbom Command. The Police also deployed CP Awosola Awotunde – CP Ebonyi Command; CP Belel Usman – CP Rivers Command; CP Bello Makwashi

– CP Gombe Command; CP Abdulrahman Ahmed – CP Kaduna Command; CP Bala Ciroma – CP FCT Command; CP Akeem Busari – CP Kogi Command; CP Galadinchi Dasuki – CP Imo Command; CP Suleiman Balarabe – CP Enugu Command; CP Dandaura Mustafa – CP Anambra Command and CP Etim Ene Okon – CP Abia Command. The list also include; CP Ibrahim Kaoje – CP Sokoto Command; CP Celestine Okoye – CP Zamfara Command; CP Garba Danjuma – CP Kebbi Command; CP Undie Andie – CP Ondo Command; CP Olukolu Sina – CP Oyo Command; CP Ali Janga – CP Bauchi Command; CP Rabiu Ladodo – CP Jigawa Command; CP Buba Sanusi – CP Katsina Command; Ag. CP Egbetokun Kayode – CP Kwara Command and Ag. CP Odumosu Akeem – CP Edo Command.

overnor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has assured farmers in the country of the regulator’s support that will revolutionise the tomatoes production through the Anchor Borrowers Programme (ABP). Impressed by the potentials for the production of fresh tomatoes and allied products and the commitment of the stakeholders in the value chain in Kano State alone, Emefiele expressed optimism that another revolution, similar to what was recorded in the production of rice, was about to occur in that produce. In its last meeting on November 21, 2018, the Monetary Policy Committee (MPC) recommended that the ABP be applied to other areas such as palm oil, tomatoes and fisheries, among others. The CBN governor, while speaking at a facility tour of Dangote Tomato Processing Factory and farms in Kadawa, Garun Malam Local Government Area of Kano State, noted that from what had seen in Kadawa, he could rightly state that Dangote Tomato Plant was the only real processing plant in Nigeria for now, unlike others that were merely importing tomato puree and concentrates and packaging same. He said the initial challenges encountered by the project had been overcome with the acquisition of the greenhouses for the production of high yield seedlings with the collaboration of the CBN. Emefiele therefore expressed delight that “with the initial daily production of a million tomato nurseries alone, more people would be encouraged to embrace farming thereby creating jobs for our people along the entire value chain

and reverse the exportation of jobs.” He also said that going by the brief he got from chairman of Dangote Farms, Sani Dangote, “when the factory become fully operational, the country would not only be self-sufficient in tomato production in the next one year but will also be able to export to other African countries in the next three years.” While assuring tomato farmers of all the necessary support with the formal take off Anchor Borrowers Programme for tomato production as a result of the off-taker arrangement with Dangote Factory, he used the opportunity to call on well-meaning individual to come out and support the efforts of the Bank to create jobs in Nigeria. On his part, minister of agriculture, Audu Ogbe, assured the farmers that with the firm commitment by CBN, he could only assure the farmers that “better days are here,” assuring the farmers of protective policies that might include inclusion of tomato in the import prohibition list. Nasir Yusuf Gauna, deputy governor of Kano State, in his remark at the facility tour, said the state had really keyed into large-scale agricultural production by partnering Dangote Farms by way of rendering all necessary assistance for the takeoff of the project. According to the deputy governor, the state government has also been subsidising farming activities in several ways.

UBA extends Africa footprint, commences full operations in Mali 2019 elections tremendous opportunity for Nigeria he pan-African fi- dent, referring to UBA Group’s UBA’s sustainability princinancial institution, chairman, Tony Elumelu, ples and philosophy. “UBA is to strengthen leadership in Africa - Sirleaf

United Bank for Africa (UBA) plc on Monday, commenced full banking operations in Mali, extending its footprint and fulfilling the aspiration of deepening banking penetration in Africa. The launch of UBA Mali brings to 20 the number of African countries, where the Group currently operates, with global operations in the US, UK and France. The launch of the bank’s latest addition in Mali was occasioned by his Excellency, the President of the Republic of Mali, Ibrahim Aboubacar Keita, who gave an unprecedented speech at the opening ceremony. ‘Tony promised it and he did it,’ said the Presi-

on his promise made several years ago to bring UBA to Mali. The Malian president praised UBA Group for the vision to expand the bank’s footprint to Mali. He commended the tenacity and commitment of UBA and its Group Chairman to the development of the continent, calling African financial institutions to follow the developmental philosophy of the bank and its chairman in growing infrastructure, deepening financial inclusion and being catalysts for eradicating poverty in Africa. In his response as he welcomed the dignitaries and all stakeholders present at the launch, Elumelu, asserted

Africa’s global bank, a leading pan-African brand, committed to democratising banking on the continent. We are progressive partners for African corporates, institutions and governments whilst also helping to fulfil the financial aspirations of individual customers. Our train has finally arrived in Mali. We are here for mutual progress; we are here for shared prosperity,” Elumelu noted. UBA group managing director, Kennedy Uzoka, expressed his enthusiasm on the Group’s operation in Mali, saying, “We are in Mali to offer world class financial services that will surpass the expectations of our customers.”

INNOCENT ODOH & JAMES KWEN

ead of the Economic Community of West African States (ECOWAS) Elections Observation team, for Nigeria’s 2019 general elections, Ellen Johnson Sirleaf, says the 2019 general election is a tremendous opportunity for Nigeria to continue to play pivotal leadership role in the democratic process in West Africa and the African continent in general. The former President of Liberia said this when she led the ECOWAS Election Observer team to the headquarters of the Independent

National Electoral Commission (INEC) on Wednesday in Abuja, even as she recounted the contributions of Nigeria to the restoration of peace and democratic governance to her country after years of conflicts. “Nigeria is very important to Liberia. Today, Liberia enjoys 15 consecutive years of peace to which Nigeria contributed an enormous amount of human and financial resources. That is why it is great pleasure for me to be part of this process, having gone through a political transition myself. “Having gone through these processes after years of destruction I am very

pleased that I will be a part of what we know will be a process of election that ensures that Nigeria continues to play the pivotal role of leadership in the continent,” she said. She said the purpose of her visit was to meet with the authorities, to meet with the chairman, police and other relevant institutions, party leaders as well as the ECOWAS initial observation mission team that has already done the initial assessment to ascertain the level of preparedness before she will come back with the full team next for the elections proper. Welcoming the delegation, the INEC chairman,

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Rising political risks weighing on businesses as election holds in 8 days MODESTUS ANAESORONYE

s Nigeria goes to the polls in eight days’ time to elect a new president, businesses and investors are getting weighed by a growing perception of rising political risks. Their fears are premised on alarms coming from all corners, particularly incendiary comments from leaders of political parties and their supporters showing desperation to win the elections at all costs. A top insurance executive who preferred not to be mentioned said the greatest risk facing business decisionmakers at this point in the country is political risk which borders on the country’s security, stability, policy consistency, political leaders’ stability, safety of assets, and free movement to conduct business.

Nigeria’s elections have often turned violent leading to disruptions in social and economic activities across the country. Ballot box snatching, manipulation of polls figures, and dispute over election results are some of the factors that lead to electoral violence in Africa’s most populous nation. In the run-up to this month’s elections, there have been allegations of new election-manipulation methods, including votebuying and exchange of voter cards for money. “As insurers, we are quite apprehensive of the largescale crystallisation of the risk of riot, civil commotion, arson and outright criminality that may involve loss of lives and property,” said the insurance source. The CEO noted that where election is not conducted under atmosphere of peace and security, criminals take advantage to commit economic sabotage ranging from killing,

maiming and looting of business concerns. He further said riots and political violence are usually covered mostly under material damage and occasionally as a standalone bundle of risk. Riot strike and civil commotion as a bundle of risks are also covered under auto insurance. Laurie Hammond from Hogan Lovells and Thibaut Hollanders from Liedekerke Africa, in an opinion statement, said the world, including investors, would keep a close eye on the various national elections to be held in Africa this year. “The lead-up and aftermath of national polls usually come with uncertainty, something which investors tend to avoid if possible,” said Hammond and Hollanders. They said national elections have recently been completed in the Democratic Republic of the Congo (DRC) while there are upcoming

elections in South Africa (May) and Nigeria (February 16). Other African nations heading for national elections include Senegal (February 24), Malawi (May), while citizens of Botswana, Mozambique and Namibia will head to the polls in October. “For investors who have been active in the mining sector in many of these countries, after the elections it will be a matter of assured continuity and stability, both from apolitical and legal perspectives, for them to keep investing,” said Hammond and Hollanders. In a number of African countries, the mining sector has been hampered by significant challenges and change and uncertainty have been prevalent, as seen in new regulatory requirements and policies in countries such as the DRC and South Africa. Commodity price volatility has added to these challenges.

L-R: Osarenren Igbinoba, personal care solutions business management Africa BASF; Dirk Mampe, vice president, business management personal care solutions Europe BASF, and Jean-Marc Ricca, managing director, BASF West Africa, at the commissioning event of the personal care application technology laboratory in Lagos, yesterday.

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World Bank’s SEEFOR project to boost Edo Innovation Hub offerings

fforts by Edo State governor, Godwin Obaseki, to create opportunities for young tech entrepreneurs in the state have attracted the support of the World Bank, with the bank committing to support training activities at the Edo Innovation Hub. Edo Innovation Hub is managed by the Edo State government through EdoJobs, an initiative of the state governor to create and curate jobs for youths in the state. Senior special assistant to the Governor on Skills Development and Jobs Creation and head, EdoJobs, Ukinebo Dare, said the support was fallout of the recent visit by officials of the World Bank to the Edo Innovation Hub, noting that the delegation was impressed with the impact of Governor Obaseki’s job creation initiatives. According to Dare, “We have received assurance from the World Bank to boost activities at the hub. Funds are being made available through the State Employment and Expenditure for Result (SEEFOR) project. With the World Bank’s support, Edo Innovation Hub is poised to improve its services to the people.” She noted that as a result of the bank’s support, “beginning from March, Edo Innovates co-working space will be open to entrepreneurs especially start-ups who will have access to over 100 computers with good and comfortable workspace. They will benefit from the conducive, collaborative, knowledge-driven/ result-focused environment. There will also be business incubation and acceleration services.” The support, she said, will enable the Hub to provide constant and stable power supply and high-speed internet service.

Suntory Nigeria appoints Anjan Patole as MD

untory Beverage and Food Nigeria Limited (SBFN) has appointed Anjan Patole as its new managing director. He replaced Gauthier Leveque, effective December 15, 2018. Anjan is joining SBFN from Sameer Agriculture and Livestock Limited, Nairobi, manufacturer of FMCG brands in dairy products, icecream and water. He joined Sameer Agriculture in 2014 as CEO, overseeing seven East African countries. He holds a degree in Business Administration (Economics) from Mumbai University. Anjan has over 30 years’ experience in business administration, operations, marketing and distribution management in Telecoms and FMCG industries. This period included his position as the chief operating officer in Tata Teleservices, UP, Mumbai, and director (Business Operations) for PepsiCo, India, responsible for Pepsi, 7Up, Mirinda, Slice, Tropicana and Aquafina. “My joining Suntory Beverage & Food Nigeria is a great opportunity to build on the impressive foundation laid by my predecessors, and to work with a committed Nigerian team. Suntory Group has seen the huge potential in Nigeria, and I am optimistic that we will continue grow Lucozade and Ribena brands and deliver value to our customers,” Anjan said.

