BusinessDay 09 Apr 2020 by BusinessDay

Fiscal deficit jumps to N5.2trn as FG revises 2020 budget ONYINYE NWACHUKWU (Abuja) & SEGUN ADAMS (Lagos)

... New estimates sent to NASS

he projected deficit embedded in the 2020 budget jumped to N5.2 trillion or 3.67 percent of GDP, as the Federal Government on Wednesday slashed its already passed budget and revenue projections in line with

new economic realities. However, the budget cut by the Federal Government to adjust fiscal plans to grimmer realities facing the country might fail to realise intended results for a country with a history of poor revenue realisation and budget

utilisation, while the huge budget gap will pose a new financing headache to the FG. The FG has in a revised copy of the 2020 budget sent to the National Assembly cut down the N10.59 trillion budget already passed by the legislature to

tional Petroleum Corporation, Mele Kyari. The new budget indicated that there is total 20 percent cuts on the capital projects amounting to N312.820 billion. In the N10.59 trillion national budget passed by the National Assembly in December 2019 the

N10.276 trillion. Copies of the revised budget, according to credible sources, were shared at a meeting between the leadership of the National Assembly and the Minister of Finance, Zainab Ahmed, and the GMD of the Nigerian Na-

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FBN Holdings to sell insurance stake to South African Sanlam

Nigeria prioritised fuel subsidy over health, defence, education, in past 4 years

Modestus Anaesoronye

DIPO OLADEHINDE

MARKETS

BNHoldings is in talks with its Sanlam partners that may lead to sale of its insurance arm, FBNInsurance, to the South Africa financial services giant, BusinessDay learnt Wednesday afternoon. FBNInsurance is an FBNHoldings company in association with the Sanlam Group of South Africa, which holds about 30 percent equity stake in the Nigerian insurer. FBNInsurance was incorporated in 2010 to transact life insurance business in Nigeria and currently operates out of three branches and over 40 sales outlets nationwide. A senior industry source told BusinessDay that both companies were already in talks to finalise the arrangement, which may not be unconnected with the ongoing recapitalisation in the insurance industry. “I can confirm to you that a discussion is going on currently, but its yet to be concluded,” the source said. A call to the company’s management in Lagos was not successful as the managing director of FBNInsurance did not pick

frica’s biggest oil producing country spent over N2 trillion on subsiding the price of fuel in four years, an amount which was far higher than funds allocated to education, health, defence, and agriculture and rural development that would have increased the economic growth or standard of living of its over 200 million people. Over the years, the Nigerian government has continued to

subsidise electricity and petrol, paying the difference between the cost of production and the cost charged to customers in order to make them more affordable, but in the end, analysts say it is largely not worth the cost. Data sourced from Nigeria National Petroleum Corporation (NNPC) show Nigeria has spent N2.032 trillion on subsidy of Premium Motor Spirit (PMS) or petrol between January 2015 and September 2019. According to NNPC, Africa’s biggest economy spent N306.4bn subsidising petrol in

2015, the same year the corporation started releasing its monthly financial statement. Although NNPC’s books said no money was expended as subsidy on PMS in 2016, the government introduced another form of subsidy in 2017 which it described as “under-recovery”. The subsidy incurred by the NNPC as under-recovery that year was N476.5 billion, which rose to N1.0 trillion in 2018, representing about 99.7 percent increase. In the first nine months of 2019, NNPC claimed it had

spent N494.1 billion on underrecovery while a provision of N450 billion had been made in the 2020 budget. Last year, Kabir Marafa (APC Zamfara), chairman, Senate Committee on Petroleum Downstream, said Nigeria had spent over N11 trillion as payment for outstanding fuel subsidy claims in the last six years. Wumi Iledare, professor of economics and former president of Nigerian Association for Energy Economics (NAEE), Continues on page 30

Continues on page 30

Inside Zenith Bank introduces automated voice banking service P. 2

A 15-man medical team from China arrived at the Nnamdi Azikiwe International Airport, Abuja, yesterday. They are in Nigeria to boost the country’s effort to conbat coronavirus. Inset: Medical supplies from China.

Thursday 09 April 2020

BUSINESS DAY

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Official records intact, no casualty as fire guts Accountant General’s Office …FG to launch full-scale professional investigation ONYINYE NWACHUKWU, Abuja

o official records were lost to the fire that gutted Nigeria’s Treasury House, the headquarters of the Office of the Accountant-General of the Federation in Abuja, on Wednesday, Clem Agba, minister of state for budget and national planning, confirmed. Also, there were no casualties recorded. The fire, which was caused by a spark from one of the airconditioners on the 4th floor of the building at about 10am Wednesday, was successfully put out by 25 fire trucks

within 35 minutes, Agba told journalists. The Treasury House is located beside the Federal Capital Territory Police Command in Garki, Abuja. “We have gone round the rooms and offices where the fire affected, and I am glad to report that our data centre where all our records are kept is fully intact. There is no destruction, so we haven’t lost any record,” Agba said. The minister said besides, AGF office now operates digitally, assuring that though some documents were burnt, there was also a backup centre outside Abuja to enable recovery in the event of any loss.

He said the only damage to the data centre was the exterior which houses the cooling units and that one of the immediate steps taken was to immediately shut down the data centre since the cooling units no longer cooled optimally. Agba noted that the unit from where MDAs’ capital releases are made was affected, adding that a full-scale professional investigation would be instituted. “As a government, I want to assure you that our records are intact. A few documents are burnt, we haven’t started recovery to check what actually burnt, but all our financial transactions are intact. We

would be doing full-scale investigation using the right professionals to determine exactly what happened,” he said. Ahmed Idris, accountant general of the federation, who also spoke to journalists, also confirmed that no document was lost and there were no casualties. “For emphasis, our data centre is intact, no harm in any way except for the cooling system which we are now working hard to put back to operation. We are also glad there is no casualty,” Idris said. The AGF, however did not immediately rule out a possibility of sabotage, but also assured of a thorough investigation.

The Offfice of the AccountantGeneral of the Federation in Abuja, which was gutted by fire, yesterday.

… assures customers of best-in-class service amid challenging times

enith Bank plc, Nigeria’s leading financial institution, has introduced an automated voice banking service, an interactive voice response (IVR) solution which enables customers to perform basic banking transactions by dialling a dedicated phone line through their registered phone numbers and following the prompts. By simply dialing +234 (1) 278 7000 from the phone number linked to their accounts and following the prompts, customers can pay DSTV/ GOTV bills, restrict their accounts or block their cards, request account statement via email, view the last five transactions, transfer funds, buy airtime, and do lots more. “Zenith automated voice

… as FG takes delivery of second batch of medical supplies IFEOMA OKEKE (Lagos) & GODSGIFT ONYEDINEFU (Abuja)

15-man medical team from China arrived at the Nnamdi Azikiwe International Airport, Abuja, on Wednesday afternoon. The medical personnel from China are in Nigeria to aid in the country’s fight against the dreaded coronavirus pandemic. Alongside the medical team, the Federal Government also took delivery of the second batch of medical supplies from China. Among the materials brought in include 16 tons of test kits, ventilators, disinfectant machines, disposable medical masks, medicines, rubber gloves, protective gowns, goggles, face shields, infra-red thermometers and other critical care items. Osagie Ehainre, minister of health, was at the airport to receive the medical team and the consignment. Zhou Pingjiang, ambassador of China to Nigeria, who was among the delegation that took the delivery, said the consignment is worth $1.5 million. Nigeria’s biggest carrier, Air Peace, delivered the supplies on Wednesday after a historical non-stop flight to Chinese capital, Beijing.

The flight was operated by the airline’s Boeing B777200 ER (P4 5-NBVE) in a non-stop 14 hours service, which landed in Beijing, China at 14:18 pm local time on Tuesday and arrived at the Nnamdi Azikiwe International Airport, Abuja on Wednesday after 15 hours’ non-stop flight, touching down at the airport at 4:25 pm local time. The Federal Government on April 5 took delivery of the first batch of medical supplies from Istanbul, Turkey, airlifted by Air Peace. “Another history was made yesterday, April 7, 2020 as Air Peace Boeing 777-200ER (P4 5-NBVE) landed in Beijing, China, 14:18pm, for the airlift of the Federal Government of Nigeria’s medical supplies for the fight against COVID-19,” Allen Onyema, chairman and CEO of Air Peace, said. ‘’This is the first time a Nigerian airline would be doing a direct nonstop 14 hours flight to China. The aircraft operated another non-stop 15 hours fight to the Nnamdi Azikiwe International Airport, Abuja. All six-man crew are Nigerians. May God Almighty be praised for everything. We are all one under one God. Congratulations Nigeria,” Onyema said.

COVID-19: FG trains 3,800 health workers on infection response

Zenith Bank introduces automated voice banking service HOPE MOSES-ASHIKE

Chinese medical personnel arrive Nigeria to boost COVID-19 effort

banking service is designed to ensure a truly amazing experience that will offer convenience for our teeming customers,” Ebenezer Onyeagwu, group managing director/chief executive officer of Zenith Bank, said on the launch of the product. Onyeagwu said the selfservice product offers quick response to customers in addition to security entrenched by the multilayer authentication mechanism. He urged the bank’s customers to take advantage of this unique service, particularly at this critical time when the physical interface with the bank has been greatly impacted due to social distancing and the restriction of movement in some states of the federation to conatin the spread of the coronavirus (COVID-19) pandemic. Zenith Bank has clearly www.businessday.ng

distinguished itself in the Nigerian financial services industry through superior service quality, unique customer experience and sound financial indices. The bank remains a clear leader in the digital space with several firsts in the deployment of innovative products, solutions and alternative channels that ensure convenience, speed and safety of transactions. The bank’s commitment to world-class service standards has led to several product innovations over the last couple of months including the “Zenith Timeless Account”, which allows Nigerians aged 55 years and above bank for free; the “Zenith Save4me”, a high-interest target savings account, and “Dubai Visa Service” on the Zenith Internet Banking Platform, which allows

convenient application and payment for visas to Dubai. Asatestamenttoitsexcellent performance, commitment to best-in-class service and recognition as one of the most innovative financial institutions in Nigeria, Zenith Bank was ranked as the Best Digital Bank in Nigeria 2019 by Agusto and Co. The bank was also voted as theBestCommercialBankinNigeria 2019 by the World Finance andemergedasBankoftheYear and Best Bank in Retail Banking at the 2019 BusinessDay Banks and Other Financial Institutions (BOFI) Awards. Most recently, Zenith Bank was recognised as the Most Valuable Banking Brand in Nigeria, for the third consecutive year, in the Banker Magazine “Top 500 Banking Brands 2020” and the Bank of the Decade (People’s Choice) at the ThisDay Awards 2020.

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… urges health professionals to look out for unusual respiratory tract infections … Lagos records third death as Delta begins contact tracing of index case JOSHUA BASSEY (Lagos), HARRISON EDEH, Godsgift Onyedinefu, Cynthia Egboboh (Abuja) & Francis Sadhere (Warri)

he Federal Government has trained over 3,800 health workers on infectious disease prevention and control as at April 5, Chikwe Ihekweazu, director-general, Nigeria Centre for Disease Control (NCDC), said. About 270 workers were trained in each state of the federation, Ihekwoazu said while making his remarks during the daily briefing of the Presidential Task Force on COVID-19 in Abuja on Wednesday. He said the capacity of @Businessdayng

the health workers is not being built to respond to the Covid-19 outbreak alone but for the future after the pandemic is over. The NCDC boss, while noting that healthcare workers are key to responding to the pandemic, said the centre has worked to ensure that they are equipped with the essential equipment to protect them from the infection. After some medical associations kicked against government’s approach, the NCDC DG said government was working to engage all medical associations in the country, such as the Nigerian Medical AsContinues on page 30

Thursday 09 April 2020

BUSINESS DAY

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Interswitch assures cardholders of continuous processing of chargeback, disputes Hope Moses-Ashike

nterswitch, an Africa-focused integrated digital payments and commerce company, has assured cardholders and the transacting public that all disputes on management operations remain fully available. Also, the company says all chargebacks and disputes will be processed according to their regular timelines. The firm states this in a statement titled ‘clarification on reported temporary sus-

pension of dispute management activities’. “Interswitch assures that our transaction support operations continue to run without any hitches, as we have implemented an excellent business continuity plan and there is no disruption whatsoever to our business operations,” the statement said. Interswitch had last week said it had obtained approval from the Central Bank of Nigeria to suspend operations on its Dispute Management Portal due to COVID-19 movement restrictions.

Rivers reports arrest of 10 Caverton passengers after remanding 2 pilots …flight was approved legally, lawfully - aviation minister

Ignatius Chukwu, Port Harcourt, & Cynthia Egboboh, Abuja

Rivers State government statement Wednesday, April 8, 2020, said the action against Caverton Helicopters continued the previous day with the arrest and arraignment of 10 passengers that were ferried by the two pilots that had been remanded till May 19, 2020. The press statement issued by the special adviser to Governor Nyesom Wike on electronic media, Simeon Nwakaudu, said a Port Harcourt Chief Magistrates’ Court No. 11 presided over by Chief Magistrate D. D. Ihua-Maduenyi, ordered the remand of 10 passengers who flew into the Air Force Base Port Harcourt on board the Twin-Otter Caverton Helicopters on Tuesday, April 7, 2020, in alleged contravention of paragraph 8 of the Executive Order RVSG-01 2020. The statement said the defendants pleaded not guilty to a four-count charge preferred against them by the Rivers State government and were ordered to be remanded at any government facility to enable medical personnel from the state carry out test to determine their coronavirus (Covid-19) status. The statement said they were arrested at the Air Force Base, Port Harcourt after the Rivers State Police Command received intelligence on their illegal flight into the state. The controversial Caverton Helicopters flight into Port Harcourt on Tuesday “was approved legally, lawfully and correctly”, aviation minister, Hadi Sirika, said Wednes day at the daily briefing on the deadly Covid-19 virus in Abuja. Sirika, who was responding to questions as to the legality of the flight for which 10 officials of the airline including two pilots have been remanded in custody by the River State government, said flight operations in Nigeria were on the Exclusive List and that Governor Nyesom Wike was wrong to have arrested the

airline officials. “Those flights were approved lawfully, legally and correct. So yes, we will do everything lawful and legal and reasonable to get those pilots back and operations will continue in national interest. We have the authority and being exclusively on the Exclusive List and we have the powers in civil aviation, guided by the Civil Aviation Act 2016 approved such flights. “The Civil Aviation is on exclusive list item number three. So no other person but the federal government has authority to legislate upon it. So also, the Nigerian Air Force, Armed Forces are also on Exclusive List, there is no other person that has the legal rights to legislate upon it”, he said. The minister further stressed that the approval of the flight and other flights are for national interest and for the purpose of improving the national economy. “Whether we have approval for the flight, yes we did and we did in national interest. All of these f l i g h t s a re f o r t h e p u rp o s e s o f i m p rov i n g t h e national revenue to which Rivers State is the greatest beneficiary. “So those flights by Caverton, Aero Contractor, Arik, Bristol were for national interest and to improve national revenue. At a time where oil has gone below $30 per barrel and the cost of production is $30, in the wisdom of President Muhammadu Buhar i he thought that this be allowed so that the nation will not be crippled and national revenue will not be lost”, he explained further. According to him, “the Air force officer who jumped the commander in Chief, Chief of Defence Staff and ignored them, who jumped the Chief of Air Staff and ignored him, to call a governor to come into the property of the federal government of Nigeria to make an arrest, exhibited dangerous ignorance and gross incompetence”.

L-R: Lai Mohammed, minister of information and culture; Babajide Sanwo-Olu, governor, Lagos State; Boss Mustapha, chairman of the Presidential Task Force on COVID-19/Secretary to the Government Federation; Akin Abayomi, commissioner for health, Lagos State, and Osagie Ehanire, minister of health, during an inspection of Isolation Centres in Lagos.

Household means multiple family units, streets as relief packages reach Lagos residents Temitayo Ayetoto

he meaning of a household assumed different interpretations as the distribution of relief materials provided by the office of Babajide Sanwo-Olu, governor of Lagos State, the largest city in Nigeria and one of the fastest-growing cities in sub-Saharan Africa, reached local communities. Contrary to the governor’s promise that an economic stimulus package comprising bags of rice, beans, garri (cassava flakes), bread, dry pepper, potable water, and vitamins will be distributed to each household, single units were instead distributed per multiple households and in some cases, a whole street. In Mushin Constituency II, for instance, some residences with more than 10 households received only a unit of the relief package to sustain them for the rest of the 14-day lockdown. In what was initially targeted

at the aged and vulnerable, Sanwo-Olu in a March 27 tweet, said 200,000 households at an estimation of six people per household would be reached in the first stage, adding it would be ramped up quickly. “I am happy to announce an economic stimulus package to help our residents cushion the effects of our #StayAtHome directive to stop the spread of #COVID-19. We want each ration to last for 14 days as we continue to evaluate the impact of #COVID19. Please stay home with your loved ones. We want the best for you,” the governor said. According to the United Nations Principles and Recommendations for Population and Housing Censuses, a household is defined by two classifications. The first classification, a one-person household, is defined as an arrangement in which one person makes provision for his or her food or other essentials for living without combining with any

NDIC contributes N1bn to Covid-19 relief fund Hope Moses-Ashike

oard of the Nigeria Deposit Insurance Corporation (NDIC) has approved the immediate release N1 billion to the Covid-19 Relief Fund being put together to fight against the Coronavirus pandemic in Nigeria. The Bankers’ Committee led by the Central Bank of Nigeria (CBN ) at its emergency teleconference call meeting held on Monday, March 30, 2020, announced that the Committee and the private sector had set up an account at the CBN under the auspices of the Private Sector Coalition Against Covid-19. The Fund receives contributions from individuals as well as corporate organisations to comple-

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ment the efforts of the Fe d e ra l G ov e r n m e nt a s it strives to contain the spread of the pandemic in Nigeria. A statement signed by Sunday Oluyemi, director, communication and public affairs, NDIC , stated that in approving NDIC’s contribution to the fund, board of the Corporation acknowledged that it was not only consistent with its policy on Corporate Social Responsibility (CSR), it also noted that t h e p ro c e e d s w o u l d b e utilised in the provision of equipment and urgently needed medical facilities throughout the nation. This w ill include the p ro c u re m e n t o f t e s t i n g kits, isolation and treatment centres as well as the provision of Intensive C a re U n i t s ( I C U s ) , a n d molecular testing labs wherever required.

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other person. The second classification is a multi-person household, defined as a group of two or more persons living together who make common provision for food or other essentials for living. This is the most common type of households that make up nearly 20 million population of Lagos. Under a housing system fraught with severe shortages, many living together have multiple-person households, pulling resources together to ease the burden of high rental cost. Multiple-person households in the urban slums ordinarily fit the poor and vulnerable targeted in this relief effort and they would have been really impacted by the intervention if implemented as originally intended. Many Lagos residents have protested the lockdown subtly, arguing their financial position would be wounded. But distribution of relief package inconsequential to the scale of their daily needs seems to be adding

insult to their injury. Rather than relieving people, the food donation has stirred anger. Although not from the governor’s office, some irate youths in Agege Constituency 1 of Lagos made a mockery of loaves of bread donated by Mudashiru Obasa, their representative and speaker of the Lagos State House of Assembly in a viral video last Sunday. They turned the loaves into football, tossing it at one another in a mocking display on the streets. Four loaves of bread were packaged and distributed to each house as relief materials from the Assembly leader, a young man said, groaning in the video. He shamed Obasa for terming loaves worth not more than N100 each and branded with his name as relief package. The question dancing on the mind of many is why the government seems unable to relief the residents, despite the fat donations to its purse since it confirmed its index case of coronavirus.

Coronavirus: SIFAX Group commits N130m to fight outbreak AMAKA ANAGOR-EWUZIE

IFAX Group, a group of companies with investment in maritime, aviation, oil and gas, haulage and logistics, financial services and others, said in Lagos on Tuesday that it had committed N130 million as support fund towards the fight against the Coronavirus pandemic. According to a statement signed by Muyiwa Akande, corporate affairs manager of SIFAX Group, the Federal Government through the Presidential Task Force on Covid-19 will get N70 million, Lagos State government and Ogun State government will get N15 million and N10 million, respectively, while the Nigerian Ports Authority (NPA) will get N5 million. Akande stated that the company would through its foundation, the Ajoke Ayisat Afolabi Foundation, also commit about N30 million as relief support funds to the poor @Businessdayng

across the 36 states of the federation. Adekunle Oyinloye, group managing director, SIFAX Group, says the company believes that this donation would help flatten the curve and aid in the collective fight against the pandemic. “We are delighted to be presenting this support fund to both the Federal and state governments. As a company, we believe that a healthy people translates to a healthy nation, that is why we are leaving no stone unturned in our support towards the eradication of this pandemic in Nigeria,” Oyinloye said. According to him, Ajoke Ayisat Afolabi Foundation would also commit funds into making sure that the poor is adequately taken care of. “We commend the visible and proactive efforts of government at all levels and believe that this collective effort would go a long way in flattening the curve and we will overcome soonest,” he said.

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Thursday 09 April 2020

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Worldwide passenger air traffic fell 14.1% in February on Covid-19, IATA reports MIKE OCHONMA

lobal air passenger traffic in February, measured in revenue passenger kilometres, fell by 14.1 percent in comparison to February 2019, the International Air Transport Association (IATA) has reported. This was the sharpest fall since the notorious terrorist attacks of September 11, 2001 in the US, reported the international airline industry’s representative body. In Africa, the continent’s airlines registered a 1.1 percent decline in February. This was the region’s worst performance since 2015 due to a year-on-year collapse of 35 percent in traffic between Africa and Asia. February’s fall reflected the rapid decline in domestic air

travel in China and a severe reduction in demand for international flights to, from and within the Asia-Pacific region. In parallel, passenger capacity came down by 8.7 percent as airlines began to ‘park’ airliners that were no longer required. And load factor went down by 4.8 percent to 75.9 percent. Airlines were hit by a sledgehammer called Covid-19 in February. Borders were closed in an effort to stop the spread of the virus. And the impact on aviation has left airlines with little to do except cut costs and take emergency measures in an attempt to survive in these extraordinary circumstances. ‘’The 14.1 percent global fall in demand is severe, but for carriers in the Asia-Pacific, the drop was 41 percent,” pointed out IATA’s director-general/ CEO, Alexandre de Juniac. The impact was, however,

not uniform across the world. Regarding international flights, Middle Eastern airlines actually experienced a 1.6 percent increase in their traffic in February. European operators scraped out a marginal 0.2 percent rise for February 2020 in relation to February 2019. But this was the region’s poorest performance in 10 years as traffic on routes to and from Asia decelerated significantly, but traffic within Europe was still holding up in February. As for the other regions, Latin American airlines saw a 0.4 percent decline in traffic in February, year-on-year. However, this represented a better performance than that of January, which had seen a year-on-year fall of 3.5 percent. In North America, carriers experienced a 2.8 percent reduction in traffic.

By removing subsidy, we’re freeing up funds for critical government projects - NNPC GMD HARRISON EDEH, Abuja

roup managing director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, says by stopping the overburdening fuel subsidy regime recently tagged ‘under recovery’ by the current administration, the Federal Government own oil company will be freeing up funds for critical projects across Nigeria. Kyari had earlier disclosed in the official twitter account @nnpcgroup, “As at today, subsidy/under recovery is Zero. Going forward, there’ll be not sort to either subsidy or under-recovery of any nature. NNPC will be just another player in the market space. But will be there for the country to sustain security of supply @ the cost of the market.” Kyari, while giving further insight through the official twitter of the NNPC, @nnpcgroup on how the Federal

Government is intervening in the oil industry amid the coronavirus pandemic scare, said, “By stopping under recovery we are stopping subsidising of the elites.” He went further to say that subsidy was an elitist thing because it was the elites that benefit, adding, “They are the ones that have the SUVs, three, four cars in their houses.” According to the NNPC GMD, “The ordinary man hardly benefits from this under recovery, subsidy or whatever name you may wish to call it. “We sincerely believe that this is the perfect time to ensure that these benefits actually come to the ordinary man and not the elites.” Speaking further, he said, “As you are aware, fuel under recovery means taking back some money that will have gone into funding infrastructural projects such as education, health and many others. “By stopping under recovery, we’re ensuring that these

resources are available for government projects.” While explaining how the government is coping with global oil price fall, he said, “The oil industry has its way of responding to situations of low oil prices such as the one we are in now. First of all, you cut your cost, and then two, you extend your payment process in such a way that you don’t pay what you can pay tomorrow today. “ T hat w ay , y o u hav e more res ources in your hand to respond to situations. That’s exactly what we have done with our partners to cut down on our budget so that the money we’ve made from current realities of the oil price will be utilised to meet our basic operational needs.” He noted, “That way, we will also be able to deliver on the expectations of our shareholders, knowing fully well that government is in this business to make some money towards meeting its budget needs.

Covid-19: NPDC donates medical equipment to Delta government … as UBTH seeks medical, personal protective equipment IDRIS UMAR MOMOH, Benin

anagement of Nigerian Petroleum Development Company (NPDC) on Tuesday donated medical items to Delta State government to support the government’s measures at checking the spread of Covid-19 in the state. Mansur Sambo, managing director of NPDC, who made the donation in Asaba, the Delta State capital, said it was in line with the company’s corporate social responsibility philosophy. Sambo, represented by the manager, community relations of the company, Dahiru Abubakar, said the items were mainly for use by medical doctors and nurses who would be in the first line of action in

managing any positive case of the pandemic. The NPDC boss listed the medical equipment donated to include cartons of hand sanitizers, hand gloves, personal protective equipment and face mask. “These medical fittings are specially meant for doctors and other medical professionals. We are providing these in realisation of the roles doctors and nurses are playing in the fight against the pandemic as doctors have enormous work to do. “This is our contribution to ensure that Covid-19 is eliminated not just in Delta, but the world at large. Other interventions will come from NPDC to show responsiveness to the situation,” he said. Receiving the items, the Delta State commissioner for health, Mordi Ononye, comwww.businessday.ng

mended the management of NPDC for the donation. Mordi, who said the oil company had shown that it was socially responsive, assured that the materials for those in the frontline of Covid-19 response, would be properly put to use. “On behalf of our Governor, Sen. Dr Ifeanyi Okowa, who is the Covid-19 Team Leader in the state, we accept these truck-loads of gifts. “Government of Delta is most appreciative of this gesture and we pray that we continue to stay without having any case because, as at the end of yesterday, we had not recorded any positive case of the virus. But, we are not resting on our oars; we will continue to strengthen our activities to ensure the safety of Deltans,” he said. https://www.facebook.com/businessdayng

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Thursday 09 April 2020

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cityfile A’Ibom commissioner donates boreholes, food items constituents

L-R: Felicia Dada, beneficiary of the conditional cash transfer; Gabriel Adedokun, Ekiti State coordinator on Conditional Cash Transfer; Victor Kolade, special adviser to Ekiti State governor on social investment programme, and Bolaji Aluko, coordinator, Ekiti State Taskforce on Covid-19, during the flag off of the conditional cash transfer to the vulnerable people in Ekiti State on Tuesday.

Aniefiok Udonquak, Uyo

Oyo to promulgate law on Covid-19 REMI FEYISIPO, Ibadan

yo State government says it is working on a law that will provide the legal framework to guide operations towards curbing the spread of Covid-19 following the confirmation of two positive cases of the virus in the state. The proposed law, according to the state executive council will make orders for social distancing and other regulations on movement within the state. Commissioner for justice and attorney-general, Oyelowo Oyewo, said the bill would also checkmate the role of law enforce-

ment agents as far as respect for human rights is concerned. According to him, the law is to be known as Oyo State Coronavirus Disease Emergency Prevention Regulations 2020. “As we are all aware, starting from 27 of January, the Chinese government identified a new coronavirus and, of course, the United Nations confirmed it to be a pandemic and we all have witnessed its impact in Oyo State. “In order to deal with it, there have been a lot of directives and orders made under extant laws, particularly the public health laws and the Quarantine Act at the federal level. So, it has become necessary for the state to specifically make a regulation to deal

with the pandemic and, to that extent, we have gotten approval for the Oyo State Coronavirus Disease Emergency Prevention Regulations of 2020 to be passed into law. “This will enable the state to have the legal framework for making the orders for social distancing and the regulation of movement of transport system within the state. It will also check law enforcement agents in the way they deal with people in a manner that we expect guarantees their constitutional rights.” He added that the law would deal specifically with persons who have potential for infection for purposes of their quarantine and also for regulating markets, public places,

restriction of movements and gathering in premises, and to deal with persons who have been found to have the virus, even in respect of their treatment and in the place of mortality. “Of course, where there is a law, there must be enforcement. So, we have offences, which are created for dealing with it. These Covid-19 regulations will enable a legal framework to be established within the state and since there is a public health law under which it is being passed in the state, it is coming by way of regulation instead of coming by way of legislation. It will come into effect the moment the governor signs it and passes it for the regulation to have the course of law,” he said.

Kaduna: Clerics charged with violating social distancing Adeola Ajakaiye, Kaduna

wo clergymen have beenarraignedby the Kaduna State government for holding church service last Sunday in violation of the lockdown order by the government. The state commissioner of internal security and home affairs, Samuel Aruwan, on Tuesday said that one Ifeanyi Ojonu and Giniki Okafor held church service at Sabon Tasha of Chikun local government area of the state and were arrested by security operatives. Aruwan said that the suspects had been arraigned

before a Chief Magistrate Court on Monday. According to the commissioner, the suspects were arraigned on a two-count charge of criminal conspiracy and disobedience to an order duly promulgated by a public servant, under Sections 59 and 115 of the Penal Code. “Nobody is above the law and everyone is equal in the eyes of the law, the Quarantine Law will be applied without fear or favour until the lockdown is duly lifted,’’ Aruwan said. He recalled that some Muslim clerics who held congregational prayers on March 27, at Unguwar www.businessday.ng

Kanawa and Malali areas of Kaduna North local government were earlier arrested. “They were promptly arrested and subsequently arraigned before a Chief Magistrate Court on March 30, 2020 to demonstrate government’s determination to prosecute violators of the Quarantine Law,’’ he said. The commissioner said that the two clergymen apparently misread government’s strong signal as they flouted the law and disobeyed the warning of various leaders of faith by holding church service last Sunday. He, however, commended religious and traditional rulers for sensitizing their

followers about the dangers of COVID-19 by asking them to obey the lockdown order as a religious obligation. The commissioner maintained that the religious community had substantially complied with the lockdown as Muslims daily congregational prayers, including Jumma’at prayers, had been suspended. He said that church services have also not been held in line with the government directive. Aruwan advised residents to report any infringement of fundamental human rights by either security agents or government officials.

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kong Sampson, the commissioner for environment and mineral resources has constructed five boreholes and donated food items to constituents to prevent the spread of coronavirus pandemic. Sampson announced the donation during a town hall meeting with stakeholders in Mkpat Enin local government area of Akwa Ibom on Tuesday. He said the provision of the boreholes and tap in towns and villages would guarantee steady running water for people to wash their hands to prevent them from being infected with the coronavirus. The essence of the meeting, he said, was to enlighten the grassroots on the virus and how to protect themselves from being infected. The commissioner donated five boreholes in the five clans that make up Mkpat Enin local government area of the state.

Samson also donated 100 bags of 50kg rice, other food items, hand sanitisers and N6 million to communities in Mkpat Enin council area. “Covid-19 is a global calamity that has befallen mankind. It is like the rain that falls on the roofs of everybody. It is not a disease for the poor or the rich as most of you may think. “The virus does not respect economic, social and political class, it has no regard for tribe, race and religion. “It is neither PDP nor APC problem and that is why I am here to sensitise you on the virus and how to protect yourselves. “I urge you to obey the government’s stayat-home order, maintain social distance, use hand sanitiser and wash your hands with running water,” he said. The clan head of Ukpum Minya, Anthony Umanah thanked the commissioner for his benevolence and promised to educate his subjects to observe all regulations and instructions to prevent the infection and spread.

NDLEA arrests suspect with 247kg cannabis in Imo

he Imo State command of the National Drug Law Enforcement Agency (NDLEA) has arrested a 48 year man with substance suspected to be cannabis sativa weighing over 247kilograms. Nse Inam, the Imo NDLEA commander said this while parading the suspect at the command’s headquarters in Owerri. Inam, who was represented by the assistant state commander in charge of operations and intelligence, Kayode Raji, said that the substance was found in the home of the suspect by officers of the command at 2a.m on Monday. He added that the suspect, whom the agency had been trailing for about four months, was arrested based on intelligence reports from monitoring and surveillance. He further alleged that the suspect was a notorious dealer and major supplier of the exhibit to most outlets in the state, adding that his arrest would go a long way in reducing the spate of circulation of illicit drugs in Imo. The Imo NDLEA boss also said that all facts of the arrest were ready for the

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prosecution of the suspect. He assured that necessary mechanism had already been put in place by the agency to forestall any possible attempt by sympathisers of the suspect to frustrate his prosecution. “In the last four months, our men have worked very hard to achieve this result and we believe that the arrest of this major notorious drug dealer will sound a note of warning to other peddlers in Imo to desist forthwith. “We respect fundamental human rights of everyone and that is why we have thoroughly prepared the facts of this arrest for prosecution,’’ he said. He, however, called on members of the public to report suspected drug peddlers to the NDLEA while thanking officers of the command for a job well done. On his part, the suspect, a father of five said that he usually bought the exhibits from a supplier in Edo and sold them in Imo, adding that he had been in the business for five years. He also claimed that farming was his major occupation, saying that he was in business of cannabis sativa to make additional income. NAN

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Nigeria’s response to COVID-19 ADEMOLA ASUNLOYE

here have been several virus outbreaks in the past years which wreaked havoc; the novel coronavirus (COVID-19) possess greater chaos by crippling the economy of the world. Among the past pandemics with devastating effects are the Great Plague of 1720; the Cholera Outbreak of 1820 and the Spanish Flu of 1920. The cases recorded in the current pandemic indicate that coronavirus has recorded the largest infected cases and death tolls in recent times, and not only that, created global fear, shut down cities, and even countries, just as it has halted migration within and among countries of the world. As at 6th of April 2020 at 1:28pm, which was the reference date, the total infected cases had risen to an alarming 1,287,168 persons—an additional 14,306 new cases, while active cases numbered 944,751 persons. In the same vain, death tolls had gone up to 70,530 persons across the globe with 1,105 new deaths (the highest of 414 deaths recorded in Spain). In the history of the world, this COVID-19, has so far recorded high incidence compared to some recent outbreaks as the Severe Acute Respiratory Syndrome (SARS), an outbreak between 2002 and 2003 that recorded 8,098 cases with 10 per cent death rate; Middle East Respiratory Syndrome (MERS) from 2012 till present, with 2,494 cases and 34 per cent death rate, and Ebola which recorded the highest of the three outbreaks with 28,616 recorded cases and 40 per cent death rate.

Source: Worldometer, BRIU

As opposed to the death figures, a total of 271,887 persons have fully recovered from the dreaded coronavirus across the globe due to conscientious efforts of governments of nations to fight this virus. This recovery figure represents 21.12 per cent of total active cases. Although the infectious disease began in Wuhan, China in December 2019, now, more infected cases are now being reported every day in Europe than were reported in China which was formerly at the height of the pandemic. Data from Worldometer during the reference period showed that the virus has overrun Italy, Spain, and USA with over 128,948, 135,032, and 336,851 cases respectively—pushing those countries’ health systems to the brink. Other countries with high cases of the deadly coronavirus, COVID-19, are Germany, France, China, Iran, the United Kingdom (UK), Turkey and Switzerland—this virus is at its peak in these countries; from the 4th highly infected

Source: Worldometer, BRIU

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country to the 10th respectively. Consequently, some governments have declared a state of emergency recently, ordered total lockdown— requiring people to stay at home to foster social distancing and for all non-essential shops to close, along with restaurants, bars, cafes and movie theaters. The available data showed that more than any countries affected by the pandemic, China had recorded the recovery of more than 77,000 infected persons out of over 81,708 cases. This represents 94.33 per cent of the total cases, even as 1.59 per cent are receiving treatment currently while 4.08 per cent sadly were lost to the pandemic. All these figures were all recorded at the reference period. Due to high recovery rate in China alone, the source of the coronavirus, there is need for China to shed some light on this pandemic. Another country with top recovery statistics is Spain—40,437 persons got recovered out of about 135,000 cases. This represents 29.95 per cent of the total cases; 9.67 per cent were lost to the coronavirus while the remaining, we hope to see recover soon. Germany is the third country with the highest recovery statistics of near 30,000 recovered persons. Out of the total cases of about 100,132 persons, the country had only recorded 1.58 per cent deaths. Next is Iran with a total 24,236 recovered persons against over 60,000 infected cases within the reference period as earlier mentioned. Overall, across the globe, there have been more recovery statistics

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than deaths, showing that efforts being made to curtail the pandemic are efficacious. Sadly, only the United Kingdom from the top infected countries recorded more deaths (4,934 persons) than recovery (135 persons). The coronavirus which crawled into Nigeria on the 27th of February 2020 has since spread across

fected countries are: South Africa, 1,655 total cases; Algeria, 1,320 total cases; Egypt, 1,173 total cases; Morocco, 1,113 total cases; and Cameroun, 650 total cases. The number of infected cases in Nigeria is likely to be underestimated given the individuals suspected of the Covid 19 are somewhat difficult to trace. As a result, and to curtail the spread of this pandemic in Nigeria the government imposed a 14-days curfew in states where there are high confirmed cases of infection: Lagos, Abuja and Ogun. However, all states followed suite. Expectedly, players in the Nigeria’s private sector, eminent personalities, banks and the Nigerian National Petroleum Corporation (NNPC), Central Bank of Nigeria (CBN) coalesced to mobile resources to combat this pandemic. There is need to also spread information on the recovery statistics of this pandemic so as to reduce panic and improve the fight against this terror—COVID-19 through adherence to healthy etiquettes and conducts.

Source: NCDC, BRIU

different states. As of the 6th April 2020, Nigeria had recorded total cases of 232 infected persons in 15 known states including 5 deaths, while 33 persons have recovered in all. As at the time of preparing this article, there are 194 active cases in Nigeria. Among the states, Lagos seems to be the major hotspot for the coronavirus with 120 cases. It is followed by the Federal Capital Territory (FCT) with 47 cases; Oyo, 8; Osun, 5; Ogun, 4; Kaduna, 3; Enugu, Edo and Bauchi with 2 cases each while only 1 case has been recorded in Rivers, Ekiti and Benue. On the continent, Africa had recorded 9,393 infected cases, 445 deaths and 906 recoveries from COVID-19. The 5 highest in-

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There have been contrary views, questions and perceptions by all and sundry from different parts of the world whether: the COVID-19 was a project of the New World Order (NWO), or if it is a biological weapon gone accidental. Most of these rumors also have been backed up with videos purporting that the 5G network is a causative agent. However true or false, the nations of the world have their eyes wide open. More than ever, the push for the human race to survive this pandemic became the primary concern for the world. Although the outcome of COVID-19 pandemic may be impossible to predict now by experts, we can learn from past pandemics in history to predetermine our best courses of actions.

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Promise and potential of Co-Cavid The Public Sphere

CHIDO NWAKANMA

ast week I essayed that the coronavirus presents several opportunities for Nigeria. One group is taking advantage of the opportunity in coronavirus and running with it. It is serving as an example of corporate good conduct; if it lives up to the promise, it should lead to many other such practises and ventures. Cocavid is the coalition of corporate bodies against the covid-19 pandemic. Their initial steps have been heart warning as have their pronouncements. Before discussing them, a little historical excursion would place things in perspective. The Muson Centre stands tall in physical appearance, functionality and reputation. Muson Centre is the venue of choice for significant events in the arts, sciences, politics and all other fields. The Muson Centre is the product of vision and enlightened collaboration. This project of the Musical Society of Nigeria was a visionary leap into the future. It has surpassed the goals of its founders. They wanted a project that would contribute to the propagation of the ideals of MUSON while earn-

ing income to sustain it. It has done so and more. In the late 80s and early 90s, the MUSON team canvassed corporate Nigeria. They had a beautiful scale model of the proposed structures and their proposal on how to fund and maintain it. They placed on the line the names, pedigrees and value of their council members. Many companies bought into it. Art connoisseur Christopher Kolade was Managing Director of Cadbury Nigeria, where I worked, and made a case before his board. They agreed. Oil money answered fast and big. Shell Petroleum Development Company shelled out a huge sum for a significant slice of the pie now famously known as the Shell Hall. Agip also did same and got the Agip Recital Hall. Many others supported them. Muson Centre has run like clockwork since then. The efforts of Corporate Nigeria are the trigger for this reminiscence. Corporate Nigeria has come together to assist Nigeria to build capacity in healthcare infrastructure by providing the three Ms of men, materials and money. The immediate goal is the efficient management of the coronavirus threat in Nigeria. It has potential, however, as a long-lasting intervention fund. Dangote Industries Ltd and Access Bank Group lead the Coalition Against Coronavirus (Cocavid) in collaboration with Zenith Bank, Guaranty Trust Bank, MTN, ITB, and others. CoCavid will mobilise the private sector through leadership and resources in creating public awareness and directing support for private and public healthcare institutions. Africa’s richest man Alhaji Aliko

Dangote said of their mission. “The coalition is working with Lagos State Government to erect fully-equipped medical tents that will serve as training, testing, isolation and treatment centres. We are also providing an additional facility on Victoria Island, Lagos.” “COVID-19 affects us all and threatens our collective health – economic, social, psychological and physical wellbeing; hence, the urgent need to work together to beat this common enemy. “The task ahead is daunting and bigger than any one organisation. “To win this battle, it is critical we all come together as one,” On 6 April, Isaac Okorafor, spokesman of the Central Bank of Nigeria, announced that Cocavid has now raised N21.5 billion for its mission. Fifty firms and individuals signed on as donors. Cocavid has three committees to manage the projects it would take on. There is a Technical Committee composed of persons from the medical field with responsibility for “intellectual leadership around testing issues, treatment protocols and isolation centres”. There is one for logistics and another for communication. Cocavid has a focus on providing fully equipped tents such as GTB has done at Onikan, Lagos. This is laudable. However, from the outside looking in, I suggest they should have a longer-term perspective. Coronavirus will leave us sooner than later. The basis for providing the tents as short-term measures will remain; it is the absence of adequate healthcare infrastructure. These men of timber and calibre should dream bigger for Nigeria’s

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These men of timber and calibre should dream bigger for Nigeria’s healthcare. They should bestir themselves and consider building at least one or six world class hospitals as the opportunity that Nigeria snatched from coronavirus. Their goal should be to reduce significantly medical tourism from out of Nigeria

healthcare. They should bestir themselves and consider building at least one or six world class hospitals as the opportunity that Nigeria snatched from coronavirus. Their goal should be to reduce significantly, medical tourism from out of Nigeria. They should aim for world class health care which a scholar has noted, “is achieved by going above and beyond compliance with professional, accreditation, and certification standards to bring the best of the art and science of medicine together in a focused effort to meet the physical, mental, social, and spiritual needs of the patient.” The Australians recently completed a 450-bed Bendigo Hospital Project as a PPP venture. It cost approximately $464 million. It offers 372 inpatient beds, 72 same-day beds, an 80-bed psychiatric inpatient unit, 11 new operating theatres, a parent-infant unit, an integrated cancer centre, multideck carpark, a helipad, 15 short-stay accommodation units, a conference facility and a selection of retail, food and cafe outlets. Many of the leading lights of Cocavid know even more about world class hospitals in places such as Dubai, Abu Dhabi, and the developing world. They should think long-term and deliver at least one medical facility that would be as iconic as the Muson Centre. Deliver to us, gentlemen, projects that reflect big dreams as huge as your influence and capacity. Nwakanma is a Visiting Member of the BusinessDay Editorial Board and serves on the Adjunct Faculty at the School of Media and Communication, Pan Atlantic University, Lagos. Email chidonwakanma@ gmail.com.

Why companies need a BYOD policy in the midst of covid-19 shutdown/lockdown

he fallout of the Covid-19 pandemic has forced businesses globally to either shut down or resort to directing employees and executives to work remotely from their homes. Hence, most large corporations, and small and medium enterprises (SMEs) now execute employment duties electronically from home, either using laptop computers, tablets or smart mobile phones to receive and send corporate correspondences, hold virtual meetings and access corporate information. Working from home is flexible with benefits of sustaining continuous customer services and satisfaction, however with a risk exposure which many companies in Nigeria, especially SMEs, have failed to advert their minds to, or consider excessive the cost of mitigating such risks. It was recently reported that since employees started working from home, earlier in 2020, there has been a spike in cyberattacks, aimed at exploiting remote workers and internet users. Security researcher, Maher Yamout from Kaspersky, a multinational cybersecurity company, reported that “according to 2020 Network statistics, over the past two months we have never seen the numbers going above 45,000 attacks a day, while last week (referring to the third week of March 2020) saw this number was reaching over 300,000.” It is therefore clear that cybercriminals have intensified efforts to break into the systems of organisations, through the employees working from home, to either gain control of the said systems or

get access to sensitive information. As a company in Nigeria, you may be thinking these staggering statistics does not affect you, when however, you should be more concerned as chances are that you may have been already compromised or extremely vulnerable to a cyber-attack. How is this possible? Most businesses in Nigeria, as a matter of convenience, flexibility and cost savings and without a “bring your own device” (BYOD) policy, allow employees to use personal laptop computers, smart mobile phones and/or tablets (Dual Use Devices) for work related purposes, e.g., send and receive emails or other corporate correspondences and information, and access virtual private network (VPN) of the company. Most times, company trade secret and confidential information also gets domiciled in these devices through this practice. Therefore, companies by conduct operate a BYOD without having an underlying policy that clarifies the extent of the programme, security measures and structures required, distribution of responsibilities and liabilities, consents, privacy and confidential information related issues, and reporting procedures in case of loss or exposure. For instance, it has been proven that some of the ways through which a device can be attacked includes connection to another device by Bluetooth, hotspot, USB cable, WiFi connection to a public or another private network and plugging the power cable of a device into a malware infested power socket,

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amongst others. This is in addition to issues relating to phishing and masked links attendant with several device applications widely used for remote working, e.g., video conferencing applications (“Apps”), such as Zoom and Free Conferencing Apps. Recent report has it that Zoom App for Windows is vulnerable to a classic “UNC path injection” vulnerability that could allow remote attackers to steal victim’s Windows login credentials and even execute arbitrary commands on their systems.” This vulnerability was acknowledged by Zoom’s CEO, Eric Yuan, who tendered a public apology on the 3rd of April, 2020 for the security and privacy vulnerabilities. Where does this leave your company? The starting point is to determine the nature of control your company has over these devices and the extent of access it can have to them, especially with respect to Dual Use Devices. The use of these devices and information received with them, technically speaking, is within the control of the device owner. Some companies erroneously assume that because the Dual Use Device is utilised for work purposes, the activities undertaken by the employee with the device can be monitored and where necessary, confiscate or remotely wipe out all information contained in the device. Well, you can, but your company may likely be liable to prosecution with possible penalties in the sum of N10,000,000 (ten million Naira) as regulatory fine besides possible award of monetary damages to device owner. Is that

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FRANCIS ALOH

really what you want? It is imperative that your company reviews its remote working arrangement during this lockdown/shutdown and going forward. You should also consider enlisting the service of an expert to appraise your company’s peculiar circumstance with respect to its unplanned BYOD practice, advise on options available to your company and draw up a robust BYOD policy for your company. A breach of your corporate confidential information would not only result in monetary fines, but may also injure customer trust due to breach exposures and ultimately impact the bottom line and business continuity of your company. Stay home. Work safe. Francis is an attorney, chartered arbitrator, management consultant, certified international privacy and data expert with a soft spot for resolving matrimonial and child custody issues. aloh_francis@yahoo.com

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Coro and the words of our elders… Where are the pastors and native doctors?

ik MUO

oro has shown us raw pepper. The world is in a hitherto unimaginable distress. The mischievous CORO, with the intent of passing a serious message, started from the high and mighty: top countries and top people government in commerce, sports, entertainment. Otherwise, the narrative would have been about third world countries, their big men and their weak institutions. Whole families have been wiped out and death has become so common that even the undertakers and graveyards are overwhelmed. New York, a whole New York, has become the epicentre and Coro’s practice-pitch and has resorted to emergency morgues because “what overwhelmed the health system has also overwhelmed the death system” and Italy has resorted to cremation. But of all this, the most painful for me was when the grave managers in Cemiterio de Vila Formosa (Vila Formosa Cemetery) in Brazil resorted to digging graves up-front, in anticipation of Covided corpses! This happened after they had buried 60 corpses in a day. Requiem mass and the entire funeral for each person took about 10 minutes with minimal ceremonies because of the ‘queue’ of dead bodies. Amos foresaw this scenario years ago when he declared ’the song of the temple shall be wailing on that day; many dead bodies everywhere and they shall be thrown out in silence. and the land shall tremble and everyone shall mourn who dwells in it. (Amos 8:3&8) Jesus Wept! (John 11:35). Ik also wept! When I am in this kind of mood, I go back to my roots and as such, our interface today will be based on the “words of our elders”. To ensure inclusiveness, I will write in an emerging language (remember New Englishes?) called “Engl-Igbo” Our people say that it is good to be proactive, to start preparing for the Nkwo market on Afor day (which is the day before). However, this is not the type of preparation our people envisaged when they invented this that age-long saying; nobody prepares for evil days, even though we all know it is a possibility. Indeed, by the instrumentality

of oga-coro, “anya mu afugo nti mu” (my eyes have seen my ears); “chi ewelugo ehihie jie” (night has fallen at noon) and “akwu achago na odu igu” (the palm fruit has grown on the tip of the palm frond) indeed, “alu emego” (the abominable and unthinkable has happened!) This coro has become an “ogbunigwe” (a heartless mass-killer) and has shown that “onwu akpa oke” (death does not demarcate between the big and the small) and it is “olufolu be onye” (a visitor to all homes) and that “igwe nine jije na uzu” (ever iron will end up in the blacksmith’s). Even those who are not directly affected will also be affected because every palm fruit that enters the mortar must receive some wound. After all, we are all on lockdown with several unpalatable side effects, including hunger for those who live hand-tomouth. It has shown those who usually say “If it were me, if it were me”; well, if it were you, what will you do? The doctor that boasts of expertise in curing diarrhoea, how secured or immune is he? Even our courageous doctors have fallen to this ravenous and rapacious evil. And because the person stung by bees takes cover when he sees a tsetse-fly, any person who coughs now is looked at coronally! Yet, because “ebulu ozu onye ozo” … (another person’s corpse looks like a log of wood to an onlooker), some people who have not been affected directly look on nonplussed. But, “ometu imi, ometu onu” (whatever affects the nose will surely affect the mouth) Yes, “kwakam puta, kwakam esolu ya” (unusual times demand unusual measures) and even when our efforts appear futile or do not yield much results, we must continue to plant cocoa-yam, even if the flood sweeps our efforts away. For this corona, what is happening in “oke’s abode is also happening in Ogini’s homestead (everybody is afflicted) and for those who think they are beyond reproach, “ihe onye cho k’ofu” (whatever you want, you see); if you are in doubt, ask Funke Akindele and her husband! Actually, “ihe ka nte bakwutelu nte n onu” (something bigger than an ant has invaded the ants’ hole) and now, the Christmas goat is sweating, even though hairs (wool) have prevented us from observing the sweat. “Mbelede nyili dike’ (emergency situations overwhelm the great man) but emergencies are also occasions to know the real heroes. This coro is not the kind of race that women run, holding their breasts; it is not the fight that mothers fight for their children and it is not the type of dance that men dance with snuff in their palms. Unfortunately, “ana ekwu

na oya ezuhu oke” (while sicknesses have not been equitably distributed), those suffering from scrotal hernia are also getting afflicted with diarrhoea. China is also growing hanta-virus! Yes, the come has come to become, “Awusa abago awka” (the federal forces have entered Awka) but as the hen told the children, the flood will eventually ebb; it is just a matter of time! We are now aware that what is crawling and creeping all over the place is not millipede; it is a vicious snake. At the end of it all, we shall learn our lessons. Our people say that the person who knows only one route does not actually know his way. The guinea fowl also told the kids that while enjoying the yam, they should also taste the roots so that when the farmer harvests his yam, they would depend on the roots. I hope that those who depended on foreign hospitals, foreign holidays, foreign training and foreign shopping have learnt their lessons. They would not have suffered this level of culture shock if they had built local institutions and patronised local contents. And yet, “ana adihu mma bu ulu ndi nze” (troubles in the land also benefit the elders). People are exploiting the situation and benefitting from the people’s misery. That was why the palliatives cannot go round because some local champions have cornered the commonwealth. Umunnem (my brethren) wash your hands, stay safe, stay at home, be clothed appropriately because as our people say, whatever has a beginning MUST have an end. It shall come to pass. Other matters: where are our pastors and native doctors? When things get so complex, as in this ‘coronious pestilence’ we seek solutions from all sources, even the sources to which we really never attached much weight. We start remembering those who had made promises or boasted about their capabilities. After all, a drowning man holds tightly to the nearest straw. So, leaving what I think about these people aside, I want to openly ask: Where are our pastors and native doctors? Yes, where are they? The fact that I am placing pastors and native doctors on the same dock shows how bad things are in the casting and binding arena. So, now that the come has come to become, where are they? Where are those who regularly raise the dead, make the lame work, make the blind see, and attempted to walk on water all these years? In case you don’t know them, just go through the social media and you will know them and be as-

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Yes, the come has come to become, “Awusa abago awka” (the federal forces have entered Awka) but as the hen told the children, the flood will eventually ebb; it is just a matter of time! We are now aware that what is crawling and creeping all over the place is not millipede; it is a vicious snake

Dr Muo is of the Department of Business Administration, OOU, Ago-Iwoye

The lockdown is an opportunity to unlock Nigeria’s potential

equel to the ravaging coronavirus scourge, government at various levels has adopted as one of her strategies, the lockdown approach to contain the pandemic from spreading uncontrollably. This means restriction of movement for a period pending the fizzling of the crisis. While some see this development as having multiple downside and negative effects on our lives, I’m inclined to say that I see some upsides. The upside effects are twofold: on the part of government and on the part of the citizens. Firstly, I believe this incident should challenge our government to identify its role in facilitating developments in key areas of health,

education/literacy level, poverty alleviation and research. Most administrations seem to be confused about what should be their roles in addressing the inherent challenges in these key developmental variables. Lack of a strong ethical stance and corporate governance culture on the part of our leaders are responsible for our poor infrastructure and weak institutions and by extension our underdevelopment. Under the current situation our substandard health facilities and inadequate and poorly motivated health personnel come to mind. We have these problems because several administrations over the years have failed to appreciate their roles in implementing

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people-oriented agenda for social impact. This is simply why the vulnerable groups in our society are not willing to stay at home because majority of them live from hand to mouth. This takes us to the issue of a social security system which is non-existent in Nigeria. Here, everyone fends for himself or herself, as there are no safety nets. Interestingly our governments cater for government officials and the elite and not for the people. I strongly believe that this pandemic offers our leaders a breath of fresh opportunities to reassess themselves, reset their goals and priorities their roles in national development. The second upside benefit is for individuals. This period of hibernation avails us the

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tounded by the audacious claims they have been making over the years and up to 26/2/20 when we were visited by that mean, unseen and unknown scourge. Now, CORO is in town, creating a season of wailing, weeping, mourning and gnashing of teeth. Indeed, the day of adversity is here! So, where are they; the pastors and native doctors who could do and undo? The other day, Prophet David Kingleo Elijah, General Overseer of Mount of Possibility Church, Ojo, Lagos, vowed to go to China to destroy the deadly Coronavirus. Pacing on the stage (not pulpit), he boisterously declared that “I am going to China to go and deal with Coronavirus. I am going to prophetically destroy Corona Virus. Now that CORO is rampaging his “door mouth”, and when he has been saved the flight, visa and other requirements of going to China, what is holding him? Why has he gone underground? Recently, one character called Odumeje, alusi nae je uka (an idol that also goes to church!) and the lion himself invaded our social space with his own brand of pastoring. And before long he was challenging and being challenged by native doctors as to who could raise people from the dead and destroying people’s shrine via ‘holy ghost fire’. Why did they not sheath their sword, combine forces and face Oga-Coro? I would have invited the GO of Hand of Healing Ministry who sent coro out of Edo State. But they ‘don fall im hand’ because as I write, Coro is ravaging the state, with 4 already down! Where are those who held weekly magic sessions involving people from all over the globe, whom were cured of all imaginable and inconceivably ailments by verbal orders and other stunts? This is not “them say” because they force these stunts on us through satellite TVs! Yes, where are they? Meanwhile, in other lands the pastors are “powering” on. Pastor Augustine Yiga of Revival Church Kawaala in Kampala, has been arrested by the police for saying that there was nothing like CORO and that it was an ordinary flu. He has been charged for undermining government efforts in fighting the pandemic and misleading the public. Televangelist Jim Bakker has also been sued by the State of Missouri (US) for selling a false and fake anointing oil against CORO. And Kenneth Copeland, a ‘compassionate’ shepherd, had directed his sheep to keep on tithing, since their source is God, not their businesses and their jobs.

Ayobola Abiola

opportunity to reflect deeply about our life, our purpose, family and core values, our duties and obligations to our country and by extension our role in national development. Overall, I feel the current lockdown offers us a new beginning to unlock our potential as individuals as well a nation. Abiola is an economist and a chartered banker who lives in Lagos.