Obaseki inspects revamped Abudu College, campaigns in Orhionmwon LGA

Fully automated made-in-Aba shoes to hit market Q1, 2019

do State governor, Godwin Obaseki, says the reconstruction of the College of Education in Abudu, which will serve as special training centre for teachers in the Edo Basic Education Sector Transformation (EDOBEST) programme, will open up new opportunities for development and capacity building in the state. The governor said this when he inspected the ongoing reconstruction work at the College during his visit to Orhionmwon Local Government Area, where he campaigned for candidates of the All Progressives Congress (APC). While addressing APC members and supporters in Abudu, headquarters of the LGA, he assured resi-

GODFREY OFURUM, Aba

dents that his administration would complete the BeninAbraka Road project within two years. He urged the residents to vote massively for APC candidates in the forthcoming elections to enable them join him in developing the state, adding, “Orhionmwon has 118,000 registered voters and the target for me is 75,000 votes from Orhionmwon, I will not let you down. My administration will complete the 106km Benin-Abraka Road, within the next two years. I know how important that road is to you and with the completion of the road, development is sure for Orhionmwon LGA.” He continued, “I need help from Abuja and support from the state, and a vote for APC will ensure we sustain the de-

velopment in the state as our representatives in Abuja and Edo will join hands with me to embark on the massive development of our dear state.” He promised not to disappoint residents of Orhionmwon, noting that he will continue to work to develop the local government area. APC candidates contesting to fill elective offices in the area, include Nosayaba Okunbor, Edo State House of Assembly (EDHA) candidate for Orhionmwon East Constituency; Hon. Roland Asoro, EDHA candidate for Orhionmwon South Constituency; Rt. Hon Patrick Aisowieren, House of Representatives candidate for Orhionmwon/ Uhunmwode Federal Constituency, and Patrick Obahiagbon, Edo South Senatorial District candidate.

he first fully automated made-in-Aba shoes will hit the market before the end of the first quarter of 2019, says Governor Okezie Ikpeazu of Abia State. Ikpeazu, who is seeking re-election to Abia Government House on the platform of the People’s Democratic Party (PDP), said this Thursday in Aba at the presentation of his manifesto to the Aba business community. Automated shoes are shoes produced with hi-tech machines from start to finish. He explained that the promotion of Aba-made goods is yielding fruits, as Nigerian Export and Import Bank (NEXIM) recently sponsored five shoemakers on exhibi-

tion to Cairo, Egypt. “If NEXIM can come to Nigeria and Aba to select shoemakers for exhibition in Cairo, it is a function of the marketing that we have done in Aba,” Ikpeazu said. To ensure constant power supply in Aba and environs, Ikpeazu explained that his administration has attracted an investment of $136 million to enable Geometric Power Limited, promoters of the independent power plant at Osisioma, Aba, to function. “Consequently, sooner than later, Geometric Power Limited will come on stream and Aba will have constant power supply,” Ikpeazu said. “Today, I will say that under my watch the military ordered 50,000 pairs of shoes from Ariaria shoe cluster. If one pair of shoes is N10,000,

that is N500 million in the hands of shoemakers in that cluster,” he said. Through marketing also, Ikpeazu explained that his administration was able to bring Vice President Yemi Osinbajo to Aba on three occasions to see artisans in Ariaria, stressing that Federal Government’s decision to build a dedicated power plant in Ariaria was to support locally-produced goods in that business corridor. “And after one of the visits, the vice president gave an executive order asking every person that is doing procurement in Nigeria to first make sure that they patronise made-in-Nigeria and what he meant by that is for them to patronise made-inAba goods,” he said.

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NEWS Nigeria may be an alternative market as Amazon struggles in India TEMITAYO AYETOTO

ith India taking no chances at slamming its foreign direct investment (FDI) policy hammer on the world’s largest e-commerce firm, Amazon, some who have long nursed the dream of the company making real entry into Africa’s largest economy have started amplifying their reasons. The arguments are that even though the challenges for both countries are similar, the retail giant appears undeterred in fixing those problems in the case of India. This is evident in Jeff Bezos, its chief executive officer’s aggressive-penetration approach, which last year saw $5 billion channelled to consolidate Amazon India’s infrastructure and growth, after already having 42 fulfilment centres, 150 delivery stations, and 25 sorting centres, according to Forbes citing of a Citi’s research. In its six-year entry into India, it grew its worth to $16

billion and controls 30 percent of the market but has not made profit, yet, keeps faith in the sector’s potential to hit $202 billion in few years. But now, India has embarked on the implementation of an e-commerce policy banning platforms like Amazon alongside competitor, Walmart, from holding exclusive sales and prevents them from selling products on platforms they count as investors, which applies to restrictions on discounts and cash-back promotions. With the regulation tightening, e-commerce companies must also ensure they are not sourcing over 25 percent of a seller’s gross sale through wholesale units like Amazon Wholesale. It means Amazon cannot simultaneously have equity participation in e-commerce marketplace firm or its group companies, and sell its products on the same platform. The issue has since prompted it to delist about 400,000 of its products overnight and is even lobbying for an extension from the Indian government, which insists it will neither extend the dead-

line nor reverse its policy. The government believes a better enforcement of the FDI policy on e-commerce policies will contribute significantly to the growth of the sector over medium and long term, C R Chaudhary, minister of State for Commerce and Industry, said. With these hiccups, many already think it is time Amazon thought of exploring the opportunities in Nigeria, which will likely not consider such policy restriction anytime soon. “Sure, we know why these companies do not want to enter Nigeria with the same zeal and energy but yet India has the same challenges as Nigeria except trust and the American firms are investing to fix those issues,” Ndubuisi Ekekwe, an analyst, says. “I call on Amazon and Walmart to open stores in Nigeria.” If it has operations in Nigeria, Amazon could really improve the delivery system, help build new airports that can facilitate the movement of services on a big logistic programme across the country and fix the postal system.

Investment pledges to Nigeria rose 37% to $90.9bn in 2018 DAVID IBIDAPO

… FCT, Rivers, Lagos emerge top beneficiaries

ledges by domestic and foreign investors to projects in Nigeria rose 37 percent last year, the Nigerian Investment Promotion Council (NIPC) notes. Proposed investments by the investors rose to $90.9 billion from $66.36 billion in the previous year, NIPC said in a report released Wednesday. A distribution of the recipient sectors of the investments shows that mining and quarrying gained more investor’s interest, accounting for 35 percent of the total value; manufacturing 24 percent; construction 20 percent; transportation and storage 15 percent, while other sectors accounted for 6 percent. According to the report, the fund was to be deployed into 92 projects across 23 states including the Federal Capital Territory (FCT).

A further breakdown shows that the FCT was the biggest beneficiary, with 21 percent of total value or $18.87 billion; Rivers got 18 percent of the proposals worth $16.50 billion; Lagos, Nigeria’s commercial capital, received 14 percent or $12.72 billion worth of investment proposals. The report showed that domestic investor’s pledge amongst 20 other countries accounted for 33 percent of the value, followed by investors from United Arab Emirates (UAE) at 20 percent. France had 18 percent, United Kingdom 10 percent, while 19 percent came from other countries. In contrast to proposed investments in 2017, Nigeria recorded the biggest investment announcement in the month of September 2018 worth $20.39 billion. How-

ever, cumulatively Q1 2018 recorded highest investment pledges of $29.55 billion. The year 2018 however attracted totally new investors as against investors, who pledged investments in Nigeria in 2017. Range developers topped the chart with investment pledge accounting for 20 percent of total value. Others include Total group (18 percent), Azikel Refinery (13 percent), Green Africa Airways (13 percent), and Royal Dutch Shell Plc (10 percent), respectively. NIPC said, “The report gives a sense of investors’ interest in the Nigerian economy.” The Commission explained however that it did not independently verify the authenticity of the investment announcements “but is working on tracking the announcements as they progress to actual investments.”

In-house engineers facilitate repairs of 150MVA transformer on Kumbotso substation - TCN HARRISON EDEH, Abuja

n a determined effort geared towards ensuring incremental power in Nigeria, the Transmission Company of Nigeria (TCN) has confirmed the repair and energising of a 150MVA 330/132kV power transformer that got burnt 5 years ago in Kumbotso Transmission Substation. The TCN revealed in

a statement issued on Thursday that the repairs and energising of the transformer were effected by the in-house engineers to save cost, improve efficiency, while consolidating the depth of in-house capacity. Ndidi Mbah, general manager, public affairs, TCN, affirmed in the statement, “This is the first time TCN in-house engineers

are successfully undertaking such repair work on a badly burnt 150MVA capacity power transformer and restoring it to service. It is also an indication of the growing capacity of its engineers under the present administration.” The Kumbotso Transmission Substation had four number 150MVA power transformers, TCN said.

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Apapa Customs handles 1.2MMT of export cargo worth N73.1bn in 2018 AMAKA ANAGOR-EWUZIE

L-R: Joshua Chibueze, co-founder/CEO, Piggybank; Ebun Okunbanjo, co-founder/CEO, Fitness Central; Linda Ochugbua, digital sales manager, BusinessDay Media, and Abdulrahman Jogbojogbo, product marketer, Paystack, at the Social Media Week panel discussion event hosted by Paystack in Lagos yesterday. Pic by David Apara.

Thai firm acquires Nigerian packaging business ENDURANCE OKAFOR

evpak (Nigeria) Limited, a packaging company that is one of the largest manufacturers of PET pre-forms in West Africa, has been bought by Indorama Ventures Public Company Limited (IVL). Through its indirect subsidiary, Indorama Netherlands B.V. (INBV), IVL signed a definitive Share Purchase Agreement on February 6, 2019, with Church Street Trustees Limited as trustees of the SI Trust, BTI Overseas Limited and Capital Alliance Private Equity II Limited, for the acquisition of 100 percent of the share capital of Bevpak (Nigeria) Limited, IVL published on its website Thursday. Meanwhile, the Ibadan-

based Bevpak has production capacity to manufacture PET pre-forms of 18,000Mts per annum, making it one of the largest manufacturers in the West African region. PET is a kind of polyester material for fibre, injection moulded parts, as well as blowmoulded bottles and jars. Announcing the acquisition to its shareholders on the Stock Exchange of Thailand, IVL stated that the value of the purchase, calculated in accordance with the regulations of the Capital Market Supervisory Board and the Stock Exchange of Thailand, as prescribed by the regulations of the Stock Exchange of Thailand “is less than 15 percent and the total size of all transactions in the past 6 months also does not exceed the 15 percent threshold limits as prescribed in the regulations.”

Also, the acquisition of Bevpak by Indorama Ventures is in line with the objective of the company considering it aims to strengthen its position as a market leader in the polyester value chain segment of intermediate petrochemicals in terms of scale, integration and differentiation as well as profitability and return on investment. Bevpak, which commenced production of PET pre-forms in Nigeria in 2008, has customers, which include bottlers of the world’s leading brands of soft drinks and mineral water and major bottlers throughout Nigeria. Other services it offers to its clients include; bottle design, market knowledge, new product development, technical assistance in the setting up and operation of PET blowing and filling

lines. Meanwhile, Indorama Ventures, founded by Indian businessman, Aloke Lohia, is not only one of the world’s leading producers in the intermediate petrochemicals industry but it is also a global manufacturer of wool yarns. The Bangkok-based IVL with consolidated revenue of $8.4 billion as at the end of 2017 started its operations in 1994 and has presence in 31 countries. The company has about 97 manufacturing facilities with professional employee capacity of 16,000, as gathered from the company’s website. As of the close of the Stock Exchange of Thailand Thursday, the share price of Indorama Ventures traded at a flat note as it stock price stood THB 48.25 per share, the same price it traded at the opening of the market.

igeria Customs Service (NCS), Apapa Area Command, said on Thursday that it handled 1.20 million metric tons of export cargo with Free On Board (FOB) value of $240 million, equivalent to N73.1 billion in 2018. Speaking with newsmen in Lagos on Thursday, Bashir Abubakar, Customs Area Controller (CAC), who disclosed this, said the command also generated N404 billion as revenue from import duties in 2018. He said the command, which recorded high compliance level among exporters, also blocked 2,500 containers for non-compliance to export procedures from going outside the country and was forced to comply with requisite guide-

lines. On revenue collection, Abubakar said the N404 billion generated in 2018, represents 95 percent of the command’s revenue target for 2018, which stands at N426 billion. He attributed the success of the revenue target to the selfless stance of officers and men of the command, and also to the support from the management of Customs. He listed the strategies adopted, which lead to the success to include seamless operation of the import and export business by his administration; 24-hour dispute resolution; one-spot examination for all units and agencies, and advanced system and monitoring as well as collaboration between internal and external units of the Nigeria Customs Service (NCS) with other government agencies.

Election: Red Card makes u-turn, adopts Atiku for resident, promises 20m votes OWEDE AGBAJILEKE, Abuja

year after declaring that it would midwife an alternative between the two dominant political parties in Nigeria - the All Progressives Congress (APC) and the People’s Democratic Party (PDP) the Red Card Movement has made a u-turn and endorsed PDP presidential candidate, Atiku Abubakar, for next week’s presidential election. This is as the political mobilisation group promised Atiku 20 million votes and disassociated itself from its founder and former Education Minister, Oby Ezekwesili. Co-chairman of the movement, Tony Akabuno, stated this at a press confer-

ence in Abuja on Thursday. Akabuno disclosed that after Ezekwesili resigned from the group in November 2018 to pursue her presidential ambition, feedback from its structures and members at the states, local councils, wards and polling units revealed that ‘only the main opposition PDP has the capacity to dislodge Buhari.’ “As the co-chair of RCM, I decided to align with our foot soldiers. Some coconveners also supported this position of focusing on reviewing the performance of the leadership in power, and not be distracted with historical performance of past regimes. “Some co-conveners were of the opinion that we should not get into any arrangement with PDP.”

Fine & Country, LBS partner to deliver world-class marketing module EFCC, ABCON take fight against money laundering to MM2

elling a typical real estate property is definitely not the same selling a luxury property. Just like in a science experiment, it takes a spark of energy to break the covalent bonds that hold H2 and O2 molecules together to create water. In luxury marketing, we can say Marketing is that energy that is Activation energy. This is according to Fine & Country and Lagos Business School (LBS), as they partner to deliver world-class marketing module to guide marketing professional in maximising their potentials in the sector. They say, “It is the spark that ‘combusts the experiment,’ the set of strategies that is used to distinct property and set it apart from others. It is not only in its exclusive offerings but in the way it is presented in its marketing.”

They state further that a key luxury marketing strategy is the inclusion of building elements of customisation into a marketing offer. Luxury brands like Phillipe Patek, for example, have pursued traditional Genevan watch-making artistry since 1839. According to the brand, luxury marketing is the communicating of unmatched commitment that goes into producing a luxury good or service; such as a hand-finished watch. Giving further examples, they say another strategy is Sensory branding and the creation of an emotional connection: Rolls Royce taps into the power of scent by impregnating its products with appropriate smells “The premium car brand captures the feeling of older models in every new car by

diffusing a blend of mahogany wood, leather and oil (this is what Fine & Country West Africa has in its exclusive residences, generous shrubbery of the distinctive Queen of the Night flowers that open up to give the sweet fragrance in the night and early mornings),” according to Fine & Country in a press release. The company says it will be highlighting these elements and other business transforming marketing techniques at the Real Estate marketing course co-designed by it and Pan Atlantic University (LBS). This course covers the essentials of an effective marketing initiative - from branding and strategy, to consumer behaviour, market research, segmentation and differing sales strategies for residential, commercial properties, retail, industrial or other segments.

HOPE MOSES-ASHIKE

conomic and Financial Crimes Commission (EFCC) and the Association of Bureaux De Change Operators of Nigeria (ABCON) have taken the campaign against money laundering and terrorism financing to Bureaux de Change (BDC) operators at the Murtala Muhammed Airport 2 (MM2), Lagos. Speaking during the sensitisation programme against money laundering and terrorism financing campaign at MM2, which was attended by many BDC operators, EFCC chairman, Ibrahim Magu, called for continuous sensitisation on issues around Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) reporting to im-

prove transparency in BDCs operations. He said the EFCC would continue to campaign for financial integrity and transparency in BDCs’ operations. Other stakeholders at the event also spoke on the use of BDCs for illicit political transactions, illegal border cash evacuation, reporting of suspicious transactions, fraud accounts transactions and cash dollar deposits on domiciliary accounts. Independent sources alleged that the choice of MM2 was because the centre remains a major spot for illegal funds transfer and border cash evacuation in the country. Speaking at the event, ABCON president, Aminu Gwadabe, said the BDC sector was part of the financial system and was seen as the

weakest link in the financial system. He appealed to the regulators to approve the group’s request for the establishment of the institute’s Training Centre and building capacity of over 4,500 BDC operators for better understanding of the menace of money laundering and terrorism financing. Gwadabe said the antimoney laundering sensitisation programme was intended to familiarise BDC operators with the process of money laundering – the criminal business used to disguise the true origin and ownership of illegal cash – and the laws that make it a crime. He said the programme was also meant to help BDCs maintain minimum standard of record keeping and increasing level of investors’ confidence for the economy.

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Ahead of elections, Nigerians demand better economy ENDURANCE OKAFOR

ew days to the general election, Nigerians have demonstrated in a twitter poll by BusinessDay that a better economy is top priority of the issues the next president will have to fix. Among the seven categories that attracted a total of 6,228 votes, 34.22 percent or 2,131 voters opted for the economy, and this is higher than those that voted for Gender Equality (762 votes), Education (718), Anti-corruption (704), Security and Healthcare (656 votes each) and Infrastructural (601). Responding to the poll, Ayo Teriba, CEO of Economic Associates, said, “It makes sense.” Meanwhile, an economy encompasses all activity related to production, consumption and trade of goods and

services in a country, and this applies to everyone from individuals to entities such as corporations and governments. According to Paul Uzuma, managing director of Halo Nigeria Capital Limited, the economy touches everyone, including “the rich, the middle class and the poor.” Income is one of the most significant factors in measuring economic performance, and Gross Domestic Product (GDP) on the other hand is the most commonly used measure of a country’s economic activity. “When we say economy, we are concerned with what is happening to employment,” Uzuma said. The BusinessDay survey reveals that the new minimum wage, recently increased by 50 percent, an increase after about 10 years since the last uptick to N18,000 in 2010, does

not increase real income value of the state’s citizens due to the persistent devaluation of the naira. But it however increases debt levels of states, significantly assuming debt as a major source of financing new wages. Meanwhile, the purchasing power of most Nigerians has been on the decline, restrained by a 23 percent unemployment rate. Figures by the National Bureau of Statistics (NBS) show that 20.9 million Nigerians as of Q3 2018 were unemployed, an uptick in unemployment rate to 23.1 percent from the previous rate of 18.8 percent released in the third quarter of 2017. “The two leading candidates have about a week to make the case that they are better able to create jobs. It is the one issue most Nigerians care about,” Rafiq Raji, the chief economist at Macroaf-

ricaintel, told BusinessDay. Responding to unemployment in the country, Uzuma cited the over 3 million Nigerians that lost their jobs in 2018, “considering the multiplier effect, and assuming each of these 3 million people support 4 dependants like children or aged parents, it means 15 million people have lost their livelihood.” Meanwhile, Nigeria’s GDP year-on-year growth rate stood at 1.81 percent in Q3 2018 as against its 1.50 percent reported for the previous quarter. Quarter growth was fuelled by the non-oil sector growth and contribution at 90.62 percent and 98.62 percent, respectively. The GDP growth reported for the third quarter of 2018 represents the six consecutive fragile growth reported for Africa’s largest economy since it exited a five-quarter contraction in Q2 2017.

L-R: Yetunde Oyeneyin of Novastis Limited; Tunji Akintade, chairman, AGPMPN Lagos chapter; Olapeju Adenusi, general manager, Lagos State Health Management Agency, and Jide Idris, commissioner for health, Lagos State, at the Lagos Chamber of Commerce and Industry stakerholder’s engagement on Lagos State Health Insurance Scheme in Lagos, yesterday. Pic by Olawale Amoo.

AFEX identifies poor investment in rural tech infrastructure as bane to agric funding TEMITAYO AYETOTO

olving the biggest challenge facing agriculture in Nigeria - lack of access to funding - may not yield practical results without the commitment of necessary investment in core technological infrastructure within remote communities where majority of agricultural activities take place, Akinyinka Akintunde, business development manager at AFEX Commodities Exchange Limited, says. The concentration of most telecommunication infrastructure in urban centres is a challenge he says has continued to affect the penetration of banking solutions developed to ease

farmers’ access to credit facilities and flexible payment systems. Already, there is a $200 billion gap in smallholder finance globally, and 15 percent of them are in subSaharan Africa, according to data from The Human Account. Agriculture in Nigeria attracts only 1.7 percent of the total lending by banks, despite contributing 42 percent of GDP. Of the 40 million adults, who are financially excluded, 76 percent are rural dwellers engaged in agricultural activities. “70 percent of agency banking solutions is in commercial centres because they speak to people who are already tech-savvy with new and improved technology that they can ride on to make their lives easier with

transactions, but are not in these rural communities,” Akintunde says, addressing “Payment Systems: the Rural Experience” at the Exchange’s Code Cash Crop session during the Social Media Week. “When you go to where farmers cultivate their lands the most, you will discover there is absolutely little or no telecommunication facility there. We need financial products but these products cannot be made available if they don’t have a core infrastructure around them.” Although investments to promote agriculture are often dreaded by financing institutions, the AFEX manager believes avoiding it also locks up opportunity to grow the agricultural sector above 23.23 percent point.

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Friday 08 February 2019

In new campaign, govt rallies citizens’ support against ISIS-backed insurgency … says war now highly sophisticated ONYINYE NWACHUKWU & ANTHONY AILEMEN

he Federal Government of Nigeria on Thursday launched a new strategic public enlightenment campaign aimed at encouraging citizens’ support for the ongoing war against the ISIS-backed Boko Haram insurgents in the Northeast of the country. The new campaign in support of the military became necessary particularly as the country is now faced with a more deadly war against a new faction of Boko Haram, which has aligned with the global terror group ISIS, to form, the Islamic State’s West African Province ISWAP. “What we are fighting today, is not the home-grown Boko Haram that started in 2009,” Minister of Information and Culture, Lai Mohammed, said while flagging off the campaign Abuja. “ISWAP now has more men and better funding, which brings more challenges to what Nigeria is facing. “With ISIS largely dislodged from Iraq and Syria, there is undoubtedly a flush of fresh fighters and weapons to ISWAP. Therefore, our military is fighting a global insurgency, without the kind of global coalition, including the United States that battled ISIS in Syria and Iraq,” he said. The new campaign tagged “National Campaign in Support of The Military,” “is a follow-up to the hugely-successful National Campaign Against Insecurity which was launched on Feb. 16, 2016, with the punch line: ‘’If you see something, say something.’’ The minister disclosed that the Federal Government was launching the campaign “believing that the men and women in uniform who are

risking all, including making the supreme sacrifice, to keep us safe deserve the support and prayers of all Nigerians, not vilification, insults and other acts that are capable of dampening their morale. “In other words, ISIS now has a strong foothold in West Africa – with Nigeria in the forefront of the battle against them.” He raised the concerns that those who neither understand the fresh threat facing the nation, nor appreciate the sacrifice of the troops, have now made it their past time to wage a campaign of disinformation against the military, especially in the social media. He noted that doctored videos and pictures purporting to show massive military casualties are wilfully circulated online, and noted that “Such unpatriotic acts are discouraging and demoralizing our troops, and must stop forthwith.” He said that it was for this reason that the government launched the new campaign now, “as our gallant men and women in uniform clear the remnants of the homegrown insurgency called Boko Haram, they are confronting a fresh crisis, a global insurgency.” Mohammed warned against spreading of false information, observing that those who engage in this act of disinformation do not represent the majority of Nigerians who appreciate the patriotism and the sacrifice of our gallant troops. Government also launched the campaign to mobilise “Nigerians, irrespective of their political, religious or ethnic leanings, to show support for our military,”’ the minister said.

Election: EU observation mission to review security over El Rufai’s threats JAMES KWEN, Abuja

he European Union Election Observation Mission (EU EOM) to Nigeria says it will constantly review the security mechanisms for the safety of the 2019 general elections observers. EO EOM said this on the backdrop of Governor Nasir el Rufai warning against alleged foreign intervention in the Justice Walter Onnoghen matter as expressed by the US, EU, and the UK during an interview on NTA Tuesday Live. El Rufai threatened, “Those that are calling for anyone to come and intervene in Nigeria, we are waiting for the person that would come and intervene, they would go back in body bags. We are trying to run

our country as decently as possible.” Sarah Fradgley, EU EOM spokesperson in a statement in Abuja, noted, “While the security of EU observers is of paramount importance, and will remain under constant review, EU observers will continue their work across the country in the run-up to - and beyond – the 16 February elections. “We are aware of the comments by the Governor of Kaduna about non-interference by foreigners during a talk show on the elections Tuesday, February 5. “The EU only deploys an election observation mission when it is invited to do so by the authorities of a country. The EU has been invited to observe all of the general elections in Nigeria

since 1999. Thus, this is the sixth time the EU is observing elections in Nigeria. “The Independent National Electoral Commission invited the EU to deploy an observation mission for the 2019 general elections. EU election observation missions give commentary and analysis, and make recommendations about the electoral process. EU election observation missions are impartial, do not interfere in the electoral process, and operate according to a strict code of conduct. “The mission looks at all aspects of the election, including the campaign tone, the transparency of the election administration, the neutrality of security forces, and the independence of the judiciary.”