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Thursday 09 April 2020

BUSINESS DAY

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Your business and the storms Jovita Madojemu

he other day someone asked why I was so calm and seemingly unflappable in these crazy COVID times. I smiled. Am I concerned? Of course, I am. But you see, when you decide to venture into business, it would be remiss and even naïve to think that it will always be rosy. As a matter of fact, if you are truly doing business, then you must know that it is a constant battle. Agitations, tantrums and nervous breakdowns don’t help you through. The calm helps you assess and make the important next steps. Understanding that the environment of business is flux filled, discerning business owners conserve as much as they can when the going is good, because there will be times when the reserves will be needed to tide over the storms. The storms do not last forever. The mistake is to eat all you have in a particular period because you believe you will make the same amount or even more in the next period. This is another

reason why as accountants, we are always preaching budgeting. You see, if it wasn’t COVID-19 today, it could have been something else. It could have been an unprecedented invention making your product or service obsolete, it could have been death of key stakeholders in the business, it could have been an adverse government policy, it could have been anything. After COVID-19, there will be many more storms! That is the environment of business. It is as unpredictable as it is enabling. Now that you are faced with COVID-19, and you were totally unprepared, what do you do? Your first action is not to fire your staff! This, in my opinion, is always the easy way out. The reason why I never subscribe to this as a first resort is that there are other elements to your total expenses. You do not want to give the impression to your work-force that human resource is dispensable, because when the storm is over, you will not attract the right kind of talent, seeing that your bad reputation now precedes you. In dealing with human resource, you need to know that whatever strategies for growth you want to execute, you will need the right kind of hu-

man resource to implement them. Making your staff priority during the storm is how you consolidate for growth in the aftermath. It is true you may have to explain delays in payment, but it is only a temporary situation. Salary is just one item in your Statement of Profit or Loss. You need to know what the other components of your total expenses are, then make the decision to cut down as much of them as possible in the coming months. For instance, if you are still thinking of spending on a huge vacation later this year, you need to scale down that plan considerably and plough that money into multiplying revenue and consequently net profit. Also, now may be the time to evaluate your inventory position and set a plan in motion to clear out all slow-moving items by cutting down selling price. You need the cash to be injected into fast moving items. Yes, it is a temporary loss, but you recover it by turning around that freed up money as much as possible. After the storm, you need to expand your playing field. You have stored up energy in the lock-down, so you need to run as fast as you can, collaborating with individuals and

‘ Remember, there will always be storms, so do not eat all of your harvest! The saddest thing that can happen is for you to forget this lockdown period in a hurry and repeat the same mistakes of not conserving for the rainy day

businesses that will give you a wider reach and make as much money as possible, so you can conserve it! Remember, there will always be storms, so do not eat all of your harvest! The saddest thing that can happen is for you to forget this lockdown period in a hurry and repeat the same mistakes of not conserving for the rainy day. Multiply and conserve. That should be what we keep in the fore of our mind going forward. It is okay if you have lost income now. A temporary loss of income is not the end of your business. What you must do is to keep your mind alert and prepared for the next open window. Then you must run as fast as you can, because there will be another storm yet. It’s business; what else did you expect? Cheers to immortalising your business! Jovita Madojemu is the Managing Director of Pundit Bookkeeping Services; a company bridging the gap between emerging businesses and professionally prepared accounts. Jovita seeks to empower young businesses with financial intelligence, for business growth and sustainability. Follow Jovita Madojemu on: Instagram @jovitamadojemu, @punditbk, Twitter @punditbk, Email – jmadojemu@punditbookkeeping.com

Repression as a tool for combating Covid-19: Nigeria in focus

t’s no longer news the entire world has come to its knees due to the ravaging effect of the insidious COVID-19. Accordingly, world leaders and multilateral institutions have stepped in to save lives and manage to at least keep the badly affected global economy which is now in intensive care unit on life support. It’s interesting to see how one-time geopolitical foes who were once torn apart by ideological differences, which subtly exists today, have given way to mutual cooperation in line with the very idea of the Kantian notion of perpetual peace in order to save lives, with Moscow reaching out to Washington with medical equipment, and Havana to Rome, to mention a few. There is something instructive about these relations across territorial borders in this trying moment. For me, it shows that no matter the sophistication of a country’s nuclear arsenal and its economic success which assures it a hegemonic status, that insurance is not sufficient in the light of COVID-19. Given the huge infrastructural deficit in Africa, especially in the medical sector, we hope is that COVID-19 spread in Africa shouldn’t go beyond what it is now. Otherwise, the combined casualties of the Second World War and the holocaust would be nothing near what would happen. Despite the challenges of governance occasioned by ethnic chauvinism, grand corruption, state capture, etc., somehow, Nigeria adroitly has a way of managing pandemics. The Ebola episode is one such instance. With COVID-19, the effort(s) of the government is perceived by Nigerians with mixed feelings. While the federal and sub-national governments hurriedly came up with makeshift arrangements (medical), it’s heartwarming to also see how sub-national governments have effectively deployed their executive power (not for political reasons as it’s always

been the case) to contain the disease. It is worth noting that Lagos State has been exceptional and outstanding in the battle against COVID-19. Also, the role of the private sector and public-spirited individuals in complementing that of the government is both impressive and commendable. All these put together mitigated the spread of the insidious disease across the country. However, there is a snag to this effort. Aside from the government’s slow response to calls by Nigerians to close national borders and international airports, its stay at home directive/order which is backed by the use coercion in by deploying armed personnel without explicitly spelling out the rules of engagement and the consequences of violating them is unfortunate, to say the least. To the security services, their deployment without “strongly” echoing the caution of civility was a license to mercilessly and ruthlessly deal with Nigerians, including resort to extrajudicial killings. Incidentally, Nigeria is not an isolated case in Africa. The new media space in Nigeria is flooded with videos containing bestial scenes of security men serially torturing Nigerians. The most unfortunate of this bestiality was the brutal murder of an innocent Nigerian by a soldier in Warri, Delta State. It is sad to note that with this turn of events, whatever credit the government has earned in its combine effort(s) to contain COVID-19, that is now on the debit side of the balance sheet. Yes, COVID-19 is an insidious disease; but in spite of its insidious nature, it doesn’t brutalise and sniff life out of people the way men of the security services do in Nigeria, because with good medical attention, the possibility of one recovering it is very high. So, why the ruthlessness and killing of innocent civilians for “supposedly” defying the stay at home directive? Is this the best way to command obedience in a polity

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that claims to be a democracy? Why this macabre display of barbarism reminiscent of primitive society? This is sad! While the hierarchy of the security services assured Nigerians of the civil conduct of its men when complaints of their ruthlessness became deafening, it is sad to note that allowing their bestiality get to the extent of taking the life of an innocent Nigerian shows it is not in control of its men in the field. More worrisome and exasperating is the action of the government in the response of Secretary to the Government of the Federation (SGF), Boss Mustapha, which I consider “unstateman”. During a briefing in session with the Presidential Task Force on Coronavirus, the attention of the SGF was drawn to the unprofessional conduct of security men in enforcing the stay at home order and responded by blaming Nigerians for not being law-abiding citizens. It would not be entirely wrong to say that the failure of the government to address the issue of highhandedness on the part the security services further embolden them, which resulted in the death of a Nigerian. Well, the SGF only did what the government is known for. Suffice it to say that, the government’s confirmed its notorious disposition in abusing human rights in a democratic order which it exhibited over time, including the willful desecration of the temple of justice with armed security men. It is quite unfortunate that the only way most Nigerian governments in the subsisting dispensation, especially the one led by General Muhammadu Buhari (GMB) have this predilection for using a violent approach in relating with the on civil matters. To show how emboldened the security personnel was because the government did not its action reprehensible, a very offensive video trended (is still trending) on social media wherein two soldiers boldly threatened to sexually abuse Warri women

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Martin Ihembe

and daughters, kill them, and even give them HIV; all because they (soldiers) alleged one of their men was killed in Warri. This allegation of a dead soldier has been confirmed by the police to be false. Well, media report has it that the Nigerian Army has acted on the matter and the soldier in question has been arrested. This is what we hear whenever a trigger-happy soldier or policeman engages in unprofessional conduct that involves the life of a Nigerian, and the matter dies without any action taken. This time, the Civil Society, NonGovernmental Organisations (NGO) and other organisations responsible with carrying out societal accountability must ensure that these soldiers and other policemen involved in this act of ruthlessness face the full wrath of the law in order to douse tension and avert what appears to be an impending youthquake. Now that COVID-19 has shown our leaders that they are not safe, even in Europe and America; they should keep in mind that when this is all over, they have to start having serious conversation about possible ways of building critical infrastructure in Nigeria, especially in the health sector. This conservation must be marched with action. Ihembe is a postgraduate student in the Department of Political Sciences, University of Pretoria. He can be reached via martinihembe@gmail.com

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BUSINESS DAY

Thursday 09 April 2020

Editorial Frank Aigbogun

Managing Nigeria’s funds in the coronavirus era

editor Patrick Atuanya

The FG must articulate a SMART programme for managing coronavirus

Publisher/Editor-in-chief

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

Bashir Ibrahim Hassan

GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu

longside talk of the coronavirus, all citizens seem to hear nowadays is a deluge of cash chasing the cause. There seems to be plenty of money without identified projects and targets. Amid this comes the ear-jangling disclosure by the Minister of Finance and National Planning that Nigeria is seeking a loan of $6.9 billion for the same coronavirus cause. Hello? Central Bank governor, Godwin Emefiele put together a team that has raised approximately N21 billion by 6 April to support the government’s effort on coronavirus management. Several private sector players have also contributed. The Coalition Against Covid19 (CaCovid) will raise public awareness, support healthcare professionals, institutions and governments as well as mobilise private-sector leadership and resources. CaCovid will build and equip medical tents as testing, isolation and training centres as well as recruit personnel to tend the sick. On Monday, 06 April 2020, CaCovid announced a cash taking of N21.5 billion from 50 donors.

On the debit side of the ledger, the Federal Government claimed to have disbursed N3 billion initially to beneficiaries of its conditional cash transfer scheme as a palliative for the corona-induced lockdown. Within a week, Information Minister Lai Mohammed claimed the government disbursed N100 billion nationwide. He did not state the number of beneficiaries, except that the distribution was based on existing records. Juxtaposing the efforts of CaCovid and the Federal Government’s expenditure pattern and amounts points to a huge deficit. While the team led by the Emefiele is building cash reserves the slow and steady way and through collaboration and engagement, the Federal Government is spending like a man at a casino. No accountability and no proper ledger in documenting the expenditure. N100 billion in a week? Enter the familiar debt lane of the federal government. Finance Minister Zainab Ahmed announced 6 April that the Federal Government would borrow $6.9 billion from multilateral lenders as funding for efforts to stop the spread of the coronavirus. The loans will come as $3.4 billion from the International

Monetary Fund, $2.5 billion from the World Bank and $1 billion from the African Development Bank. The federal government will also release $150 million from the Sovereign Wealth Fund to assist state governments with revenue. The rationale? According to the Finance Minister: “The intervention is vital to create fiscal space for states as well as the federal government to enable all of us to deal more adequately with the health challenges and economic impact of the crisis.” What will these loans tackle specifically? Nigeria currently spends 25 percent of its resources on debt servicing and only 5 percent on health. The additional debts will enter the books in the name of health, but there are no clear projects and programmes yet. How much of it will go into health? The federal government needs to now articulate a SMART programme for managing coronavirus. It should be strategic and specific, be measurable, achievable, realistic yet ambitious and give a time frame. For instance, what is the tenor of the proposed loans? For how much longer after coronavirus must have left these shores would we be confronted with loan repayment?

We do not support additional loans given where we stand with loans as a nation. Rather, we endorse CaCovid collaboration. We urge the partners to look beyond tents and consider building more permanent structures. They should equip them adequately for the long haul given the very low base of the country in health infrastructure. Ca-Covid builds on goodwill, good citizenship and patriotism. Partners and contributors are chipping in for a good cause. They are keen on remedying the poor state of things and want the best for Nigeria. We believe that once they name good projects and commence execution, even more companies and individuals will join. They can look to the Muson Centre model executed by the Musical Society of Nigeria with the support of Corporate Nigeria. In project execution, they could borrow the stake holding paradigm initiated by NLNG and now adopted by the oil majors. States and geopolitical zones should bid for the projects with equity in various forms. We could just have a citizen-led healthcare infrastructure funding paradigm that can and should outlive Covid-19.

HEAD, HUMAN RESOURCES Adeola Obisesan

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

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Thursday 09 April 2020

BUSINESS DAY

Investor

In association with

Helping you to build wealth & make wise decisions Market capitalisation

NSE All Share Index

NSE Premium Index

The NSE-Main Board

NSE ASeM Index

NSE 30 Index

NSE Banking Index

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

931.17 892.24

247.49

118.09

327.02

211.50

1,550.49

1,041.07

840.12

234.47

117.77

314.16

216.42

1,504.36

1,028.33

816.22

-5.26

-0.27

Week open (27-3–20)

21,861.78

N11.393 trillion

1,847.61

886.49

734.99

Week close (03-4–20)

21,094.62

N10.994 trillion

1,749.72

871.08

734.99

Percentage change (WoW) Percentage change (YTD)

-3.51 -21.41

-5.30 -21.41

-1.74 -24.37

0.00 0.00

-4.18 -24.25

-34.29

-6.40

-3.93 -47.01

NSE Lotus II

2.33

-2.98

-47.01

-18.01

NSE Ind. Goods Index

-1.22 -4.39

NSE Pension Index

-2.84 -22.56

CHI Plc: Shareholders have till May 1 to take their Rights Iheanyi Nwachukwu

hareholders of Consolidated Hallmark Insurance (CHI) Plc have till May 1, 2020 to take their Rights in the ongoing rights issue of the company. This is because the Securities and Exchange Commission (SEC) has approved a further extension of the CHI Plc rights issue offer period. By the SEC approval, the offer which was initially scheduled to close on Wednesday April 1, 2020 will now close on Friday May 1, 2020, according to the Nigerian Stock Exchange (NSE) in its April 3 note signed by Godstime Iwenekhai, Head, Listings Regulation Department. The acceptance list of the Rights Issue had opened on Monday February 24, 2020. Consolidated Hallmark Insurance Plc is offering its existing shareholders 2,032,500,000 ordinary shares of 50kobo each at 52kobo per share. The Rights Issue is on the basis of one (1) new ordinary share for every four (4) ordinary shares held as at February 3, 2020. By this Rights Issue, the insurance company targets to raise additional sum of N1.05billion to increase its capital base. CHI shareholders believe in the

intrinsic value of the company, no doubt the extension offers them more opportunity to take up their Rights. A look at the shareholders who held more than 5percent of the issued share capital of the Company as at December 31, 2019 shows: Capital Express Assurance Company Limited (1billion units or 12.30percent); S P D C We s t M u l t i p u r p o s e Cooperative Society (500million units or 6.15percent); Ugo (Dr.) Obi Ralph Ekezie (467,283,121 units or 5.75percent); Eddie Efekoha (704,840,451 units or 8.67percent); and Niger Delta Exploration & Production

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Plc (1,329,832,063 units or 16.36percent). The full year financials show the company’s basic and diluted earnings per share of 7.21kobo in 2019 against 5.36kobo in 2018, up 56percent. Consolidated Hallmark Insurance Plc impressed shareholders in its recently published audited financial statements for the year ended December 31, 2019. While the Group’s Gross Written Premium of N8.69billion in 2019 against N6.86billion represents 27percent increase; the Gross Written Premium of the company also stood higher in 2019 at

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N8.385billion from N6.775billion in 2018, up 24percent. T h e g ro u p c o m p r i s e s o f Consolidated Hallmark Insurance P l c ( t h e c o m p a ny ) a n d i t s subsidiaries - CHI Capital Limited, Hallmark Health Services Limited, CHI Microinsurance Limited (in formation) and Grand Treasurers Limited. CHI Capital Limited has one wholly owned subsidiary ‘CHI Support Services Limited’. The Group Under wr iting Profit of N1.82billion as against N1.20billion in 2018 represents 51percent increase. Profit Before Tax (PBT) printed higher at N711.474million against N534.437million in 2018, up 33percent; while the company’s PBT was N667.381million in 2019 against N459.688million in 2018, up 45percent. The Group Profit After Tax ( PAT ) o f N 6 0 0 . 3 1 4 m i l l i o n against N406.710million in 2018 represents 48percent increase; w h i l e t h e c o m p a n y ’s PAT increased to N586.073million in 2019 from N376.024million in 2018, representing 56percent increase. The rights issue was one of the series of steps approved by shareholders of the company at an extra-ordinary general meeting in November, 2019 where the directors were unanimously given the mandate to embark on various measures to meet the new N10billion required minimum capital base of operators in the

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general business and special risks category. In the last two years, in consideration of the need for higher working capital and risk retention capacity, CHI had proactively embarked on fund raising through a rights issue and private placement, both of which were fully subscribed. The lead issuing house to this offer is Planet Capital Limited, supported by SFS Financial Services Limited and IWorld Financial Services Limited as joint Issuing Houses, while Meristem Registrars acted as the registrar to the offer. Consolidated Hallmark Insurance Plc is a General Business and Special Risks Insurance underwriting firm fully capitalized in line with statutory requirements of the industry regulatory body – National Insurance Commission. The company underwrites Aviation, Oil and Gas, Marine Cargo and Hull and other non – life insurance underwriting including Motor, Fire and Special Perils, Goods-in-transit, Engineering Insurance and General Accident insurance businesses. The Company identifies prompt claims payment as a means to achieving customer satisfaction and therefore emphasizes prompt claims payment in its operations. The company also invests its available funds in interest bearing and highly liquid instruments to generate adequate returns to meet its claims obligations.

Thursday 09 April 2020

BUSINESS DAY

Investor Helping you to build wealth & make wise decisions

Investor’s Square

United Capital Investment Views

Equities market tests new low

erformance of the equities market remained lacklustre, as the NSE All Share Index dipped 3.5percent week-on-week (w/w), to close at 21,094.6 points. Consequently, the YTD loss worsened to -21.4percent. In terms of value, investors lost N399.8billion w/w, as market capitalization fell to N11trillion. Activity levels were mixed as average volumes traded increased by 5.7percent to 306.9million, while average value traded declined by -24.5percent to N2.3billion. Also, market sentiment was broadly negative across sectors. The Banking (-5.3percent) sector led the losers, due to declines in UBA (-7.5percent), ZENITH (-5.6percent) and GUARANTY (-4.6percent). The Consumer goods (-3.9percent) sector followed suit, owing to losses in NB (-13.7percent) GUINNESS (-9.9percent) and INTBREW (-9.3percent). In the Industrial goods (-1.2percent) sector, Cement heavyweights – WAPCO (-3.8percent) and DANGCEM (-3.6percent) – both declined. Similarly, telecoms giant, MTNN (-8percent) fell w/w. Last on the laggards table was

International Breweries reported a 9.7percent growth in revenue to N132.4billion but recorded a Loss after tax of -N27.8billion. Similarly, Unilever’s revenue came in 34.9percent weaker with a Loss after tax of -N7.4billion. In addition, FCMB group reported a 2.3percent growth in Gross Earnings to N181.3billion, and a growth of 15.8percent in Profit after tax to N17.3billion. The bank also declared a dividend of N0.14/share. Generally, investors’ sentiment was weak as market breadth settled at 0.4x. On a week on week basis, 14 stocks gained, while 35 stocks declined. This week, we expect sentiment for stocks to remain broadly tepid, with renewed interests anticipated on select blue-chip stocks, as discerning investors continue to take advantage of the current market valuation. Money Market : CBN’s surprise CRR credit buoys system liquidity At the start of the previous week, Interbank funding rates Open Buy Back (OBB) and Over Night (O/N) rates were in the double-digit region, as FX sales debit by the Central Bank of Nigeria (CBN), lowered

the Insurance (-0.3percent) sector, dragged by losses in Cornerstone (-6.9percent). Contrariwise, the Oil & Gas (+2.3percent) sector gained, bolstered by gains in Mobil (+9.8percent) and Oando (+6.3percent). Also, in line with our outlook in the preceding week, Healthcare stocks continued to receive buying interests, as GLAXOSMITH (+24.7percent), MAYBAKER (+9.7percent), Union Dicon (+7.7percent) and Fidson (+3.7percent) gained w/w. Consumer names, International Breweries and Unilever Nigeria submitted their F Y-2019 financial results during the week.

system liquidity. However, major inflows from OMO maturities (N288.5billion), NTB maturities (N95.7billion) as well as a surprise CRR credit (about N310billion) during the week, buoyed system liquidity. Also, lower outflows were recorded, as the CBN mopped up only N4billion via OMO sales and total NTB maturities via an NTB auction. As a result, average interbank funding rates which started the week at 15.1percent, ended the week at 2.4percent. At the primary market, the CBN mopped up only 1.4percent of the total OMO maturities that hit the financial system. Notably, there was

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no demand for the 75-day bill, while the 180-day bill was oversubscribed (bid to cover: 2.8x), and the 362-day bill was undersubscribed (bid to cover: 0.21x). As such, there was no sale on the 180-day bill, while the apex bank allotted only N4.0bn of the N100.0bn on offer for the 362-day bill. Also, stop rate closed at 12.8percent, a lower level from the 17percent -18percent range that was demanded at previous OMO auctions. Meanwhile, at the primary NTB market, local players continued to bid aggressively for the tenors offered, with bid to cover for the 91-day at 2.1x, 182-day at 1.6x and the 364-day at 1.6x. Despite the impressive bid, the CBN only allotted what was offered, at N95.7billion. Notably, stop rates declined across all tenors: 91-day bill at 2.2percent (previously: 2.3percent), 182day at 3.2percent (previously: 3.4percent) and 362-day at 4 . 3 p e rc e nt ( p re v i ou sly : 4.6percent). Elsewhere, at the secondary market, we observed some buying interests, as players with idle liquidity took positions in NTBs. Thus, average yield declined by 49bps w/w to settle at 3.2percent. Also, a similar performance was observed at t h e O M O s e c o n d a r y market, as average OMO yield declined by 1.7percent w/w to 13.8percent. This week, we expect the financial system to remain awash with liquidity, given maturities from OMO bills (N130.9billion) and the trend of lower sales observed at the most recent OMO auctions. Bond Market : Selloffs persist at the Eurobond market In the previous week, the local secondary bond market was on steroids, as the influx of maturities for the week filtered into the bond market. As a result, average yield dropped by 25bps w/w to 11.77percent. Notably, there were significant interests across all bond maturities, as yields on all instruments declined, excluding the 2023 bond which recorded an increase in yield. At the Eurobond market, g e n e ra l s e n t i m e n t w a s downbeat, as oil prices dipped to its lowest point this year at $22.7/b on the 31st of March, causing massive selloffs in Nigeria’s sovereign instruments.

•Have you been shabbily treated by your registrar, stockbroke r or other capital market operators? Let us know and investor will help you investigate and report back. E-mail: iheanyi.nwachukwu@businessdayonline.com

Fixed Income and Currency Market Review:

FX, OMO bills remain most actively traded products Iheanyi Nwachukwu

he turnover in the Fixed Income and Currency (FIC) markets for the month ended February 29, 2020 was N23.47trillion. This represents a month-on-month (MoM) increase of 1.21percent from the turnover recorded in January 2020 (N23.19trillion) and a year-on-year (YoY) increase of 22.37percent (N4.29trillion) from the turnover recorded in February 2018 (N19.18trillion). The FIC market monthly report at the FMDQ Securities Exchange shows that Foreign Exchange (FX) and OMO bills remained the most actively traded products, jointly accounting for 72.48percent of the total FIC market turnover recorded in February 2020. FX Market Total FX market turnover in Februar y 2020 was $27.12billion (N9.90trillion), representing a MoM increase of 11.37percent ($2.77billion) from the turnover recorded in January 2020 ($24.35billion). Analysis of FX market turnover by trade type indicated that turnover increased MoM across all categories, excluding the Inter-Member trade type which recorded a MoM decrease of 9.14percent ($0.30). Further, analysis of FX market turnover by product type indicated that the MoM increase recorded was majorly driven by the MoM increase of 21.90percent ($2.73billion) in FX Spot turnover, which accounted for 98.66percent of the MoM increase in total FX market turnover. In the OTC FX Futures Market, the

near month OTC FX Futures contract (NGUS FEB 26 2020) with a total open contract value of $2.03billion matured and was settled. In February 2020, fortyseven (47) new monthly longterm OTC FX Futures contracts were introduced, increasing the number and tenor of monthly OTC FX Futures contracts to sixty (60). These new long-term OTC FX Futures contracts, i.e. fourteen (14) – sixty (60) months contracts, were introduced for hedging specific eligible underlying transactions, and offered at futures prices ranging $/ N367.38 - $/N380. Consequently, the total value of open OTC FX Futures contracts as at February 29, 2020 stood at c.$10.87billion representing a $1.10billion increase on the value of open contracts as at January 31, 2020 (c.$9.77billion), while the total value of contracts settled since inception to date stands at c.$38.43billion. The CBN Official Spot $/N exchange rate appreciated against the US Dollar by $/ N0.05 to close at $/N306.95 in February 2020 (January 31, 2020 - $/N307), while, FX ($/N) rate in the parallel market remained constant against the US Dollar to close

at $/N360. However, the Naira depreciated against the US Dollar at the Investors’ and Exporters’ (I&E) FX Window by $/N1.28 to close at $/ N365.25 in February 2020 ($/N363.97 as at January 31, 2020). Fixed Income Market (T.bills, OMO bills and FGN Bonds) As at February 29, 2020, total T.bills outstanding remained flat at ₦2.65trn while FGN Bonds outstanding decreased MoM by 4.57percent (N0.45trillion) to N9.39trillion. Similarly, OMO bills outstanding as at February 29, 2020 decreased to N11trillion from N12.20trillion as at January 31, 2020. Liquidity in the T.bills market segment declined further in February 2020 as trading intensity for T.bills fell to 0.13 from 0.17 in January 2020 as investors continue to hold their T.bills investment to maturity. Conversely, the trading intensity for OMO bills increased from 0.53 in January 2020 to 0.61 in February 2020 as OMO bills turnover recorded a MoM increase of 6.43percent (N0.43trillion) to N7.12trillion in addition to the MoM decreases in outstanding OMO bills as at February 29, 2020.

LCH EquityClear to clear, risk-manage 40m trade sides per day

ondon Stock Exchange Group’s technology solutions provider (LSEG Technology) has successfully implemented a new clearing platform for LCH’s EquityClear service. The platform delivered to LCH (a UK-registered clearing house) is configured to clear and risk-manage 20 million trades (40 million trade sides) per day at a throughput of 1600 trades per second. The platform successfully processed EquityClear’s largest ever volumes processed with nearly

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80 million trade sides cleared in the first five days of operation. The risk management and trade processing platform offers a highly efficient, resilient and scalable solution for a variety of clearing, operations and risk management processes. EquityClear connects to 16 trading platforms and 19 Central Securities Depositories (CSDs) across Europe, settling in 18 currencies. EquityClear is LCH’s UK-based equities clearing service. EquityClear provides clearing for cash equities and cash equities @Businessdayng

equivalents, enabling members and their clients to clear cash equities transacted on exchanges and trading venues located throughout Europe. In addition to cash equities, members may clear Exchange Traded Funds (ETFs), Exchange Traded Commodities (ETCs) and Real Estate Investment Trusts (REITs). L S E G Te c h n o l o g y ’s innovative post trade technology offers zero touch straight through processing (STP) and parallel real time processing using hardware acceleration.

Thursday 09 April 2020

BUSINESS DAY

COMPANIES & MARKETS

COMPANY NEWS ANALYSIS INSIGHT

MARKETS

Analysts predict mixed fortune for consumer goods firms over COVID-19 fallout OLUFIKAYO OWOEYE

o n s u m e r goods analysts have predicted a tale of two halves for fast moving consumer goods amid a lock down in major cities of the country. In a bid to curtail the spread of the deadly Coronavirus, President Muhammadu Buhari announced a restriction of movement Abuja, Lagos and Ogun States for 14-days. This has also been followed by similar announcements by some states in the country. The announcement has however seen a surge in demand for major househ o l d i t e m s, b e v e r a g e s & food stuff as consumers make quick purchase ahead of lockdown with palpable fear that it may be extended beyond the initial 14-days. In a report by SBM Jollof Index for Q1 2020, prices of food stuff such as Garri ballooned by 78percent,

122percent, 100percent, 67percent, 114percent, 10percent, 45percent and 50percent in Lagos,

Ibadan, Anambra, Calabar, PH, Bauchi, Abuja and Kano respectively. This rush is expected to

ahara Foundation, the personal and corporate social responsibility vehicle of energy conglomerate, Sahara Group in collaboration with leading African media group - ThisDay, will deliver a minimum 200-bed isolation, recovery and treatment centre to support the government in containing the COVID-19 pandemic, the foundation has said. The facility has a potential of holding 300 beds for isolation, recovery and treatment of patients and will be situated in Abuja, one of the worst-hit states by the COVID-19 pandemic. “The iconic ‘ThisDay Dome’ will house the centre which is due for completion by April 20, 2020,” said Emeka Onwuamaegbu (a Retired Major General) Chairman. Sahara Charitable Foundation in a press statement.

Akinloye, consumer goods analyst at CSL Stockbrokers “We see a positive im-

L-R: Alain Assounga, head , Nephrology unit , Nelson Mandela Medical School, SA; Mohamed NasrAllah, from Cairo University; Sam Yenyi, state coordinator, WHO; Ibijoke Sowoolu, first lady , Lagos State; Gabriel Sowemimo, chairman of the occasion ; Ebun Bamgboye, consultant physician/nephrologist , and Sola Aketi, representing , director of Nursing Services , Lagos State ministry of health , at the World Kidney Day 2020, themed chronic kidney disease” stop the epidemic in Africa” by Kidney Foundation for Africa in Lagos. Pic by Pius Okeosisi

Sahara Foundation, ThisDay to deliver 200-Bed Isolation Centre to NCDC SEGUN ADAMS

impact the top line of major players in the consumer goods space. According to Ayorinde

“The facility will be run by professional doctors and health care workers with ventilators and other appropriate medical equipment.” According to Sahara Charitable Foundation, the project which will be handed over to the Nigerian Centre for Disease Control (NCDC) through the FCDA upon completion, is being supported by other partners in keeping with the spirit of collaboration which has seen the nation rise to the challenge of tackling the scourge as one indivisible and cohesive unit. China Civil Engineering Construction Corporation (CCECC) Nigeria facilitated the civil works required to prepare the ThisDay Dome for seamless conversion into the isolation centre at no cost, which has paved the way for ongoing extensive construction work aimed at delivering the facility on schedule. Other partners include;

t h e A r i s e Ne w s, E gb i n Power Plc, Abuja Electricity Distribution Company (AEDC), Nigerian National Pe trole um Corp ora tion (NNPC) representing stakeholders in the oil industry, Africa Finance Corporation (AFC), and Central Bank of Nigeria (CBN). “We are also grateful to the Presidency, the Ministry of Foreign Affairs, Ministry of Health, The Regent School, Kenol Engineering, Mama Cass Foods, Wood Factory, Ebewele Brown Clothiers, Dr Madu (the medical coordinator) and the NCDC for their unwavering support and service,” said Onwuamaegbu. Sahara Foundation said the project will help save lives, accelerate the process of halting the COVID-19 menace and ultimately propel the nation’s march towards sustainable development across all sectors of the economy.