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Donald Trump pins hopes on strong US economy ahead of 2020 poll President paints picture of unparalleled strength in State of the Union speech but risks lurk Sam Fleming and Brooke Fox

s Donald Trump basked in the glow of America’s seemingly gravity-defying economic expansion at his State of the Union address, he will have been well aware of how critical its longevity will be to his fortunes in the 2020 presidential race. Key economic indicators in the US remain strong — most notably business hiring — and the Federal Reserve has pivoted in a markedly dovish direction to avoid short-circuiting the expansion. But threats are nevertheless beginning to simmer beneath the surface: the eurozone is decelerating sharply, as is global trade, gauges of Chinese business activity are softening, and US confidence has been hit by Mr Trump’s tariffs and the federal shutdown. “Whether or not you have a recession in 2020 is the biggest determinant of President Trump’s re-election odds,” said Marc Sumerlin, a former official in George W Bush’s White House who is now managing partner at Evenflow Macro. “The current economic data is looking positive, but there are forward-looking indicators that are looking weaker — housing permits for example, together with signs that banks are tightening credit modestly. The biggest concern is there are no new catalysts for growth next year.” In his speech, Mr Trump claimed the economy is thriving “like never before” in a speech that was peppered with exaggeration — this is not an unprecedented economic boom, for example. But a labour market where job vacancies outnumber the ranks of the unemployment is unambiguously a very tight one, and wage growth has shown signs of picking up — even if at 3.2 per cent it is running

below pre-recession highs. Postwar expansions in the US have ranged from a mere 12 months in the 1980-81 recovery, to 10 years in the boom of the 1990s. The current one dates back to long before Mr Trump took office — having started in June 2009. Assuming the expansion lasts until the summer, it will become the longest on record in the US. The recovery’s longevity has itself raised some concerns that its days must soon be numbered, but this notion is dismissed by economists. An analysis of past business cycles from Glenn Rudebusch of the San Francisco Fed in 2016 found that an 80-month-old expansion effectively had the same chance of ending as a 40-month one. “Expansions, like Peter Pan, endure but never seem to grow old,” he found. Australia is now in its 27th year of recession-free expansion. So if old age does not kill the US expansion, what will? Ethan Harris, a global economist at Bank of America Merrill Lynch, said past culprits included exploding asset price bubbles, damaging surges in the oil price and an overzealous central bank that tightens policy too much. Right now none of these factors looked set to derail US growth, he added. Excesses in the financial markets are notoriously hard to spot, much less prevent, but particular concerns have been swirling around leveraged lending, where standards have deteriorated. Nevertheless, the Fed insists it is sanguine: Jay Powell, the Fed chairman, said in a November speech that he considered the financial system to be in overall “good health” after his officials put out their first financial stability report. Oil prices are, meanwhile, by no means at menacing levels. And the danger that the Fed inadvertently crushes the expansion has receded

Twitter sees jump in revenues after increase in advertising Shares fall as investors fret at 20pc rise in operating expenses Aliya Ram

witter shares fell 7 per cent in pre-market trading on Thursday after the company said it would have to spend more to improve “health, conversation, revenue product and sales, and platform” this year. The company beat Wall Street’s expectations to report a jump in revenues after a series of changes designed to attract advertising dollars from Google and Facebook paid off for the smaller social network. But investors balked at guidance that operating expenses would increase 20 per cent in 2019 as the company is forced to splash out after controversies over misinformation, online abuse, hate speech and freedom of speech. Twitter on Thursday reported revenues that rose 26 per cent to $909m in the fourth quarter, excluding currency effects. The results followed upbeat performances from Snap and Facebook in the run-up to Christmas, which largely shrugged off last

year’s controversies to report better than expected user and advertising figures. Jack Dorsey, founder and chief executive, said users had embraced changes to the platform: “We enter this year confident that we will continue to deliver strong performance by focusing on making Twitter a healthier and more conversational service.” Social networks have faced an exceptionally difficult year in which a catalogue of scandals have forced the companies the platforms to take more responsibility for content amid fears of the impact on advertising revenues. For Twitter, the controversies have not yet had an impact on ad sales, which comprise the bulk of its revenues. Advertising sales grew 25 per cent to $791m in the three months to December 31. Twitter’s $255m in net income in the fourth quarter also beat Wall Street’s expectations and brought to a close the company’s first fullyear of profitability. However it continued to struggle with user numbers, reporting its third consecutive quarterly drop in monthly active users to 321m.

Donald Trump, US president, delivers the State of the Union address. Mr Trump claimed the economy is thriving ‘like never before’ in a speech that was peppered with exaggeration © Reuters

after Mr Powell took interest-rate increases off the agenda in a meeting last week and signalled his willingness to adjust the Fed’s balance sheet reduction programme if markets or the economy falter. As such, some analysts struggle to see any clear warning signs pointing to a US downturn. “I don’t think at this stage we are seeing any signs of a recession on the horizon,” said Gregory Daco of Oxford Economics. Not all economists are quite so sanguine. In particular, leading indicators for the global economy’s outlook have been drooping, leaving the US looking like an increasingly lonely engine for world growth. The US is a relatively closed economy, and past expansions have withstood the effects of overseas setbacks — notably the euro

crisis that started 10 years ago and the Asian financial crisis in the late 1990s — but that does not mean those developments are irrelevant. More than a third of S&P 500 companies’ earnings come from overseas; ebbing growth in those markets will damage confidence among executives, as well as curbing export growth. So could the rising uncertainty about global supply chains as Mr Trump pursues his battles over trade with China and other major markets. Further damaging corporate sentiment is the prospect for continued dysfunction and policy errors in Washington itself. The record-long partial federal government shutdown imposed only a temporary dent to growth, but battles loom over the need to raise the ceiling on the US’s national debt, and prevent tough public spending

restrictions from clamping down on the economy in the coming fiscal year. Indeed, the biggest risks to the US expansion are homegrown. The propellant from the $1.5tn in tax cuts is set to ebb in the coming years, for example, prompting growth to decelerate from 3.1 per cent in 2018 to 2.3 per cent this year and 1.7 per cent in 2020, according to the Congressional Budget Office. Sectors of the economy that are sensitive to higher borrowing costs are showing signs of weakness, Robert Kaplan, Dallas Fed president, pointed out in a note this week: as of November, new single-family home building permits were down 4.3 per cent from their February 2018 peak. Financial conditions have also tightened, with an increase in high-yield bond spreads late last year, although some of that has since reversed.

BB&T and SunTrust to combine in $66bn US bank deal Tie-up to create America’s sixth-largest lender by assets

James Fontanella-Khan, Eric Platt, Rob Armstrong and Laura Noonan

unTrust Banks and BB&T have agreed to combine in a $66bn all-stock transaction, in the first big US bank merger since the financial crisis. The agreement between the two large regional banks will create a new national player with $442bn in assets and $324bn in deposits, that will be able to rival US majors such as PNC, US Bancorp and Capital One. Its $301bn loan book will be about a third of the size of America’s biggest lenders JPMorgan Chase and Wells Fargo. A combined SunTrust-BB&T would also leapfrog the equity value of international banks such as France’s BNP Paribas and Japan’s Mizuho and will be worth more than Barclays and Deutsche Bank combined. The deal is a pivotal point for the banking industry, which has been hesitant to strike mega transactions for fear of being blocked or punished by regulators led by the Federal Reserve. If successful, the merger could be

the first of a wave of several deals in an industry that remains fragmented. The number of commercial banks insured by the Federal Deposit Insurance Corporation has been in decline for decades — falling more than 40 per cent since 2000 to just 4,774 institutions but most mergers happened among small banks. Recent mergers between regional banks — most notably Fifth Third’s $5bn bid for MB Financial in May — have been greeted with scepticism by investors concerned about mergers completed at the peak of the economic and credit cycles. Regional bank stocks have experienced wild swings in value in recent months on fears of a cyclical downturn, with the KBW regional banking index falling 20 per cent in December only to regain ground this month. SunTrust stockholders will receive 1.295 shares of BB&T for each SunTrust share they own. Existing BB&T shareholders will own approximately 57 per cent of the combined company, with SunTrust stockholders holding the remaining 43 per cent of the group. As part of the agreement SunTrust shareholders will also receive a 5 per cent increase in their dividend once the deal is closed.

“This is a true merger of equals, combining the best of both companies to create the premier financial institution of the future,” said Kelly King, BB&T chairman and chief executive, who will retain his current title after the companies combine. Mr King will hand over his title as group chief executive to current SunTrust chief William Rogers in 2021. No name has been revealed, with the combination temporarily branding itself as thepremierfinancialinstitution.com. The combination is expected to generate an estimated $1.6bn in net cost savings by 2022, the companies said. They also said the merger was expected to generate an internal rate of return of approximately 18 per cent. The banks expect to complete the deal in the fourth quarter of 2019, once they obtain necessary regulatory approvals. BB&T shares rose 2 per cent in pre-market trading in New York, while SunTrust climbed more than 7 per cent. RBC Capital Markets and Wachtell, Lipton, Rosen & Katz advised BB&T, while Goldman Sachs, SunTrust Robinson Humphrey and Sullivan & Cromwell advised SunTrust.

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FT European Commission cuts Italy growth forecast to five-year low

Bank of England retreats from plans for rate rises

Brussels risks new fight with Rome by blaming fiscal polices for increasing uncertainty

Economic forecasts are downgraded to weakest level in a decade over Brexit uncertainty

Mehreen Khan

Chris Giles

russels has slashed Italy’s growth forecasts to the lowest level in five years, blaming Rome’s populist government for fiscal policies that have increased market “uncertainty” and borrowing costs. The European Commission on Thursday cut its annual GDP forecast for Italy in 2019 to 0.2 per cent from a previous projection of 1.2 per cent — marking the weakest annual output since 2014. Italy has already fallen into a technical recession as the economy registered two consecutive quarters of negative growth at the end of last year. Brussels’ forecasts for Italy, which are part of a wider slowdown for the eurozone, suggest Rome is unlikely to meet an estimated budget deficit of 2.04 per cent this year as growth falters. The commission’s economists blamed the slowdown on a recent bout of weak domestic demand and a decline in investment “as uncertainty related to the government’s policy stance and rising financing costs took its toll”. Italy’s bond yields took a sharp upward turn after the cut to its growth forecast — just a day after the country had its most successful bond sale. The yield on 10-year Italian debt has climbed 12 basis points since Wednesday’s close to 2.954 per cent — its highest since early January. Its spread over the equivalent German Bund, a widely watched indicator of eurozone political stress, hit 280bp, a two-month high. Italy’s borrowing costs spiked during a three-month stand-off with Brussels last year over draft spending plans that would have inflated the deficit to 2.4 per cent in 2019. Brussels’ broader eurozone forecasts were also cut because of weakening global trade, fears of a China slowdown and uncertainty around Brexit. Growth forecasts for this year were revised from 1.9 per cent to 1.3 per cent. Brussels expects eurozone growth of 1.6 per cent in 2020. Valdis Dombrovskis, vice-president of the commissioner in charge of the euro, said the outlook was sparking worries about the links between eurozone sovereign borrowers and banks — a so-called “doom loop” that aggravated the region’s financial crisis earlier this decade. “Concerns about the sovereignbank loop and debt sustainability are resurfacing in some euro area countries,” Mr Dombrovskis said. Brussels has long had a more pessimistic outlook on the Italian economy than the government. Its 0.2 per cent GDP projection is also lower than a 0.6 per cent forecast from Italy’s central bank. The commission expects Italian growth will pick up to 0.8 per cent in 2020. “A worse than expected cyclical slowdown in 2018, amplified by global and domestic policy uncertainty and firms’ substantially less favourable investment outlook, largely explain this downward revision,” said the forecast. Germany, the eurozone’s largest economy, is also in the throes of a slowdown driven by weak consumer demand and an uncertain global trade outlook. Brussels cut its German GDP forecast this year to 1.1 per cent from 1.8 per cent.

Friday 08 February 2019

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The blunders that derailed European train merger Brussels decided Siemens-Alstom deal was not needed to take on China Rochelle Toplensky, Patrick McGee and David Keohane

he head of French rail group Alstom was left ruing the corporate mis-steps that ended on Wednesday when Brussels finally killed off a planned merger with the train division of Germany’s Siemens. “If I have one regret it is using that phrase ‘European champion’,” said Henri Poupart-Lafarge, Alstom chief executive, of the proposed deal that was vetoed by Brussels’ competition enforcers. “I didn’t know it would create such a negative reaction with the [European] commission . . . It made them think there was just one player rather than it being about consolidating a scattered industry.” Rarely has a proposed deal been backed by such political heft from both France and Germany, failed in its bid for EU merger clearance so spectacularly, or ignited a debate with such wideranging consequences for how Europe polices its economy in an age of Chinese economic expansion.

When Joe Kaeser, Siemens chief executive, announced plans to merge the German group’s train division with French-rival Alstom in September 2017, he employed the fatal phrase as he cast the deal as part of the wider European project. It would create “a new European champion in the rail industry for the long-term” with the power to challenge China’s CRRC, the world’s largest trainmaker, he said. Even though it would put Alstom, maker of the emblematic TGV, under German control, it was lauded in Paris, a symbol of recently elected President Emmanuel Macron’s new industrial policy. Vestager says deal could have won approval Yet Margrethe Vestager, EU competition commissioner, finally scuppered that ambition after dismissing the view that a tie-up was needed for Europe to compete with state-backed rivals from China. Europe had a “thriving” rail industry, she noted, with several champions, “chief among them Siemens and Alstom”. Ms Vestager was at pains to stress

that the deal could have won approval if the companies had been willing to offer “appropriate remedies” to address her concerns. She told colleagues that Siemens and Alstom were given the option of asset sales in their high-speed train and signalling businesses to secure her approval, but that these suggestions were turned down. The Danish commissioner took the view that asset sales were required after concluding Chinese competitors were unlikely to sell trains in Europe anytime soon, given high barriers for new entrants. France and Germany latched on to the commission’s decision to veto the merger to demand a broad rethink of the EU’s competition regime, to make it fit for purpose in an age when Europe fears its industrial capacity is being either raided or muscled out by China. Bruno Le Maire, French finance minister, called the veto a “political mistake”, arguing that the commission should defend “the economic interests of Europe” and that blocking the deal served “China’s economic and industrial interests” instead.

Staffing at antitrust regulator declines under Donald Trump Phone directories show number of justice department officials scrutinising mergers has fallen Kadhim Shubber

taffing in the antitrust division of the US Department of Justice has fallen since Donald Trump took office despite a boom in big corporate mergers, according to phone directories for the division. The directories showed a 13 per cent drop across the division since February 2017, shortly after Mr Trump’s inauguration, with more severe attrition in units responsible for civil and criminal enforcement of competition laws. Across the six units that review mergers, the directories showed 18 per cent fewer trial attorneys, paralegals, and other support staff. In two Washington-based units that investigate criminal price-fixing conspiracies, the decline was 27 per cent. David Cicilline, Democratic chair of the House antitrust subcommittee, called the staffing decline “alarming” and said the subcommittee would look into it. “We need to both modernise our existing antitrust laws and make sure that they’re working in the current economy, and also ensure that antitrust agencies have the resources and personnel to do their work effectively,” he said in a statement. The figures highlighted how the enforcement capabilities of some

parts of the US government have eroded under Mr Trump, who has restricted hiring as part of an effort to reduce costs among federal agencies. The division appeared to have shrunk even as Democrats, and some Republicans, have raised concerns about corporate power and questioned whether competition authorities should do more to restrain big companies. The phone directories may not precisely reflect staffing in the division, as employees may have left or joined without the directory being immediately updated. However, the decline in phone directory listings corresponded with comments from several former attorneys in the division and antitrust lawyers who regularly represent clients before the justice department. One said staffing in parts of the division appeared “markedly lower” than when Mr Trump took office, while another said staff numbers in certain units seemed “down substantially”. A senior justice department official said the antitrust division had “not shrunk at all, I don’t think”. Later, a department spokesperson said: “We question whether your numbers are accurate because they include both attorneys and certain support staff.” The justice department declined to provide its own figures for the number

of attorneys and other staff employed in the antitrust division currently and at the beginning of the Trump administration. Just days after Mr Trump was inaugurated in January 2017, he issued a hiring freeze across the executive branch, including the Department of Justice. Though the freeze was officially lifted in April 2017, the justice department has continued to operate under constraints. “We have a number of new hires coming in the next several months,” said the justice department spokesperson. Some are from the department’s honours programme for law school graduates, according to the spokesperson, while in other cases the division has been “granted exceptions to the hiring freeze”. Since September 2017, the justice department’s antitrust chief has been Makan Delrahim, a former intellectual property lawyer and lobbyist who previously served in the antitrust division in the early 2000s. He has been best known for his controversial attempt to block AT&T’s $80bn takeover of Time Warner, which owned CNN, the target of frequent criticism by Mr Trump. Mr Delrahim has denied any political motive in his decision. In June, a judge in Washington allowed the deal to go ahead and an appeal is pending.

he Bank of England has retreated from plans for multiple interest rate rises as it downgraded its economic outlook amid mounting Brexit uncertainty and slowing global growth. In one of the largest near-term forecast revisions since the 2016 EU referendum, the central bank cut its forecast for UK growth to 1.2 per cent in 2019, the weakest level since the recession of 2009. As recently as November, the bank had expected 1.7 per cent growth this year. The statement sent sterling sinking to its low of the day. In early afternoon trade it was down 0.5 per cent against the US dollar at $1.2871 after initially falling as low as $1.2854. Losses against the euro were slimmer, at 0.1 per cent. In sending a dovish signal on monetary policy, the BoE has joined central banks from the US, India, Australia and Canada in stepping back from plans for tighter monetary policy and highlighting concerns about the economic outlook. The BoE’s central forecast is for the UK to avoid a recession, but with only 0.2 per cent growth forecast for each of the first two quarters of the year. It forecast a one in four chance that the UK’s annual growth rate will have dipped below zero by the summer, even assuming a “smooth” Brexit process with a transition towards a reasonably favourable trade agreement with the EU. In the face of the significantly weaker outlook, the Monetary Policy Committee indicated it was much less likely than before to raise interest rates as it voted unanimously to hold the benchmark rate at 0.75 per cent in the February meeting. The committee’s forecasts showed little concern about rising inflation even if it kept rates on hold for the next three years. They illustrated that policymakers thought there was only a 56 per cent probability that inflation would exceed the BoE’s 2 per cent target after two years if it left rates unchanged. The forecasts suggest the MPC believes that at most a one quarter point interest rate rise is required over the next three years to keep inflation under control, but despite the significant changes to its forecast, the MPC stuck to its traditional language, saying it would be appropriate for interest rates to rise at a “gradual pace and to a limited extent”. Officials blamed “softer activity abroad and the greater effects from Brexit uncertainties at home” for the forecast downgrades and the more dovish attitude to interest rates. Even with the government’s stimulus package from the October Budget for the National Health Service, the outlook is darkening, the BoE said, because companies were holding back on investment and there were signs that the caution was spreading to households.

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Universal basic income in India is a tantalisingly close prospect Biometric ID cards and the squeeze on the rural poor are propelling the idea forward Arvind Subramanian

flurry of announcements, most recently by India’s opposition Congress party, holds out the tantalising prospect that something like a universal basic income — direct cash transfers to households, guaranteeing a minimum standard of living — may soon become a reality. The government’s Economic Survey of 2017-18 (which my team and I co-authored) advocated UBI as a policy idea and politicians across the spectrum have taken up the debate with renewed vigour. Several developments have conspired to rehabilitate it as a serious policy option. The core idea of providing a basic minimum income was raised by India’s first prime minister, Jawaharlal Nehru, in 1938 even before Indian independence in 1947. But, historically, the success of government anti-poverty programmes in India has been mixed. Although there has been improvement in some areas, implementation has been afflicted by corruption, leakage and the exclusion of many of the deserving poor. For example, the major employment guarantee scheme in 2011-12 did not reach 40-65 per cent of the poorest. Providing universal income is an appealing alternative because it obviates the need for identifying and targeting the correct beneficiaries. The advent of biometric identification, which now covers nearly all Indians, financial inclusion and mobile penetration has created the scope for directly transferring cash to household bank accounts. There is still some way to go because biometric identification remains contentious and financial inclusion suffers from the last-mile problem: beneficiaries are still

physically distant from banks or ATMs. But India is catching up. The translation of ideas into actionable policy requires opportunity, which agrarian distress has created. For two years, prices received by farmers for most non-cereal crops have declined sharply, denting incomes and livelihoods. Politicians across India have felt compelled to act, not least since the ruling Bharatiya Janata party suffered setbacks in three state elections in December last year. The losses were widely attributed to the government not having addressed farmers’ concerns. The first step taken by the southern state of Telangana was to start providing cash transfers to land-owing farmers. The state of Odisha in eastern India followed by extending this scheme to agricultural labourers and tenants. Last week, the Congress party announced that providing a minimum income guarantee for the poor would be a key part of its manifesto for the parliamentary elections in May. The central government budget presented this week proposed a cash transfer of RS6,000 per year for all small and marginal farmers up to a landowning limit of two hectares. None of these schemes amounts strictly to a UBI because they all aim to target a fraction of the population (with the exception of the small north-eastern state of Sikkim, which has promised a fullfledged UBI). Moreover, many are just announcements with implementation yet to be elaborated. Pronouncements have to contend with tight government budget constraints; neither the central nor state governments have much fiscal capacity to implement anything close to a true UBI, which could cost up to 5 per cent of gross domestic product every year.

European government bonds rally on gloomier outlook EU commission cuts forecast for eurozone growth, keeping equities under pressure Hudson Lockett Overview uropean government bonds rallied and equities weakened after the European Commission cut its economic growth forecasts for the eurozone. The eurozone economy will expand just 1.3 per cent this year, the commission forecast, down from a projection of 1.9 per cent in November. Its projection for 2020 has come down from 1.7 per cent to 1.6 per cent. The gloomier prediction is a recognition of the deterioration in the eurozone in recent months. It was enough to inject fresh momentum into the rally for eurozone government bonds, with the yield on the benchmark 10-year German bond falling 4 basis points to 0.12 per cent. Yields on most other eurozone government bonds fell, too. Yields move in the opposite direction to a bond’s price. Within equities, German and

Italian stocks were both down about 1.5 per cent. US futures suggest Wall Street will open lower. Hot topic UK government bonds also joined in the sovereign debt rally, with the yield on the benchmark 10year gilt falling 5 basis points to 1.17 per cent. The move was given extra impetus after the Bank of England became the latest central bank to grow less optimistic on the outlook. The economy will expand just 1.2 per cent this year, the BoE forecast, the slowest rate of expansion since 2009. Sterling, which has been in the crosshairs of Brexit since the 2016 referendum, weakened 0.3 per cent to just below the $1.29 mark. Italy, meanwhile, was one country that missed out on the sovereign debt rally. The yield on the benchmark 10-year Italian bond jumped 7 basis points to 2.92 per cent, as a much weaker economic outlook was seen as complicating the Italian government’s ambitions to introduce fiscal stimulus.

Under one proposal, 75 per cent of rural households would receive direct cash transfers to top up their incomes by about 40 per cent for the poorest © EPA

Amazon products return to Indian website after restructuring Foreign companies begin to comply with new ecommerce law Stephanie Findlay

ma z o n ’s p ro d u c t s a re returning to its Indian website after the company scrambled to restructure its companies to comply with new ecommerce regulations that took effect last week. Numerous items listed by the key Amazon seller Cloudtail, from tool boxes to televisions, were available for the first time on Thursday since the new rules came into effect on February 1, disrupting the operations of Amazon and Walmart-owned Flipkart, the two biggest players in India’s growing ecommerce sector. Amazon cut its stake in Prione Business Services, Cloudtail’s parent company, to 24 per cent on Wednesday, meeting regulations preventing ecommerce companies from having significant ownership of the sellers using their platform. Catamaran Ventures, the family office of NR Narayana Murthy, one of the founders of Indian

tech company Infosys, raised its stake in Prione Business Services to 76 per cent. “Catamaran has effected the required changes to be 100 per cent compliant,” said Abishek Laxminarayan, chief executive officer at Catamaran Advisors, in a statement. “We regret the inconvenience caused to our suppliers and customers due to the stoppage of the operations of Cloudtail India.” The move is the latest in a series of creative solutions adopted by the US companies to conform to India’s increasingly complex ecommerce rules, which Morgan Stanley recently warned could even force companies out. “It is still too early to say how the ecommerce landscape in India may change. But, as Amazon did in China, it may make sense to potentially walk away if Walmart can’t see a long-term path for profits,” said Morgan Stanley analysts in a note earlier this week. In the final months before the

polls, the rules are designed to appease India’s powerful traders, an influential voting bloc being courted by the Prime Minister Narendra Modi. Vivek Paliwal, CEO of ecommerce service 99 Yrs, said the rules have “created a stir” in the retail sector. Indian brands have lost faith in the US tech giants after they couldn’t sell items for almost a week. “How this gets regulated and how government reacts on it is a question mark. There is confusion,” said Mr Paliwal, “not everyone will come back with confidence.” Analysts predict the government will continue putting pressure on Amazon and Flipkart until India’s fiercely fought elections have been decided later this year. “It’s a very sensitive topic, they are taking a lot of market share,” said Abneesh Roy, research analyst at Edelweiss Securities, about Amazon and Flipkart. “I don’t expect a lot of reprieve from the government. After elections, we will see.”