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pact in H1 2020 as consumers have stocked up and continue to stock up ahead of expectations of lock down in various parts of the country. Akinloye said companies with several essential consumables in its product portfolio, would be a prime beneficiary of such bulk purchases. “However, post COVID-19 is filled with uncertainties as possibilities of a possible recession grows which implies a possi bly bleak H2 that could smoothen out any gains from H1,” he said. Akinloye further noted that the macroeconomic outlook in Nigeria is gradually turning bleak with a recession very imminent. “Thus, we believe, post COVID-19, Nigerian consumers would see purchasing power weaken on currency devaluation, higher inflation, unemployment and low er income,” he added.

COMPANY RELEASE

COVID-19 : Opera users to access information on its enhanced mobile browsers

s the pandemic expands across the African region, Opera is doing its part in keeping millions safer during the outbreak by adding a speed dial to the Opera Mini browser and Opera browser for Android, enabling people with quicker access to official information from local government and the ministry of health about COVID-19 per country. With this addition to the speed dial, Opera is helping millions of users in 38 African countries with official information about the actual increase of COVID-19 cases per country, tips and recommendations on how to reduce the risk of infection, and the latest governmental statements about lockdowns per country. “Our mobile browsers and news applications are used by nearly 120 million

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people across the African continent. By adding the COVID-19 speed dial into our mobile browsers, we are helping people make more informed decisions about how to deal with the pandemic in their local communities.” said Jørgen Arnesen, Head of Marketing and Distribution at Opera. The Opera Mini browser and the Opera browser for Android have also included a dedicated news channel with the latest local and global news related to coronavirus outbreak. The channel displays a feed of the top stories and most relevant local articles, as it uses the personalized AI news engine of Opera News. Opera users can access the channel by swiping right on the home screen of the Opera Mini and Opera browser for Android. The dedicated news channel is currently available in @Businessdayng

Algeria, Angola, Burkina Faso, Cameroon, Democratic Republic of Congo, Egypt, Ghana, Guinea, Ivory Coast, Kenya, Morocco, Mozambique, Nigeria, Senegal, South Africa, Tanzania, Uganda, Zambia and Zimbabwe. Multiple national authorities have already taken measures to prevent the spread of the virus in different African countries. With solutions such as quarantine and isolation being implemented as measures to reduce the risk of increased cases, people across the African continent are working remotely, accessing online entertainment services, and spending more time on the web. In remote communities, this is becoming a challenge as networks get overcrowded, become slower, and consume more data - which already comes at high costs.

Thursday 09 April 2020

BUSINESS DAY

COMPANIES&MARKETS

Business Event

ENERGY

Why there is significant improvement in power supply -Eko Disco OLUSOLA BELLO

n a bid to strengthen its network and improve power supply to it customers across its network, Eko Electricity Distribution Plc (EKEDP) has spoken of the recent investments in the Electricity infrastructure within its franchise coverage area, claiming these investments are responsible for significant improvements in the power supplied to its customers. Consequently, it is set to deploy a 15MVA, 33/11KV Mobile Power Transformer which will provide temporary solution in emergency situations by ensuring supply of electricity to areas experiencing a power outage due to the failure of the existing Power Transformer - pending its repair. In addition to the Mobile

Power Transformer, company has also acquired fifteen 500 KVA transformers to ease the load on current transformers and cater to network expansion. Investments have also gone into the rehabilitation and maintenance of 11KV and 33KV Feeder lines across Lekki and its environs. According to Godwin Idemudia, EKEDP’s Head, Corporate Communications revealed that the Company had embarked on a series of projects focused on reinforcing its network’s stability to safeguard the power supply and safety of it customers. He said residents under its Lekki Business district are the initial beneficiaries of the improvements to its infrastructure. “Power supply in Lekki has improved significantly and will only get better as numerous upgrades to our

infrastructure are underway,” he said. He also pointed out that the deployed equipment utilises the latest technological advancements and adheres to the best global safety practices thus ensuring improved power supply and enhanced customer satisfaction. Idemudia commended EKEDP’s customers for their continued support and urged them to fulfil their obligations by paying their Electricity bills on time as this would enable the Company embark upon even more investments in its infrastructure. “These projects are evidence of the Company’s ’s commitment towards improved customer satisfaction and they are targeted to all areas within its operational network in order to make electricity more accessible and effectively distributed.”

Coronavirus: SON to deploy 29 international standards on Nigerian made essential products AMAKA ANAGOR-EWUZIE

he Standards Organisation of Nigeria (SON) said it would support the manufacturing and importation of essential materials to combat the challenges of Coronavirus otherwise known as COVID-19 through the deployment of 28 relevant international standards from the International Organisation for Standardisation (ISO) and one from the African Organisation for Standardisation (ARSO) on alcohol based hand sanitizers. According to a statement from the office of the director general, Standards Organisation of Nigeria (SON), Osita Aboloma, the deployment of the standards is to meet emergency needs occasioned by COVID-19 globally while the process for the adoption would continue unhindered in spite of the lockdown. The standards, which are being provided at no cost to local manufacturers, are being made available to the National Committee on Sustainable Production and Delivery of Essential Commodities during the COVID-19 pandemic of which SON is a member. This is to guide local manufacturers as well as provide a benchmark for adjudging all imported products in the category during the pandemic. He stated that SON has received free, unlimited usage of the ISO web conferencing system (Zoom) for national standards development work

only. “With this offer, Nigeria as an eligible member will be assigned a Zoom account for developing countries, which we can share with our Technical Committee (TC) members and experts, creating the equivalent of a “virtual conference room” at the national level, the statement clarified. Aboloma further stated that with this, Nigeria’s TC meetings could continue largely, while its stakeholders and experts keep safe in this time of bans on gatherings and travels. He called on TC members across the nation to expect invitations from the secretariat for participation in the consideration and adoption of several international standards from ISO resources, to support global efforts in dealing with the COVID-19 crisis. He listed some of the international standards compiled by ISO to support global efforts in dealing with the COVID-19 crisis to include ISO 374-5:2016 on protective gloves against dangerous chemicals and micro-organisms - Part 5: Terminology and performance requirements for micro-organisms risk. Others include 106513:1997 on lung ventilators for medical use - Part 3: Particular requirements for emergency and transport ventilators; ISO 10651-5:2006 on lung ventilators for medical use Particular requirements for basic safety and essential performance - Part 5: Gaswww.businessday.ng

powered emergency resuscitators and ISO 13688:2013 on protective clothing – General requirements. Aboloma further listed ISO 17510:2015 on medical devices - Sleep apnoea breathing therapy - Masks and application accessories; ISO 19223:2019 on lung ventilators and related equipment -Vocabulary and semantics and ISO 22301:2019 on security and resilience - Business continuity management systems – Requirements, as the standards to adopt. “ISO 5356-1:2015 on anaesthetic and respiratory equipment - Conical connectors - Part 1: Cones and sockets; ISO 80601-2-12: 2020 on medical electrical equipment - Part 2-12: Particular requirements for basic safety and essential performance of critical care ventilators and ISO 80601-2-80: 2018 on medical electrical equipment - Part 2-80: Particular requirements for basic safety and essential performance of ventilatory support equipment for ventilatory insufficiency, are included in the standards to adopt, “ he added. The SON DG stated that the TC would also consider the adoption of a French National Standard “AFNOR SPEC S76-001 Barrier Masks - Guide to minimum requirements, methods of testing, making and use” to provide necessary quality guidance for mass production of face masks in the country especially by Micro, Small and Medium Enterprises (MSMEs).

Omamofe Pirah (m), commissioner of bureau for special duties; Charles Aniagwu (r), commissioner for information, receiving donated food Items from Emmanuel Onyenweliakuba, managing director, Jayta Petroleum Commodities Nigeria Limited, during the food bank inspection, at Agricultural Development Authority (ADP), Ibusa.

L-R: Olaitan Lukmon, a beneficiary; Eustesia Ogunsusi, marketing services manager, UAC Restaurants, and Ethel Mba, marketing manager, UAC Restaurants, during the company’s distribution of hand sanitizers and nose masks at Ile-Epo market along Lagos Abeokuta Expressway, Lagos

L-R: Affi Ibanga, Guest; Iyalode Alaba Lawson, global convener, Women Entrepreneurs and Professionals Development Networks; Thea Restovin, programme analyst, United Nations Women, and Chinny Stevens, chief executive officer, NextGen Media, during private screening of Chatroom Movie at residence of the Deputy British High Commissioner, at Ikoyi to celebrate the International Women’s 2020 in Lagos

Emmanuel Ejeh, WARIF volunteer; Inspector Olakunle Orebe, gender desk, Lagos State Police Command, and Simon Alonyenu, WARIF staff, during the donation of Personal Protective Equipment (PPE) to five police stations across Lagos State.

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Thursday 09 April 2020

BUSINESS DAY

LegalBusiness BD Business Law Industry Report Practice Intelligence Partnerships

COVID 19: Tips to keep your legal business stable LB Editor As with various businesses across the globe, legal businesses in Nigeria are also baulking from the weight and economic pressure of the coronavirus outbreak i.e. COVID-19. In the last few weeks, we have seen several law firms, courts at all levels and other legal agencies/organisations, shut down operations at their physical offices to work remotely; most of whom now offer marginal services in a bid to observe social distancing and keep employees safe. This has not only placed a huge economic burden on the firms but has also left clients and court users uneasy. In this edition, we offer quick tips on how to stay connected to the business and maximize stability. ‘Hoping this helps. WORKING REMOTELY his is the new reality for law firms in Nigeria. For a few, remote working and virtual conferences are not so new, as top commercial teams who handle multinational/cross-border transactions have over the years, mastered the art of connecting with international clients across the world. Which is why in the last few weeks, we saw these firms start early to create emergency workplans that would guarantee business continuity and service delivery. We hope these plans are working effectively. On the flipside, shifting an entire firm or organisation to remote work has the potential to crash its operations. Hence the need to activate measures that would mitigate any shockwaves the system experiences as a result of this swift change. The key to stability in this time of crisis is communication, support and shared goals. Whatever you do, do not replicate in-office experiences for remote work. Don’t.

THE STRUCTURES Creating plans for remote

work should begin with evaluating, building and reinforcing the machineries/mechanisms available for such work. Ensure your Information and Communications Technology (ICT) team are primed for this - not only to manage the process but to communicate the nuances of procedures, protocols and mechanisms for remote work. They should be ready to serve as round-the-clock

resource persons to enable efficient workflow. There would be need to create FAQs and resource materials for remote work for all teams and employees; documenting challenges in real time; prioritizing these challenges, and assigning individuals and teams for specific solutions. COMMUNICATION Communicating effectively with clients and employees in this season is very critical to the financial and economic well-being of a legal business. Hence, there’s need for continued real-time communication to keep everyone, particularly clients, at ease. With the spread of COVID-19 in Nigeria, we did see a lot of law firms send out official communication assuring clients of their availability and business continuity in spite of the pandemic. This was proactive and commendable business practice and must be sustained for every new information and update relating to clients’ business. Going forward, it is important to allow team members embrace the shift to remote working gradually, Continues on page 19

COVID-19 and Commercial

INSIDE Transactions: Some Emerging Legal Issues

Covid-19 Pandemic and Insolvency Risk: A Critical Assessment of Nigeria’s Response Dr Kubi Udofia

T Exordium

h e C ov i d - 1 9 pandemic has had devastating effects on businesses. Ironically but understandably, the measures adopted to contain the spread, such as lockdowns, quarantines and social distancing, have caused unprecedented disruptions to supply chains and paralysed commercial activities. Cash flows have been disrupted. Revenues have taken a nosedive and companies are facing acute insolvency risk. Governments and Central Banks have responded with a raft of palliatives to keep companies afloat and protect economies. Some of these measures are unprecedented. Christine Largarde, the Governor of European Central Bank, captured the prevailing mood when she stated in relation to the European Union’s €750 billion stimulus package that an extraordinary time requires extraordinary action. Indeed, the global community is presently navigating through uncharted waters. This discourse assesses the measures adopted by Nigeria and a few countries in dealing with the insolvency risk posed by the Covid-19 pandemic. New Insolvency Laws/ Rules Some countries have introduced new insolvency rules or amended extant rules to fend off potential avalanche of insolvencies. The aim is to give business owners/directors breathing space for financially troubled (but viable) businesses to return to profitability.

NBA Request Full list of lawyers who paid their BPF from Branches

Australia’s amendments to its insolvency law are to subsist for six months. The statutory demand threshold has been raised from AUD2,000 to AUD20,000. Further, the statutory demand period for debtors has been increased from 21 days to 6 months. Directors have also been granted temporary relief from any personal liability from trading while companies are insolvent. Germany has suspended the statutory obligation of directors to file for insolvency within three weeks after they know, or ought to have known, that the company is insolvent. The suspension will apply to companies affected by Covid-19 pandemic until September 2020 and may be extended to 31 March 2021. Instructively, a recent survey by Association of German Chambers of Industry and Commerce revealed that one in ﬁve German companies perceives itself at acute risk of insolvency due to Cov-

id-19 pandemic. Spain has suspended a similar statutory obligation on directors to file for insolvency within two months. The suspension will subsist throughout Spain’s period of State of Alarm (i.e. Emergency) which was declared on 14 March 2020. Creditors’ rights to file for insolvency has also been suspended until two months after the end of the State of Alarm. The UK has retrospectively suspended the operation of wrongful trading rules from 1 March 2020. The wrongful trading rules empower courts to order directors to contribute to the assets of a company if they failed to minimise losses and continued trading at a time when they knew, or ought to have known, that there was no reasonable prospect of avoiding insolvent liquidation. A Case for temporary/ emergency amendment of Nigeria’s Insolvency Rules

COVID-19: Olaniwun Ajayi LP donates medical supplies to aid affected states

Nigeria has not introduced any new insolvency rules to counter Covid-19 pandemic. A cash flow insolvent company may be wound up under section 409(a) of the Companies and Allied Matters Act, 1990 (CAMA). The provision stipulates that a company shall be deemed unable to pay its debts if a creditor, to whom the company is indebted in a sum exceeding N2,000 ($5.20) then due, has served on the company a demand requiring payment and the company neglects to pay the debt three weeks thereafter. Two amendments could be temporarily made to the above provision to protect companies from winding-up actions in these challenging times. First, the threshold amount for filing windingup petitions could be astronomically increased. Second, the demand period could be extended from 21 days to 6 months or more. The latter measure would be more effective in fending off a deluge of winding-up petitions. It would delay the rights of all creditors to commence winding-up proceedings regardless of the quantum of debt. The rules could be given retrospective effect from 1 March 2020. The above amendments would have to go through the usual lawmaking process given that CAMA is an Act of the National Assembly. There have been previous failed attempts to amend the 30-year old CAMA. In fact, the Nigerian Senate has in the last two years passed the CAMA Bill twice, namely on 14 May 2018 and 10 March 2020. To be continued next week

COVID-19: Legal profession divided over the NBA president’s action/inaction

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Thursday 09 April 2020

BUSINESS DAY

GREYMATTER

LegalBusiness

COVID-19 and Commercial Transactions: Some Emerging Legal Issues

B PREFACE

y the time the World Health Organization (“WHO”) upgraded the status of the novel Coronavirus Disease (officially known as COVID-19) outbreak from an epidemic to a global pandemic on 11th March, 2020, the virus had already travelled beyond Wuhan, China, its point of original outbreak in December 2019 and crossed international borders. Given the rapid rate of infection and increasing number of deaths in the wake of the unprecedented spread of the virus, various emergency measures have been deployed by municipal, local, state, national and multilateral authorities to contain the outbreak. Besides being a public health crisis, COVID-19 continues to trigger severe social and economic consequences for individuals, corporates and governments across the world. Specifically, markets and industries are reacting negatively to the pandemic. Global stock and commodity prices (especially crude oil) have plummeted to unprecedented levels in recent weeks, with grave multiplier effects on economies. The general consensus is that this trend is not expected to reverse anytime soon, given the impact of current border closures, international travel restrictions, and lockdown of large swaths of movements of persons in many cities, countries and regions of the world. The sudden collapse of industrial and commercial activities is, in many respects, unforeseen. This may also not have been within the reasonable contemplation of most entities, investors, industry & financial market players; who are parties

to existing commercial arrangements across several jurisdictions. To date, a sizeable number of domestic and international contractual obligations have been frustrated while many others face possible and imminent performance crisis. This article analyses the key socio-economic consequences of COVID-19 and offers legal options for mitigating its impact on the operations of commercial entities, as well as technical guidance on including provisions in future commercial agreements, against any similar unforeseen pandemic. KEY ISSUES FOR COMMERCIAL ENTITIES AND TRANSACTIONS Massive disruptions in global supply chains are affecting commerce in every sector and jurisdiction. In the circumstances, business organizations are confronted with existential risks for which many do not have contingency plans in place, and which are affecting how they can deliver on their contractual obligations. For enterprises such as manufacturing (production & assembly plants), construction, mining, marketing and consultancy firms with operations largely dependent on imported raw materials, semi-processed

or finished products, as well as imported services (skilled labour & expertise); the various responses to COVID-19 worldwide (particularly in the most affected economies) have either crippled their operations or adversely affected the international value chain for their products. We have considered a few enterprises/contractual arrangements below: Financing The COVID-19 outbreak will likely have a negative impact on the ability of many companies with existing loan/debt financing obligations to meet their obligations to their lenders/creditors. The need to assess the impact of the COVID-19 outbreak on obligations under relevant financing agreements is now of significant importance. For instance, have provisions relating to material adverse change/event been triggered? Are the representation and warranties made by the borrower still accurate? Will there be need to seek waivers or extension of time to comply with obligations? Employment One of the side effects of the various measures against COVID-19 is the inability of several employees (especially those whose

work require physical delivery) to perform their duties for lengthy period. The liability of employers to still pay salaries in such circumstances is now in question. Indeed, several employers may be unable to meet their salary obligations to their employees due to possible challenges in receiving payments from clients by reason of non-delivery of services. Thus, the ability of employers to terminate the services of the employees under current circumstances have come up for discussions. Can the employers convert the period to paid or unpaid leave? Can an employer implement a reduction in salary without the consent of the employees? Also, several employers currently allowing their employees to work remotely do not have provisions in their contracts of employments or staff handbook governing such work-from-home arrangements. Can accidents occurring whilst working from home be considered an occupational accident? Can an employee who refuse to come to work due to high level of anxiety be penalized? Aviation, Shipping & Logistics The restrictions on international air travels and the closure of land and coastal borders in many countries have grounded busi-

ness for many enterprises in the transport sector. This has resulted in many impromptu cancellations of flights and trips along international air, water and land routes. There have also been consequential implications for enterprises expecting delivery of shipments, consignments, cargoes, and arrival of expatriate workers from foreign countries. This also holds for business entities, persons, and business executives travelling for previously scheduled business meetings and conferences across international borders. The determination of the party to bear the losses or liabilities arising under the relevant contracts is now a major consideration for parties. Tourism & Entertainment With lockdown placed on major cities across the globe and directives to maintain the WHOrecommended social distancing protocols, COVID-19 outbreak has had serious toll on global tourism and entertainment. In the circumstances, legal questions arise as to the status of previously scheduled events and paid bookings for hotel accommodation and event venues; particularly if the pandemic persists for a period longer than envisaged. To be continued next week The Grey Matter Concept is an initiative of the law firm, Banwo & Ighodalo DISCLAIMER: This article is only intended to provide general information on the subject matter and does not by itself create a client/attorney relationship between readers and our Law Firm or serve as legal advice. Specialist legal advice should be sought about the readers’ specific circumstances when they arise.

In the event of a pandemic?

ccasionally, the world deals with risks which threaten the viability of business, health and the way life is lived. In modern history from, smallpox, to the Spanish flu or HIV Aids, human life has been interrupted to address health risks. Covid-19 (the Corona Virus) which commenced infiltration from Wuhan, China in late 2019 and was recently declared a pandemic is like nothing seen before. From its capacity for asymptomatic transmission to the speed and potency of the outbreak, Covid-19 has halted the economic hubs of the world bringing in its wake, a crisis of law and public policy. Globally, governments have had to undertake relief programmes and issue emergency law and policy to enable adjustments to life as we know it. The law in this case is active and mobile and it is expected there would be significant executive function to bridge the gaps on an ad-hoc basis. As young lawyers, many of us

will be consciously observing a pandemic for the first time and it is important that we seek to understand ongoings, query the impact of this on public policy, personal rights, employment law, contracts, mortgages, lending, existing commercial obligations, applicable law and public health. It is important that we understand the law-making process applicable during such emergencies and follow the compliance trends www.businessday.ng

that ensue. We learnt about the interplay between personal rights and public policy and this incidence is a practical lesson on the intersection of public well-being and personal prerogative. Immigration laws are also upended as a result of the pandemic, the trends in this regard must be paid attention. It is projected that this would be one aspect of modern life that would be significantly impacted post the pandemic. It is clear that we also need young lawyers who are sound in medical law to enable advisory on legal issues arising in the event of treatment of persons such as medical negligence, euthanasia, forensic medicine. No better time than this to commence skill development in this area. Also, life as we know it is changed, virtual law offices will be primary and online business interface will increase, it is important that young lawyers get familiar with business communication tools and utilise them often. The industries most hit are the health, hospitality and retail sectors,

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there would be commercial contracts which would be impacted by the incidence and governments are stepping in to provide social packages that decrease the economic impact as well as the health risks that may be applicable. We must understand the commercial aspects of these events and be at the ready to handhold our clients through them. This is the time to knowledge-share with subject-matter specialists and learn how the law is woven through the commercial and technical aspects of impacted businesses. Global mobility is a critical matter to review, in this area, the less of a local champion one is, the better, so reading wide and staying a life student will come handy and make you the preferred partner when it comes to work. Clearly, it is no time for panic in Nigeria , I am an advocate of socially responsible lawyering and it is time to play out our responsibility in this regard. Again, we must become active town criers of the facts, personal rights and entitlements of indi@Businessdayng

viduals. Where necessary, we must stimulate the action of responsible authorities by demanding accountability and good judgment, In the event of a pandemic, it is time to ride the tide and change , it is time to get our boots dirty and learn, Lastly, panic is not the antidote to Covid-19, we must play by the rules of hygiene and encourage others to do so. Stay safe and responsible.

Oyeyemi OYEYEMI ADERIBIGBE is a Senior Associate at Templars. She is also the current ViceChairman of the Young Lawyers’ Forum of the Nigerian Bar Association -Section on Business Law and the Young Lawyers&#39; Committee Liaison Officer of the African Regional Forum of the International Bar Association. Feedback – Oyeyemi.aderibigbe@ templars-law.com; yemiimmanuel@yahoo.com.

Thursday 09 April 2020

BUSINESS DAY

INDUSTRYFILE:

LegalBusiness

Otsemobor-Fagbonhunlu makes NBA Request Full list of lawyers who Funmi partnership at Aluko & Oyebode paid their BPF from Branches A T

he Nigerian Bar Association has asked all branch chairmen of the Association to provide comprehensive list of all financial members. In a notice addressed to all branch chairmen of the Association and signed by the General Secretary (GS), Jonathan Taidi, branches are to comply on or before 14th April, 2020 with full detail of each member. The statement read in part, “In the exercise of my duties under the Nigerian Bar Association Constitution 2019 (as amended) I am compiling a roll of members. “To aid the process, each branch Chairman is requested to forward to the national secretariat a list of members who have fulfilled their financial obligations by paying their Bar Practice Fee (BPF) and Branch Dues (BD) as at when due.” The GS, stated that the list must contain names, valid phone numbers, active email addresses of members, date of payment of

Bar Practicing fees (BPF); accompanied by copies of branch dues receipts or account statement, which according to him must reach NBA National secretariat not later than 5:pm of Tuesday April

14th 2020. He also urged member of the association to stay safe and comply with all Covid-19 directives. “Accept the assurances of my professional regards, always.”

member of the Banking and Finance Practice of Aluko & Oyebode, Funmi OtsemoborFagbohunlu, has been admitted into the partnership of the firm. Before her elevation to partner, she was a senior associate and handled a wide range of transactions in banking, project and infrastructure finance, corporate and commercial law, and finance relating to the oil and gas, corporate and real estate sectors, at local and cross-border levels. Funmi who has been ranked as IFLR1000 2020, Rising Star and the Legal 500, Next Generation Lawyer, has experience in several aspects of banking and finance law and has advised Nigerian and multinational clients on local and cross-border financing deals across several sectors. She has recently advised the sponsors (NNPC and Mobil Producing Nigeria Unlimited) on the US$1.36 billion financing of the NGL II project, and a syndicate of Nigerian and international lenders in connection with the US$2 billion financing of the acquisition of oil and gas assets by a Nigerian indigenous oil and gas exploration and production company. She is also the Secretary, Nigerian Bar Association Section on Business Law (NBA_SBL) Banking, Finance

& Insolvency Committee, as well as the NBA, Lagos Branch, Continuing Legal Education (CLE) & Mentorship Committee. Speaking about the elevation, the firm’s managing partner, Kofo Dosekun commended Otsemobor’s “deep knowledge of the financial services industry and Her ability to remain unflappable even during the most challenging or difficult negotiations engenders trust and confidence in her clients. “The firm would like to congratulate Funmilayo for this significant achievement,” she said.

COVID-19: Olaniwun Ajayi LP donates medical supplies to aid affected states COVID 19: Tips to keep your legal business stable Theodora Kio-Lawson

Continued from page 17

by encouraging less formal/informal means of communication as much as possible. Give some leverage as not every home has a convenient workspace for formal work. Attempt to design an informal communication channel, as this will build trust between management and employees. At this time, team members should feel comfortable reaching out to anyone to speak about all issues, work-related or not. With regards to client communication, there’s need to keep all clients informed about teams or essential personnel handling their transactions/brief/matters during this period of remote working, if there are any changes or arrangements different from the previous state of affairs. If a conference call or meeting needs to be rescheduled or handled virtually, a formal notification from the appropriate quarters will need to go out promptly to the client, teams or any other parties relevant to this conference or meeting. Additionally, be sure to keep all regular channels of communication with clients open- i.e. Phone Messages, emails, conferencing, etc. P.S. Viable tools remain Microsoft Teams, Slack, Tandem and video conferencing with Zoom, among others.

he law firm of Olaniwun Ajayi LP has joined the list of donor organisations supporting governments and healthcare workers in staving off the COVID-19 pandemic in Nigeria. The firm which has made a strong commitment towards ending the pandemic in Nigeria, over the weekend donated medical supplies, including oxygen concentrators, suction machines and personal protective equipment to the governments of some of the states affected by the crisis, including Lagos and Ogun. While presenting the relief materials to representatives of Ogun State on Saturday, April 4th, 2020 Managing Partner, Konyinsola Ajayi, SAN said that

the items were only a token to demonstrate that the firm’s ethos of service to humanity goes beyond the boundaries of legal practice. “We will continue to do all that we can to support containment efforts across the country and call on others to lend a hand at this time of dire need,” he said. As part of plans to www.businessday.ng

assist clients and others who need help facing unprecedented legal issues they may be confronted with, the law firm has also launched a COVID-19 Helpline through which it would offer preliminary legal advice on varying areas, cutting across contracts, disputes, corporate matters, finance and projects amongst others. Olaniwun Ajayi has in nearly 60 years continued to distinguish itself as one of Nigeria’s leading commercial law firms.

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EMPLOYEE RELATIONS Relationship with employees (fee earners and non-fee earners alike) at this time, should be as genial, gracious and functional as possible. The well-being, health and safety of all team members is just as valuable as the clients, if not more. After all, the client’s work @Businessdayng

must be done. For the most effective communication in these dire times, be clear and concise at all times, avoid ambiguity, show empathy, understanding and a little kindness to team members. None of these will hurt. Note to the Employee: - Find a place of focus in your home. To achieve this, create a dedicated workspace at home. - Create a Busy/Available Indicators to notify family members of your work hours. - To stay healthy and avoid burnout, have a closing hour. - Pre-plan your daily work - Set reminders - when you work remotely, you’re almost always invisible. To let team members know when you’re away from your computer, use your chat tool features to create automatic status updates in team chats. Set it up so that every time you have another engagement, your status automatically updates and team members would not expect a response. CLIENT RELATIONS In a bid to retain the client’s trust during this period, resist of the temptation to overpromise, as this has the potential to deplete your firm’s credibility when all of this over. You can offer the client assurances of business continuity and service delivery, without setting unrealistic goals for your team. Be sure to propose timelines that are feasible, while establishing the firm’s commitment to quality work. Do not hesitate to offer clients legal advice and other advisory services that could help their businesses at this time. To be continued next week

Thursday 09 April 2020

BUSINESS DAY

BD LegalBusiness THE BARSPEAKS COVID-19: Legal profession divided over the NBA presid Following the emergence and rise of the coronavirus also known as COVID-19, and its economic impact on businesses and individuals across the world, several members of the legal profession in Nigeria called on the President of the Nigerian Bar Association (NBA), Paul Usoro, SAN to see that the deadline for the payment of the annual Bar Practice Fees (BPF), usually scheduled for March 31st every year is extended as relief for members during these trying times- A request, which the NBA President turned down for constitutional reasons. Since then, there has been a plethora of opinions expressed by members on the issue. See EXCERPTS below.

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Please note that the valid date for the Annual Payment of Practice Fees of Nigerian Bar Association (NBA) is between January 1st to 31st of March every year. For year 2020 you have only today being Friday and Monday next week to pay your valid Annual Practice fee. If you ask me, you have wasted valuable time till now, but it will be very regrettable if you fail, refuse and/or neglect to do this within the next two days left for this year. Failure to pay on time makes your payment after that date of no credible validity - insurance scheme in jeopardy, you can’t vote both at Branch and National level and most importantly you cannot use the receipt after 31st of March to apply to be a SAN or Notary Public of the Supreme Court of NIGERIA. I ask you “why must you even wait till 31st March 2020, when network can mess you up”? Finally, do not forget to fill in the Code of your Branch. Pay your Annual Practice Fee, it is the law and it is your responsibility!