Vatebra makes LSE list as ‘company to inspire Africa’

eading Pan-African technology solutions provider Vatebra Limited has been listed as one of the ‘Companies to Inspire Africa in 2019’ by the London Stock Exchange (LSE). To qualify for this prestigious listing, Vatebra met the stringent requirements of the London Stock Exchange Group, including the strength of its business idea and management team, excellent rate of growth, sustainable business model and scalability of business. CEO of the London Stock Exchange Group, David Schwimmer, said the report “identifies Africa’s most inspirational and dynamic private, high-growth companies to a global market.” He added that the companies listed in the report are crucial to the future of the African economy and capable of driving transformative economic growth in their home countries and beyond. “We feel very honoured to be

recognized by the prestigious London Stock Exchange Group,” said Vatebra Managing Director Kunle Akinniran. “Vatebra is behind some of the tech successes in Africa such as the development of customised solutions, mobile applications, identity solutions/ biometrics, e-payment solutions, IGR solutions and other worldclass solutions cutting across the private and public sectors.” This listing complements other accomplishments of Vatebra Limited, which emerged ‘Technology Company of the Year’ for 2016, 2017 and 2018 organized by the Nigerian Technology Awards (NITA). Vatebra has also received other awards and recognitions from different bodies in Africa which Akinniran said provides the motivation to “keep pushing forward, knowing that we are adding value and making an impact in Africa.” Going forward, Vatebra is continuing its expansion drive

across Africa, including Uganda, Rwanda, Tanzania and Ethiopia. The company’s Deputy Managing Director Mike Aigbe said: “Vatebra is also setting up a Technology Hub across various locations in Nigeria to further promote technological advancement in the country as well as support budding techpreneurs to become global businesses. The Hub will provide trainings, business incubation and mentorship, and financing opportunities to start-ups, small and medium-scale technology driven businesses. This will further strengthen our position as the technology powerhouse in Africa.” Vatebra was established in 2003 as Fleet Technologies and re-branded to Vatebra Limited in 2016, repositioning as the Tech backbone of Africa. The company has businesses across Africa with offices in Lagos, Abuja, Accra, Freetown and Nairobi.

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ANALYSIS Goldman Sachs bond-trading cuts go against the grain Other big US banks bet that post-crisis decline in fixed income is coming to an end Laura Noonan

G Roger McNamee on how to tame Big Tech

One-time Zuckerberg confidant on the perils of the internet of things and how to police it

Roger McNamee

he next generation of technology devices, the so-called internet of things (IoT), is upon us. The value proposition is enticing. Soon, every appliance in your home will respond to your voice. Your car will do the same. They will extend the reach of internet services and deliver forms of convenience that were unimaginable only a few years ago. But take a moment to consider the less obvious dimensions of the IoT. The operating system is almost always made by Google. The voice control almost always comes from Amazon or Google. In order to work, IoT products have to listen to everything around them. If we buy enough of these devices, the IoT will be listening to every aspect of our lives, from the kitchen to the car to the bedroom. The devices will offer some convenience, but the data they collect will be used for things other than delivering the services we paid for. To understand how the IoT is likely to develop, we need only look at the evolution of the current generation of data surveillance products. I spent nearly 34 years as a professional tech investor and tech optimist before observing, in 2016, bad actors exploiting Facebook’s architecture and business model to harm innocent people. First, I saw misogynistic memes about Hillary Clinton being distributed by ostensibly pro-Bernie Sanders Facebook groups that appeared to be inauthentic. Then I read about a company that used Facebook’s advertising tools to gather data on people who expressed an interest in Black Lives Matter and sold the data to police departments. Next, I saw the results of the Brexit referendum. For the first time, I realised that Facebook’s algorithms might favour incendiary messages over neutral ones. In October 2016, I contacted my friends Mark Zuckerberg and Sheryl Sandberg, two people I had advised early in Facebook’s life, to warn them — but they politely informed me that what I had seen were isolated events that the company had addressed. After the 2016 US presidential election, I spent three months begging Facebook to recognise the threat to its brand if the problems I observed proved to be the result of flaws in the architecture or business model. I argued that failing to take responsibility might jeopardise the trust on which the business depended. When Facebook refused to take responsibility, I worked with a small group to look into the issues and raise awareness

of them. Thanks to a series of reports over the past year about failures to protect personal data, an increasing number of the humans-formerlyknown-as-users are now aware of risks. Policymakers have responded to concern with initiatives such as the European Union’s General Data Protection Regulation (GDPR), the passage of a GDPR-like law in the state of California, and a proposed internet bill of rights in the US House of Representatives. This is progress and should be applauded. Government intervention of this kind is a first step on the path to resolving the privacy issues that result from the architecture, business models and culture of internet platforms. But privacy is not the only problem we must confront. Internet platforms are transforming our economy and culture in unprecedented ways. We do not even have a vocabulary to describe this transformation, which complicates the challenge facing policymakers. Where marketers in the past gathered data to match products to customers, Google, Facebook and other internet platforms use data to influence or manipulate users in ways that create economic value for the platform, but not necessarily for the users themselves. In the context of these platforms, users are not the customer. They are not even the product. They are more like fuel. As the Harvard professor Shoshana Zuboff notes in her new book The Age of Surveillance Capitalism, humans have in the past experienced industrial innovations so profound that they changed everything, creating a “before” and an “after”. The almost simultaneous commercialisation of electricity and of automobiles at the start of the 20th century is an example. The leaders of those industries were wise to ensure that the largest number of people would benefit from their innovations. Henry Ford understood that enabling his factory workers to become customers, to enjoy the benefits of what they produced, was essential. Google and Facebook have shown no such wisdom. They view the people who use their platforms as nothing more than a metric. Google, Facebook and the rest now have economic power on the scale of early 20th-century monopolists such as Standard Oil. What is unprecedented is the political power that internet platforms have amassed — power that they exercise with no accountability or oversight, and seemingly without being aware of their responsibility to society. Not taking responsibility has

been central to the culture of Silicon Valley since just after turn of the millennium, when thought leadership passed from traditional venture capitalists to the “PayPal Mafia”, visionary alumni of the payments start-up led by Peter Thiel, Elon Musk and Reid Hoffman. The PayPal Mafia were among the first to recognise the shift from a web of pages to a web of people, and their investments and insights propelled the social network generation to success. They paired a strategy of “hyperscaling” with the libertarian notion that start-ups were not responsible for the consequences of any disruption they caused. When capitalism functions properly, government sets and enforces the rules under which businesses and citizens must operate. Today, however, corporations have usurped this role. Code and algorithms have replaced the legal system as the limiter on behaviour. Corporations such as Google and Facebook behave as if they are not accountable to anyone. Google’s seeming disdain for regulation by the EU and Facebook’s violations of the spirit of its agreement with the US Federal Trade Commission over user consent are cases in point. People often tell me they don’t worry about privacy because their information is already “out there” and, besides, they have “done nothing wrong”. Those statements are demonstrably true for most of us but irrelevant to the discussion at hand. Google and Facebook hoover up mountains of data in the service of business models that produce unacceptable costs to society. They undermine public health, democracy, innovation and the economy. If you are a member of the Rohingya minority in Myanmar, the misuse of internet platforms for hate speech has dramatically altered your life — or, in the case of thousands, ended it. Internet platforms did not set out to harm the Rohingya or to enable interference in the politics of the EU or US. Those outcomes were unintended consequences. Two new platforms threaten to make these problems much worse: the IoT and artificial intelligence. For the consumer, the former offers convenience in the form of voice control and access to online services in new settings. For the vendor, it vastly increases the range and depth of surveillance. Amazon’s Alexa voice-control interface has taken an early lead, but Google Home and other technologies are likely play a role. Google’s Android operating system is the foundation of nearly all IoT systems.

oldman Sachs is the only big US bank planning major changes to its bond-trading division this year, as fixed-income bosses in other corners of Wall Street bet that a tough fourth quarter was an anomaly and that the postcrisis decline in their businesses is coming to an end. After a worse-than-peers 23 per cent fall in fixed-income revenues over the past three years, Goldman has been upfront about its plans to “reallocate” capital from some fixed-income activities to less capital-intensive pursuits, such as the investment banking division where David Solomon, its new chief executive, spent most of his career. The exercise, which is likely to involve cost cuts and withdrawals from some activities, is part of a wider review by Mr Solomon, whose October succession marked

business,” said Paco Ybarra, head of Citi’s Global Markets business. The argument from the JPMorgan and Citi executives — echoed by senior trading executives at Morgan Stanley and Bank of America — is that the fourth-quarter decline stemmed from an unusual combination of market forces in December. Specifically, the mounting turbulence in financial markets led interest rate expectations to oscillate wildly. Markets swung from pricing in two Federal Reserve rate hikes in 2019 to betting on a rate cut. The average yield of US corporate bonds climbed to an eight-year high of 4.37 per cent, and riskier high-yield bonds suffered their worst monthly drop in five years. Those conditions rendered it harder for banks to make money in their credit businesses, which facilitate clients’ trading in debt, and in their rates businesses.

a historic changing of the guard at the bank after the 12-year reign of Lloyd Blankfein, who was a product of Goldman’s fixed income, currencies and commodities side. “We’re looking at all of our businesses, including fixed income, with a clear eye, [and] we’re going to size FICC based on the opportunity set,” James Esposito, Goldman’s co-head of securities, told the Financial Times, adding that the bank had been “re-allocating capital to other, higher-returning businesses over the past five years”. Analysts expect more dramatic changes and say these are overdue, since Goldman continued to nurture big businesses in areas such as commodities even after postcrisis regulation prompted other banks to tweak their operations. Morgan Stanley, for example, reshaped its FICC business and cut 25 per cent of headcount in 2015. Mr Solomon is in a strong position to push for action after a fourth quarter when rival JPMorgan hit its lowest fixed-income revenue in history, Citigroup’s fixed-income revenue fell to a seven-year low and Morgan Stanley posted a worst-in-class 30 per cent fall in fixed-income revenues year on year. Still, despite the grim industry backdrop, Mr Solomon will be an outlier among his peers when he wields the axe. Asked if trading in the fourth quarter, or in 2018 overall, would prompt banks like his to rethink their fixed income business, JPMorgan corporate and investment bank boss Daniel Pinto replied: “No”. “This a cyclical business and you have to have some ability to withstand the downturn in parts of the

“Volumes were actually OK. In some cases they were up. It was more about our ability to monetise that client value while managing risks associated with the volatility,” said Troy Rohrbaugh, JPMorgan’s markets head, describing how assets could fall in value in the short time between banks’ taking them from one client and selling them to another one. The timing of the market moves was also problematic. Big swings can inspire opportunistic investors to take a punt on recovery, cushioning the impact of the swings — just not in December, when hedge funds and banks take extra care to manage their positions so their year-end accounts look good. Mr Esposito said Goldman’s fourth-quarter performance was “completely correlated to our client franchise”. “We’re not shying away from supporting our clients’ risk intermediation needs,” he said. “We’re in the risk management business.” The bank bosses all see the fourth-quarter woes as separate from the structural decline that has followed the financial crisis. Fixed-income revenues across the big five banks fell 15 per cent from 2013, thanks to regulation banning proprietary trading and making some other activities prohibitively expensive. JPMorgan’s Mr Rohrbaugh said regulation had been “roughly the same for the last several years” and that he did not expect material changes. Morgan Stanley’s fixedincome boss, Sam Kellie-Smith, believes industry revenues are “pretty close” to the low point, though he does not think “the wallet is going to race away”.

Friday 08 February 2019

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BUSINESS DAY

Live @ The Exchanges Top Gainers/Losers as at Thursday 07 February 2019 GAINERS Company

LOSERS Opening

Closing

NESTLE

N1460

N1470

ONOIL

GUARANTY

N34.7

N38

3.3

NEM

N27

N29.7

2.7

DANGCEM

N188

N190

ZENITHBANK

N22.8

N24.45

Market Statistics as at Thursday 07 February 2019

Change

Company

Opening

Closing

Change

N23.25

N23

-0.25

N2.45

N2.3

-0.15

LEARNAFRCA

N1.5

N1.4

-0.1

TRANSEXPR

N0.69

N0.63

-0.06

1.65

FIDELITYBK

N2.4

N2.35

-0.05

ASI (Points)

31,433.49

DEALS (Numbers)

4,047.00

VOLUME (Numbers)

436,748,814.00

VALUE (N billion)

5.880

MARKET CAP (N Trn

11.722

Large Cap stocks push NSE to new highs …year-to-date returns turn positive Stories by Iheanyi Nwachukwu

i g e r i a s t o c k market reached a new high on Thursday February 7, 2019 as more investors decided to buy largely capitalised stocks like Nestle Nigeria Plc, GTBank Plc, Forte Oil Plc, Dangote Cement Plc, and that of Zenith Bank Plc. The year-to-date (ytd) returns turned positive at +0.01percent. At the sound of closing gong 25 stocks gained against 12 losers. The Nigerian Stock Exchange (NSE) All Share Index (ASI) appre-

ciated by 1.98percent to close at 31,433.49points from a low of 30, 821.80 points recorded the pre-

ceding trading day. The value of listed equities increased to N11.722trillion.

In 4,047 deals stock dealers exchanged 436,748,814 units valued at N5.880billion.