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For weeks now, the rights of citizens have been suspended. Economic activities crippled by sanctions of the Federal Government and respective state governors. Some of these methods deployed do not have legal backing, but have been done out of necessity, welfarism and various rational grounds. The representatives of NBA should not be singing a different tune. To the extent that the welfare of lawyers were not put into consideration and date of payment of Bar practising fees were not reviewed, I make bold to say that the present EXCOs of the NBA are anti-people, anti-welfarist, heartless, selfish and insensitive. In addition, I think we should watch out for members who are holding offices; have held offices and are now vying for other offices. They should be disregarded. They are our enemies. This set of people will eventually kill us if the Corona virus pandemic does not.

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M. JOANNA Member Eti-Osa Bar Forum

MONDAY O. UBANI (MOU)ESQ. Former Chairman, NBA Ikeja Branch

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MAZI AFAM OSIGWE Former General Secretary, Nigerian Bar Association (NBA)

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We are aware of the extraordinary difficulties that the outbreak of the Coronavirus has created for many lawyers and therefore continue to call on the Paul Usoro SAN-led administration of the NBA to extend the deadline. The framers of the Constitution of the Nigerian Bar Association did not foresee an extreme emergency of global magnitude as the present Coronavirus crisis, but however provides for an emergency General Meeting to make any required amendments to that effect. This is however not feasible due to the stay-at-home order by the President. For this reason, we expect the present leadershiphe NBA to go ahead and extend the deadline on the basis of force majeure. The Emergency General Meeting can be called after activities are normalised to ratify the decision of the President.

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OGUNLANA ADESINA ADEMOLA AND AYO ADEMILUYI Chairman and Secretary, Radical Agenda Movement in the Nigerian Bar Association www.businessday.ng

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COVID-19: Hour of Solemnity, Why NBA Must Refund Our BPF. In the face of the global pandemic ravaging over 800,000 thousand infected lives and countless death per hour as at 31st March,2020, yet one will not stop to wonder how those at the helms of NBA National affairs are absolutely insensitive to reality, as if they are existing in the outer space different from planet earth. March 31st of every year is unarguably the due date for payment of our annual bar practicing fees, but 2020 is a different year, moreover considering the global pandemic of Corona Virus fast killing and spreading like tsunami into every nations of the earth, with tales of woes, sorrow, tears and blood, living both young and old castrated in unexpected isolation centres and quarantine home without any guaranteed assurance of life afterwards. No one knows how long the pandemic will last, yet we could not as vanguard and eyes of the nation cure ourselves. The collection of BPF by the Paul Usoro SAN-Led administration in the face of death and tribulations with a caveat of no extension beyond 11.59p.m of 31st March, 2020 is most cruel and insensitive to note. Considering our vantage knowledge of the law, the period we are is best defined as Force majeure era, hence the leadership of the bar can unilaterally extend payment indefinitely till the pandemic subsides. Why are we lawyers if we cannot think logically and realistically? One cannot fathom the high level of hunger and further disaster that is about to strike down majority of our members, both young and senior lawyers at the bar. I am committed to the growth of the NBA, precipitating part of my vision for a greater bar, where all lawyers will be on NBA-APP, wherein the ongoing challenge experienced by many who are eager to pay through the website could be averted. As an aspiring member of the bar for the post of National Assistant Publicity Secretary at the next election once the ban is lifted, this is not the kind of bar I hope to consolidate upon, we need to think out of the box for solutions. This is the Hour of Solemnity where Covid-19 has wreaked havoc and lives remain extremely Hobbesian, yet our NBA National chose not to possess a human face towards discerning uncommon ingenuity to protect and support Lawyers during this precarious period. The NBA National can do better by refunding full sum of our 2020 BPF, as the fees of over 50 years can provide succour to all lawyers in Nigeria, particularly the badly heated by the wrecked tsunami of hopelessness and hunger. The NBA should at this time take the lead and serve as eyes and ears of the nation by providing, monitoring and evaluating all supports received, just like we do in support of the national elections by INEC. I beckon on all members to join me in this clarion call to the President of the NBA to refund our Bar Practicing Fees (BPF) and double it if possible as disaster allowance, while other ancillary benefits can follow suit. Our Position is: “No To BPF During Covid-19.” God bless you.

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The NBA lacks the power to extend the time for payment of Annual Practice Fee, commonly called Bar Practice Fee. The payment of Annual Practice Fee considering that the March 31, deadline for it was fixed by a subsidiary legislation (the Rules of Professional Conduct for Legal Practitioners, 2007). Specifically Section 9(1) of the Rules (RPC, 2007) stipulates that: “a lawyer shall pay his Annual Practicing fees not later than 31st March in every year”. Considering that the RPC was made by the General Council of the Bar in the exercise of the power granted to it by Section 12(4) of the Legal Practitioners Act and not by NBA, where then will NBA derive the power to extend the time for the payment of the Annual Practice Fee?. Since no such powers has been reserved for the NBA, it lacks powers to exercise the same and any such exercise would be a bull exercise. The only time a lawyer can safely pay BPF after March 31, is when he or she was enrolled after March 31. I say this notwithstanding the clear plight of those who may have difficulty making the payment before midnight today. Regrettably, my sympathy for them cannot trump the law.

DOTUN HASSAN, ESQ. Assistant Secretary, NBA Epe Branch.

@Businessdayng

Thursday 09 April 2020

BUSINESS DAY

THE BARSPEAKS

BD LegalBusiness The Bar REFORMER

dent’s action/inaction ‘‘

It will be totally insensitive, wicked and evil on the part of the current national leadership of the Nigerian Bar Association to ignore the attendant challenges for members of the Association with the outbreak of the dreaded disease. This is evidenced with the shutdown of all courts up to the Supreme Court of Nigeria, which have economically handicapped members of the Association, who are largely into litigation with the wherewithal to pay the Bar Practising Fees. We are of the view that the national and global magnitude of the Coronavirus pandemic imposes a force majeure on the current national leadership of the Nigerian Bar Association, necessitating the urgency of the extension of the deadline for payment of the Bar Practising Fees.

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ADENIYI O. NBA

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The NBA is not going to be business as usual. Very soon, we will all think twice before offering ourselves for elective positions because of the extent of accountability that will be demanded.

OLUMIDE AKPATA

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As Lord Cardozo once stated while ruling upon a matter of necessity, “Emergency begets the man”. In a time of emergency, all roads must lead to the door of necessary paliatives. If an ExCo member is hereby presented as a person without a mind of his/her own, then the government in place cannot be said to keep an open door. Only he is fit to lead the masses, the one who knows where the shoe actually rightly pinches. Such a leader would ordinarily surpass in character the description of accidental servant. For he must have come to the stage because he has the antidote to the poisonous docility rampaging the devastatingly plagued polity. Emergency this begets that man! Can laws stand in times of war? Laws are made for man not vice versa. It is a product of social interaction. Right now, something unprecedented has happened. There should be changes to address our current realities. The world is doing this. Nigeria is following suit. Why can’t the NBA (a body of lawyers) do same? There is absolutely no excuse for this.

The CBN recently took the very commendable step of setting up a N50 Billion COVID-19 Intervention fund for individuals and enterprises that may be aversely impacted by the pandemic. I believe that the Nigerian Bar Association (NBA) should make concerted efforts to see the extent to which our members who are eligible, can access that Fund, as means of cushioning the negative economic impact which the shutdown of the Courts and Law Firms, on account of COVID-19, could have on their various practices and livelihood.

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G. P.

OLUMIDE AKPATA

FOR OPINIONS, MAIL TO: LEGALBUSINESS@BUSINESSDAY.NG www.businessday.ng

That for me, is WELFARE.

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BEST From NBA, Lagos.

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Thursday 09 April 2020

BUSINESS DAY

BUSINESS TRAVEL

Global passenger demand plunges on COVID-19 travel restrictions Stories by IFEOMA OKEKE

he International Air Transport Association (IATA) announced global passenger traffic data for February 2020 showing that demand (measured in total revenue passenger kilometers or RPKs) fell 14.1 percent compared to February 2019. This was the steepest decline in traffic since 9.11 and reflected collapsing domestic travel in China and sharply falling international demand to/from and within the Asia-Pacific region, owing to the spreading COVID-19 virus and government-imposed travel restrictions. February capacity (available seat kilometers or ASKs) fell 8.7 percent as airlines scrambled to trim capacity in line with plunging traffic, and load factor fell 4.8 percentage points to 75.9 percent. “Airlines were hit by a sledgehammer called COVID-19 in February. Borders were closed in an effort to stop the spread of the virus.

And the impact on aviation has left airlines with little to do except cut costs and take emergency measures in an attempt to survive in these extraordinary circumstances. The 14.1percent global fall in demand is severe, but for carriers in Asia-Pacific the drop was 41 percent and it has only grown worse. Without a doubt this is the biggest crisis that the industry has ever faced,” Alexandre de Juniac, IATA’s Director General and

CEO said. International passenger markets February international passenger demand fell 10.1 percent compared to February 2019, the worst outcome since the 2003 SARS outbreak and a reversal from the 2.6 percent traffic increase recorded in January. Europe and Middle East were the only regions to see a yearover-year traffic rise. Capacity fell 5.0 percent and load

factor plunged 4.2 percentage points to 75.3 percent. Asia-Pacific airlines’ February traffic plummeted 30.4 percent compared to the year-ago period, steeply reversing a 3.0 percent gain recorded in January. Capacity fell 16.9percent and load factor collapsed to 67.9percent, a 13.2-percentage point drop compared to February 2019. European carriers’ February demand was virtually flat compared to a year ago (+0.2

ICAO launches COVID-19 contingency coordination tool and new measures to ensure safe operations

he International Civil Aviation Organisation, (ICAO) has issued a new State letter drawing the attention of national governments to new measures aimed at ensuring safe operations during COVID-19, and to a contingency coordination website it will establish through 31 March 2021. The State letter was issued by Fang Liu, ICAO Secretary General, and comes as more and more aviation service providers and personnel globally are facing challenges in terms of maintaining the validity of their certifications, licenses, and other types of

official operating approvals. Many of the related challenges are resulting directly from the social distancing guidelines, current business closures, and other public health measures being taken to mitigate the spread and societal impact of COVID-19. “There are approximately 650,000 licensed personnel supporting commercial air transport worldwide. If a fraction of those personnel is affected by the pandemic measures, the potential for the disruption may be significant,” Fang Liu noted in the ICAO State letter. “In order to facilitate safe operations during these dif-

ficult times, I encourage States to be flexible in their approaches while at the same time adhering to their obligations under the Convention on International Civil Aviation.” All ICAO Member States were urged in the letter to indicate whether they would be recognizing or accepting the validity of certificates and licenses now being affected by the public health measures being implemented in other States. The letter also drew States’ attention to the specific articles to the Convention on International Civil Aviation relating to certificates and licenses, and urged them to re-

cord and inform ICAO of any contraventions or ‘differences’ currently arising against these provisions during the current contigency period. ICAO is a specialized agency of the United Nations, ICAO was created in 1944 to promote the safe and orderly development of international civil aviation throughout the world. It sets standards and regulations necessary for aviation safety, security, efficiency, capacity and environmental protection, amongst many other priorities. The Organization serves as the forum for cooperation in all fields of civil aviation among its 193 Member States.

COVID-19: IATA postpones 2020 AGM

he International Air Transport Association (IATA) has announced the postponement of the 76th Annual General Meeting (AGM) and World Air Transport Summit. The event had been scheduled to take place on 22-23 June in Amsterdam. According to IATA, the

76th IATA AGM and World Air Transport Summit will be held when it is both safe and practicable to do so. IATA anticipates that will be in the late third or early fourth quarter of 2020. An announcement will be made when a date is confirmed. “Our members are in the deepest crisis the air transwww.businessday.ng

port industry has ever faced. With much of the passenger business grounded as part of the global fight to contain the virus, many airlines are in a struggle to remain viable. “On the cargo side, airlines are doing whatever they can to keep global supply chains moving with vital shipments,

including those for critical medical supplies. We will come together as an industry when the freedom to travel has been restored and we can focus on air transport’s critical role in driving the economic and social recovery from this unprecedented crisis,” Alexandre de Juniac, IATA’s Director General and CEO said.

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percent), the region’s weakest performance in a decade. The slowdown was driven by routes to/from Asia, where the growth rate slowed by 25 percentage points in February, versus January. Demand in markets within Europe performed solidly despite some initial flight suspensions on the routes to/ from Italy. However, March data will reflect the impact of the spread of the virus across Europe and the related disruptions to travel. February capacity rose 0.7percent and load factor slipped 0.4 percentage point to 82.0 percent, which was the highest among regions. Middle Eastern airlines posted a 1.6 percent traffic increase in February, a slowdown from the 5.3 percent year-over-year growth reported in January largely owing to a slowdown on Middle EastAsia-Pacific routes. Capacity increased by 1.3 percent and load factor edged up 0.2 percentage point to 72.6percent. North American carriers had a 2.8 percent traffic decline in February, reversing a 2.9 percent gain in January,

as international entry restrictions hit home and volumes on Asia-North America routes plunged 30 percent. Capacity fell 1.5 percent and load factor dropped 1.0 percentage point to 77.7percent. Latin American airlines experienced a 0.4percent demand drop in February compared to the same month last year. This actually was an improvement over the 3.5percent decline recorded in January. However, the spread of the virus and resulting travel restrictions will be reflected in March results. Capacity also fell 0.4 percent and load factor was flat compared to February 2019 at 81.3percent. African airlines’ traffic slipped 1.1 percent in February, versus a 5.6percent traffic increase recorded in January and the weakest outcome since 2015. The decline was driven by around a 35percent year-onyear traffic fall in the AfricaAsia market. Capacity rose 4.8 percent, however, and load factor sagged 3.9 percentage points to 65.7percent, lowest among regions.

Dana Air offers FG resources, aircraft to ferry relief materials

s part of support to Federal Government’s efforts towards curbing the further spread of Covid-19 in Nigeria, Dana Air has offered its resources, aircraft and crew to assist the nation in the battle against Coronavirus. The airline in a letter to the Minister of Aviation, Hadi Sirika, expressed support to contribute in the ferry of machine, equipment and relief materials to different states, and locations where they are needed within the country. According to the letter signed by Jacky Hathiramani, the Chief Executive Officer of the airline, Dana Air will make available resources, aircraft in its fleet and crew for the national assignment and the airline’s crew will be more than ready and proud to carry out the assignment upon request.’’ Hathiramani said, ‘’This is a global issue and this is the time for us all to play our part by supporting the government’s effort in stemming the further spread of this pandemic in our dear nation.’’ ‘’I am not too comfortable with the rising number of cases in Nigeria and this @Businessdayng

is why we also took the huge decision to suspend our flight operations for 14 days in the interest of our staff, our very esteemed customers and the nation at large. The support we are offering as an airline will only be an addition to the efforts of the government and NCDC in fighting the pandemic’’ ‘’We commend the efforts of the Ministry of Aviation, the Aviation agencies, Lagos State Government and Federal Government and wish to reassure them of our commitment towards contributing our resources to enhance prompt response to the fight against the spread of this virus.’’ Dana Air is one of Nigeria’s leading airlines with a fleet size of 9 aircraft and daily flights from Lagos to Abuja, Port Harcourt, Uyo and Owerri. The airline is reputed for its innovative online product, world -class in-flight service and unrivaled on-time performance.

Thursday 09 April 2020

Retail &

BUSINESS DAY

consumer business Luxury

Malls

Companies

Deals

Spending Trends

CONSUMER SPENDING

Bleak Easter for consumers COVID-19: Analysts predict mixed amid COVID-19 turmoil fortune for consumer goods firms OLUFIKAYO OWOEYE

BUNMI BAILEY

ith Nigerian consumers under various restriction on movements, including stayat-home orders and self-isolation, Easter for 2020 will be on a low-key celebration. Currently, some consumers are not aware of Easter due to the low economic activities and lockdown. While others that are aware, may likely celebrate it indoors. Ola Gbeleyi, an administer said, “I will be spending with my family at home. Unlike last year when we travel to my village to celebrate.” Palm Sunday, a Christian moveable feast that falls on the Sunday before Easter was most forgotten. Typically, before Easter celebrations, there would usually be publicity around the celebration. For example, retail stores would be running promotions, discounts and advert offers to woo consumers. “Easter will be a low-key celebration. Usually, you would have seen a lot of publicity around to attract consumers but this year, from a sentiment perspective. Most people don’t even remember

that yesterday was Palm Sunday,” Abiola Gbemisola, Consumer analyst at Lagos-based Chapel Hill Denham said Easter, also called Pascha or Resurrection Sunday, is a festival and holiday celebrated once a year by Christians to commemorate the resurrection of Jesus from the dead, described in the New Testament as having occurred on the third day after his burial following his crucifixion by the Romans at Calvary c. 30 AD. For those who are likely to celebrate indoors, it will be more expensive for them as food prices spiked in March induced by panic buying amid the structural challenges affecting food supply. Last year’s Easter celebra-

tion was quite better compared to 2018 celebrations, as most companies were able to adjust prices making consumers to afford enough for Easter celebrations. According to the National Bureau of Statistics (NBS) report inflation moderated by 2.6 percentage points to 13.45 percent in March 2019 from 16.08 percent in same period of 2018 Other countries in world also on a lockdown and staying at home are finding different innovative ways to mark the Easter celebrations. They include streaming online Easter church services, hosting virtual Passover Seder dinners, holding family-only egg hunts in the backyard and more.

onsumer goods analysts have predicted a tale of two halves for fast moving consumer goods amid a lock down in major cities of the country. In a bid to curtail the spread of the deadly Coronavirus, President Muhammadu Buhari announced a restriction of movement Abuja, Lagos and Ogun States for 14-days. This has also been followed by similar announcements by some states in the country. The announcement has however seen a surge in demand for major household items, beverages & food stuff as consumers make quick purchase ahead of lockdown with palpable fear that it may be extended beyond the initial 14-days. In a report by SBM Jollof Index for Q1 2020, prices of food stuff such as Garri ballooned by 78percent, 122percent, 100percent, 67percent, 114percent, 10percent, 45percent and 50percent in Lagos, Ibadan, Anambra, Calabar, PH, Bauchi, Abuja and Kano respectively. This rush is expected to impact the top line of ma-

jor players in the consumer goods space. According to Ayorinde Akinloye, consumer goods analyst at CSL Stockbrokers “We see a positive impact in H1 2020 as consumers have stocked up and continue to stock up ahead of expectations of lock down in various parts of the country. Akinloye said companies with several essential consumables in its product portfolio, would be a prime beneficiary of such bulk purchases. “However, post COV-

ID-19 is filled with uncertainties as possibilities of a possible recession grows which implies a possibly bleak H2 that could smoothen out any gains from H1,” he said. Akinloye further noted that the macroeconomic outlook in Nigeria is gradually turning bleak with a recession very imminent. “Thus, we believe, post COVID-19, Nigerian consumers would see purchasing power weaken on currency devaluation, higher inflation, unemployment and lower income,” he added.

CONSUMER SPENDING

Cost of preparing Jollof may be more expensive in coming months BUNMI BAILEY

here are expectations that the cost of preparing a pot of Jollof might be expensive in coming months amid covid-19 turmoil that led to an upsurge in prices of key ingredients including rice, according to the latest Jollof index report by SBM. The cost of Jollof which uptrended in the first quarter of 2020, nearly matched 2016 and August 2019 levels. The prices of key components were driven largely by panic buying by most Nigerian households following the stay-at-home directive. The SBM Jollof Index is a composite index that tracks how much it will cost to make a pot of Jollof rice across 12

markets in seven states in the six geopolitical zones for a family of five or six, the average rural and urban family size in Nigeria. “In the seventeen quarters in which we have compiled the Jollof Index, it is clear that the coronavirus pandemic represents the single most disruptive determinant affecting food prices in the country,” the report stated. “With the report of the external events in Q1 2020, and the policy responses we have observed, there is a high likelihood of a repeat of 2016 and we expect another spike, at the end of March, into April,” the report further stated. Nigeria experienced a series of events in the leadup to 2016 – falling oil prices, low external reserves and a slump in global demand which led www.businessday.ng

to a devaluation of the Naira. All these precipitated the 2016 recession which saw inflation nearly reach 20 percent at some points. In August of that year, the economic shock was expressed in a spike in the Jollof index. In August 2019, the index experienced a similar spike, primarily driven by the border closure policy. Since then, the index has stabilised, as more Nigerians make adjustments

in their diets in order to make do with what substitutes they can, especially switching to locally produced rice for their meals. The Jollof meal, a mixture of rice, tomatoes and spices, is practically a national dish in Nigeria and one meal that is enjoyed in every part of the country. While the Jollof index has treaded close to food inflation since collection begun, it has provided a simple way of communicating the realities of inflation to the Nigerian public. The commodities that make up the index are rice, groundnut oil, chicken or turkey, beef, seasoning, pepper, tomatoes, salt and onions. Typically, the SBM researchers would visit the markets in the final week of any

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given months. But as a result of the COVID-19 pandemic, they visited the markets twice in March 2020, in the third week, and again in the fourth week after pandemic induced panic buying had started. The price differences were startling. In anticipation of a shutdown as a result of the pandemic, the extent of panic buying by Nigerian consumers was clearly observed in the significant rises of such products as garri, rice and tomatoes all across the surveyed markets. For example, in lockdown states like Lagos and Abuja, the price for foreign rice, a major stable and ingredient both rose by 7.7percent. The lockdown in the Nigerian states such Lagos, Ogun and Abuja has already dis@Businessdayng

rupted well-established supply chains which have led to an increase in transportation costs and a reordering of supply chains. The big markets in Lagos, Abuja and Port Harcourt are all closed so smaller supermarkets and stores are having to source directly from the hinterland and not from the big city markets, which has exposed customers to nearinstant price increases. The report projected that consumers should prepare for even more price increased in the coming months if the pandemic continues. “This development would have important implications for the health of the economy and largely determine whether the country’s present anaemic growth track turns into a full downturn,” it said.

Thurssday 09 April 2020

BUSINESS DAY

Harvard Business Review

ManagementDigest

How working parents can let go of perfectionism Alice Boyes

WORK VS. LIFE here are legitimate reasons working parents strive for perfection. When it comes to raising kids, perfection is culturally expected of parents. In the workplace, parents often feel pressure to demonstrate that they’re just as career-driven as they were before they had kids. While it’s commendable to want to excel, obsessing over mistakes can do more harm than good. When you’re a perfectionist, failure can trigger self-criticism and overthinking, which can emotionally drain you. Part of the issue is rumination. Replaying the circumstances that led to mistakes and setbacks can make it harder to improve and overcome difficult situations. Fortunately, there are ways working parents can snap themselves out of rumination . Here are some strategies that may help: — DISRUPT RUMINATION WITH DISTRACTIONS: Doing crafts, baking or playing games with your children are excellent strategies for disrupting rumination. I experienced a failed in vitro fertilization cycle recently. After getting the news that I wasn’t pregnant, I spent five hours

building a robot kit with my 4-year-old to take my mind off of replaying everything I might have done differently. — EXTERNALIZE THE PERFECTIONIST VOICE IN YOUR HEAD: Personify your perfectionist rumination as an exaggerated, quirky character. For instance, you might imagine a little gremlin who bosses you around. This technique works by helping you get psychological distance from your thoughts. By exaggerating,

you are making the thoughts seem more absurd, which can help you recognize the absurdity in perfection. — TRY RESTORATIVE YOGA: I’m currently doing another IVF cycle, and I’m feeling anxious about how it will go. To help me manage my emotions, I have turned to restorative yoga, a practice that involves lying down and doing poses that allow you to relax and experience self-compassion. The practices has allowed

me to bounce back and increase my productivity. — RECOGNIZE HOW PARENTING MAKES YOU BETTER AT YOUR JOB: Try listing the ways that being a parent makes you better at your core work role, and vice versa. Your responses will help change how you view mistakes. I’ve been more focused on meaningful work since I’ve had a kid. So for me, small blips at work feel less existentially threatening since they pale in compari-

son to whether my kid is healthy and happy. — CULTIVATE SUPPORTIVE WORK RELATIONSHIPS: Over time, develop work relationships with people who help you feel more self-accepting. Seek relationships with people who you trust and respect enough that you don’t mind getting corrective feedback from them. This will help you feel more emotionally stable. — ACKNOWLEDGE THE SYSTEMIC ISSUES: There are pitfalls to not being perfect, especially for working moms. Women’s seemingly benign choices — like opting for flexible work that is offered to everybody — and mistakes get judged more harshly than men’s. If you acknowledge that reality, you can better make decisions about when to aim for perfection and when to let things slide. Letting go of perfectionism is part science and part art, requiring knowledge of scientifically supported strategies and personal experimentation to see which strategies work best for you. By understanding why you fall prey to perfectionism, you can find a way to feel more present and productive, at home and at work.

Alice Boyes is the author of “The Healthy Mind Toolkit” and “The Anxiety Toolkit.”

Making the leap to entrepreneurship want to break into, as well as the competitive landscape to understand how to differentiate yourself. Bounce ideas off friends and family. Volunteer in related organizations to gain hands-on experience. Write and publish content to establish yourself as a thought leader in your new industry. Build your networks and attend industry events.

Jaime Schmidt

MONEY etting a startup off the ground can leave you vulnerable — emotionally and financially. And, in this unsettling time of the COVID-19 crisis, we have to consider that economic conditions may not be favorable to becoming an entrepreneur. At the same time, your business dreams may never be achieved in any climate if you don’t take the leap. Through my experience founding Schmidt’s Naturals, I’ve come to understand some primary principles that entrepreneurs can follow to help ensure success on their own business paths.

COMMIT TO YOURSELF FIRST, AND THEN TO THE BUSINESS Entrepreneurship requires a strong love for the work you’re doing. Ask yourself, “If my plan works out, am I willing to be in this business for the long

haul?” If you haven’t yet nailed down your business idea but know that entrepreneurship is the path for you, you will need to determine where your true passions lie. This may require some exploring. After college, I quickly found myself working up the corporate ladder in a promising human resources position in Chicago. I was secure in my finances, but felt unsatisfied and wanted more autonomy and creativity in my work. Knowing that HR wasn’t the path for me, I uprooted my www.businessday.ng

life and moved to Portland, where I pursued a series of hobbies and side hustles. After attending a do-it-yourself class, I finally found my passion for making and selling natural personal care products. I knew I was ready to make the leap to life as an entrepreneur. DEVELOP YOUR SKILLS AND AUTHORITY Once you have solidified your business idea, pursue learning experiences to expand your knowledge. Start by researching the industry you

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BALANCE THE BOTTOM LINE It’s important that you are able to pursue the appropriate financial means for your company to get to profitability. Whether that’s through debt, equity, revenue-based financing or identifying a partner, your business will not survive without cash flow. Balance the amount of risk you are willing to take against the amount of collateral you will need to achieve your vision. STRUCTURE FOR SUSTAINABILITY Making entrepreneurship “fit” with the other pieces of @Businessdayng

your life is difficult. Being as intentional and flexible as possible when integrating your startup into your lifestyle will help to protect your mental health and your relationships. Make events with family and friend a priority on your calendar. Consider establishing routines around weekends, meals and bedtime. Be mindful of having heavy business conversations at home. But don’t avoid them altogether, either. Try involving others around the more entertaining aspects of business, like marketing. Despite all its challenges, entrepreneurship is worth it — at least for people like me, who get a thrill out of neverending challenges. If you’re wondering whether you’ve got what it takes and you’ve made it this far, I encourage you to take the leap. You’ll never know until you try. Jaime Schmidt is the founder of Schmidt’s Naturals.

Thursday 09 April 2020

BUSINESS DAY

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Wednesday 08 April 2020

BUSINESS DAY

FINANCIAL TIMES

World Business Newspaper

Donald Trump threatens to freeze funding for WHO

US president accuses global body of being ‘wrong’ about coronavirus outbreak in China Demetri Sevastopulo and Katrina Manson

resident Donald Trump threatened to freeze funding for the World Health Organization as he accused the body of withholding information about coronavirus in Wuhan and being “wrong” about the outbreak in China. Mr Trump said the WHO had “missed the call” when it came to the early detection of the virus in Wuhan and called the organisation very “China-centric”. He also blasted WHO for what he said was criticism of his decision in January to ban flights from China to the US. “They could have called it months earlier,” Mr Trump said at a White House press briefing on Tuesday. “They would have known and they should have done. And they probably did know, so we’ll be looking into that very carefully. And we’re going to put a hold on money sent to the WHO.” Mr Trump said he would put a “very powerful hold” on the funding. But when pressed on whether the US should withhold funds during the pandemic, the president softened his threat — one of the many examples of the president contradicting himself during

Donald Trump attacked the World Health Organization: ‘They seem to come down the side of China’ © EPA-EFE

the same press conference. “I’m not saying I’m going to do it, but we’ll have a look,” Mr Trump said. “You know what, they called it wrong. And if you look back over the years . . . everything seems to be very biased toward China. It’s not right.” According to the WHO, the US, which is its biggest contributor, provided $58m to the organisation this year, or double the Chinese contribution. On Thursday, China’s foreign ministry said Mr Trump’s threat to freeze funding “created a negative

impact on global anti-epidemic co-operation efforts”. Zhao Lijian, a foreign ministry spokesman, added: “China will as always support resolutely the work of the WHO and support the WHO to continue playing the leading role in the global fight against the epidemic.” Mr Trump’s criticism reignited a debate about blame for the spread of the disease, which has been contracted by 1.43m people around the world and caused 82,000 deaths, according to Johns Hopkins University. The number of US cases

has soared to 399,000, with almost 13,000 fatalities. The WHO in mid-January said there was no evidence of humanto-human transmission, even after one of its experts said the opposite. Days later, it pointed to “some limited” direct transmission among humans, as China also confirmed the first cases of human-to-human transmission. Later in January the WHO described the virus as a global emergency, but recommended that nations keep borders open to reduce the number of people

crossing borders in irregular ways that would prevent health checks. Later that day Mr Trump banned most travel from China. Mr Trump has been criticised for not taking the virus seriously early on, and particularly for saying it would disappear “like a miracle”. Each time he has come under attack, he has touted his move to ban flights from China, and sometimes his later step to expand restrictions to travel from Europe. Coronavirus business update How is coronavirus taking its toll on markets, business, and our everyday lives and workplaces? Stay briefed with our coronavirus newsletter. Sign up here “They seem to come down the side of China,” said Mr Trump, who claimed that the WHO missed the early signs despite sending a team to Wuhan. “They didn’t see what was going on in Wuhan . . . How do you not see it?” While Mr Trump has previously criticised the WHO, his attack on Tuesday took the criticism to a much higher level. It came just weeks after the US president generally stopped referring to the disease as the “China virus” following a phone call with Chinese president Xi Jinping. China has sent ventilators and other badly needed medical equipment to the US to help states deal with the mounting health crisis.