FG, Stockbrokers discuss double digit growth for Nigeria’s economy

n a decisive move to assist the Federal Government in charting the right path for accelerated economic growth and development, the capital market community has concluded arrangements to rob minds with the Nigeria’s Vice President, Yemi Osinbajo on Sunday, February 10 at Civic Center, Victoria Island, Lagos. Powered by the Chartered Institute of Stockbrokers (CIS), the top level parley which is strictly by invitation, has the theme: “Strategies To Achieve Double Digit Growth For Nige-

ria: The Capital Market Option’. The Institute has always provided fora for critical analysis of issues that can bring about market growth which is currently under pressure as foreign portfolio investors and their Nigeria’s counterparts are dumping shares as uncertainty of the impending general election is causing panic. The fear is further heightened by unguarded statements of many politicians. The forum shall provide a veritable platform for some of the best minds in the financial market to dissect the current challenges fac-

ing the economy and propose concrete areas where government at all tiers can leverage investment opportunities in the capital market to mobilize medium and long term funds to finance the embattled economy. The event is believed to be part of the outcome of a recent retreat by the Institute’s Governing Council on the way forward for Nigeria’s economy and the capital market. The Council has consistently asserted that Stockbrokers should be involved in all spheres of economic issues as they play pivotal role in the fi-

nancial market. Over the years, market operators under the aegis of the Institute and Association of Stockbroking Houses of Nigeria (ASHON) had always issued communique on the relevance of the capital market to economic development after their annual conferences without response from the government. Similarly, Stockbrokers have always lamented non participation of top government functionaries at their functions. The Sunday forum is part of the strategic move to address these imbalances

IOSCO practices aim to create robust framework for commodities’ storage, delivery

he International Organisation of Securities Commissions (IOSCO) on Thursday February 7 published a report that sets out good or sound practices to assist relevant storage infrastructures and their oversight bodies to iden-

tify and address issues that could influence the pricing of commodity derivatives which in turn affects market integrity and efficiency. In its final report, Commodity Storage and Delivery Infrastructures: Good or Sound Practices, IOSCO identifies

a number of issues that may apply to storage infrastructures and sets forth a range of possible actions to mitigate them. The practices are intended to benefit the activities of market participants regarding: physical commodities,

which are the tangible or cash market goods which underlie derivative contracts that are subject to financial regulation; and commodity derivatives, which are financial instruments whose price is derived from the underlying physical or cash market commodities.

United Bank for Africa Plc, Zenith Bank Plc, Access Bank Plc, FBN Holdings Plc and GTBank Plc were actively traded stocks on the Nigerian Stock Exchange on Thursday. Nestle Nigeria Plc recorded the highest gain after its share price increased from N1,460 to N1,470, adding N10 or 0.68percent; followed by GTBank Plc which advanced from N34.7 to N38, adding N3.3 or 9.51percent. Forte Oil Plc share price gained N2.7 or 10percent, from N27 to N29.7; Dangote Cement Plc gained N2 or 1.06percent, from N188 to N190. Zenith Bank Plc stock price advanced from

N22.8 to N24.45, adding N1.65 or 7.24percent. Meanwhile, on the laggards list, Conoil Plc recorded the highest decline after its share price dropped from N23.25 to N23, losing 25kobo or 1.08percent, followed by NEM Insurance Plc which lost 15kobo or 6.12percent, from N2.45 to N2.3. Learn Africa Plc share price declined by 10kobo or 6.67percent, from N1.5 to N1.4; followed by Transnational Express Plc which saw a dip of 6kobo or 8.70percent, from 69kobo to 63kobo, while the share price of Fidelity Bank Plc decreased by 5kobo or 2.08percent, from N2.4 to N2.35.

United Capital Daily insight

Fixed Income outlook: Are the risks systemic or idiosyncratic?

he big question that predicates our outlook for the fixed income market this year is; “could the risks currently priced in by the market derail an otherwise positive Nigerian economic environment (leading to increased upward pressure on yields) or are the concerns mere idiosyncratic issues at work?”. Hence, because these risks have been largely priced in by the market, our expectations on how they transcend from here on would be pivotal in guiding yield direction for the remainder of 2019. In terms of global risks, the two biggest themes that affected market confidence in 2018 were the double

whammy of normalizing Fed policy and a stronger US dollar. However, the Fed’s recent dovish messaging should help check dollar strength and guide a repricing, as the market adjusts for a “pause” on rate hikes. In terms of domestic risks, the biggest one on the horizon relates to upcoming elections. Hence, while this risk does not have the capacity to derail Nigeria’s economic recovery, it may predicate short-lived spikes in bond yields if the election results are inconclusive or if other election-related agitations materialize. Nonetheless, we see this as a short-term risk that may not pressure yields beyond the election cycle.

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Friday 08 February 2019

Prices for Securities Traded as of Thursday 07 February 2019 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 182,246.22 6.30 1.61 187 44,434,662 UNITED BANK FOR AFRICA PLC 251,365.75 7.35 2.08 400 136,502,447 767,644.27 24.45 7.24 501 63,434,591 ZENITH BANK PLC 1,088 244,371,700 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 267,419.93 7.45 -0.67 374 31,486,101 374 31,486,101 1,462 275,857,801 BUILDING MATERIALS DANGOTE CEMENT PLC 3,237,696.41 190.00 1.06 173 3,100,795 107,984.18 12.45 2.47 43 682,720 LAFARGE AFRICA PLC. 216 3,783,515 216 3,783,515 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 311,875.62 530.00 - 16 4,393 16 4,393 16 4,393 1,694 279,645,709 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,900.00 95.00 - 0 0 11,300.89 45.20 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) UPDC REAL ESTATE INVESTMENT TRUST 15,876.20 5.95 - 0 0 0 0 0 0 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 0 0 0 0 0 0 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 78,220.62 82.00 - 4 640 OKOMU OIL PALM PLC. PRESCO PLC 60,000.00 60.00 - 2 805 6 1,445 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,500.00 0.50 - 18 365,198 18 365,198 24 366,643 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 714.77 0.27 - 2 20,886 JOHN HOLT PLC. 186.79 0.48 - 0 0 1,903.99 2.93 - 0 0 S C O A NIG. PLC. TRANSNATIONAL CORPORATION OF NIGERIA PLC 52,029.43 1.28 -1.54 181 24,313,164 25,643.54 8.90 - 21 469,325 U A C N PLC. 204 24,803,375 204 24,803,375 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 34,320.00 26.00 - 11 76,535 165.00 6.60 - 0 0 ROADS NIG PLC. 11 76,535 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 4,677.11 1.80 - 5 49,699 5 49,699 16 126,234 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 12,683.78 1.62 - 3 22,785 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 142,374.88 65.00 - 21 36,028 INTERNATIONAL BREWERIES PLC. 257,875.86 30.00 - 7 8,150 NIGERIAN BREW. PLC. 623,758.36 78.00 - 33 125,815 64 192,778 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 31,750.00 6.35 0.79 77 1,727,804 DANGOTE SUGAR REFINERY PLC 173,400.00 14.45 6.25 41 658,765 FLOUR MILLS NIG. PLC. 77,907.21 19.00 - 54 545,084 HONEYWELL FLOUR MILL PLC 9,516.24 1.20 0.84 35 3,818,554 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 703.89 3.95 - 2 10,100 NASCON ALLIED INDUSTRIES PLC 47,292.48 17.85 -0.28 20 459,977 UNION DICON SALT PLC. 3,676.41 13.45 - 0 0 229 7,220,284 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 18,782.02 10.00 - 11 26,032 NESTLE NIGERIA PLC. 1,165,204.69 1,470.00 0.68 17 89,337 28 115,369 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 4,992.95 4.79 - 15 94,332 15 94,332 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 44,866.39 11.30 - 32 186,852 UNILEVER NIGERIA PLC. 212,565.20 37.00 -3.92 46 12,943,710 78 13,130,562 414 20,753,325 BANKING DIAMOND BANK PLC 53,732.10 2.32 0.43 66 5,561,879 ECOBANK TRANSNATIONAL INCORPORATED 256,893.72 14.00 - 32 261,544 FIDELITY BANK PLC 68,090.77 2.35 -2.08 155 22,799,909 GUARANTY TRUST BANK PLC. 1,118,384.81 38.00 9.51 452 31,448,789 JAIZ BANK PLC 15,616.05 0.53 6.00 29 3,135,164 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 71,976.05 2.50 5.93 119 3,791,451 UNION BANK NIG.PLC. 182,004.70 6.25 - 25 141,842 UNITY BANK PLC 10,520.40 0.90 9.76 9 2,459,003 WEMA BANK PLC. 27,002.13 0.70 1.45 26 1,151,999 913 70,751,580 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 5,197.65 0.75 7.14 30 2,696,245 AXAMANSARD INSURANCE PLC 21,315.00 2.03 3.57 8 335,941 CONSOLIDATED HALLMARK INSURANCE PLC 2,357.70 0.29 - 7 436,000 CONTINENTAL REINSURANCE PLC 19,811.94 1.91 - 0 0 CORNERSTONE INSURANCE PLC 3,093.20 0.21 - 1 45,000 GOLDLINK INSURANCE PLC 2,411.47 0.53 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 -4.76 2 200,100 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,197.03 0.30 - 4 21,205 LAW UNION AND ROCK INS. PLC. 2,191.13 0.51 - 2 17,100 LINKAGE ASSURANCE PLC 5,120.00 0.64 - 0 0 MUTUAL BENEFITS ASSURANCE PLC. 1,840.00 0.23 4.55 4 163,200 NEM INSURANCE PLC 12,145.16 2.30 -6.12 14 1,064,676 NIGER INSURANCE PLC 1,702.69 0.22 - 5 92,798 PRESTIGE ASSURANCE PLC 2,798.93 0.52 - 2 1,400 REGENCY ASSURANCE PLC 1,667.19 0.25 4.17 28 2,047,309 SOVEREIGN TRUST INSURANCE PLC 1,668.16 0.20 -4.76 9 1,338,233 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 5.00 10 1,126,022 516.46 0.20 - 0 0 UNIC DIVERSIFIED HOLDINGS PLC. UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 1 29,000 VERITAS KAPITAL ASSURANCE PLC 2,912.00 0.21 - 4 4,000 WAPIC INSURANCE PLC 5,353.10 0.40 -2.50 26 507,936 157 10,126,165

MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 3,269.89 1.43 - 3 78,952 3 78,952 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,116.00 0.98 - 2 15 7,370.87 0.50 - 0 0 ASO SAVINGS AND LOANS PLC INFINITY TRUST MORTGAGE BANK PLC 5,922.05 1.42 - 0 0 2,265.95 0.20 - 0 0 RESORT SAVINGS & LOANS PLC UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 2 15 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,340.00 4.17 - 31 271,587 36,467.56 6.20 - 9 7,177 CUSTODIAN INVESTMENT PLC 660.00 0.44 - 0 0 DEAP CAPITAL MANAGEMENT & TRUST PLC FCMB GROUP PLC. 43,367.94 2.19 4.29 106 10,890,301 1,337.80 0.26 -7.14 8 2,536,104 ROYAL EXCHANGE PLC. STANBIC IBTC HOLDINGS PLC 480,281.93 46.90 0.21 57 6,288,781 19,560.00 3.26 -1.21 63 1,398,069 UNITED CAPITAL PLC 274 21,392,019 1,349 102,348,731 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 959.35 0.27 7.41 11 2,059,120 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 11 2,059,120 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 544.04 0.55 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 7,050.00 4.70 - 2 1,005 14,350.52 12.00 - 8 10,249 GLAXO SMITHKLINE CONSUMER NIG. PLC. MAY & BAKER NIGERIA PLC. 4,037.05 2.34 - 13 158,725 1,253.44 0.66 - 9 27,835 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 PHARMA-DEKO PLC. 325.23 1.50 - 0 0 32 197,814 43 2,256,934 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 0 0 0 0 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 NCR (NIGERIA) PLC. 648.00 6.00 - 0 0 381.11 0.77 - 0 0 TRIPPLE GEE AND COMPANY PLC. 0 0 PROCESSING SYSTEMS CHAMS PLC 939.21 0.20 - 0 0 E-TRANZACT INTERNATIONAL PLC 13,650.00 3.25 - 0 0 0 0 0 0 BUILDING MATERIALS BERGER PAINTS PLC 2,144.69 7.40 - 8 56,330 22,225.00 31.75 - 6 30,418 CAP PLC CEMENT CO. OF NORTH.NIG. PLC 295,071.60 22.45 2.05 18 231,417 FIRST ALUMINIUM NIGERIA PLC 654.21 0.31 - 2 12,500 286.87 0.54 - 0 0 MEYER PLC. PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,999.41 2.52 - 0 0 PREMIER PAINTS PLC. 1,279.20 10.40 - 0 0 34 330,665 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 3,346.51 1.90 -2.56 14 209,300 14 209,300 PACKAGING/CONTAINERS BETA GLASS PLC. 32,998.15 66.00 - 0 0 GREIF NIGERIA PLC 388.02 9.10 - 3 560 3 560 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 51 540,525 CHEMICALS B.O.C. GASES PLC. 1,577.57 3.79 - 3 2,415 3 2,415 METALS ALUMINIUM EXTRUSION IND. PLC. 1,803.64 8.20 - 1 250 1 250 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 50.60 0.23 - 0 0 0 0 4 2,665 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 5.00 12 1,062,432 12 1,062,432 INTEGRATED OIL AND GAS SERVICES OANDO PLC 62,157.06 5.00 1.01 51 752,963 51 752,963 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 64,907.15 180.00 - 2 7,000 15,960.90 23.00 -1.08 21 142,765 CONOIL PLC ETERNA PLC. 5,933.86 4.55 5.81 17 256,300 FORTE OIL PLC. 38,683.69 29.70 10.00 50 312,307 MRS OIL NIGERIA PLC. 7,055.81 23.15 - 6 16,100 TOTAL NIGERIA PLC. 75,000.37 220.90 - 15 6,497 111 740,969 174 2,556,364 ADVERTISING AFROMEDIA PLC 2,219.52 0.50 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 18,038.70 1.85 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 411.72 0.35 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 3,242.23 5.50 - 4 4,825 TRANS-NATIONWIDE EXPRESS PLC. 295.37 0.63 -8.70 5 731,250 9 736,075 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,801.22 3.10 - 1 145 IKEJA HOTEL PLC 3,430.01 1.65 - 0 0 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 46,362.46 6.10 - 1 100 2 245 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 247.97 0.41 - 0 0 LEARN AFRICA PLC 1,080.03 1.40 -6.67 10 334,233 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0

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Opinion Midnight’s children THE NEW WEALTH OF NATIONS

Obadiah Mailafia

or reasons that I now find to be quite ominous, the British preferred to grant independence to most of her colonial dependencies at precisely the hour of midnight. The AngloIndian novelist Salman Rushdie wrote one of his best novels with the title, Midnight’s Children. It tells the story of infant Saleem Sinai, who was born at precisely the moment the clock struck midnight on 15 August, 1947, coinciding with the very moment of India’s independence from British colonial rule. A decade later, Ghana was also granted independence at midnight on 6 March, 1957. We in Nigeria also received our so-called independence on 1 October 1960. In a manner of speaking, we are all midnight’s children. One of the caricatures made about we Africans is that, like children, we never think about tomorrow. Albert Schweitzer (1875-1965) was a famous Franco-German missionary doctor who spent a whole lifetime serving poor wretched Africans in the primeval tropical forest of Gabon. His remains are buried in the famous hospital that he built at Lambaréné, by the famous Ogowe River. Schweitzer was a Nobel laureate and was one of the leading thinkers of the 20th century; a friend of such illustrious personages as Albert Einstein and Bertrand Russell. A great universal genius, Schweitzer earned 4 doctorate degrees in medicine, philosophy, theology and music. Schweitzer used to be one of the great heroes of mine during my

growing up years. A Gabonese friend who comes from Lambaréné told me that when he was a child, whenever he was sick he was taken to Doctor Schweitzer who would give him an injection and thereafter give him some sweets to placate him. He remembers him as a kindly old doctor. Albert Schweitzer infamously described Africans as “children”. In his book, At the Edge of the Primeval Forest (A. C. Black, 1924), he writes: “The Negro is a child, and with children nothing can be done without the use of authority. We must, therefore, so arrange the circumstances of daily life that my natural authority can find expression. With regard to the Negroes, then, I have coined the formula: ‘I am your brother, it is true, but your elder brother’.” To describe the denizens of the cradle of humanity itself in that manner is, without doubt, one of the greatest racial put-downs of the millennium. But, at the risk of offending the sensibilities of my readers, I am constrained to admit that Schweitzer had a point. A group of scientists at Oxford recently conducted some experiments on babies drawn from all over the world and across all the races and ethnicities. They made the discovery that babies all over the world, and regardless of race, gender and socio-economic background, have the same cognitive abilities. It is only much later in life that marked differences begin to emerge. But that’s not the issue right now. One universal attribute of children the world over is inability to think about tomorrow. Perhaps the neurological structure of a child’s brain is never arranged in such a manner that allows them to think in terms of planning systematically for tomorrow. Neuroscientists tell us that the faculty that controls the capacity for ballistics is the same as the faculty that controls speech. Ballistics is a complicated field that requires complex mathematics and ability to think ahead. Such a faculty remains the province of adults. This is why, no sooner have you given a child a birthday or Christmas gift than they are al-

ready thinking of when the next one will be. Children’s concept of time is rather limited. This is why they think more often in terms of the here and now. Culturally and cognitively, Africans are like children in their collective inability to think and plan for tomorrow. Part of the reason for this state of affairs is, quite simply, evolutionary biology. Humans in Africa emerged in a warm, hospitable ecology. Unlike the Europeans, our ancestors did not have to wrestle to survive bitter icy winters. And we did not have an inhospitable environment that would force us to remain indoors to meditate on the conditions and prospects of the human race as did René Déscartes or Thomas Hobbes. The eco-system in which our ancestors lived and flourished was a warm tropical climate that allowed all sorts of fruits to grow in the wild. Man and nature learned to cohabit in a kind of symbiotic equilibrium. A few years ago I went on an excursion with a group of friends in the interior of the Democratic Republic of Congo (DRC). I saw nature in virgin, pristine form. It was the closest I ever came to imagining what the Garden of Eden must have been like. It’s an ideal, even if receding, world for the ancient tribes that have inhabited the Congo for millenniums. In such a world, there is hardly any necessity to worry let alone plan, for tomorrow. But that is no justification for our collective as Africans to envision a better future for our more than 1.2 billion people on the continent. Since the 16th century, our continent has been forcibly integrated into the global trading and financial system. For better or worse, we are enmeshed in an increasingly integrated global marketplace, with all its opportunities and perils. For more than 400 years, our continent has been the playing field of Empires: slavery, gunboat diplomacy, colonialism and the shadowy world of the vultures and jackals of imperialist inspired wars and viral epidemics. As we enter the third decade of our new millennium, I prophesy that the emerging world order will be even more dangerous and more threaten-

‘

One of the caricatures made about we Africans is that, like children, we never think about tomorrow

ing for Africans. We are entering a new era in which global power elites will rob us of our freedom and hard-won sovereignty through all manner of subterfuge and chicanery. The Anti-Christ will clothe himself in the garb of a highly enlightened genius and internationalist who will convince us that he is fighting for a higher global interest. In reality, he will be a millennial despot who will rob people of their liberties and collective dignity. What worries me is when we Nigerians and the rest of Africans will stop behaving like children. The Indians and Chinese have understood these mysteries decades ago. They have made plans to overcome poverty, build prosperous societies and create strong nations that can withstand the machinations of iniquitous world powers. I believe that our country Nigeria, together with South Africa, has been ordained by destiny to embody the hope and aspirations of the African peoples. If we make it, there will be hope for the black race. If we don’t, I’m afraid, our continent is doomed. This is all the more reason why the coming presidential elections in Nigeria will be so decisive for our destiny as a people. We need a new leadership that is purposeful and focused. We need avant-garde statesmen who understand the imperatives of building a one trillion dollar globally competitive economy anchored on human capital development, abundant electricity, world-class infrastructures and an agriculture-based mass industrial revolution. We must create a New Nigeria based on the foundations of democracy, solidarity, genuine nation building, the rule of law, enlightenment and civilisation.

Dr. Mailafia is a former Deputy Governor of the Central Bank of Nigeria, a development economist and public finance expert with a DPhil from Oxford obmailafia@gmail.com; 08036590990 (text messages only)

Fiona and Kate – or Nigerian ‘values’ in the diaspora HumanAngle

Femi olugbile

particular ‘Nigerian’ story has been all over the news channels and the social media in the United Kingdom lately. The individual in question is actually a Briton, a bright young lady who by dint of hard work and a readiness to work for other people has risen to a very prominent position in the British establishment. She once told the press, not in joke but in earnest, that her aspiration was to become the first black female Prime Minister of the United Kingdom. Her name is Fiona Olayinka Onasanya. Fiona was born in Cambridge, United Kingdom thirty-five years ago, to Nigerian parents – Frank and Pauline Onasanya. Her parents’ marriage broke up when she was still quite young, and she was brought up, along with her younger brother Festus, in the custody of her mother. From all accounts she was very bright, and very ambitious. She attended the University of Law, the University of Herefordshire and the Netherland School. She graduated as a lawyer, but she quickly let it be known that her main interest was in politics and public service. She was active in her local community. In 2013, she was elected as a councillor in Cambridgeshire County. She worked relentlessly, and such was her activism in the cause of the deprived and downtrodden - mostly working class black and white people, that she became deputy leader of

the Labour group in the council. She contested for nomination as the Labour candidate for Mayor in Cambridgeshire and Peterborough but lost the election. That disappointment was to prove only a minor blimp on her screen. In 2017, she was elected as Labour Member of Parliament for Peterborough. The sky, it seemed, was the limit for Fiona. It was during this period that she made the enthusiastic statement about her ambition to become the first black female Prime Minister of Great Britain. Of course, the full description of that distinction, if it were to happen, would have been ‘the first black female British Prime Minister of Nigerian extraction.’ But tragedy was to strike just as Fiona’s star appeared to be shining brightly in the firmament. It came in the most innocuous of shapes. Her car was caught by traffic cameras – not once but twice – driving above the prescribed speed limit in a part of town. Anyone who is familiar with driving in the UK would know that negotiating the narrow winding roads in built up areas is not one of the greatest delights of living in the country. At peak hours, the traffic can be maddeningly slow. When the road is clear, there is a temptation to hurry. While breaking speed limits is not exactly the rule, it is not exceptional either. Unfortunately for ‘speed-breakers’, Britain is the most camera-saturated society in the world. Almost every street corner or traffic pole carries a camera that is able to catch an offending car and photograph the culprits, and many carry speed-measuring devices. Punishment for such an offence is usually in the form of a fine. For repeat offenders, the driving license may be suspended. Embarrassing for a Member of Parliament, but not the end of the world. Then Fiona lied. She was not in the car on both occasions, she averred to the Police, despite all the evidence they had to the contrary.Her brother Festus, in a bid to help her, was prepared to perjure himself and take the rap for one of the incidents.

‘

The stories of Fiona and Kate, and how differently they might have fared in their homeland Nigeria, help to clarify how far Nigeria would have to travel in defining its values

She had boxed herself into one of those corner-situations where the British Law would throw the book at you, whether you were Duke of Edinburgh or Member of Parliament.The real crime was not now the speed, but the lie. On December 19, 2018, Fiona Onasanya, MP, was found guilty of perverting the course of Justice. Last month, she was sentenced to a three-month prison term. She had achieved the sort of fame she had never dreamed of, becoming the first sitting female Member of Parliament to be sent to prison. Embarrassed, the Labour Party expelled her from their ranks. Fiona is still a Member of Parliament, and she is struggling to hold on to the post – for one thing, the salary of seventy-five thousand pounds a year helps to pay her bills. But all the signs are that she will be recalled by the people of Peterborough, who had enthusiastically elected her not too long ago, if she fails to resign. Her political career is in shambles. The gulf between the prevalent societal values in the UK and Fiona’s Nigerian ‘homeland’ can be deduced from contrasting Fiona’s story to the hypothetical story of a member of the Nigerian House of Representatives who commits a traffic offence, or even a more grievous

offence in Abuja or Lagos. If the police tried to arrest him, his party, his pastor or imam, and the people of his village would be up in the arms. The social media would be full of wild conspiracy theories. The investigating Police officer in charge of the case would suddenly be posted to Damaturu. There is one more unsavory Nigerian Diaspora story to be told here. It is the story of Kate Osamor, the daughter of Labour peer Baroness Osamor of Tottenham in the London Borough of Harringey, and of Asaba in the Republic of Nigeria (her full title!). Kate the daughter was until lately the International Development Secretary in Jeremy Corbyn’s Shadow Cabinet, and Labour Member of Parliament for Edmonton, North London. She employed her son Ishmael as a clerk in her office. It emerged from the Press that Ishmael had been caught with drugs by the Police and given a community sentence. Accosted, Kate lied that she knew nothing of her son’s offence or sentence. On cursory investigation, it was revealed that she had actually written to the Judge during the trial, pleading for leniency on his behalf. Kate has since stepped down from the Shadow Cabinet but is still holding on to her position as a Member of Parliament. She has been protesting, in typical Nigerian fashion, that the charges against her were ‘politically motivated’. Respect for core values and a firm discouragement of impunity sharply demarcate successful, functioning nations from failed and desperately dysfunctional nations, such as Nigeria. The stories of Fiona and Kate, and how differently they might have fared in their homeland Nigeria, help to clarify how far Nigeria would have to travel in defining its values, in getting its people to accept and take ownership of them, and in enforcing them, before it can begin to call itself a modern nation, in the true sense of the word.

Femi Olugbile is a Writer and Psychiatrist. Comments to synthesiz@gmail.com’

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