Arab world’s middle-income nations face tough coronavirus choices Countries from Jordan to Egypt will struggle to mitigate the pandemic’s economic impact

Andrew England and Heba Saleh

ew countries acted faster or more radically to contain the coronavirus outbreak than Jordan. National defence laws typically reserved for times of war were invoked. Soldiers were dispatched to main highways, a curfew was imposed and all but essential travel was banned between the Arab state’s 12 governorates. All this took place when the kingdom had reported fewer than 70 confirmed cases of Covid-19 and had suffered no deaths. The draconian measures were welcomed, analysts said, by an anxious population worried by the spread of the virus — the number of confirmed cases in the country of 10m people stood at 349 on Wednesday. But now, with the curfew extended indefinitely and people allowed to leave their homes only on foot to buy essential goods, some are starting to worry about what comes

next in a country that is already grappling with debts approaching 100 per cent of gross domestic product, widespread joblessness and limited financial firepower to help cushion the economic shock. “I’m not sure how we are going to get through this after this virus is contained — we will wake up to some harsh economic reality,” said Ibrahim Saif, a former minister and chief executive of the Jordan Strategy Forum, a think-tank. “The lives of people are the most important thing, but you cannot let your economy freeze like other countries are managing to do . . . we cannot afford to freeze the whole economy.” It is a dilemma that middle-income nations across the Arab world face in a region already blighted by the planet’s highest youth unemployment. All countries have introduced varying degrees of lockdown, but while Saudi Arabia and the United Arab Emirates, the region’s big oil exporters, have unveiled support packages worth tens of billions of dollars, countries such as Jordan, Morocco, Tunisia and Egypt have been able to offer only minimal relief www.businessday.ng

to businesses. The result is that much of the Middle East is likely to become more dependent on international support. Jordan last month secured a $1.3bn loan from the IMF, part of a package negotiated before the outbreak but which was adjusted to help it deal with the pandemic. Tunisia has also requested IMF assistance, while the fund is making a “liquidity line” of up to $3bn available to Morocco. Algeria, Iraq and Lebanon, which was grappling with its worst economic crisis even before the outbreak, are also “exploring” assistance from the fund, Jihad Azour, the IMF’s top official for the Middle East, told the Financial Times. “We are in one of the most challenging crises historically, in terms of magnitude and complexity. This time, our region is unfortunately at the forefront,” said Mr Azour. The collapse in tourism alone is likely to reduce gross domestic product this year by 2 per cent to 3 per cent in Jordan, Egypt, Morocco and Tunisia, according to Capital Economics, an independent research group. Remittances from the

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oil-rich Gulf and Europe, another vital source of foreign currency, are also expected to plunge. “Is what the fund and the [World] Bank and other institutions are going to offer going to be enough? Maybe not,” said Mr Azour. “This is where the international community needs to step up.” In Egypt, which has been the Middle East’s best-performing economy since the government introduced a series of reforms tied to a $12bn IMF loan in 2016, investors have withdrawn between $7bn and $9bn from the country’s debt and equity markets since the start of the coronavirus crisis, a senior banker said. The Egyptian authorities are among those in the region that have sought to achieve a balance between early action to contain the spread of Covid-19 and avoiding freezing economic activity in a nation of 100m people where many have no savings and survive day to day. Even as he admonished citizens to observe social distancing and stay at home during a night-time curfew, Egyptian prime minister Mostafa @Businessdayng

Madbouli said construction on state mega-projects would continue at full steam. Still, several prominent Egyptian businessmen, including the former telecoms tycoon Naguib Sawiris, have publicly criticised the partial lockdown, warning of the severe impact on the economy. The authorities have also capped cash withdrawals from banks and cut interest rates. But the Egyptian pound has remained firmer than other emerging market currencies against the dollar. That has led to speculation that the government, which has spent $1.27bn to support the stock market, has also intervened to prop up the currency by tapping its foreign reserves of $45bn. “The concern is they seem to be going back to the bad old ways of pre-2016, of heavy intervention,” said Jason Tuvey, senior economist at Capital Economics. “They do have some scope to carry this on a little bit longer . . . but their capital flight reserves could be drawn down quite quickly and Egypt could find itself in a perilous position.”

BUSINESS DAY

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

RBS cuts 130 jobs in investment bank State-backed lender presses on with restructuring despite coronavirus pandemic Nicholas Megaw

oyal Bank of Scotland has cut more than 130 jobs in its investment banking division during the coronavirus crisis, with many staff served their redundancy notices via video call, according to people familiar with the situation. The state-backed lender has pushed ahead with a restructuring of NatWest Markets — announced in February before the pandemic gathered pace in the UK — despite rivals delaying similar projects. Trade unions criticised the move, which comes at a time when the hiring market has all but ground to a halt, and most staff are working from home with the UK under lockdown. Rob MacGregor, national officer at Unite the Union, which represents RBS staff but is not recognised by NatWest Markets, said: “Our position is quite clear — all these restructures should be paused . . . because we don’t know what the lay of the land will be post crisis.” RBS told trade unions it would pause cost-cutting efforts in much of its business, but has

pushed ahead with changes in its NatWest Markets investment bank. Under new chief executive Alison Rose, the group in February announced plans to drastically shrink its investment banking division and move some of the remaining jobs in areas such as risk management to cheaper offices outside the UK. At the time, RBS didn’t quantify the scale of job cuts required. “For a bank that’s still majori-

ty-owned by the British taxpayer, and one that owes the taxpayer more than any other corporate entity in our history, this is not a smart move by the leadership team,” said Mr MacGregor. A spokesperson for NatWest Markets said: “In line with the strategy we announced in February, NatWest Markets is being refocused into a smaller, simpler business focused on the needs of the group’s core corporate and

institutional customers. Following consultation with employee representatives for NatWest Markets, we are progressing this strategy and providing clarity to those colleagues in roles that do not form part of the business going forward.” RBS’ decision to continue with the job cuts contrasts with many of its domestic and international peers. HSBC, which announced a

major restructuring four days after RBS did, told staff it would delay the “vast majority” of its planned redundancies due to the “extraordinary impact of the crisis”, while retail-focused rivals Virgin Money and Lloyds Bank have both paused plans to cut jobs and close branches. In the US, Citigroup, Wells Fargo and Morgan Stanley have all suspended job cuts, as has Germany’s Deutsche Bank, which is also amid a restructuring. Coronavirus business update How is coronavirus taking its toll on markets, business, and our everyday lives and workplaces? Stay briefed with our coronavirus newsletter. Sign up here “We were expecting the same thing to happen in RBS, but it didn’t,” one RBS staff member who had been laid off told the Financial Times. “And obviously with this market it’s pretty much impossible to find something else.” Recruitment has frozen across the City of London since the coronavirus outbreak, according to headhunters. Last week Hays, the FTSE 250 recruiter, raised £200m from investors to insulate it against an expected crash in fees.

Equity market rally runs out of steam

S&P 500 closes lower as investors await more evidence of progress against virus and extra stimulus Colby Smith, Myles McCormick, Tommy Stubbington and Thomas Hale

he rally in US stocks lost steam in late afternoon trading on Monday, relinquishing earlier gains despite signs that the spread of coronavirus was decelerating. The S&P 500 closed down 0.2 per cent, erasing a rally of more 3 per cent earlier in the day, while the Dow Jones Industrial Average and tech-heavy Nasdaq Composite fell by a similar amount. It was a shift from the more bullish sentiment seen on Monday, when the S&P 500 climbed 7 per cent for its best day in a fortnight. Investors have been encouraged by signs that sweeping restrictions on movement in the US and Europe have proven effective in slowing the spread of coronavirus, but there is little clarity yet on how quickly those restrictions can be lifted and fears remain about the economic

impact of the pandemic. “People are seizing on the fact that not only do you have infections seemingly peaking in the likes of Italy and Spain, but you have lockdown restrictions being relaxed in places, and in the US, the number of deaths is coming in below expectations,” said Rupert Thompson, chief investment officer at Kingswood, a wealth manager. “At the moment it is good news, but we are very far away from clear blue skies.” New case numbers in Italy, Spain, Austria and Germany — www.businessday.ng

on the basis of seven-day rolling averages — have all begun to decline. Austria is set to be the first European country to relax strict quarantine measures with the opening of some shops next week. Analysts at Pantheon Economics expect daily infection numbers to peak in the US and the UK this week. “The underlying trend very clearly is downwards, as it should be some three weeks after California was the first state to issue a shelter-in-place order,” said Ian

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Shepherdson, chief economist at Pantheon. Before the rally broke down in late trading in the US, Europe’s Stoxx 600 had ended the day 1.9 per cent higher and Asian stocks had also climbed for a second day. Hong Kong’s Hang Seng closed up 2.2 per cent. Some investors had been sceptical the gains could last. “This is a typical monster bear market rally, except it’s taken two weeks rather than three months,” said Luca Paolini, chief strategist at Pictet Asset Management. “Markets are reading too much into the daily infection rates. For this rally to be sustained we need more evidence of a Covid peak, and a peak in US jobless claims.” There are also concerns that more will be needed on the relief front from US policymakers to ensure the worst of the economic damage from the coronavirus outbreak can be avoided. “The stimulus was necessary but insufficient,” said Jack Janasiewicz, portfolio manager at Natixis Investment Managers. @Businessdayng

“Congress gets the fact that they need to do more.” Coronavirus business update How is coronavirus taking its toll on markets, business, and our everyday lives and workplaces? Stay briefed with our coronavirus newsletter. Sign up here Investors eschewed government bonds as well on Tuesday, sending the yield on the US 10year government bond higher by roughly 0.05 percentage points to 0.72 per cent. Yields fall as prices rise. Oil prices slipped, following Monday’s rally on hopes that Saudi Arabia and Russia would reach a deal that would reduce crude output and underpin sliding prices. G20 oil ministers are due to meet on Friday, the first time the group has convened to deal specifically with energy issues, fuelling optimism an agreement can be hammered out to cut output as global oil demand wanes. Brent crude, the international oil benchmark, was down over 1 per cent to trade at $32.52 a barrel.

Wednesday 08 April 2020

BUSINESS DAY

ANALYSIS

Tracking coronavirus: big data and the challenge to privacy European demands for information from smartphones are raising fears over the reach of state surveillance Nic Fildes and Javier Espinoza

hen the World Health Organization launched a 2007 initiative to eliminate malaria on Zanzibar, it turned to an unusual source to track the spread of the disease between the island and mainland Africa: mobile phones sold by Tanzania’s telecoms groups including Vodafone, the UK mobile operator. Working together with researchers at Southampton university, Vodafone began compiling sets of location data from mobile phones in the areas where cases of the disease had been recorded. Mapping how populations move between locations has proved invaluable in tracking and responding to epidemics. The Zanzibar project has been replicated by academics across the continent to monitor other deadly diseases, including Ebola in west Africa. “Diseases don’t respect national borders,” says Andy Tatem, an epidemiologist at Southampton who has worked with Vodafone in Africa. “Understanding how diseases and pathogens flow through populations using mobile phone data is vital.” With much of Europe at a standstill as a result of the coronavirus pandemic, politicians want the telecoms operators to provide similar data from smartphones. Thierry Breton, the former chief executive of France Telecom who is now the European commissioner for the internal market, has called on operators to hand over aggregated location data to track how the virus is spreading and to identify spots where help is most needed. Both politicians and the industry insist that the data sets will be “anonymised”, meaning that customers’ individual identities will be scrubbed out. Mr Breton told the Financial Times: “In no way are we going to track individuals. That’s absolutely not the case. We are talking about fully anonymised, aggregated data to anticipate the development of the pandemic.” But the use of such data to track the virus has triggered fears of growing surveillance, including questions about how the data might be used once the crisis is over and whether such data sets are ever truly anonymous. The debate over the use of location data sets could be a forerunner to a broader discussion about civil liberties and

surveillance in Europe and the US as governments put in place plans to lift at least parts of the lockdowns. The strategies for reopening an economy before a vaccine is developed could involve monitoring the contacts of newly infected people, which will raise questions about how much curtailment of privacy societies are prepared to take. In South Korea, which is seen as a benchmark of how to control infectious diseases, the authorities can require telecoms companies to hand over the mobile phone data of people with confirmed infections to track their location. The data has enabled the rapid deployment of a notification system alerting Koreans to the movements of all potentially contagious people in their neighbourhoods or buildings. China and Israel have also used personal telecoms data to trace coronavirus patients and their contacts. Governments around the world are creating apps to gather more personal data, such as who is sick and with whom they have been in contact. Even the EU’s General Data Protection Regulation, which was adopted in 2018, has a clause allowing exceptions for cases that are in the public interest. Data discoveries 800,000-1m Number of people that were found to be travelling in and out of Milan when Italy was supposed to be on its first week of lockdown. 80% Proportion of time Belgians are spending within their home postal area after confinement measures were introduced. 99.98% Percentage of individuals that one study found could be re-identified with 15 demographic characteristics, even when their data was anowww.businessday.ng

nymised. Vittorio Colao, former Vodafone chief executive now at General Atlantic, says people should be willing to allow the use of “pseudo-anonymised” data by health services such as Britain’s National Health Service to respond to the pandemic. Originally from northern Italy, he says citizens understand the need to trust authorities to handle their data. “It is not a question of spying on everyone forever but of saving lives for a time that demands temporary rules,” he says. “We trust Uber to know everywhere we go, we trust Gmail with everything we write. If we don’t trust the NHS with our health data then who do we trust?” Vincent Keunen, founder of app developer Andaman7 in Belgium who works on ways to securely share health data, says citizens have legitimate concerns about vast amounts of data being used to track them individually. But he says it is a tricky balance to strike between using technology to help tackle health crises and safeguarding privacy. “ The use of technology should end as soon as the health of the people is guaranteed. We must be vigilant,” he says. “If you go to one extreme, you’ll have super high privacy but then you die and it becomes useless to have privacy. It’s a very delicate balance to reach.” The use of location data to track the disease has been applied in Italy, Spain, Norway and Belgium, with the UK, Portugal and Greece set to follow. In cities such as Madrid and Milan, telecoms operators have created heat maps that show how restrictions on movement are working and what effect the presence of police on the streets is having on behaviour. Telecoms companies in Spain were able to show that the movement of people in one city dropped 90 per cent during

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the first week of the lockdown and a further 60 per cent of the remainder in the second week, while in Italy the lockdown was largely ignored for the first week, with between 800,000 and 1m people still travelling in and out of Milan. In Belgium, the data showed that long distance trips of more than 40km dropped 95 per cent after confinement measures were introduced. Belgians are spending 80 per cent of their time within their home postal area, with mobility down 54 per cent. The data can show if large numbers of people in cities have fled for their second homes, as was the case in France. The insights that telecoms companies can derive from these data sets build on their experience of working with epidemiologists to track infectious diseases in the developing world. Telenor, the Norwegian company, has participated in big data projects to predict the spread of dengue fever in Pakistan and malaria in Bangladesh. Kenth Engo-Monsen, a senior researcher at Telenor, says it was able to show that movement between Norwegian cities dropped 65 per cent after restrictions were applied. “Knowledge about a population’s travel pattern is vital to understanding how an epidemic spreads throughout a country,” he says. Telefónica, Spain’s national carrier which owns networks across Latin America, has developed expertise working with companies like Facebook to use data to deal with natural disasters such as earthquakes. It also worked with Unicef and the University of Notre-Dame in 2017 to improve epidemiological models for predicting the spread of the Zika virus in Colombia. Prof Tatem cites coastal areas in Namibia as an example of where heat maps detailing migration into heavily infected @Businessdayng

areas can be used to prioritise other areas where bed nets and insecticides need to be deployed. Vodafone has a researcher paid for by the Bill & Melinda Gates Foundation embedded in its data team at the company’s London headquarters, to work on data sets providing insights to academics tracking a variety of diseases. Nick Read, chief executive of Vodafone, says the team offers invaluable insights. “We have seen how aggregated data can check the spread of disease in Africa. We’re now using the same insights to understand and combat the spread of Covid-19 in Europe,” he says. European telecoms companies remain adamant that the information that has been provided to governments is anonymised and aggregated. That means it cannot be traced to any specific individual or phone. The process of scrubbing the data usually takes between 24 and 48 hours before it is available in data sets that can then be used by governments. The industry insists that data about users is of little use for big data analysis of the contagion: the best way to track the spread of the pandemic is to use heatmaps built on data of multiple phones which, if overlaid with medical data, can predict how the virus will spread and determine whether government measures are working. Telecoms companies say they are frustrated with the confusion between the kind of group data they are providing and the personal data that can be gleaned from apps on mobile phones. In Europe, personal information, such as whether someone has coronavirus and has shared that on social media or searched on Google for symptoms, is not legally accessible under GDPR by a telecoms provider.

Thursday 09 April 2020

BUSINESS DAY

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Thursday 09 April 2020

BUSINESS DAY

news FBN Holdings to sell insurance stake to... Continued from page 1

his call. Sanlam and FBN Holdings, owners of FBN Life Assurance Limited (FBN Life), had in 2014 acquired a 71.2 percent equity interest in the Nigerian Stock Exchange-listed general insurance company, Oasis Insurance plc. This enabled them to have a general insurance subsidiary, FBN General Insurance. FBNInsurance has over its few years of operation emerged the fasted growing life insur-

ance company in Nigeria, in terms of volume and profitability. FBNInsurance has been recognised for its outstanding and consistent performance over the years. Some of these recognitions include Best Insurance Company in Africa by African Re (2018), Best Life Insurer in Nigeria by World Finance (2014, 2016 and 2017), Cup of Nations Award by Sanlam Emerging Markets (2014 and 2016), and A+ rating by Agusto & Co (2106 and 2018).

COVID-19: FG trains 3,800 health workers... Continued from page 1 Hope Uzodima (r), governor, Imo State, discussing with Sadiya Umar-Farouk (m), minister of humanitarian affairs, disaster management and social development, and Placid Njoku (l), deputy governor, during the distribution of relief materials by the FG in Imo State.

Nigeria prioritised fuel subsidy over... Continued from page 1

said payments of subsidy is a gorilla that has swallowed Nigeria’s economy and has led to the collapse of education institutions, road infrastructure and health facilities because the country spends more than one-quarter of its budget subsidising petrol which benefits the elite more than the populace. A comparative analysis of the NNPC data on subsidy and the Federal Government budget from 2015 to 2019 showed that while the administration has sunk over N2 trillion into fuel subsidy, the sum of N608 billion has been committed to capital spending for defence, N415 billion for agriculture, N219.03 billon for capital components of education and N215.45 billion as the capital budget for health in four years. This implies that the cost incurred to subsidise

petrol is more than budgets for capital projects for health, education, and agric (N1.4bn) sectors put together in the last four years. The amount spent on subsidy is also larger than N608 billion making the capital component of the budgets for defence (including the army, navy, air force and defence intelligence as well as research agencies) in the last four years, though all the capital allocations traditionally never get completely released. By implication, less money went into building classrooms, hospitals and buying farm tools whereas more funds went into the petrol subsidy that experts have severally described “as economic waste amid scarce resources”. The expenditure on subsidy for PMS has also dwarfed the government’s spending to alleviate poverty and youth unemployment. “ The ordinar y man hardly benefits from this

Fiscal deficit jumps to N5.2trn as FG... Continued from page 1

sum of N2.465 trillion was allocated to capital expenditure for the 2020 financial year. The re vis e d budg et also showed that the earlier N560.4bn earmarked for statutory transfers has been reduced to N407.805 billion. Under the new budget N150 billion has been allocated to the Covid-19 Special Intervention Fund and the money would be transferred from special accounts. Speaking on the revised budget, the Minister of Finance, Ahmed on Monday said the 2020 Appropriation Act was based on certain fiscal assumptions, which government have been compelled to revisit, given the emerging

economic realities. “Specifically, projected oil revenues have been significantly affected in that: Dated Brent oil prices fell to as low as US$19.125/barrel (03.04.2020) as compared with the 2020 budget benchmark of US$57/barrel; and oil production in 2020 year-todate is 1.9mbpd (before the current crises) as compared with the 2020 budget’s projection of 2.18mbpd.” “We are therefore revising the benchmark oil price for 2020 to US$30/barrel and oil production to 1.7mbpd. We have similarly had to adjust downwards our non-oil revenue projections, including various tax and customs receipts, as well as proceeds of privatisation exercises. In www.businessday.ng

under-recovery, subsidy or whatever name you may wish to call it. We sincerely believe this is the perfect time to ensure that these benefits come to the ordinary man and not to the elites,” Mele Kyari, NNPC’s group managing director, said in an interview. Nigeria’s poor rely primarily on public transportation. As such, their per capita fuel consumption is significantly less than the country’s rich, who generally use private vehicles while neighbouring countries also benefit significantly from Nigeria’s fuel subsidy through smuggling. “By stopping this underrecovery, we are also stopping the subsidising of the elites. In any case, subsidy is an elitist thing because it is the elites that benefit. They are the ones that have SUVs, three, four cars in their houses,” Kyari said. International financial institutions like the World Bank and the International rging Monetary Fund are u

governments to cut costly national subsidies and to provide them in a targeted fashion to poor communities. The World Bank says that subsidies “impose a heavy fiscal burden and are likely not sustainable”. “Since these subsidies disproportionately benefit high-income households, they are a costly way to protect the poor,” World Bank said. President Muhammadu Buhari has been keen to suggest that the government is out of the subsidy game. What the government calls its spending may have changed, but it still pays the bill to insulate Nigerians from the full cost of petrol prices. Instead of paying subsidies to importers, as was done in the past, the Buhari government has made the national oil company (NNPC) responsible for fuel imports and swallowing the difference between its costs and the price at the pump.

this regard, the Budget Office is currently working on amendments to the mediumterm expenditure framework (MTEP 2020-2022) and the 2020 Appropriation Act. “The proposed amended budget will provide for the COVID-19CrisisInterventionFund andotheradjustmentsrequired, due to the decline in international oil prices. We have also commencedconsultationswith theleadershipandkeyCommittees of the National Assembly to discussourplans,suchthatonce the Executive’s 2020 Amendment Budget is completed, we shall expeditiously seek presidential and legislative approvals for this revised appropriation”, she added. However, a history of missing revenue target and not fully implementing the budget may make the move by the FG a mere exercise.

According to data from the Budget Office, as at June 2019, Federal Government’s actual aggregate revenue (excluding Government-Owned Enterprises) was N2.04 trillion, only 58 percent of the 2019 Budget’s target due to the underperformance of both oil and non-oil revenue sources. Specifically, oil revenues were below target by 49 percent as at June 2019 which saw capital expenditure spending suffer. In 2018, the aggregate revenue receipt for the period was N3.684 trillion or 51.42 percent lower than the annual projection. According to the Budget Office, total inflow for funding the FGN 2018 budget stood at N3.869 trillion indicating a shortfall of N3.27 trillion or 46.04 percent below the annual estimate for the period.

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sociation (NMA), National Association of Resident Doctors (NARD), among others, to ensure they are well integrated into Federal Government’s response plan to the pandemic. The Federal Government has also called on health professionals in various states across the country to look out for unusual respiratory tract infectious cases, as it expressed further concern that the COVID-19 cases are now at community transmission level. The government also called on various states to get ready with their health facilities as well as build the capacity of their healthcare personnel as the pandemic enters community level. “We visited Lagos yesterday and saw the isolation facilities. I would want to, on behalf of the Presidential Task Team, call on the states to be ready, by providing isolation facilities in case the numbers start going up in their respective states,” Sani Aliyu, national coordinator, Presidential Task Force on COVID-19, said on Wednesday while briefing newsmen. “We need to be absolutely ready and we also need to seize this opportunity to strengthen our health systems and overall health infrastructure and ensure that our manpower is adequate, while also ensuring that healthcare workers are trained and protected,” he said. On possibilities of insurance for both federal and state workers within the period of the pandemic, he said the task force was working to ensure adequate health insurance is provided to all health workers in the frontline working with the Federal Ministry of Health. “We would also be reaching out to states ministries of health to seek what sort of arrangement would be provided during @Businessdayng

the pandemic,” Aliyu said. Meanwhile, Lagos State government on Wednesday announced the death of a 66-year-old Briton, making the third Covid-19-related death recorded in the state. The state Ministry of Health, through its verified Twitter account, said the deceased travelled from India via Dubai to Lagos on March 17. The ministry, however, did not disclose further information about the medical history of the deceased patient. The state has 130 confirmed cases – 93 active, 32 discharged, two evacuated, and three dead – as at 6:00pm on Wednesday. On its part, Delta State, which recorded its first case of coronavirus Tuesday, said it has begun tracing all those that might have come in contact with the index case. Governor Ifeanyi Okowa, who announced this in a broadcast in Asaba on Wednesday, also threatened to apply stricter measures to check disobedience of the state government’s directives on the lockdown in the state over the COVID-19 pandemic. Okowa commended Deltans who had strictly adhered to the lockdown regulations from April 1, 2020, but warned that enabling laws would be applied on those disobeying the directives of sit-at-home. He expressed appreciation to all Deltans and non-Deltans in the state for their cooperation, saying, “We are on Day 8 of the lockdown and I know that a lot of our people have been cooperating with the directive of the government. Unfortunately, a few persons have tended to disobey orders and I want to urge every Deltan that from today onwards until the 14 days, to please, for the sake of everyone, for the sake of humanity, obey the orders of government, otherwise they will be caught up by the arms of the law.”

Thursday 09 April 2020

BUSINESS DAY

news At historic oil meeting, diplomacy, persuasion essential for Nigeria Olusola Bello

rguably, the biggest oil meeting in history is due to take place today in order to cushion the fall in global oil prices. To convince Saudi Arabia and Russia, the gladiators at the centre of price war to sheathe their swords, Nigeria, the biggest producer in Africa, has been advised to combine diplomacy and moral persuasion. Some stakeholders in Nigeria’s oil and gas industry who spoke with BusinessDay said as a highly respected member of OPEC both parties may listen to Nigeria. In what has been a furious fight among the three biggest producers of crude oil in the world, Nigeria’s lack of financial heft and oil production volumes makes it irrelevant. Nevertheless, it can sway Saudi Arabia and Russia to see the benefits of further production cuts.

The meeting of today may make or mar the stability of the oil price market. If they are able to reach a compromise it will boost oil prices. Otherwise the market will spiral and prices will fall further. Lower prices will be dangerous for an economy like Nigeria which is solely dependent on crude oil revenues. Already there are signals that the meeting may run into stormy waters as both Saudi Arabia and Russia, the two major producers listed caveats for the meeting to succeed. They want the US whose production level has also affected the price of the commodity to be part of the meeting. he US, the largest producer of shale oil, has taken up some of the market share of Saudi Arabia and Russia. Dan Kunle, an energy investment analyst, told BusinessDay that Nigeria is not a force in the current equation and can only appeal to the parties engaged in price war. He said the potency of OPEC as

regards the control of the crude oil market globally has been reduced because of a series of discoveries taking place across the globe. Similarly, Diran Fawibe, chairman/CEO of International Energy Services Limited, said Nigeria is a member within the framework of OPEC and a responsible member of long standing for that matter who still has a voice in the organisation. He said in the final analysis if a production cut is agreed, all producing countries without any exemption will be affected. So the best option for a country like Nigeria is to use her good relation with the parties and appeal to them to reach a compromise. “The voice of Nigeria still counts no matter the position of Saudi Arabia. No matter how small the production of a member country is, her voice still counts in giving support to Saudi Arabia,” he said. Saudi Arabia, Russia and

other global producers are working frantically to secure a deal aimed at stemming the crash in oil prices. The former partners-incuts traded barbs over the weekend over who to blame for the crash, which led to a virtual meeting being rescheduled for today. After throwing itself into the battle for market share – offering main export crudes at the lowest price relative to the international benchmark in more than a decade, she said it is ready to help return stability to the global oil market. Nigeria is “prepared to join the rest of the world in making the necessary sacrifices needed to stabilise the crude oil market and to prevent what is likely to be a major global economic meltdown,” Timipre Sylva, minister of state for petroleum resources, said in a statement Monday. Nigeria’s production level as at March was 1.93 million barrels a day.

Covid-19: VFD Group addresses nutritional needs in Olowogbowo community, Lagos

s the COVID-19 pandemic continues to spread, with communities and economies everywhere affected, Nigeria and the world face an unprecedented challenge. With the number of infected citizens surging, President Muhammadu Buhari issued a lockdown in Lagos, Abuja and Ogun State aimed at curbing the spread of the virus. However, the lockdown has amplified issues such as poverty and starvation as many who depend on their daily earnings for survival have been made more vulnerable. To help alleviate the plight of the most vulnerable within its area of operation, VFD Group plc embarked on an outreach to the Olowogbowo Community of Lagos Island to address their nutritional needs. Speaking during the outreach, Niyi Adenubi, group executive director, VFD Group plc, said VFD Group is a brand that is empathetic about the people and the community in which it operates, which necessitated the outreach. “Families are stranded and facing critical shortages of meals every day. We have provided the Olowogbowo community with these…our own way of giving

back to our community during these very challenging times. A special thanks to our team and everyone who joined us in this initiative. Special thanks to our team headed by Toyin Abel, head of sales, who drove the initiative from inception to implementation,” Adenubi said. Adetoyese Olusi, chairman, Lagos Island Local Government Area, and Lookman Omobolanle Thomas, councillor ward A1 Olowogbowo, were present at the event. Before the directive for the lockdown was given in the state, the company had already encouraged its staff to start working remotely as the virus had begun to spread globally. The launch of its Virtual Bank (V Bank, a product of its Microfinance Bank) has also made it very easy for its customers to continue to get great service without having to go to its offices. “The management team is dedicated to staying up to date with the NCDC and World Health Organization (WHO) guidelines to make the best adjustments to business operations and policies as needed,” said Nonso Okpala, GMD/CEO, VFD Group plc. “We advise that everyone maintains calm and keep safe even in this period.”

ABCON tasks FG on informal sector economic policy against Covid-19 Hope Moses-Ashike

L-R: Faith Ireye, World Health Organisation (WHO) coordinator in Edo State; Patrick Okundia, Edo State commissioner for health; Philip Shaibu, deputy governor, Edo State and chairman, Edo State Response Committee on COVID-19; Evbareke Jenkins Osunde, chairman, Oredo Local Government Area, and Paul Ohonbamu, commissioner for communication and orientation, Edo State, during a press briefing at the Government House in Benin City.

Minister promises amicable resolution ARISE enriches Lagos Covid-19 response of Army, Abuja native land dispute team with medical supplies James Kwen, Abuja

he Federal Capital Territory (FCT) minister of state, Ramatu Aliyu, has promised indigenes of Tunga-Maje in Gwagwalada Area Council of Abuja that the disputed parcel of land allegedly encroached upon by the Nigerian Army would be resolved amicably by the highest authorities. Aliyu, who made the promise when she visited portion of the disputed land, also assured the indigenous people and traditional heads that justice would be done to both warring parties. The minister however commended the community for not taking laws into their hands and assured that if the disputed land was allocated to the Nigerian Army, resettlement and adequate compensation would be made to the natives. “I must sincerely extend my appreciation to both the chairman of Gwagwalada Area Council and Abuja Municipal Area Council for calling on FCT Administration and the trust that the administration can resolve this lingering land dispute. “I must also appreciate

the Agura of Zuba and the indigenous people of TungaMaje for your calm conducts. You have demonstrated that you are indeed law abiding citizens. From the narration of the Agura, it has been a painful moment, but hopefully this time around, we will be able to take it to the appropriate quarters where the needful will be done. “If indeed the land is allocated from the federal authorities to the Nigerian Army, of course consideration must be made for a new place to relocate to and of course to settle you by compensation. “But before then, we will not jump the gun. Therefore, we want you to be law abiding as we go back to revisit the issues. Justice must be done. I want to appeal to you to be law abiding because the matter is not beyond the authorities to handle,” Aliyu assured. E a r l i e r, c ha i r ma n o f Gwagwalada Area Council, Adamu Danze, revealed that since his inauguration four years ago, the battle to reclaim the disputed land from the Nigerian Army had been vehemently resisted with its attendant casualties. www.businessday.ng

Iniobong Iwok

RISE, a charity organisation, Tuesday, donated medical supplies to Lagos State Coronavirus (COVID-19) Response Team as part of efforts to support the ongoing battle by the state government to contain the fast spreading pandemic. The relief materials, include 4,000 sanitizers; 20,000 hand gloves and 4,000 facemasks, would equip the medical team with necessary protective gears needed to contain the Covid-19 pandemic. ARISE is a humanitarian and charitable organisation, which has been in the forefront of bringing health care delivery to the most vulnerable in the society through their mobile clinics - Arise hospitals- as well as donation of boreholes and medical reliefs. For over 11 years, ARISE has continued to reach out to many without bias, staring with its pioneer charity work labelled: “Faith and Works” that is over 20 years old. Speaking while donating the medical supplies at the mainland hospital in Yaba, Siju Iluyomade, founder/convener, said the organisation give priority to health, because sound

health was necessary for the well-being and productive of the citizenry. She said the organization had intervened rescued and provided health infrastructures for several medical institutions across the country for the benefit of Nigerians. According to Iluyomade, “ARISE takes health very seriously because you need to be in sound health to do anything tangible. Apart from the donation of personal protective materials, ARISE has free medicals outreach at the Healing Stripes Hospital for Women every second and last Wednesday of every month. “Also, under our adopt-avillage Scheme, we have adopted many villages In Abuja. We built a full-fledged functional borehole in three of the villages for the schools and separate ones for the communities and their leaders, we built full resource & literacy centres, complete renovations of schools, supplies of stationeries, books and brand-new classroom furniture,” she said. She stressed that the succour and the success stories recorded over the years had inspired the organization to do more and touch the lives of more Nigerians.

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ssociation of Bureaux De Change Operators of Nigeria (ABCON) has called on the Federal Government to design informal sector oriented economic policy that will help informal workers overcome the severe impact of the Covid-19 pandemic. Making this call in its Quarterly Economic Report for the first quarter of 2020 (Q1’2020), ABCON notes that while most Covid-19 related government aids and packages are targeted at formal businesses, it is the informal sector, which accounts for majority of the labour force, that suffers the greatest impact of the pandemic. Nigeria has 41.5 million Micro, Small and Medium Enterprises (MSMEs), accounting for 17.4 million jobs. Most of these MSMEs operate in the informal sector. These informal workers suffer disproportionately when large-scale lockdowns are ordered, but at the same time, government aid packages are largely being targeted at formal businesses. To ensure that these MSMEs continue to play their critical role in the economy, especially employment generation, we recommend that economic policy trust for post Covid-19 must be designed to reach the informal sector that accounts for a larger percentage of the society, the association says. Noting that the COVID-19 pandemic represents a wake-up call to the government on the need to support indigent members of the society, ABCON says: “A major lesson to be learned @Businessdayng

from COVID-19 is the practicability of social security policy in Nigeria. Government should be awakened to this prime realisation of the need to support the indigent in the society not only during emergencies but under normal conditions.” This, the Association states, “will consequently reduce a lot of social ills in the society and on the long run cost of crime prevention and management will reduce. This will encourage government to realistically take accurate census and perfect the identification process in the country.” While commending the efforts of the various government to provide food materials to alleviate the impact of the lockdown on low-income earners, the Association also calls for the creation of call centres where members of the public can call to request for food support and also to deliver such support, adding that this will go a long way to ease the growing hunger in the country. In addition, the Association advises that the Federal Government should sustain the school feeding system by allowing schools to cook while the pupils visit the school to collect the food. ABCON also cautions bureaux de change across the country not panic due to the negative consequences of the pandemic, stressing there are also positive consequences with benefits for the BDC business. The Association also calls on the Central Bank of Nigeria (CBN) to enhance the global competitiveness of BDCs through a phase by phase upgrade of their business model in line with the global trend.

Thursday 09 April 2020

BUSINESS DAY

TECHTALK Innovation

Apps

Fin-Tech

Start-up

Gadgets

Ecommerce

IOTs

Broadband Infrastructure

Bank IT Security

Finally, digital adoption gets undivided attention of Nigerian leaders FRANK ELEANYA

agos State Governor alone in his office during a virtual meeting The picture of Babajide Sanwo-Olu the governor of Lagos State, holding a virtual meeting with his commissioners and advisers has become the reference point for how states can keep functioning despite a lockdown. Prompted by the coronavirus pandemic that has conferred on the state a most unwanted title of the hotspot of the virus, the virtual meeting is the first of its kind. It is the first time a government in Lagos - reputed to be the hub of technology activities in West Africa - and the commercial hub of Nigeria, is conducting such a meeting. It won’t be the last time, at least for as long as the shutdown induced by the coronavirus pandemic lasts . As at 09:30 pm on Monday, 6 April, Nigeria had 238 confirmed cases, 120 of whom are in Lagos, 35 people have so far recovered from the virus and five have died. The rest of the states with confirmed cases include FCT48; Osun- 20; Oyo- 9; Edo- 11; Kaduna- 5; Akwa Ibom- 5; Ogun- 4; Bauchi- 6; Enugu2; Ekiti- 2; Kwara-2; Rivers-2;

Ondo-1; and Benue- 1. Three governors, Bauchi, Kaduna and Oyo, have so far tested positive to coronavirus. Nearly all the states have sent their civil servants home which means that without the necessary digital equipment, governance will grind to a halt. Unfortunately, the states are not rushing to replicate the Lagos feat in teleconferencing or if they are they are not making it public. While Lagos was the first state government to conduct a teleconference, the federal government took the lead weeks before Sanwo-Olu when the Vice President, soon after he went into self-

isolation, resorted to meeting with officials virtually. It was the first of many more teleconferences that will be replicated by officials of the executive arm of government. The minister of Finance, Budget and National Planning, for instance participated in a virtual meeting with Afrian Ministers of Finance themed “Coordinated Africa, Response to COVID19 Economic Impacts: Updates and Further Steps.” On Friday, the Minister of Communication and Digital Economy ordered the deployment of telepresence facilities through the Galaxy Backbone (GBB) Limited, a parastatal agency under the ministry.

The GBB said it has installed the facilities at over 120 Federal Government institutions, including the offices of the Vice President, 26 ministers, 17 ministers of state, Chief of Staff to the President, Secretary to the Government of the Federation, Head of Civil Service of the Federation, 37 federal permanent secretaries, Nigerian Centre for Disease Control (NCDC) and other key ministries, Departments and Agencies (MDAs) of the Federal Government. While the need to keep government functional is paramount, government meetings are not the only thing receiving digital transformation. Nearly every effort

5G demonstration in Lagos showed solutions for medical emergencies, traffic CALEB OJEWALE

or many people in Nigeria, the best use case for internet (and its speed) is in downloading media content. However, the potentials of internet connectivity are far beyond this. Internet speed goes beyond being able to open simple web pages and social media sites, rather, the possibilities in connectivity that can make devices/machines communicate. A few months ago, when MTN Nigeria, collaborating with Ericsson, held a public demonstration of 5G in Lagos, some of the use cases showed what possibilities are to be expected in a future where such connectivity exists in Nigeria. As reported in this column back then, in one use case, the chaos Lagos roads represent may become a thing of the past. Using 5G enabled interconnected traffic lights; flow of traffic across the state can be monitored from one location. Here, an operator can with the click of a button, give priority to

flow of traffic in some places, in order to decongest certain areas of the state. During medical emergencies, the possibilities of 5G in healthcare delivery by saving lives through swift diagnosis and treatment were also demonstrated. When an ambulance is called to evacuate someone in need of medical attention, it is equipped with Internet of Things (IoT) devices that communicate across a 5G network. With cameras providing a live stream from the ambulance, medical staff in the ambulance make use of Active Gloves and other medical devices connected to 5G. The Active Gloves when brought in contact with the patient, transmit signals and give the doctor sensory feedback as though they were physically examining the patient. All these live signals which are sent instantaneously from the ambulance to more experienced or specialist doctors, who could be far away from the location, makes it possible to conduct a quick, informed diagnosis and give directions on what should be done.

When diagnosis has been conducted for such a patient over the 5G network, it could be determined that such a patient needs urgent surgery, but perhaps the surgery cannot be provided at the hospital where the ambulance is headed. Still using 5G, doctors can transfer the patient’s medical record to another hospital, where the ambulance can be redirected to a team of doctors already provided with all the information to proceed with surgery. By using 5G enabled devices from pick to diagnosis, the risk such a person’s life from delayed diagnosis, or even travel time when being moved from one hospital to another, is completely eliminated. In addition, for industries, a 5G demonstration showed how precise troubleshooting can be done inside various equipments running in a factory, to determine when any part needed to be replaced. With IoT capabilities, diagnostics can be run without the need for trial and error to know where exactly any reduction in efficiency is

in flattening the curve like testing individuals, sourcing of medical materials and providing accurate information about the virus are also using digital solutions. Chikwe Ihekweazu, head of NCDC had on Thursday during a press briefing said that the institution had partnered with Sormas Global, a German surveillance and management company, to identify coronavirus cases and their contacts for prompt isolation and treatment as required. “We are utilising a Sormas Global software for real time collection and analysis of data on coronavirus in Nigeria,” Ihekweazu said. Government agencies are also partnering with startups to fight misinformation with digital solutions The Africa Centre for Disease Control and Prevention (Africa CDC), a technical institution of the African Union, collaborated with Co-Creation Hub (CcHUB) a technology innovation centre in Africa, to combat stigmatisation and dispel misinformation targeting the semi-urban and rural population across Africa. The partnership has the support of NCDC and the Lagos State agency LASRIC. To further deepen the adoption, the National Information Technology Develop-

Movement across Nigeria drops 39% in Google report tracking lockdown coming from. It perhaps even get better, as an entire factory could run by itself, with very minimal human interference. Complete production processes can be controlled over a 5G connection, running a factory seamlessly with the touch of button from a remote location. From factories made to run seamlessly with little human intervention, to medical procedures performed much faster and life saving decisions made quicker, the possibilities of 5G appeared quite exciting during the demonstrations. What makes 5G stand out is the speed with which information, commands, data and everything else that is communicated across the network move (incredibly) fast. For instance, the speed when your video streaming buffers at intervals (on 3G and even ‘Nigerian’ 4G) will pale in comparison to 5G, which can be used to give commands to devices (say during a medical procedure) at one end of the world, and it is instantaneously delivered as if one were in both places.

CALEB OJEWALE

raffic to retail and recreation locations has dropped the most in Nigeria by 39 percent, followed by transit locations which reduced by 34 percent as shown in data from Google’s newly-released COVID-19 Community Mobility Reports. The data, which is compared to baseline levels measured in January and February, mirrors several restrictive measures that have been put in place across the country, as authorities try to contain the spread of the coronavirus. The retail and recreation locations include mobility trends for places like restaurants, cafes, shopping centers, theme parks, museums, libraries, and movie theaters. “Just like how people can use Google Maps to identify when a local business tends to be the most crowded, we’re using the same aggregated, anonymized data to provide high-level insights into what has changed,” said Jen Fitzpatrick, Google’s senior vice-president, Geo. “We think these reports could support decisions

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

ment Agency (NITDA) set up the 10-man Advisory Committee for Technology Innovation Ecosystem on 1 April. The committee is to advise the government on measures to be taken to cushion the impact of the COVID-19 pandemic on startups, small and medium businesses as well as the technology ecosystem. The Committee has the Chairman, Innovation Support Network (ISN) and President, African Business Angels Network (ABAN), Tomi Davies, as its Chairperson. Other members of the Committee include Amal Hassan, MD and CEO, OutSource Global; Bosun Tijani, MD and CEO Co-Creation Hub (CCHub); Juliet Anammah, Chairperson Jumia Nigeria and Head, International Affairs, Jumia Group; Kola Aina, Founder, Ventures Platform; Musa Ali Baba, MD and CEO Teasy Pay; Iyinoluwa Aboyeji, Co-Founder, Andela; Collins Onuegbu, MD and CEO Signal Alliance. While much of the developments have the coronavirus pandemic to thank, the digital changes may likely become the new of doing government business postCOVID-19 era. If there is anything the government has learnt it is perhaps that it is living on borrowed time.

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about how to manage the COVID-19 pandemic while adhering to our stringent privacy protocols and policies.” According to Fitzpatrick, understanding not only whether people are traveling, but also trends in destinations, can help officials design guidance to protect public health and essential needs of communities. The report, which shows data from March 29, reveals how citizens are visiting transit stations, work places, retail and recreation centers, parks, food stores and residential areas in Nigeria. Google’s first ever COVID-19 Community Mobility Reports provide national trends for 131 countries, and are available to download in PDF format on the site. Each country report charts the percentage increase or decrease of movement across different high-level categories of places. Google in a statement said it has been working on many ways to help respond to COVID-19, from providing authoritative info via Search, to supporting production of ventilators and personal protective equipment such as face-masks.

Thursday 09 April 2020

BUSINESS DAY

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Thursday 09 April 2020

BUSINESS DAY

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Thursday 09 April 2020

BUSINESS DAY

Live @ The Exchanges Market Statistics as at Wednesday 08 April 2020

Top Gainers/Losers as at Wednesday 08 April 2020 LOSERS

GAINERS Company WAPCO

DANGSUGAR STANBIC

FLOURMILL

Company

Opening

Closing

Change

1.05

ARDOVA

N12.45

N11.25

-1.2

N9.75

0.85

GLAXOSMITH

N4.8

N4.35

-0.45

N24.5

0.55

SKYAVN

N2.4

N2.16

-0.24

N6.6

N6.5

-0.1

N0.85

N0.8

-0.05

Opening

Closing

Change

N10.75

N11.8

N8.9 N23.95 N21

N21.5

0.5

ACCESS

N4.4

0.4

AIICO

ETI

ASI (Points) DEALS (Numbers) VOLUME (Numbers) VALUE (N billion) MARKET CAP (N Trn)

21,073.26 4,660.00 346,409,715.00 5.216

he low prices of fundamentallyjustified stocks are becoming re-entry points for investors seeking value at the Nigerian Stock Exchange (NSE). The domestic market continued to enjoy positive patronage on Wednesday April 8, gaining +0.71 percent as investors took position in a number of value counters seen to be trading at their record lows. While the Coronavirus Pandemic continues to rattle global financial and commodities market, equities investors should not overrule the possibility of profit taking on recent gains. Lafarge Africa Plc recorded the highest gains on the Bourse as stock buyers position ahead of its proposed dividend of N1 per share. The share price of the company moved from

day open low of N10.75 to N11.8, adding N1.05 or 9.77percent, while that of Dangote Sugar Refinery Plc followed after moving from N8.9 to N9.75, adding 85kobo or 9.55percent. Market watchers antici-

pate some profit taking on recent gains on Thursday, despite that most stocks remain fundamentally attractive. On the losers league, Ardova Plc recorded the highest decline after its share

COVID-19: Seplat donates medical kits to Edo State Govt Iheanyi Nwachukwu

s the Edo State government grapple with cases of the Coronavirus Pandemic in the State, a leading oil and gas company operating in the state, Seplat Petroleum Development Company Plc has donated a large quantity of medical items to the state government to help curtail the spread of the virus. The medical items include motorised sprayers, knapsack sprayers, protective eye goggles, hands sanitizers, nose/ face masks, temperature guns, chemical gloves, and personal protective equipment, among others. Receiving the items at the Government house in Benin city the Edo State capital, on behalf of the State Governor

Godwin Obaseki, the Deputy Governor Philip Shaibu commended Seplat Petroleum for their support and gesture in complementing the efforts of the government in fighting the deadly Coronavirus in the state. He noted that the effect of the pandemic on livelihood of people in the state cannot be overemphasized, adding that the donation will not only go a long way in fighting the pandemic but it will also enhance the safety of health workers in the state who are working tirelessly to ensure that the cases recorded in the state do not increase. He however called on other corporate companies and well meaning individuals in the state to emulate this gesture by Seplat Petroleum by helping the government fight the www.businessday.ng

pandemic. He added that the fight against the pandemic is collective hence, it should not be left in the hands of the government alone. In his words “We want to appreciate your kind gesture and support towards our government and as a government we do not take this kind of gesture for granted, these items will not only help us fight the deadly virus but will also enhance the safety of our health workers in the state who have been working tirelessly to ensure that they treat some who have tested positive to the virus in the state get the best treatment. I also want to use this opportunity to call on corporate organizations and other well meaning indigenes of the state to emulate this kind of gesture by Seplat Petroleum”, Shaibu said.

FTSE 100 Index 5,655.91GBP -48.54-0.85%

Nikkei 225 19,353.24JPY +403.06+2.13%

S&P 500 Index 2,723.60USD +64.19+2.41%

Deutsche Boerse AG German Stock Index DAX 10,332.89EUR -23.81-0.23%

Generic 1st ‘DM’ Future 23,072.00USD +581.00+2.58%

Shanghai Stock Exchange Composite Index 2,815.37CNY -5.39-0.19%

10.982

Low priced stocks seen creating re-entry points for investors Iheanyi Nwachukwu

Global market indicators

price moved from day open high of N12.45 to N11.25, losing N1.2 or 9.64 percent followed by GSK which decreased from N4.8 to N4.35, losing 45kobo or 9.38percent. At close of remote trading session on Wednesday, the value of listed stocks rose from preceding day low of N10.905trillion N10.982trillion, adding N77billion as buy side outweighed the sell side. Likewise, the Nigerian Stock Exchange (NSE) All Share Index (ASI) increased from 20,925.19 points recorded the preceding trading day to 21,073.26 points. Year-to-date (ytd), the market has yielded negative return of -21.49percent, while this month of April, the market has lost 1.07percent of its value. In 4,660 deals, equity dealers exchanged 346,409,715 units valued at N5.216billion. Banking stocks were actively traded, led by GTBank, FBN Holdings, Zenith Bank, and Fidelity Bank.

Lafarge Africa proposes N1 dividend per share amid N212.9bn FY’19 revenue

afarge Africa Plc has proposed dividend of N1 per share as shown in its audited results for the full year ended December 31, 2019. The company reported net debt decline from N288.9billion to N37.1billion further to the divestment from South Africa and successful rights issue in 2019. Lafarge’s full year revenue of N212.9billion in 2019 represents 2.21 percent decrease when compared to N217.8billion revenue in 2018. It closed the review year with operating profit decline of 9.4percent to N34.91billion from N38.52billion in 2018. Earnings per share (EPS) rose to 0.96kobo from 0.93kobo in 2018, up 3.2percent. The share price at N9.8kobo as at Monday April 6 nears its 52 week low of N8.95. Shareholders Fund increased to N344.914billion from N134.541billion in 2018, up by 156.36percent. Khaled El Dokani, Country CEO of Lafarge Africa stated: “Our turnaround and cost-reduction strategy in FY 2019 and the divestment of the South African business, have delivered strong results. The decrease in net debt has significantly strengthened our balance sheet and has placed us in a vantage position to face the future.” On the outlook for 2020, the company said “As the Coronavirus (COVID-19) pandemic now impacts Nigeria; Lafarge

Africa has taken the necessary measures to protect the health of its employees, customers, suppliers and other stakeholders.” “The construction sector and construction sites are generally more resilient than other sectors and Lafarge Africa has a strengthened balance sheet and is well equipped to weather the storm. However, we are closely monitoring the evolving situation and the impact of the COVID-19 pandemic on the Nigerian market. “The Nigerian cement industry growth momentum is expected to slow down in FY 2020 compared to 2019 on the back of the COVID-19 pandemic and the challenging global macro-economic environment. We have launched an action plan “Health, Cost & Cash” and will continue to focus on the implementation of our cost optimisation initiatives during this period to minimise the impact on the business”, Lafarge said. Lafarge Africa Plc, a leading Sub-Saharan Africa building materials company is a subsidiary of LafargeHolcim, a world leader in building materials. Listed on the Nigerian Stock Exchange, Lafarge Africa is actively participating in the urbanisation and economic growth of Nigeria, the largest economy in Africa.

Identity management issues: SEC develops investor’s data, consent form

n a bid to address challenges associated with identity management in the capital market, the Securities and Exchange Commission (SEC) has developed a standardised Investor’s Data and Consent Form to be adopted by all Capital Market Operators. Identity theft is the deliberate use of someone else’s identity, usually as a method to gain financial advantage or obtain credit and

other benefits in the other person’s name, and perhaps to the other person’s disadvantage or loss. The Form will assist CMOs in collecting and updating investors data as well as enable CMOs to obtain consent of investors for implementing capital market initiatives targeted at improving overall experience and participation in the capital market. Acting DG of the SEC, Mary Uduk who disclosed this said

identity management has been a problem not just in the Capital market but in many sectors of Nigeria’s economy, but assured that the SEC is handling it in the capital market. “We are handling it, and that is why we came up with that form, that form has been exposed and we have asked the Capital market operators and other stakeholders to give us their comments on that form.

NAHCO postpones board meeting as COVID-19 disrupts audit of financial statement

he Nigerian Stock Exchange (NSE) and shareholders of Nigerian Aviation Handling Company Plc (NAHCO AVIANCE) have been notified that the meeting of the Board of Directors of the Company, earlier scheduled to hold on April 8, 2020, in Lagos has been postponed until further

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notice. The Company said the postponement of the board meeting which was meant to consider and approve its 2019 audited financial statements and recommend the payment of dividend is because “the 2019 Audited Financial Statements has still not been completed due to disruptions of @Businessdayng

the auditing process by the impact of COVID-19.” “You will be adequately notified of the date of the meeting when it is fixed in accordance with the rules of The Exchange,” NAHCO said in April 6 note signed by Bello A. Abdullahi, Dikko & Mahmoud Solicitors, Company Secretary.

Thursday 09 April 2020

BUSINESS DAY

Garden City Business Digest Agric policy returns to front burner in Rivers as food security stares states in the face • Gov Wike sets aside N2Bn to empower farmers and fishermen Ignatius Chukwu

tates especially in the south-east and south-south who may not have given high premium to food security through the right policies that should ensure greater self-reliance in food and fibre as well as production of essential commodities and drugs may be in hot soup. This is because importation or even getting food supplies from other states has become difficult in the COVID-era. In Rivers State, citizens have pointed at the collapse of the Songhai Farm worth about N3Bn by the Chibuike Rotimi Amaechi administration under the Rivers State Sustainable Development Agency (RSSDA) which had grown to the ability to supply fish stock, poultry, cows, vegetables, milled rice, processed foods, etc. It was the biggest Songhai Model farm in Africa, 20 times the size of the model in Porto Novo (Benin Republic) owned by a Nigeria catholic cleric, Godfrey Nzamujo. Others have pointed to the

Governor Nyesom Wike

abandonment of the Buguma farms, Etche Agric project with the Israeli company, the deep sea fishing project that never took off due to insecurity, the cassava project by RSSDA, and the Banana project in Eleme as projects that by now would have made Rivers a food basket and strong food pillar in the oil region. The state would have risen to the top of the food game in the face of lockdown of boundaries and food supply

difficulties. Gov Nyesom Wike has however repeatedly assured of a rebound in agric investment in his second four years, and many citizens said they are eagerly waiting. The Agric section of the Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA), recently told newsmen they are excited by the promises and prospects in

the agric sector of the Rivers economy. A major farm owner and food processing giant, Mike Elechi, who also is the first deputy president of the City Chambers, said it is good that the state would soon experience huge focus on food security. As the coronavirus pandemic strikes the state, and in a move to ensure that Rivers people don’t suffer during this trying period, the Rivers State Government says it has set aside N2Bn for the launch of the State Farmer/Fisherman Empowerment Programme to purchase and distribute foodstuffs to Rivers people. In a press conference on Monday, Gov Wike said that the committee will purchase all agricultural products produced in the state for distribution to the less privileged. He said: “We are going a step further to ensure that no one complains of hunger in our State during this trying period. The State Government has therefore set aside the sum of N2billion to buy off all agricultural products produced in the State from farmers and

fishermen. “Our goal is to ensure that no agricultural product like yam, garri, plantain, palm oil and fish leaves our State during this period. While the farmers and fishermen will make their profits, the less privileged will have enough food supply for their families.” Gov Wike said that the committee set up by his administration is to ensure effective implementation of the new policy. “To ensure that the appropriate logistics for effective implementation of this policy is carried out to the letter, government will set up a 33-man Committee. Members of the Committee are were named as Tammy Danagogo, Secretary to the State Government (Chairman), Paulinus Nsirim, Commissioner for Information and Communication, Fred Kpakol, Commissioner for Agriculture (Secretary), Victoria Allison, Tina Woluchor, Meg Onumbu, Gloria Akor, Erastus Awortu, Christiana Lawrence Amadioha, Kate Mbanah, and Chairmen of the 23 Local Government Areas. The committee was inaugurated on Tuesday, April 7,

2020 at Government House, Port Harcourt. The governor said that the State Government would always take measures to protect Rivers people. “As a responsive government, we did not wait to record any index case before we set out proactive measures that helped us to contain the virus in our state. “The diligence exhibited by our health professionals and security agencies have made us to record one index case. Our strategies of shutting down markets and our borders have, no doubt, brought hardship to our citizens,” he said. While lamenting the politicisation of the fight against coronavirus by the Federal Government, Gov Wike said that all states of the federation deserve grants from the Federal Government. He said the release of grants to states should not be tied to the number of confirmed cases, since states like Rivers are working to prevent the spread of the disease. Gov Wike said that funds for the State Government’s intervention in COVID-19 are captured in the 2020 budget under contingency funds.

Rivers COVID-19 update: Index case exits, new one moves in Controversy over who is building the 250-bed treatment centre, between the FG and State government rages Port Harcourt by Boat

IGNATIUS CHUKWU

• Rivers State Commissioner of Health, Princewill Chike, a professor, has said Rivers first case, a 19-year-old model, is twice negative and will exit later Tuesday evening. • Of the 105 contacts of the model, only 15 are still under observation. Others have exited. • New case that proved positive Monday evening, a 62-year-old male returnee from the UK, has replaced her, though in the male section. The new case returned from abroad through an airline. He was under surveillance for almost two weeks and his test came down positive on Monday. • Tracking and tracing of the contacts of the second case began Tuesday morning, according to the Commissioner. The team has requested for the manifest of the flight that brought him to Port Harcourt for effective tracing. He had observed some degree of

isolation upon return to PH • Rivers State government is making efforts to procure the major testing machine in Holland but global demand surge is causing delay. The testing centre in PH will soon come into view, he said. • Who is building the 250-bed treatment centre at Elekahia, PH? The FG through the SA to the President, Yuri Ngelali, says it’s the FG in collaboration with the CBN; the health commissioner said for the governor to be supervising it, newsmen should ‘count their teeth with their tongue’. He said it was wrong for anyone outside minister of health (federal) or commissioner of health in a state to speak on any health matter. • Neighbourhood markets resumed in the state from 7am to 12noon on Tuesday and Wednesday only to enable the people to restock and to prepare for Easter. Some persons have however asked that it should be till 6pm to avoid rush and close contacts or hike in prices. Major markets especially at the boundaries were not allowed to open.

Free for all bribing at boundaries to travel anywhere in the east Most states in the south-south and south east have ordered their boundaries shut down and left the security agencies with the task of implementing this, but (coronavirus could as well have been passing through. How? Travellers simply pay fees at the boundaries (is it borders) to get across.

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An undercover traveller from Elelenwo area of Port Harcourt gave his report to this medium. Board a bust in Port Harcourt to any of the boundaries (this incident is to Enugu), at the Oyigbo or Imo Bridge, you must come down. The vehicle must head back to Port Harcourt. Now, you trek to the security point at the river and drop N500 and continue your trekking. You now board a vehicle at the other side of the ‘border’ and head to the end of Abia at Umuahia. The driver is the one to drop N1000 and continue to Imo boundary and drop another N1000 to Enugu boundary where he drops another N1000. The health officials of the states are there

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quite alright with personal protection equipment and temperature guns but their attention is on the droppings because nobody wants to be cheated. So, nobody checks any temperature and nobody stops anybody from moving through the states from the south-south to the southeast and back, whether with coronavirus or not. People sit as they like and rob bodies and exchange whatever they have with each other. When they get back to the cities, they join the social distancing and stay at home orders and pretend to obey the government of the day. When you press them deeper, they would tell you its God that protects, really. This is how the populace is fighting against the spread of the coronavirus. It seems to have been left to the government officials and the elites. The masses seem to use wishing approach by wishing its not their portion. The governor of Ekiti State and chairman of the Nigerian Governors’ Forum (NGF) recently said in a chat with Ibim Sementari that the masses are still feeling indifferent believing it is ‘big man’ sickness. He said as long as keke-riders, farmers, neighbourhood traders and colleagues in a yard have not started dropping dead, the masses would continue to be indifferent to the massive campaigns by federal and state governments. This may be true! For the security agents at the boundaries, this scourge may well rage longer. It makes the sanitized pockets feel heavy and rankle with fresh naira notes.

@Businessdayng

Thursday 09 April 2020

BUSINESS DAY

Investing in Rivers State How OPS in Rivers is helping the state government to fight off coronavirus • Gifts galore, constructive suggestions that go far Ignatius Chukwu

he Organised Private Sector (OPS) in Rivers State is at the moment led by the president of the Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA), Nabil Saleh, a chief. The highly mobilized sector group has taken the threat from COVID-19 very serious and thus went out to fight back, knowing that after the health front, it’s the turn of the businesses. The OPS, which has won the respect and attention of the Rivers State government led by Nyesom Wike has been the first to contribute materials and support to the state government. It has also continued to send in weighted suggestions to avoid talking from different mouths and creating tension or provoking opposition posturing. This is believed to have won huge respect to their actions and suggestions. Some of the industry and business leaders that have features prominently in the meetings to craft a way forward and rally behind Saleh include the chairman Manufacturer’s Association of Nigeria Rivers/ Bayelsa Branch, Adawari Michael Pepple; chairman of Nigerian Association of Small Scale Industrialists, O. D. Briggs; chairman of Nigerian Association of Small and Medium Scale Enterprises, Felix Obazee; vice chairman of Nigerian Employers Consultative Association, Godfrey Agorom; representative of the chair-

Nabil Saleh (middle) team to distribute materials in Rivers State with Rivled Foundation

man, Ship-owners Association of Nigeria, Iroghama Obuoforibo; national president of Nigerian Institution of Estate Surveyors & Valuers representing other professional bodies, Emma Okas Wike; vice chairman of NASME, S. Dagala; executive secretary of Manufacturers Association of Nigeria (MAN), Chibuzor Eze; and the Director General of PHCCIMA/Secretary of OPS/Business Community, Erasmus Chukunda. PETAN President, Nik Odinume and National President of ACEN, George C. Okoroma sent solidarity messages. By this, the positions and plans developed at the meeting seemed to carry weight and broad-based. Suggestions to Government BusinessDay gathered that some of the suggestions that may have emanated from the high-powered meeting include:

Saleh joins Rivled Foundation to distribute food and materials

eanwhile, the PHCCIMA president, Nabil Saleh, joined the Rivled Foundation to deliver food and essentials materials to the doorsteps of the most vulnerable in the week. A statement from PHCCIMA said the foundation has activated its structure to deliver to all the 319 Wards in the 23 LGAs in Rivers State to ease the pain caused by COVID-19 pandemic. In an address by the chief, the foundation emphasized the urgent need for the private sector to show corporate social responsibility and

Nabil Saleh

pandemic in the State, and also put forward in a letter written to His Excellency, the Executive Governor of Rivers State, useful suggestions on ways of alleviating the hardship being faced by the people of the State due to the current lockdown. “They also pledged their support to the State government in contributing towards controlling the spread of the deadly virus. After the meeting, the PHCCIMA sent out a notice to all members thus: “We are faced with extremely unusual and uncertain times due to COVID-19. Corona Virus is on the rampage and no one knows when and how it will end. But this is a time to show that we are strong and we are together. “We have the opportunity now to show compassion and give a helping hand. The vulnerable and very poor need us now. Some members have already made donations without being asked, and those gifts have been delivered with gratitude and prayers. “We need to do more, and nothing is too small. Remember if we are surrounded by hungry and angry people we will not be safe. Please donate to the PHCCIMA food bank, either money or items. Any member is free to join in delivery. Let us act fast and be part of the good that will come out of this pandemic. Reach the DirectorGeneral on how you can help.” The first set of items contributed was distributed to the needy by the PHCCIMA led by top executive members led by the chief (Saleh). Insiders said the second batch of the distribution would soon take place.

PHCCIMA coordinates palliates for membermanufacturers as NACCIMA tracks local capabilities

compassion particularly at these uncertain times. He expressed the need to partner with bodies like Rivled Foundation who have the capacity and structure to reach every household in Rivers State. The President of Rivled Foundation, Leloonu Nwibubasa PhD, thanked PHCCIMA and the OPS for the donations that made the outreach possible, calling for more organizations to leverage on the Ward-level structure of Rivled to ensure that supplies got to those who are in dire need. The second Deputy President, Chinyere Nwoga PhD, who is the volunteer State Coordinator for Rivled COVID-19 gave assurance that efforts would continue to ensure that the vulnerable do not stay hungry. She advised the beneficiaries and all to comply with government directives to stay at home, and follow the guidelines of Nigerian Centre for Disease control (NCDC) which include strict personal hygiene, physical distancing and being our brothers’ keepers. The beneficiaries were said to be overwhelmed with gratitude. www.businessday.ng

Call for massive enlightenments and increased sensitization on the raging virus especially in the rural areas on what to do and what not to do, plus what the state government is doing. This is expected to get the buy-in of the masses and achieve compliance. Need to grant written permission to industries producing food, medicine and essential commodities from total shutdown. Need to oversee their activities too. It was gathered that the OPS offered to help in this regard. Need to allow perishable fruits and vegetables from the boundaries into the state. This is already a federal order and standard. Need to allow raw materials and essentials into the state under close supervision to allow production continue; and need for some price control Need to mount stronger sur-

veillance and security in the state to avoid hoodlums who may want to take advantage of the situation to cause havoc Need to create special markets in neighbourhoods to allow people buy things to survive Need to empower the task force to work with NAFDAC and SON to monitor prices and quality of foodstuff and goods and services in the state during this period BusinessDay gathered that some of these suggestions may have been noticed in government’s latest broadcasts. The state government has announced plans to set up special markets in the city. At the moment, the government has allowed many markets to open for two days for Easter purchases and for citizens to restock. Also, the government has stepped up surveillance and security. The OPS sources said they believe their suggestion in this regard may have been viewed favourably. The sources said they are still pushing for more to be taken. In a brief chat, the PHCCIMA president, Saleh, confirmed a meeting was held a week earlier and a letter full of suggestions was sent to the state governor. He said the meeting was held by the Organized Private/ Business Community on Monday 30th March, 2020 at OPS Secretariat (PHCCIMA Office). A statement by the secretary of the OPS (DG of PHHCIMA), Erasmus Chukunda, said the business leaders commended the Rivers State Government for the measures taken so far in preventing spread of Coronavirus

he Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA) has called on its members who may be in manufacturing and could be having obstacles in the COVID-19 era to show up for help. This is as the national body (NACCIMA) is tracking what the Nigerian companies can produce and where they may need help. A statement by the DirectorGeneral, Erasmus Chukunda, said the directive concerned any manufacturing company experiencing challenges with either accessing raw materials or accessing target market; any company in medical manufacturing or supply with any form of challenge; agric or food companies with issues caused by lockdown; any company whose goods are stuck on the road or warehouse due to COVID-19; or any essential commodities company experiencing security threats due to operating during the lockdown period.

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They have been told to contact PHCCIMA Secretariat for assistance via WhatsApp or Phone call or email: info@phccimang.com, dg@phccimang.com. “Also note that this is for only companies who deal in essential commodities. Please your responses are required urgently before end of working hours today.” NACCIMA’s call The NACCIMA through the PHCCIMA is also tracking the needs of producers and dynamics of products to help in distribution and attract help to producers. This is being done in partnership with the Federal Ministry of Industry, Trade and Investment (FMITI) and the COVID-19 Committee on Sustainable production and Distribution of Essential Products. The committee is said to be currently monitoring and tracking the dynamics of needs in products to ensure efficient distribution and to stimulate surge in production and distribution of specific products when the Needs arise, in any location @Businessdayng

across the country. To this end, according to Chukunda of PHCCIMA, members were asked to indicate by completing an online form by a producer of any of the essential commodities. The product categories were reeled out thus: Personal care and Household hygiene products: disinfectants, sanitizers, detergents, soaps, toilet rolls, tissue paper, sanitary towels, shaving sticks; Pharmaceuticals and their additives. Personal Protective Equipment (PPE): Fire safety equipment, Rubber gloves, Masks, Safety goggles, Overalls, Facemasks; Medical and surgical instruments and equipment including their components; Power generation, transmission and distribution; Petrochemicals, Oil and Gas; and Materials used for packaging including ink and labels, foam plugs for packaging pharmaceuticals, adhesives, shrink film, metal closure, caps for packaging, foil, plastic, glass and paper.

Thursday 09 April 2020

BUSINESS DAY

Corporate Social Impact

Onuwa Lucky Joseph (08023314782) Editor.

COVID-19:

Government can do better with local capacity expansion Onuwa Lucky Joseph

he Federal Government seems unduly outward focused with regards to getting materials and equipment for combating Covid 19. Innoson Motors has duly declared its readiness to produce ventilators, something the country sorely needs and for which the FG embarrassed its citizens by openly begging Elon Musk of Tesla for. These times, like we said, last week, ought to be treated as an opportunity to drive local capacity in another direction. If Tesla and other automobile companies can build ventilators, Innoson can, or should be given the opportunity to prove it can. The rush to China for our all and every need is mind boggling. Why are we always interested in opportunities for capital flight? With oil selling at near record lows, we cannot afford to be spending the money we clearly do not have on procuring things that are doable here. It’s in the same way that government is also going to China for face masks, something that is currently being produced in Aba, and in quantities that can serve the local market and the larger west coast market. But is our government keen on the local productions? It would seem not. Which must be why thinking experts are asking NAFDAC and CDC, amongst other government regulatory bodies, to put machinery in motion that would see the products certified for use by the general public in the face of Covid-19. If they are deemed defi-

Fidelis Ayebae, CEO Fidson Healthcare

cient in any way, that can be rectified so we can have a fresh rollout of face masks that do the job. As we are wont to say, production of face masks is not rocket science! It’s not enough for the federal government to seek private sector support in times of distress; government should also put measures in place that enable the private sector grow and become more competitive at times like these. The Chinese economy is where it’s at because its government is behind all the big players, not to mention the small ones whose exports are the mainstay of the Chinese economy. Our government must begin to think likewise and also see this period as a time when some local businesses are launched or retrofitted to compete in sectors they may not have originally planned to compete in. The Federal Government likes to mouth local content capacity utilization and expansion when in reality all our officials want to do is procure from abroad and at

Innocent Chukwuma CEO Innoson

prohibitive prices. How does that help our ailing economy? In a related development, India has banned all export of the malaria drug hydroxycloroquine as well as diagnostic kits. Recall that good old Donald Trump had engaged Narendra Modi, Prime Minister of India as to how export rules would be relaxed with respect to hydroxychloroquine. So why the ban from India despite all that? Indian citizens need it as much as Americans do. Maybe even more. And their PM is taking no chances with the lives of the citizens of his country. For Nigeria, a country also burdened with endemic malaria like India is, all we see are people parroting the conventional line that chloroquine can’t help in the fight against Covid 19. However, while we do not claim to be medical experts, we believe that with credible evidence of its efficacy by doctors in America (who are not wedded to the liberal and big pharma establishment), it does not hurt us to regulate its use and

Stella Okoli, CEO, Emzo Pharmaceuticals

see how we can get the most out of it. And in this light one also believes that Nigerian pharmaceuticals can play a big role. Crank up the chloroquine production lines and serve both the Nigerian market and an emerging worldwide demand that can keep the conveyor belts in motion and many Nigerians in employment as revenues are registered in hard currency. Third point is the sad issue of 18 Chinese doctors that are coming at the invitation of the Nigerian government. Okay, Dr. Osagie Ehanire, Minister of Health, says they are here courtesy of some Chinese companies in Nigeria who are treating it as their CSR towards fighting Covid-19. But even if that be the case, why the approval without clearing with the NMA? The Nigerian Medical Association has had to put up an uncharacteristically stout push back, receiving the news with ‘great dismay and utter disappointment’. When seen in the light of gov-

ernment’s general disregard for the welfare of indigenous doctors and health workers who have been in the frontlines of the battle, it is unfortunate that the Ministry headed by a doctor, no less, is acting the way it is rather than showing gratitude as other countries are for the services of our dedicated Nigerian doctors. The NMA did remind the government that “the spike in cases and the death toll from COVID-19 in Italy coincided with the arrival of the Chinese in the guise of offering assistance”. One must ask: why the unending pivot to China? What do they have on us that makes us give everything to them? Their country is developed, and we were at the same point (developmentally) not so long ago. Our own professionals, who are invested in this country by blood and other ties, should get first dibs for every emergent opportunity, as it’s done everywhere else. We can’t say it enough: our government needs to start respecting Nigerians.

How Nigeria can Leverage Standard Chartered Bank’s $1Billion Covid War Chest Onuwa Lucky Joseph

igerian corporates and SMEs wishing and willing to get into the Covid 19 fray might want to look the way of Standard Chartered Bank which has a dedicated $1Billion dollar facility for prosecuting the war worldwide. According to a press release signed by Dayo Aderugbo, the bank’s head of corporate affairs, brand and marketing in Nigeria, the cache will serve as “financing for companies that provide goods and services to help the fight against Covid-19, and those planning the switch into making products that are in high demand to fight the global pandemic”. “Companies in scope”, the document further states, “include all those associated with helping tackle Covid-19, in-

LaminManjang, CEO, Standard Chartered Bank

cluding manufacturers and distributors in the pharmaceutical industry and healthcare providers, as well as nonwww.businessday.ng

medical companies that have volunteered to add this capability to their manufacturing output - goods in scope include ventilators, face masks, protective equipment, sanitisers and other consumables.” Simon Cooper, CEO of Corporate, Commercial & Institutional Banking at Standard Chartered, said: “Clearly there’s a cost for companies to switch into these hugely indemand items, so it’s an area where we can potentially help them get these processes up and running more quickly; and at the same time, we want to make sure that existing manufacturers and service providers get the support they need.” “The bank intends to provide at least USD1 billion of financing to those companies in the form of loans, import/ export finance or the working

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capital facilities that they use for day-to-day business operations to help them tool up, and help existing manufacturers get their products to market.” That’s all good. But the sweet spot comes with the next statement, which indicates that Standard Chartered is also trying to identify companies that may wish to switch into or add antivirus products to their output but haven’t indicated that they will do so at this stage. “Our industry teams are looking across our client base and, given our understanding of clients’ current manufacturing processes, we’re assessing which companies might want to consider adding these items to their production line,” Simon added. But the critical proviso: “All financing will be subject to companies having received regulatory approvals to manu@Businessdayng

facture the goods”. This is where government comes in, both for the necessary regulatory approvals as well as guarantees where needed, to enable Nigerian companies the leverage that this kind of funding provides to ride the disruption occasioned by Covid-19. Innoson, for example, claims it needs N4Billion to get in on the ventilator business. The guys should be beating a path to Standard Chartered... Aside commending the SCB Global office, one hopes that other Nigerian banks will see the opportunity that Covid-19 presents with regards to sustainability even as we must admit that the process would require a greater sense of due diligence pre and post disbursement to ensure the investment does not turn out an own goal.

Thursday 09 April 2020

BUSINESS DAY

Corporate Social Impact

Covid 19 relief funds: Serap makes right call for accountability Onuwa Lucky Joseph

t is disheartening, the images on social media arising from government’s ‘humanitarian’ endeavours at this time. Images from Lagos show CDAs with 10s of compounds receiving measly 2 or 3 loaves of bread and 2 small bags containing rice, garri and beans. It’s a most dispiriting sight. Men and women from all over the country, in different footages, are seen begging the FG to lift the stay at home order so they can resume their daily search for daily bread instead of dying at home. Actually, a big reason the lockdown is failing in many areas is that hunger is proving a bigger threat to life than the fear of Covid-19. And this is all wrong, because if the virus gets into the mainstream of the poorer population, Nigeria would be immensely hard pressed to contain it. Which is why we align, like we’ve been saying, with the SERAP (and others) call for accountability. It’s not enough to pull out $150million (as the president recently ordered) from the supposedly ring-fenced investment funds in the Sovereign Wealth Fund. At this rate, we will deplete every investment and source of income. How is the money being spent? Government owes it to Nigerians to explain how much money is going to where. Otherwise, this would be the most massive execution of corruption at any point in our history. That’s why we at Corporate Social Impact join the Socio-Eco-

nomic Rights and Accountability Project (SERAP), to demand that the FG and Central Bank of Nigeria (CBN) “provide spending details of public funds and private sector donations to provide socioeconomic benefits to the country’s poorest and most vulnerable people, including details of beneficiaries of any cash payments, cash transfers, food distribution and other benefits during the lockdown in Abuja; Lagos and Ogun states because of COVID-19.” SERAP disclosed that it had sent 2 Freedom of Information requests to the Minister of Humanitarian Affairs, Sadia Umar-Farouk and CBN Governor, Godwin Emefiele over concerns that “the country’s poorest and most vulnerable people have not benefited from the announced palliatives, donations, reported cash payments, cash transfers and other benefits.” The body wants government to forego provision of food and other materials and instead provide “direct, regular, and unconditional electronic cash transfers to the country’s poorest and the most vulnerable people, including workers and pensioners that have not been paid for months” as a way of stopping the spread of Covid-19. According to SERAP, “The power to spend cash helps preserve a person’s basic human dignity.” Another area of contention is the supposed school feeding programme which government claims is still ongoing despite the lockdown in several states. SERAP is insisting that government “disclose information on the details of

the implementation of the school feeding programme during the lockdown and closure of schools in several states where the programme is being implemented, including the number of children that have so far benefited from the programme and the names of the communities, since the lockdown and closure of schools, as well as the number of cooks, engaged.” With everybody making sacrifices to ensure the quick departure of Covid – 19 from our shores, it would be most uncharitable to have government not playing its part by ensuring that the poor who are enduring a lockdown they were ill prepared for are catered for with the huge resources our government officials claim they are deploying towards the fight. It would be most uncharitable to have persuaded corporate organisations, some of which we know are not exactly in the best financial shape, to contribute sacrificially, only for those mandated with its management to not be able to give a good account. It would be most uncharitable for the executive to approve withdrawals that ordinarily should require concurrent legislative approval or debate at least, only for those funds to be declared spent while the needs they were meant to address are still left unattended. That is why SERAP is requesting that the FG and CBN “provide us with copies of the National Social Investment Programme (NSIP) and the social national registers and the lists of beneficiaries under these registers that have so

far benefited from any palliatives, donations, cash payments/transfers and other benefits during the lockdown.” Details of the number and list of all beneficiaries, including people living with disabilities (PWDs), who have so far benefited from the relief funds, donations in the forms of palliatives, cash payments, cash transfers and other benefits in Abuja, and Lagos and Ogun states and other states, because of COVID-19 pandemic, as well as details of what the authorities are doing to make these benefits available to the country’s poorest an equitable basis; SERAP is therefore urging the Federal Government and CBN to provide: Details on modes of distribution of funds, donations, including the total amounts of food items, cash payments, cash transfers and other benefits that have so far been made; Details of the total amounts from the proposed N500 billion COVID-19 intervention fund that would be spent to provide direct electronic cash transfers and other direct benefits to the country’s poorest and most vulnerable people, as well as the number of such people planned to be reached in the next 6 months; Details of the total amounts of donations from the private sector being coordinated by the Central Bank of Nigeria that have so far been received by the authorities and the list of donors that have not yet redeemed their pledges; Number of trucks deployed to

convey food and other relief materials to the country’s poorest and most vulnerable people, and the total number of states that have so far benefited from such materials; Details of any plan to provide social and economic benefits to the over 80 million of the country’s poorest and the most vulnerable people, beyond the 11 million targeted by the Federal Government across 35 states, as well as details of what the CBN is doing to use the donations to provide direct socioeconomic benefits to the country’s poorest and most vulnerable people on an equitable basis, and with geographical spread. This is not the time to be cynical, but rather to believe in this fight of our lives as a nation; not to enlist merely by giving, but also to enlist by watching over what we give so that the results we desire will be the overall consequence of this national effort. In truth, it is easier to give than to watchdog the nightmarish process of distribution. But that is where the work is and that is where the rewards are. We should not leave that to unscrupulous people who are adept at ‘kidnapping’ the funds before it reaches the intended destination. We must keep watch. COVID 19 UPDATE (as at 07/04/2020) Confirmed 238 Discharged 35 Deaths 5 Gov. Seyi Makinde – recovered, back to work Gov. Bala Mohamed, Bauchi State, recovered

CACOVID Donors roll call Continued from last week • Aliko Dangote – N2Billion, (as against the N1Billion earlier announced • Oba Otudeko – N1Billion • Deji Adeleke – N500million • Union Bank – N250million • Standard Chartered Bank – N250million • Stanbic IBTC – N250million • Citi Bank Nigeria Ltd – N250million • FCMB – N250million • Fidelity Bank – N250million • Ecobank – N250million • African Steel Mills – N250million • Multichoice Nigeria Limited – N200 million • FSDH Merchant Bank – N100million • FBN Merchant Bank – N100million • Rand Merchant Bank – N100million • Coronation Merchant Bank – N100million • Sun Trust Bank – N100million • Providus Bank – N100million

Oba Otudeko

Deji Adeleke

• Wema Bank – N100million • Unity Bank – N100million • Heritage Bank – N100million • Nova Merchant Bank – N100million • Polaris Bank – N100million • Keystone Bank – N100million www.businessday.ng

• Globus Bank – N50million • Titan Trust Bank – N50million •TakagroChemicalsLtd–N50million • Ahmadu Mahmoud - N20million • Handy Capital Ltd – N5million • MTN Nigeria – N1Billion (Pledge)

https://www.facebook.com/businessdayng

• Lafarge Plc – N1Billion (Pledge) • Flour Mills of Nigeria – N400,000 (Pledge) (Some redoubtable corporate and individual names are still missing from the list. Govt has said we need about N120Billion to @Businessdayng

prosecute the fight. So, as you see, we are still a long way away. We expect they will join in the effort). (Kindly send feedback to 08023314782 / csrmomentum@gmail.com)

industry Insight

BUSINESS DAY Thursday 09 April 2020 www.businessday.ng

Saving SMEs sector from coronavirus-induced collapse Gbemi Faminu

ince the outbreak of the novel coronavirus (COVID-19), countries around the world have experienced pressure in various forms. Apart from the strain the virus has placed on the health sector around the world, it has also affected countries economically, politically and socially. It has neither spared governments’ fiscal status nor the incomes of low and middleclass citizens. All economies—developed, emerging or frontier—have experienced slump in one form or the other. Developed economies have created buffers to curtail the harsh effect of the virus on economic and commercial activities. The United States is already seeking additional $250 billion to complement $350 billion earlier budgeted as relief fund for small businesses in the country. The loans are meant to keep the economy running and jobs intact. The loans are easily forgiven if there is evidence of using the money to keep workers on the payroll rather than laying them off. Several emerging markets have not been that lucky as they do not have such war chest except they borrow from multilateral agencies. Principally, the micro, small and medium scale enterprises (MSMEs), which account for 90 percent of all businesses in Nigeria and contribute 50 percent to the GDP, seem to be the worst hit as they have been forced to restrict and in some cases suspend business operations. “The best thing for me to do is to sack two out of three of my workers after this lockdown,” Daniel Jackson, a small business owner, who produces leather shoes, said. Jackson, who has not opened his Lagos factory since the partial lockdown almost two weeks ago, complained that he had not been able to recover some of the debts owed him and had not paid his workers. Owolabi Mercy, a Lagosbased entrepreneur, who deals in bags, shoes and clothing items, told BusinessDay that since the outbreak she had nothing to sell as her suppliers would not pick their calls. Obviously, there will be mass closures post-Covid-19, but some nations will recover quicker than others, analysts say. In 2016, the Nigerian economy went into recession with the federal government imposing a

lot of restrictions on businesses. Consequently, 272 MSMEs, including manufacturing firms, were forced to shut down that year, with 180,000 jobs lost, according to a survey jointly done by NOI Polls, the Manufacturers Association of Nigeria (MAN) and Centre for the Studiesof Economies of Africa. Predictions are that the number might be three to five times higher this time. A national survey of MSMEs conducted by the National Bureau of Statistics (NBS) in 2017 shows that the country has 41.5 million MSMEs scattered across various sectors. The data also affirm that about 73 percent of these MSMEs fully engage in wholesale and retail trade activities with China as a principal partner while about 43 percent of the medium scale enterprises engage in manufacturing activities. But many firms also shut down. “The number of mediumsized enterprises decreased significantly from 4,670 in 2013

to 1,793 in 2017, indicating a 61 percent drop,” said the 2019 report which covered between 2013 and 2017. This means that 2,877 firms shut down within four years. Unemployment in Nigeria, now world’s poverty capital, is 23.1 percent. The number may run into 30+ after the pandemic, analysts say. Covid-19 is cutting short lives and businesses with some firms not sure of recovering after the pandemic. Businesses are not in operation and even those allowed to operate experience low product demand. Nigeria is set to borrow $6.9billion from multilateral lenders to provide liquidity for the economy and counter the negative impacts of the virus. The government is seeking $3.4 billion from the International Monetary Fund, $2.5 billion from the World Bank and a further $1 billion from the African Development Bank, according to Zainab Ahmed, finance minister.

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Principally, the micro, small and medium scale enterprises (MSMEs), which account for 90 percent of all businesses in Nigeria and contribute 50 percent to the GDP, seem to be the worst hit as they have been forced to restrict and in some cases suspend business operations

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On the domestic front, available data on key macroeconomic variables indicate the likelihood of subdued output growth for the Nigerian economy in 2020 Analysts are urging the government to ensure that part of the funds go to the MSMEs who have created more than half of jobs in the economy. Bongo Adi, a Lagos-based economist, said this is a bleak period for many companies especially the MSMEs as no country has been able to arrest the virus. He said that the impact of the pandemic was beyond what the MSMEs would handle and said government must create palliative measures. “The MSMEs cannot solve this because this is not a normal challenge. Their supply and logistics have been cut off from various sources so there is nothing they can do,” he added. In addition, for a country like Nigeria, which is heavily reliant on oil, the virus has instigated a pendulum-like movement on

oil price which hovers around $32 per barrel (Brent). The over 20 percent drop in oil, which accounts for almost 90 percent of foreign exchange earnings, as well as about half of federal government revenue, has implications for the economy which could result in another recession and even stronger implications for manufacturers and traders that need Forex for their business activities. “The best bet is for government to provide six to nine percent loans to SMEs at a tenor of three to four years,” Ike Ibeabuchi, a manufacturer, said. “This should not be taken lightly like other things we do in Nigeria. It is serious, otherwise we will be courting a big unemployment disaster that will have a ripple effect,” he advised. Questions hang in the air as to how the country will make a rebound after the pandemic which is yet to be arrested, especially as major drivers of economic growth have been greatly affected. Already the Central Bank of Nigeria (CBN) during its last Monetary Policy Committee (MPC), stated that the outbreak of the pandemic had affected economic activities and will dampen the growth of the economy for the year. “On the domestic front, available data on key macroeconomic variables indicate the likelihood of subdued output growth for the Nigerian economy in 2020. Based on the current downturn in oil prices, staff projections indicate that output in the 2020 would be less than earlier envisaged,” Godwin Emefiele, Governor, CBN said Although the apex bank introduced some palliatives and stimulus packages for businesses to curb the impact of the virus, there are concerns on currency stability and disruption to global supply chains. Due to the growing number of cases in Nigeria, the federal government has directed that Lagos, Abuja and Ogun State be placed on total lockdown to curtail the pandemic. There are indications that it will be extended. This inevitably will further trigger a negative demand and supply shock to the economy and cause a hike in the prices of essential goods. Analysts say it will do a lot of damage to the economy, particularly small businesses. But they add that fighting the virus should be the number one priority of every country and bailing out business should be the next.

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